CONV

ERSE

ISSUE 1July 2003

consulting

Ashridge Consulting wins MCA award

Breakthroughs in the NHS

From Alex to Ina

Coaching: best practice

CONVERSE

3

a word from the editorThe work of Ashridge Consulting comprises awide range of interesting stories. Its clients, theirgeographical locations and their organisationalneeds are diverse. Its consultants bring together awide range of skills, expertise and experience ofworking throughout the world.

It is easy to take for granted the reasons whyorganisations thrive.There is undoubtedly a greatertendency to reflect on and analyse why problemsoccur and what makes organisations fail. Too littletime is spent reflecting on, appreciating and cele-brating success. Ashridge consultants see manysuccess stories unfolding as they work with clients.They want to share these stories – many of whichare about the transformation of organisations,cultures and importantly, individuals’ working andpersonal lives. Converse is therefore being createdas a medium through which to share and reflect ongood things that are happening in organisationaldevelopment.

Given Ashridge Consulting’s view of organisationsas complex social processes, conversations play avital part in most of our engagements with clients– hence the title ‘Converse’. The alternativemeaning of the word is also relevant. AshridgeConsulting offers different perspectives to clientsand our approaches are always innovative.Ashridge Consulting is unique – as the followingpages will demonstrate.

In subsequent editions, this space will be occupiedby comment, opinions or questions from membersof Ashridge Consulting, their clients or any otherreader of Converse.

Please submit any letters to the editor or suggestions for contributions through kate.campbell@ashridge.org.uk

We hope that you enjoy reading this first edition of Converse.

Delma O’Brien

Editor

in this issue

3 Coaching for Consultantsby Bill Critchley, Charlotte Sills and Ina Smith

6 Project Management in Actionby Gary Luck, Programme Director

8 Breakthrough - 40% increase in patient throughput Norwich Community Hospitalby Gary Luck

10 Conversation BetweenAlex Knight and Ina Smith

12 Ashridge Consulting asks the client

13 Ashridge Consulting wins MCA award

14 Nurturing small miracles – at the Winnicott baby unitby Gill Parker, St Mary’s Hospital London

16 A growing consultancy

17 Consulting and Change in Organisations

18 Talking Point: Knowledge Management by Nicolas Worms and Rory Hendrikz

20 Reg Revans - a tributeby David Pearce and David Casey

21 Learning at the top – Action Learning for Chief Executives and Top Managers by Martyn Brown, Programme Director

22 Research tells us that...by Anthony Kasozi and Phil Auden

23 Programme dates

STOP PRESS... PAGE 4

Editorial team: Martyn Brown, Kate Campbell, Robert Dickson, Delma O'Brien, Duncan SmithDesign: www.redsky.biz

Ashridge ConsultingAshridge, Berkhamsted HP4 1NSTel: + 44 (0)1442 841192 Fax: +44 (0)1442 841260

www.ashridgeconsulting.com

Why is coaching so popular?In an ever-increasingly tough business environment, itslonely at the top.CEOs,directors and senior managers havefew people with whom they can discuss sensitive issues,and even fewer that they would want to get a glimpse oftheir uncertainty or vulnerability. Coaching represents atimely, cost effective development option that is alsogeared to strategic objectives. It is a practical, on-the-job,results oriented and time limited form of learning that maybe used to enhance or improve performance, preventderailment and implement organisational change.Coachingis not about rectifying problems. It helps successful man-agers and executives to deliver positive results to extremelyhigh standards.Coaches need to be able to work with thedemands of each individual client by providing some of theroles outlined within the coaching arena.

Coaching – who can provide it?Coaches have to combine psychological and behaviouralknowledge and expertise with a working knowledge ofmany management processes and systems.They must beable to work with a wide range of issues, from strategyand marketing through to dealing with challenging inter-personal relationship and conflict resolution. This is atall order. Many coaches have described to us their senseof “flying by the seat of their pants”, concern about theircredibility, competence and confidence as well as a realfear of coming up against something that they cannothandle. Many consultants and HR people are aware of theneed to raise the quality of their coaching. Ashridge

Consulting is responding to a real need in addressing theissue of development for coaches. The new CfOC programme includes:• Frameworks for conceptualising the role of the individual

coach• The coaching contract and its scope, limitations and

pitfalls• Identification and consolidation of new and existing skills• The opportunity to develop new ways of thinking and

practising• Relevant concepts from a wide variety of psychological

theories and ways of thinking about organisations,human processes and dynamics

• Innovative and creative approaches to the coachingintervention

• Managing challenging clients• Coaching within an international context• Ethical considerations in coaching

contd.>>

4

Weeks before the start of the first

module in April, every place was taken

on Ashridge Consulting’s new Coaching

for Organisation Consultants (CfOC)

programme. There is a growing list of

candidates for places on the next two

programmes. This reflects the fact that

coaching is one of the fastest growing

areas of consulting. In the UK and

Europe, more and more consultants are

being asked to include coaching in the

portfolio of consulting activities,

interventions and solutions they offer

their clients.

coaching for

consultantsDIRECTIVE

FACILITATIVE

CHALLENGING SUPPORTING

Sponsor

Mentor orCounsellor

HR orExternal Advisor

Manager

advising

confronting

informing

role model

catalyst

guiding

bridge soundingboard

THE COACHING ARENA

STOP PRESS..STOP PRESS..STOP PRESS..STOP PRESS..STOP PRESS..

STOP PRESS..STOP PRESS..

STOP PRESS..STOP PRESS..

STOP PRESS..STOP PRESS..STOP PRESS..

STOP PRESS..STOP PRESS..STOP PRESS..STOP PRESS

STOP PRESS..STOP PRESS..

STOP PRESS..

STOP PRESS..STOP PRESS..STOP PRESS..

BBC Training and Development

announced in May that Ashridge

Consulting, working together with

Ashridge Management College and

a team of development consultants

inside the BBC, will provide an

innovative and challenging

Leadership Development process

to 1,500 managers and executives

each year, from every level of the

organisation.

coaching for consultants contd.

Executive coaching is quite different from other types of coaching that focus on the development of skills orknowledge. It is the intentional use of a relationship thataims to develop the person of the client in relation to hisprofessional life. Even the coach with the best ‘kitbag’ ofskills, knowledge and business experience will not procurethe best outcome for their client unless they are able toestablish and build a good relationship. Studies by Bordin(1994) state that positive outcomes rely upon relationshipsthat involve mutuality of goals, tasks and bonds. Thesethree elements are held within the coaching contractwhich provides a container for the work and representsboth its scope and also its boundaries.

Goals and tasksSometimes a coach will have the luxury of a privateagreement between him or herself and the client, but morefrequently, the executive coach is subject to multiplelevels of contact and commitment to other parts of theorganisation. Usually fees are paid by the organisation,which may have its own agenda for the client, or thecoaching may be part of a wider consulting initiative, thatmay create possible confusion or conflict of interest.Conflicts abound arising from confidentiality issues, finan-cial loyalty (who is paying?) and ’best interests’ allegiances.These areas need careful and explicit contracts involvingclarification of goals and tasks if an atmosphere of trustis to be created.

Empathic bondsThe empathic relationship is built by the quality of thecontact between coach and client and is the foundationstone of all the work that takes place.Without it the clientcannot feel safe enough to take the risks of self disclosure.Alan Schore (2000) presents exciting evidenceto suggest that even in adulthood, an empathic accepting’right brain – right brain’ connection with someone wetrust, can provide the possibility for the development ofnew neural pathways, of new ways of feeling and being.If our thoughts and feeling are heard and accepted in anempathic way by another person, we learn to hear andaccept ourselves. It is from the basis of a real relationshipof acceptance and resonance that a client can be invitedto step into the area of ’bounded instability’ from whichreal creativity and change can emerge.A truly effective coaching relationship needs to providethe opportunity for understanding, build on existingstrengths, develop skills and encourage experimenta-tion, facilitate a sense of achievement (coaching is lesseffective if the client feels dependent on the coach’sexpertise) and prevent relapse into the old ways of behaviour.

The organisational contextAshridge Consulting’s view of organisations as complexsocial processes gives rise to a different view about howinnovation is fostered, how managers’ leadership role andstyle might be developed and how real change occurs.Thecoach can then go on to support clients in these processesand develop their skills. The role of the coach, for managers engaging in innovation, leadership and changes,can be seen as fourfold:• Challenging• Educating• Supporting and holding• Developing

Innovation By its very essence, true novelty takes us by surpriseand takes us into the unknown. It is impossible to prescribe, copy or control it. How then, does an organi-sation develop its capacity to innovate? If we vieworganisations as social processes, the main currency inorganisations is ’conversation’. The degree to which anorganisation can foster genuine innovation will dependon increasing connectivity by creating unusual conversa-tional forms, by fostering communication acrosshierarchical lines and between different departments, andby people’s willingness to risk introducing diversity intoconversations. Such conversations will be more partici-pative and lively when the anxiety induced by the exerciseof managerial power is reduced or the monopoly ofwisdom, sometimes claimed by managers, is given up.

Leadership The traditional view of leadership, based on mythicalstereotypes of the hero leading troops into gloriousbattle, is onerous and daunting. It is the role of thecoach to challenge these concepts and offer different perspectives. The corporate leader participates in a webof interactions amidst emerging themes and events.Whilst a CEO can influence these complex interactionsby his or her intentions and actions, outcomes cannot becontrolled or predicted. It is important to provide aholding and supporting relationship for the manager, whomay experience considerable anxiety in realising thatthey can anticipate but never know. Leaders need supportto live with uncertainty, having the courage to act decisively without any guarantee of outcomes.They alsoexperience the tension between managing current performance and leading for the future. The coach willhelp a leader think through and learn to embody their

5

BBCAPPOINTSASHRIDGE

own way of leadership, based on the person he or she is,rather than to put on the mantle of their predecessor orany stereotypical leaders. The leader will also will behelped to balance advocacy and enquiry.

ChangeCoaches aim to help leaders understand that changefor the better is not linear and programmable, but rather,

emergent and unpredictable. The coach needs to bewilling to challenge a client by introducing perspectiveswhich may disturb, as well as supporting them in relaxingtheir control and working with a degree of uncertainty.Good leaders do not try to protect people from, or elim-inate uncertainty, but work with people towards a sharedand creative solution. Coaches can help them consider thesteps in the change process and anticipate scenarios.

Coaching as a strategic processThe broader view of coaching is as a strategic process inthe service of sustainable change. In this context, the coachwill use a variety of interventions at different stages of thecoaching engagement. For example, the client may beencouraged to undertake tasks prior to the commence-ment of the coaching sessions and between meetings.During the course of the coaching, the coach may get’hands on’ involvement in the organisational context ofthe client, such as by shadowing, interviewing colleaguesand so on. Finally, the coach will address with the clienthow to maintain new ways of being that occur around theconclusion of the coaching contract. They might con-sider what other ongoing development might be put inplace (for example, action learning), how to ensure thatthe client will receive ongoing feedback, and identifyother areas for growth.

EvaluationCareful purchasers of executive coaching have a range ofcriteria by which they select coaches and evaluate thesuccess of a coaching programme at its conclusion.Theyneed to feel reassured about the following:

Appropriate boundaries and contractsThe executive coach should examine the assumptions ofboth the individual client and their organisation, beforethe assignment begins. It is generally advisable to holdstrongly to the separation of social and professionalroles. Most coaches typically decline social invitations inthe interest of keeping this boundary clear.

contd.>>

6

Coaching Skills• Enquiry – There is a whole raft of skills that are essential to the helping relationship. These help clients to become

more aware of their situation, in their role and organisation. They help in recognising which patterns of thinking,feeling and relating are useful and which ones are less useful, as well as to understand options and decisionmaking processes. In a coaching session, key skills include active listening, phenomenological enquiry (enquiry intoa person’s current experience as they see it), challenging, clarifying, crystallising and giving feedback.

• Reflexivity – This is the ability to really know oneself and reflect on this awareness with the client in a way that isuseful. For example, if a coach is able to tell a client how they are personally affected by the client’s behaviour, theclient might better understand how various actions and attitudes may affect colleagues or how they might beviewed within the organisation.

• Relatedness – Many conventional coaching relationships are based on the idea of coach as helper of the client, orfacilitator of learning. In Ashridge Consulting we have a different perspective in that we believe that real learningis co-created between coach and client. The coach is willing to be changed by the client and is not reluctant tomake an impact on the client. The coach engages in a genuine relationship of equals working together to producecreative solutions.

• Holding the paradox between certainty and uncertainty – It would be easy for the coach to fall into the trap ofencouraging the client to do ’more of the same’; to improve whilst maintaining old patterns of behaviour.This mightserve the short-term purpose of reassuring the client, but will not introduce anything novel. The coach needs totake risks – including risking not being liked or perceived as immediately helpful. The coach thereby models therisks that the client is being asked to take. The coach needs to create an area of ’bounded instability’ (Stacey 1992)that provides enough structure and solid ground for safety, but enough newness in the unpredictability of a realmeeting for creativity to flourish.

Ashridge Consulting is offering five two-day modules over a period of eight months,followed by an optional two-day practicum.Successful candidates will be awardedAccreditation as an Ashridge ConsultingCoach. The programme aims to set a bench-mark for best practice coaching, and itscontent formed the basis for a hugelypopular ’Masterclass’ series in five issues ofTraining Magazine, between January andMay this year. This article, by AshridgeConsulting’s Ina Smith, Bill Critchley andAssociate Charlotte Sills, is a summary ofmaterial presented in that series.The full textof material submitted for the TrainingMagazine series is available on the website:www.ashridgeconsulting.com/web/acl.nsf/publications

PROJECTMANAGEMENT

IN ACTIONIn Ashridge’s new

Project Management in Action programme,Programme Director Gary Luck will focus

on how projects can be managed on time,to specification and within budget.

coaching for consultants contd.

Clear levels of confidentiality It is expected that coaching is entirely confidential andoffers a safe place to acknowledge self-doubts andexplore options, therefore any limits to confidentiality(such as reporting to the client’s employer), must beclearly negotiated and agreed. Most executive coacheswould acknowledge that although organisations have theright to expect results they do not have the right to knowhow those results were obtained. A sense that yourcoach is ‘on your side’ is essential - although challengeas well as support should be expected. Although theorganisation pays the executive coach, the data collectedand information shared belong to the individual.

Highest quality coaching An Ashridge research project into executive coachingidentified a number of key areas that distinguished goodcoaches from truly excellent ones. Excellent coaches hadnever stopped developing themselves. They were con-stantly looking for new things that they could engage into enable them to coach more effectively. They wereeclectic in their approach, working with a wide variety ofideas, theories and models appropriate to particular indi-viduals. They also knew enough about business strategy,business processes and typical management issues to beable to identify with their client’s context and challengeappropriately.One way of ensuring continuous professional developmentis through coaching ’supervision’.This means taking timeeither individually or in a small group, to reflect upon one’scoaching work, examine the actual approaches used,the relationship established, the dynamics created and theimpact, results and outcomes reached. For coaches facedwith potentially difficult issues such as dependency,supervision of their practice provides an important failsafeprocedure to ensure that contracts are monitored andendings managed effectively.

Effective evaluationThe coaching process is not complete until it has beenevaluated. A typical evaluation is done through a ques-tionnaire.Very often results show that the original goalsand objectives were not the ones that emerged as impor-tant during the coaching process and the final evaluationdemonstrates a greater number of positive outcomesthan was anticipated at the start of the process.

Ashridge Consulting offers a fully developed ExecutiveCoaching service to individual executives and to both largeand small organisations. In addition the Coaching forOrganisation Consultants programme provides an oppor-tunity for internal and external consultants to explore allthe issues and themes referred to above, as well as ahighly participative learning environment in which topractice skills and develop new ones. Enquiries abouteither the Executive Coaching service or the next CfOCprogramme starting in the Autumn should be addressedto tracy.field@ashridge.org.uk tel: +44(0)1442 841106

Sources E S Bordin (1994) Theory and research on thetherapeutic working allianceA N Schore (2000) Minds in the Making, SeventhAnnual John Bowlby Memorial Lecture (CAPP), London

7

The design of the new Project Management in Action programme addresses the fact that modern managersare increasingly operating in multi-project, multi-partnered, multi-cultural environments. Project environ-ments are increasingly international and multinationalin terms of markets, stakeholders, customers and sup-pliers. Managers typically have to build, manage andmotivate new teams across cultures, often where theyhave no formal authority. Its small wonder that deliv-ering on time, within budget and to specification,seems an ever more unattainable goal for many man-agers. Is it simply a reality of modern business lifethat projects fail or overrun on time and budget? Does the complexity of an international project environment automatically reduce a project’s chanceof successful delivery?

Dynamic project environmentsIt is increasingly accepted that strategy is a dynamicprocess. So too, are project environments.The unforeseenevents, developments and opportunities that emerge ina project life cycle will be multiplied by many factors in a multi-cultural, multi-partnered, multi-project environment.

Managing cultural diversity:leadership strategiesFrom our experience with global and multinational organisations, it is clear that projects whose teammembers embrace wide cultural diversity are more likelyto encounter higher levels of uncertainty and lower levelsof agreement. Managers should be encouraged toheighten their awareness of diversity and address itthrough appropriate styles of management and leader-ship so that the tension inherent in the diversity resultsin creative outcomes.The model in fig 2, adapted from anidea by Ralph Stacey, often helps managers to considerthe styles they need to adopt for their project or projectcomponents, and will be particularly beneficial in a multi-cultural project environmentA typical project with high levels of agreement and highlevels of certainty is where the answer or outcome of theproject is already known and predictable, eg. the buildingof a new factory. In this type of environment a projectleader will find it easier to plan, monitor and controloutcomes.Conversely, in some projects there exist low levels ofagreement and low levels of certainty. In this scenario, aproject leader will need to be more facilitative. If this typeof project is undertaken in a multi-cultural environment,a project leader will need to create an environment fortrust, openness and collaboration. He must engage peopleto define the problems and co-create the solutions. If thisis achieved successfully, the stakeholders will find experimentation stimulating and bottom up change can be created.

Whilst perceptions may lead managers to believe that theirsituation corresponds to a ’top right’ position on fig 2, byan innovative combination of technical and softer skillsnew knowledge can be co-created, moving the projectsinto the more familiar arena of plan, monitor and control.’Soft’ project management skills can be used with greateffect throughout the project process. When Ashridge

Consulting works withorganisations, its primepurpose is to transfer con-sulting skills such asfacilitation, principles ofworking with change, con-flict resolution, influencingwithout authority andindividual executivecoaching, in order to buildhigh trust relationshipsand a learning commu-nity.This approach createssustainable learning andensures the learning loopis completed.

A project modelExtensive research hasdemonstrated that uncer-tainty in projects can arisefrom:• Difficulty in estimating

task time• Student syndrome

(leaving starting thetask until the lastminute)

• Parkinson’s law (work expands to fill the time available)• Unsynchronised integration of dependent tasks• Bad multi-taskingAll of these reasons for uncertainty are addressed by Dr E H Goldratt’s critical chain methodology, which createsa common language that is suitable for cross-culturalteams. It not only produces collaborative ways of pro-ducing a robust project network, but it also providesvisual ways of accurately monitoring the status of the

whole project rather than just the parts.This methodologyhas a proven track record of reducing the time of projectsby up to two thirds.

Cross-cultural communication in projectsIf a project manager explains the content of a project, orthe ways of working on a project, in a highly theoreticalor technical way to a team member whose learning styleis more experiential or practical, there is likely to be abarrier to understanding. This disconnect is likely to beexperienced even more frequently when linguistic barrierscompound the difficulties in understanding.The use of expressive forms, such as stories and artisticrepresentations, can often build pictures more effectivelythan formal language. For example, a cross-cultural teamwithin a multi-national client was recently working tounderstand and describe the project environment in theircompany. Storytelling, drawing, body-sculpture and poetrywere all used to portray a scenario which emerged in afar more meaningful and broadly understood formatthan any word-bound analytical approach could havecreated.Given that the present is the stories we shall one day tell,this more ’whole self’ playful approach should not be dis-counted. It certainly goes a long way to breaking downcultural barriers and facilitating good communication.

Cross-cultural understanding in projectsProject managers also have to familiarise themselveswith the less visible aspects of cross-cultural workingthat can complicate the project environment. Projectmanagers need to heighten their awareness of theseissues in their particular cross-cultural working context.Multi-cultural project working can only really be under-stood by practical experience. It is expected that theenvironment for multicultural project working will becreated by a diverse group of participants in the forth-coming Ashridge PMA programme, from 7 -11 July 2003.(The subsequent programme will start on 3 November).Some places are still available for the July programme.

For more information, see www.ashridge.com/pmaor contact: Gary Luck on +44 (0)1442 841183

8NB A more detailed version of this article appeared in Training Magazine, June 2003

Project objectivesProject outcomes

Projects beingimplemented

Emergingprojects

Unfulfilledprojects

social & politicalinteraction

Emergingopportunities

Strategic Intent

I m p l e m e n t a t i o n

Strategic Learning throughproj

ects

Analysis Vision

Assumptionsand Beliefs

INC

REA

SIN

G L

AC

K O

F A

GR

EEM

ENT

INCREASING UNCERTAINTY

MANAGING EFFECTIVELY• planned, monitored and controlled• communicated• top down• works well where you can manage effects and predict the outcomes

LEADING THROUGH CREATIVE TENSION• leaders stretch the organisation without imposing solutions• both forthright about key issues and open to the response• involvement at all levels in collective learning• acceptance of 'good enough' and get on with it

LEADING THROUGH FACILITATING• engaging people to define both the problems and co-create the solutions• stimulating experimentation and bottom up change• the process is designed as the future unfolds

BROAD LEADERSHIP STRATEGIES IN PROJECT MANAGEMENT

PROJECTS AS A DYNAMIC PROCESS

fig 1

fig 2

9

In the Spring of 2002, the prospect of increasing patientthroughput by 40% would have seemed like a dream forTony Hadley, Head of Community Services at the NorwichCommunity Hospital. Eight months later it had becomea reality, thanks to the implementation of a changeprocess centred around the Theory of Constraints (TOC)by Ashridge Consulting. Based on average throughputrates since the work with Ashridge Consulting began inAugust 2002, it can be calculated that 500 additionalpatients can be treated each year. This result has givenforty-fold payback on the investment made in a smallnumber of consultancy days. By January the averagelength of patient stay was down to 20 days, compared to35 days before the change process began in the previousAugust. In February and March the average stay wasfurther reduced to 19 days. In addition, though harder toquantify, NCH has been transformed into an organisationable to learn how to address its own problems.The opportunity for the implementation of this dramaticchange was the opening of a new hospital, following theclosure of two hospitals and moving of beds from athird.The new hospital strategy presented an ideal oppor-tunity to encourage more innovative ways of working andprompted Tony Hadley to recall the value of the TOC

two-day course he had attended 5 years earlier. He pickedup the phone to Gary Luck, Senior Business Consultantat Ashridge Consulting. They began a conversation thatset in progress a process that within three months wasalready delivering dramatic results.

Co-creating the approachGary coached Tony in his approach to facilitating a halfday workshop for the Clinical Management Team,to explore what could be done differently and to get acommon understanding of the team’s beliefs and philoso-phies that would underpin all further activity.The team wasintroduced to TOC principles and it was agreed that thisshould be explored further. A short paper and presenta-tion were put to the Senior Management Team, whichincluded all Trust Directors and the CEO, outlining the proposal.Consistent with Ashridge Consulting’s approach, theprocess implemented in the NCH would be underpinnedby the development of a trained core team, capable oftransferring skills and knowledge throughout the hospitaland other associated agencies such as Social Services. GaryLuck held individual interviews with each of the ClinicalManagement Team in preparation for a two-day workshop

in which they, together with other selected individuals fromacross the entire hospital, would act as the core TOCgroup. All these people had credibility with the grassroots staff across the hospital, and were willing to explorenew ways of working that challenged current workingpractices.

Learning and first steps in implementingthe theoryIn the two day workshop, this group of some 25 peopledeveloped their understanding of the TOC approach tochange, using an application known as ’drum bufferrope’ and critical chain project management.

Co-creating the implementationA further day provided them with an opportunity toreflect and voice any concerns.A project plan was devel-oped, as was a common understanding of the crucial needfor buy-in from all hospital staff. Everyone acknowledgedthe need for a change in culture, an educational ratherthan a training approach, encouragement and support ofinnovation and for the challenging of existing workingpractices and boundaries. Throughout the work with thehospital, the developmental needs of the core TOC team

On admission 24 hour admissionassessment RN.Within 72 hoursdoctors andtherapistsassessmentscompleted

Ward round (after admission). Ensure all tests etc. are achieved and any neccessary specialist therapistand nursing referrals completedby end of week one

Therapy and nursing to meetweekly to shortterm goal plan - ongoing

Further period of assessment /treatment / long term goal setting, ie. discharge planning and patient involvement

Therapy and nursing to meetweekly to shortterm goal plan - ongoing

Provisionaldischarge dategiven

Confirmation ofcare package/service availability/equipment etc.

Confirm need foralternatives toSW referral

Family meetingplanned if fornursing/residentialplacement

Patient referred toSW dept (3 daysto respond

Referral to alternativeservice

Patient needs service. SW has5/10 days max toprovide service(ie HC/RC/NC/HOusing etc) to patient for discharge

DEPENDENT EVENTS WITH TIME BUFFER

Drum-Buffer-RopeThe drum beats the pace of the weakest link (or bottleneck). The system can only run as fast as thespeed of the weakest link so the drum beats the pacefor the whole system and ensures everyone else doeseverything they can to support this bottleneck. The“buffer” safeguards the bottleneck, i.e. ensures thatthe most constrained link in the system is always activeto its full capacity. The buffer manager makes sure thatall the necessary stages are successfully completed andchecked prior to reaching the bottleneck. The rope is asimple way of communicating the pace at which thenew patients should be brought into the system.This diagram of dependent events demonstrates wherethe buffer was placed. All dependent events were synchronised well before the patient was to be discharged.

breakthrough40% increase in patient throughput at Norwich Community Hospital

10

and the skills they required to deliver change, emerged andwere addressed. The first day of individual, team andorganisational development focused on softer skills thatincluded different styles of intervention, change processesand new thinking together.Processes were used in order to cover the four key stylesof learning and demonstrate a way of managing uncer-tainty in the environment of a hospital.

One of them was the Dice Game (covering many of theaspects of the Kolb learning cycle), that used dice andcounters to simulate the dependent events and wholesystem behaviour within the hospital. The Core Teamwere trained to deliver the key messages of the DiceGame and facilitate discussion to stimulate new thoughtsto address old problems. 180 staff (ie the majority of theworkforce) were introduced to the Drum Buffer RopeTOC thinking through a series of two-hour lunchtimesessions. This ’roll-out’ replicated the principles inherentin Ashridge Consulting’s training of the Core Team.Theseincluded:• the avoidance of jargon where possible• allowing staff the space to develop their own

solutions

• giving staff the opportunity to think about thesignificance of the project for them as an individual,for their department, the hospital as a whole, and –crucially – the patient.

• the opportunity for staff to say ’no’ as well as ’yes’The approach was also mirrored in a separate session forthe Directors, Chair and CEO, Trust Board and membersof Social Services.Staff responded with enthusiasm. They had experiencedall too often the frustrating absence of dependent eventsrequired for patient discharge. For example, the lack of aready prescription, transport home and numerous otherfactors, substantially delay patient discharge. They wereable to identify the problems of the whole system andbegin to develop ideas about how to address them. DrChris Price, CEO, Norwich Primary Care Trust commented:“TOC has captured the imagination of staff at NCH. It hasgot everyone pulling in the same direction and has beena great tool for team building as well as service redesign.”

The resultsAlready by November 2002, improvements were becomingvisible, and these have been consolidated and built on inthe months that followed. In addition, the staff of the NCHare living the theory in everything they do, so that not justdischarge but all areas of the hospital are benefitingfrom the TOC process.In a climate of an ever-increasing number of initiatives to’solve the problems’ of the NHS, there is great temptationto spread resources and energy thinly across the entiresystem and through many initiatives. Through AshridgeConsulting’s work with NCH and in many other part of theNHS, we have proved that, together with our clients, wecan identify the areas where activity should be focused.Using TOC and a cocktail of innovative consulting skills,Ashridge Consulting can work with clients to deliverbreakthrough solutions that will repay the investmentmade many times over. Our work within the NHS isentirely consistent with our core values, which include ourdesire to see our clients thrive as a result of the consultingskills we transfer.

Discharge dateagreed

Car transfersassessed

District nursereferrals.Specialist nursesinformed

Outpatient appointmentarranged

TTO'sordered

Transportorganised/confirmed

Discharge frominpatient care

Doctor's dischargeletter faxed

TTO's ready fordischarge/checked

Transfer letterssent to home

SYN

CH

RO

NIS

ED

TIM

EB

UFF

ER

AshridgeConsultingtakes

centrestagein QueenElizabeth IIConferenceCentre400 NHS senior managers, plus representatives fromcentral government and the Modernisation Agency,were audience to a presentation of the phenom-enal results being achieved by Ashridge Consultingin the NHS. They attended a conference in March entitled ’Promoting access in health and social care’,at the Queen Elizabeth II Conference Centre inLondon, at which the keynote speaker was Dr EliyahuGoldratt, inventor of the Theory of Constraints (TOC).The programme included a presentation and discussion of the Norwich Community Hospital (NCH)case study by Ashridge Consulting’s Gary Luck, withNCH’s Tony Hadley and his team. Alex Knight and Jan Elliot, Director of Patient Access for theOxfordshire Health System, outlined how 12 hourtrolley waits had been eliminated at the HortonGeneral Hospital and other breakthroughs in perform-ance had been achieved, through the applicationof TOC methods.A lively debate was opened between the confer-ence participants and major NHS stakeholders. Theaudience responded very enthusiastically. Since theconference,Ashridge Consulting and Goldratt Europehave been pursuing an increasing number of oppor-tunities to further their work in this area.

Heron, John, Helping the Client,1990Kolb, DA, Experiential Learning:Experience as the Source of Learningand Development, 1984

For further information contact Gary Luck on +44(0)1442 841189,gary.luck@ashridge.org.uk

reflectionexperiment

theoriesmodel

ALEX How do you feel after your firsthundred days as leader of AshridgeConsulting, Ina?

INA So far, its mainly business as usual. After 7years in Ashridge Consulting, the last weeks have feltlike part of my natural continuing development. Ofcourse, my role is subtly changing and my role as amember of the board of Ashridge is quite new.However, generally I feel that Ashridge Consulting’scommitment to continuous development anddistributed leadership has really helped us all in theweeks since your departure. We all have a sharedpurpose and understanding that is really helping me inmy transition into my new role.

ALEX So what sort of legacy do you feel I have passed on to you?

INA Not many MDs pick up a thriving company. I’mso lucky to take on the leadership of an organisationthat is going in a great direction. In spite of the worldrecession and in contrast to much of the consultingindustry, Ashridge Consulting is growing and gettingmore and more successful. Its gaining maturitywithout losing the sense of challenge and innovation. Ifeel really excited that 3 new consultants have joinedus in the last couple of months. They are valuableadditions to a talented team. Our ability to recruit andretain staff (with a current total of 25 consultants, weonly usually lose about one a year) is helping us keepour stability, combined with our growth. Theopportunity to lead the team you put together is afantastic reward for 7 years’ hard work. I suppose mychallenges will be very different from those you faced10 years ago when you started this role!

ALEX When I arrived, there was a smallcore of talented consultants with someamazing ideas that were probably ahead oftheir time. They were struggling to sellbusiness and to feel good about the workthey were doing. It was clear to me then thatAshridge Consulting was too small to be asustainable organisation, and staying smalljust wasn’t an option for me. We had tobecome a niche consulting group withunique capabilities. We were different in ourcontent – centred round our view oforganisations as evolving social processes –and in our methodologies. We also needed tobe culturally diverse and gender diverse.(Not many consultancies employ morewomen than men!) The Ashridge Consulting I left is certainly all of those things and I’msatisfied that we became what we set out to be.

INA I have always felt that Ashridge Consulting isan organisation in which we can experiment and testout the way we work with clients.

ALEX Exactly. We can try out variousapproaches to management and see whatreally works. We’ve tried all sorts of things.Some worked, some didn’t. We do know thata robust, honest culture works well foreveryone, and we all draw huge supportfrom our action learning groups and peerreviews. We also seem to manage a goodbalance between pursuing our individualconsulting interests with our clients andsupporting our own organisation.How do you feel about having to switchsome attention away from your client workin order to commit time to your leadership role?

11

CONVERSATION BETWEEN

Alex and InaAlex Knight left his role as MD of Ashridge Consultingat the end of February, to lead Goldratt Consultingacross Europe. He stills works as an Associate ofAshridge Consulting and on one of his recent visits hepopped in to see Ina Smith, who is the new MD. This is a ’fly on the wall’ report of what was being said…

“Because Ifervently believein investing inpeople, wesignificantlyincreased ourspend on staffdevelopmentevery year for 7 years.”

INA That’s a good question – I’ve always found ithard to say ’No’ to interesting work. But I will have tomake space for other things now. Its important tocontinue to work as a practising consultant, in orderto keep my feet to the floor. However, I will have toreduce the amount of face to face client contact I havein order to redirect my energy into other things. It willbe important for me to be available for key clients, andto respond positively when consultants ask me to jointhem to support them in some of their client work.This will be a new, supportive role and lead to adifferent level of relationship building. I’m lookingforward to that, and I’m aware of the need to selectmy activities according to the strategic needs of theorganisation rather than the level of personal interestthey hold!

ALEX You are right – to a point – but don’tforget, leaders have a right to be happy! Doplenty of what you enjoy. Its also good if youare not around all the time. It enableseveryone else to avoid getting into a cultureof dependency!

INA I suspect I’m going to be around more than you were.

ALEX Well, for a few years now you havebeen ’the keel of the boat’ and for longenough your peers have given you feedbackabout your role in providing a centre forAshridge Consulting. Its great that you canamplify that in your leadership.ip now.

INA Yes, its helpful that everyone knows me, goodpoints and bad. It feels good that I can learn openly inmy new role, without pretending to know all theanswers and assume a façade of confidence. I’m stillgrowing into the role and developing my sense of selfwithin it. Of course, I am being very well supported bythe leadership team. I am very committed to theirroles in the leadership of Ashridge Consulting.

ALEX Absolutely. Its no coincidence thatthe MD has no budgetary authority.Budgetary control is spread around theleadership team. It’s a great way ofspreading responsibility and avoiding toomuch deference to the MD!

INA But even in a culture of shared leadership, I amsure that as MD there were times when your personalleadership style determined outcomes?

ALEX That’s true. My style is ’foot to thefloor’ – I don’t know any other way.I suppose one example of driving through myvision was my commitment to recruitmentand growing Ashridge Consulting at timeswhen consolidation might have seemed themore sensible route. Because I ferventlybelieve in investing in people, wesignificantly increased our spend on staffdevelopment every year for 7 years and weheld our investment in our research projectswhen the going got tough. I managed tohelp people see that it is possible to makemoney whilst still being creative andinnovative. Also, we were recruiting wheneveryone around us was shedding staff andwork seemed thin on the ground. If I hadbeen staying on, I would have liked to seeAshridge Consulting double in size, to around50 consultants.

INA Yes, I have hopes for further growth, though Idon’t really hold a final picture. For me, growth alsomeans enjoying success and having new things to do.It can also mean collaboration. Some recent researchsuggests that our clients are aware of the advantagesof a consultancy that can also link them in toAshridge’s world class executive education. At thesame time I am keen to preserve our strong culture asa niche, leading edge consultancy with a clear focuson strategic change and organisation development.

ALEX What do you think your personalleadership style will be, within thatenvironment?

INA Using conventional descriptors, I think I see myleadership style as ’enabling’. Perhaps more useful is amusical analogy, in which I see myself as the 1st violinleading the orchestra. Although, I actually seeAshridge Consulting more as a jazz band thatcombines lots of passion and talent making musictogether, but also allows lots of solo stars to beinnovative and creative.

ALEX And what a cracking violin playeryou are! I think the last hundred days havebeen the best transition we could havehoped for. These conditions haven’t justemerged without effort. I think we havecreated the right environment to make itpossible for good things to happen.

INA How do you think your time here has preparedyou for your current role?

ALEX The particular ’pots of gold’ I takewith me are really knowing how to lead andmanage a professional community. Mychallenge now is leading a virtual communityacross Europe, most of whom I haven’t evenmet yet. I also need to influence peopleworking in other consultancies. I am notdaunted by this prospect – AshridgeConsulting has shown me that my strongvalues will be an enormous help. I know thatI am both tough and supportive, plus firmlycommitted to developing and investing inpeople. Ina, in you I see Ashridge Consultingvalues in action. When the going gets tough,you can lean on those values and your ownpersonal ones and you will all continue tothrive. I could say best of luck for the futurebut after working together for the last sevenyears you and I know ’its not luck’!

12

“I have always felt that Ashridge Consulting is anorganisation in which we can experiment and

test out the way we work with clients.”

What is it really like to invite Ashridge Consultinginto your organisation?

Ashridge Consulting asks the client...

The people best placed to describe the experience are the clients we work with.It seemed appropriate to ask John Pedley (second from the left in the photograph)to tell readers about his experiences of working with Ashridge Consulting overseveral years and particularly in his role as Halford’s People Development Manager.He reached for a flip chart and his thoughts were captured as follows:

• They do not offer me certainty

• They help us allow change to evolve

• No slick prissy answer to the problem

• We learn from each other as we work through issues

• They do not impose best practice from other organisations

• They admit when they are having trouble with the situation

• The approach is one of partnership - we work alongside each other

• They can live with the ambiguity that is present in an organisation

• We are creative together

• Our work together draws on the skills of people in the business

Ashridge Consulting’s entry consisted of a case studyon work undertaken with Halfords.Their win and thestory of the work with Halfords were published in TheGuardian the following day under the headline ’A little more conversation’. The editor obviouslychose that title because cultural transformation thataccompanied and facilitated a re-branding exercisewas achieved within Halfords in an approach thatinvolved appreciative inquiry, conversations and sto-rytelling. The same story had also been featured in People Management in November last year,entitled ’Thanks for asking’.To applause from hundreds of management consultants assembled for the prizegiving and dinnerin the cavernous splendour of London’s NaturalHistory Museum, Ashridge Consulting BusinessDirector, Caryn Vanstone, was invited to the podiumto collect the award. Caryn, who had co-created theapproach to the work at Halfords with Ashridge

14

Ashridge Consulting wins

MCA AWARD

Ashridge Consulting’s exceptional achievements wereacknowledged by the management consulting industry earlierthis year when it was announced winner of the OrganisationalDevelopment category of the Management ConsultanciesAssociation (MCA) 2003 awards for best practice.

Ashridge Consulting’s view of organisations asevolving social processes acknowledges the fact thatorganisations and individuals exist in increasinglydynamic circumstances. Since the completion of ourwork with Halfords, the company was sold by Bootsto a venture capitalist group. Changes have beeninevitable. John Pedley himself is moving on andeveryone in Ashridge Consulting who has workedwith him as a client and friend, wishes him the very best for his future.

Consulting’s Robert Dickson, had authored the winning case study. Her write-up of the case studycan be read in the Ashridge publication Innovations,which can also be accessed on the web throughwww.ashridge.com The title she chose for this article,’Passion, freedom and results at Halfords’ says muchabout Ashridge Consulting’s style of working, which ledto its MCA success and to the warm tribute inherent inJohn Pedley’s comments.The delight shared by members of Ashridge Consultingand the Halfords management team was captured inthe photograph below, taken moments after the presentation of the award on 7 February.

For more information about how Appreciative Inquirycan transform organisations, contact Caryn Vanstoneon +44(0)1442 841190

Gill Parker is Unit Manager of theWinnicott Baby Unit, a neonatal intensivecare unit. This is her account of the unit’swork with Ashridge Consulting’s Dr Guy Lubitsh, an organisationalpsychologist, to begin a change processthat is transforming lives and work in a critical, emotionally chargedenvironment within the NHS.

Stresses and strainsThe Winnicott Baby Unit (WBU) at St. Mary’s HospitalLondon serves a local population that is culturally diverseand includes both affluent and socially disadvantagedpeople.The unit also cares for babies transferred from bothlocal hospitals and outside of London. Both neonatologyand the service have advanced significantly over recentyears and this expansion is difficult to accommodatewithin the confines of a limited space in a traditional oldLondon hospital. Staff come from a diverse mix of cultures,nationalities, religions and languages.In the period leading up to January 2000 the WBU wasgoing through a difficult time.All the multidisciplinary teamcomplained about the lack of space in the unit, which ledto them operating under extremely poor physical workingconditions. One member of staff explained the situation:“We take premature babies, it is congested and we worka 12 hour shift”. Another nurse complained: “The department is geographically isolated and conditions arecramped.The intensive care unit is very hot and there areno windows.” Communication between staff was virtually non-existent and morale was poor.The unit wasunder a great deal of stress, compounded by the pressureof working with fragile babies and interacting with theirparents, in intensely emotionally charged situations.

Reaching out for helpTogether with the clinical consultants I decided to seekinternal advice from the hospital’s HR department inorder to help the unit move forward. Following our dis-cussion, we decided to invite Ashridge Consulting’s GuyLubitsh, an organisational psychologist, to help facili-tate a cultural change that would increase communication,job satisfaction and improve the delivery of care for bothbabies and families. Dr. Karena Ghaus, our lead cliniciansaid: “We wanted an outsider to the system – someonewho could provide an objective insight as to the way wewere working and suggest tools and ideas as to how wemight move the unit forward.”

Enquiry into practical and emotional issuesGuy conducted interviews with staff at all levels in the unit.They complained about practical problems such as lackof communication, a culture of blame and conflictingmessages. However, it became clear that these issues weresymptoms rather than the core problem, which was thelack of conversations among staff in the unit about theirexperiences of working in a neonatal unit. People simplyhadn’t talked about dealing with vulnerable babies andtheir families during intense times. All these deep emo-tional issues that were not dealt with had surfaced in adysfunctional way, leading to an unhealthy situationrequiring outside intervention.

nurturingsmall miraclesat the Winnicott baby unitST. MARY’S HOSPITAL (LONDON)

Additionally, international staff came from diverse back-grounds and the significance of this was not sufficientlyacknowledged. There were different approaches, forexample, to managing conflict. While some nurses wereused to handling conflict openly with colleagues, otherspreferred to avoid the issue altogether, or else discuss itin an indirect manner. Another issue was that nurseshad acquired different work practices according to thetraining they received in their home country. However, inrunning an intensive care unit there was not enoughtime to put aside to discuss these differences and theirimplications for work. Neither was there a safe place toopen up and resolve constructively the issues that arosefrom having an international work force working in ahighly stressful environment.

First steps – working with managementand clinical staffThere were two initial priorities. Guy began working withmanagement and medical staff to increase communica-tion and understand mutual role expectations.We workedwith Guy to increase awareness of the importance of con-sistency of procedures/practices where possible and toestablish regular meetings and develop further protocols.We began to facilitate wider conversations about thestrategy and the direction of the unit involving manage-ment, nurse manager and the clinical consultant team.Wecoached consultants, both as a group and on an individualbasis, to increase their credibility as leaders; in particularencouraging them to take up their authority as leaders ofthe unit.The second priority was to improve the day to day runningof the unit.The lead clinician and I agreed to hold frequentmeetings to strengthen our relationship and the leader-ship of the unit. We clarified our roles together withthose of the others in the unit.This process created a newkind of relationship within the unit – one that was basedon far more trust and openness. Consequently, we wereable to project far more confidence when dealing withstaff.

Creating a safe environment foreffective communicationWe agreed to set up a weekly nursing support group fornurses to talk openly and honestly about how they felt atwork. Anxieties and difficulties could be shared andexplored, skills and strengths acknowledged and moreopen patterns of communication established.As a result,nursing staff began openly to articulate some of theemotional difficulties and stress involved in workingwithin a neonatal unit. By articulating emotions within agroup context they became visible.The staff started to owntheir emotions and develop a sense of responsibility forwhat was happening in the workplace around them. Inthis space, the staff began to learn from experience andto solve problems for themselves. Following a review ofthe effectiveness of the nursing support group after sixmonths, it was agreed to open the group to all staff in theneonatal unit and to change its title to ’staff group’. Thisreflected the changing needs and progression of theteam as a whole.

Our success so farSince the beginning of the work at the WBU three yearsago, the unit has improved significantly in terms of overallperformance in terms of providing patient care and in theprovision of job satisfaction. Sickness and job vacancylevels have fallen dramatically. Recruitment has improved,

in particular at senior level, and applicants now apply ’onspec’ because they have heard so many good thingsfrom colleagues about the WBU. Staff are happier andmorale has improved. Senior Trust management has com-mented that the consultant team and nursing staff on theunit seem much more proactive and confident. This per-sonal and professional confidence has grown in staffwho previously felt disempowered and undervalued.We have noticed a greater willingness to acknowledge theemotional impact of the work on the staff as individualsand as a team combined with a greater ability to supporteach other and respect strengths and differences.In commenting on the change in the unit, one of the clinical consultants said: "There is a different atmos-phere when you come into the unit now. People make eyecontact and greet each other rather than keeping theirheads down and ignoring others around them."The maternity unit and other agencies working in part-nership with us have noted the change in attitude andcomplimented all staff for embarking on such an innova-tive process that has resulted in very positive change.Wecertainly have a better flow of communication, (forexample, the unit held two formal strategy days involvingthe whole multidisciplinary team and representativesfrom other local teaching hospitals).

An ongoing improvement and learning processI have learned that creating change is an ongoing process.

It is a dynamic process and we are continually improving.Since taking ownership of their actions, all members ofthe multidisciplinary team have been trying to resolveissues amongst themselves, and they now have a senseof responsibility to the team as a whole. Dr. Ghaus feelsequally positive:“I am glad that I had the courage to seekadvice and address together with my colleagues andGuy some of the difficult aspects of working in an inten-sive baby unit that are traditionally given less importanceand time”.We have also set new structures for learning and devel-opment for nurses including bi-monthly team days toshare knowledge and discuss strategic issues. In par-allel, there are regular meetings at all levels of the unitto resolve daily work issues. Furthermore, we haveemployed a psychotherapist to support staff who aredealing with families that are experiencing the turmoil ofhaving a baby admitted to an intensive care unit.The consultants are now following the nurses’ progressand have embarked on a strategic/visioning exercise.This involves reviewing how they work as a team anddeveloping further the strategy of the unit for the next fewyears alongside the nurses and management. We aredelighted with the positive changes that have occurredand are continuing to work and learn together for amore confident future.

For more information, contact Dr Guy Lubitsh, +44(0)1442 841220

16

The Change Process

WBU vacancy trend

Step 1

• Diagnosticinterviews/understandingteam andindividual currentreality

• Ensuring buy-infrom staff

• Gainingcommitment for change

Step 2

• Increasingcommunication

• Understandingmutual roleexpectations for clinicalconsultants

• Consistency ofprocedures andpractices

• Regular meetings

Step 3

• Improvingleadership on the unit (regularmeetingsbetween leadconsultants andunit manager)

• Understandingroles andresponsibilitiesfor other staff on the unit

Step 4

• Creating a safeenvironment forcommunication(nursing supportgroup)

Step 5

• Increasing overallcommunicationacross the unit(staff supportgroup)

2000/01 2001/02

APR

40

35

30

25

20

15MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR

Erik de HaanErik is Dutch and moves to AshridgeConsulting after 10 years with two well-established organisational consultingfirms in Holland. However, his move tothe UK has been smoothed by thebuilding of a strong professional networkhere. This has arisen mainly as a result of his professional development.Erik’s past work has included facilitatinglong-term organisational change teams,training on diverse behavioural skills(including influencing and leadership),coaching action learning and self-managed learning groups as well as oneto one coaching for consultants andexecutives. He is currently writing a bookentitled ’Coaching with Colleagues’. Erikhas shared his knowledge in academicenvironments through teaching and along list of articles in respected journalsthat demonstrate his innovative thinkingand approach to organisations and per-sonal development. In 1997 he wrote’King Lear for Consultants andManagers,’ which will by published byKarnac, London, in November, and his’Learning with Colleagues, 2001, isshortly to be translated into English.Having talked to various organisationaldevelopment consultancies beforechoosing Ashridge Consulting, for Erikthe way was clear.“It had to be AshridgeConsulting. It was just a question ofchemistry in conversation and personalcloseness.”He is looking forward to working withAshridge Consulting’s UK and interna-tional clients, furthering his experience ofwork in the health service and in univer-sities, and developing work in newsectors. He is well placed to work inEurope, for in addition to Dutch andEnglish he speaks Italian, German, Frenchand Spanish.

Louise van RhynLouise moved to the UK from South Africafour years ago. In South Africa, she hadworked on facilitating change in relationto technology projects. Arriving in the UK, she went to work with Partners For Change, to pursue her interest inorganisational change.Moving to Ashridge Consulting, she wasattracted by the thought of being part ofa community of organisational develop-ment practitioners who are interested instretching their boundaries and doinginnovative organisational developmentwork. She was also seeking to work withothers who understand organisations ascomplex responsive processes.Apart fromthe challenges of her new role in AshridgeConsulting, Louise is juggling two pre-school children and work on a Doctoratein Organisational Change under the guid-ance of Ralph Stacey, at the University ofHertfordshire. Her research topic is the’Potential contribution of external facilita-tion to team development.’ She isparticularly interested in exploring howconsultants account for what they dowhen they design team developmentinterventions.

Duncan SmithDuncan joined Ashridge Consulting asoperations manager after completing hisMBA in Leeds. Prior to his MBA, he spentfive years working for a Saudi ArabianInvestment Company. After one year invarious parts of the Middle East includingDubai, Jeddah and Damman, he was pro-moted to General Manager East Africa.AsGeneral Manager his role was to identifyinvestment opportunities and managecurrent investments which were mainlyassociated with the transport sector.He was attracted to Ashridge Consultingas an organisation in which he can learn.He felt that this was important at thisstage in his career, particularly in view ofthe isolated nature of expatriate life. He isimpressed by Ashridge Consulting’s com-bination of diversity, in terms of the rangeof individuals and skills, with its distinctiveculture and style.Duncan has taken over the role of HelenGibb, who left at the end of Februaryafter working at Ashridge for 16 years.In his first couple of months Duncan hasplayed a leading role in developing thespecification for a new CustomerRelationship Management system due to be introduced in the autumn.

Sally HulksSally joins Ashridge Consulting fromKPMG, where she was UK HR Director. Herexperience in that role involved her in awide range of people and organisationaldevelopment activities, including leader-ship development and team building.Her decision to embark on AMOC 5, whichshe completes this summer, put her on apath that was to lead to her joiningAshridge Consulting.Apart from meetingseveral of our consultants who were alsoon the programme, and being able todiscuss and the type of work AshridgeConsulting undertakes, Sally developeda vital interest in the skills and approachesshe explored whilst on AMOC. Theseincluded appreciative inquiry, coachingand complexity theory.It was therefore a logical step, whenseeking to change organisation, to explorethe possibility of openings within AshridgeConsulting. She was particularly attractedby the way that Ashridge Consulting combines its identity as a niche consul-tancy with a very strong brand name.

17

As Alex and Ina discussed on page 10, Ashridge Consulting has long been committed to growth and diversity. Not many consultancies were in recruitment mode in the Spring of 2003. However, Ashridge Consulting was continuingto flourish and welcomed in four new people who enhance our international profile and international experience.

a growing consultancy

“The most tangible consequence of my AMOC experiences was my decision to join Ashridge Consulting – but even more

radical was the shift in my understanding of organisations. It is impossible to participate in the AMOC programme without

having transformational experiences.” SALLY HULKS

A D V E R T I S E M E N T

18

Whether change is brought about by merger, the introduction of new IT systems, new working practices orsimply through the need to respond to commercial pres-sures, the key to success is the skilful handling oforganisation and people issues. This was the view of the18 participants on the first Ashridge Consulting Consultingand Change in Organisations (CCO) programme, thatran in three three-day modules between October 2002and January 2003. Similar views were expressed on thesecond CCO programme that kicked off at the end of Aprilthis year.All participants, whether they were from globalblue chip companies, consulting firms, the NHS or highereducation, agreed that the human issues involved inchange processes are usually the most difficult to handle.Whilst the issues are common to most organisations,the fact that there is no single ‘right answer’ solution wasaffirmed during the programme. In addition to learningabout change theories and consulting models, personal

consulting styles came under the spotlight, with oppor-tunities to practise and deepen facilitation skills. Thebenefit of the three modules, each separated by about sixweeks, was that change agents were able to go back totheir organisations, experiment with and practiceapproaches learnt. They were then able to come back toAshridge Consulting to discuss progress and ongoingissues with tutors (who are themselves practising consult-ants) and with other members of the programme.In addition to benefiting from the deep learning experi-ence in each module, participants became part of apowerful and supportive network that will continue tothrive informally as well as being stimulated by AshridgeConsulting alumni links. They were also able to providereal time consultancy to their organisation during theperiod that the course ran.Howard Atkins, who together with Martyn Brown actedas programme director, is delighted with the success of

the programme. He said, “This programme will havelong-lasting effects on the participants and the organisa-tions they work with.They all feel that they have benefitedenormously.”At least one participant went on to sign upfor Ashridge Consulting’s modular MSc in OrganisationConsulting (AMOC), which is an 18 month modular pro-gramme of greater depth. Several more are consideringthe option.

There are still a few places available on the next CCO programme, with the first module running 8 - 10 October 2003.Enquiries should be addressed to: Andrea Jackman,+44(0)1442 841194E-mail: andrea.jackman@ashridge.org.uk

Consulting and Change in Organisations

New programme proveshuge success

For further information about eitherprogramme, please contact:Andrea Jackman, programme coordinatorTel: +44 (0)1442 841194email: andrea.jackman@ashridge.org.uk

For more information aboutAshridge Consulting pleasevisit our website atwww.ashridgeconsulting.com

Ashridge, Berkhamsted,Hertfordshire, HP4 1NS, UK

Registered as Ashridge (Bonor Law Memorial) TrustCharity number 311096The Ashridge Masters in Organisation Consultingis validated by Middlesex University

The Ashridge Masters inOrganisation ConsultingThis is an MSc qualification programme with adifference. It offers a unique combination ofprofound personal learning and theoreticalchallenge, with ongoing development of yourcurrent practice as a consultant or change agent.You will increase your self confidence and yourability to work with power dynamics, ethicalquestions and complex social processes.The programme is designed and led byexperienced practitioners, who will guide andsupport you through a process of inquiry, whichmay challenge your assumptions, will offer newperspectives on organisations, and will enableyou to evolve radically different ways ofconsulting with organisations.To enable busy people to take up the challenge,the programme is designed on a part-timemodular basis over two years. Our first fiveintakes have attracted internal consultants,change agents and external organisations/management consultants.

The next programme starts in January 2004

Consulting and Changein OrganisationsThis programme offers insights intoprogressive change theories and consultingmodels with an emphasis on the applicationand practice of consulting.You will develop your capability in interactingwith organisations whilst learning moreabout your own impact and overalleffectiveness.The programme is run in 3 modules of 3 dayseach.The first module explores andchallenges participants’ views on consultingand change in organisations.The secondreviews the major schools of thought inorganisational development, culture change& organisational realities and the thirdexplores a range of perspectives on groupdynamics and considers the implications forthe facilitation of individuals and groupsthrough change.

The programme dates are:Starting this autumn-8-10 October 2003,26-28 November 2003, 7-9 January 2004

Designed for consultants by consultants

consulting

what KM could mean for their organisation, as wellas a language to describe it. At another level, ithelped create focus. The cognitive map representedcause and effect relationships, so people werequickly able to distinguish causes and effects inwhat they had initially described randomly duringthe interviews. This was a very liberating exerciseas it gave people a new sense of clarity. At the endof this phase, people had achieved two things:

- A common understanding of their current reality

- A collective identification of what they wanted tochange within that reality and why

Rory For many organisations, working moreeffectively with their knowledge will involvechanging a number of things, someperipheral and some others morefundamental. How did you handle that part?

Nicolas You are right, – the change aspect of aKM initiative cannot be underestimated, and as onewould expect, it has to be supported by…knowledge! We helped the entire BigCorporganisation – not just management – to reach thesame degree of understanding of what needs tochange, to what, and how, so that it started movingin broadly the same direction at the same pace.Without that shared knowledge (which by the wayis dynamic, it keeps evolving as the initiativeunfolds), organisations are most likely toexperience

- Frustration (knowing that something shouldchange but not knowing what)

- False starts (starting to change things withoutknowing what to change them to)

- Anxiety (not knowing where to start and what tostart with)

Rory So how did BigCorp identify what to change?

Nicolas Whilst gaining a common knowledge ofwhat to change we identified numerous symptomsor undesirable effects across a number of areasrelated to KM, e.g. knowledge identification,capture, creation, sharing, application and learning.Aware of the futility of trying to treat so manysymptoms and not wanting to defocus theorganisation by allowing this initiative to take on alife of its own, we engaged people in a logic-basedprocess of cause-and-effect relationships todetermine the root problems.

The representative sample of people from acrossthe organisation were now able collectively todecide which areas to focus on and change, inorder to have an impact on their KM capabilities.This high degree of focus was a relief to many

Increasingly, knowledge is perceived as a critical asset that organisations must leverage and manage in orderto sustain and enhance their competitive advantage.Yet few organisations seem to be capable of achievingthe potential that better management of their organisational knowledge has to offer. Should an organisa-tion be investing time and efforts in knowledge management? If so, for what type of return?

Nicolas Worms and Rory Hendrikz of Ashridge Consulting argue that the question should be "How?" ratherthan "If?" Their research in the area of KM over the last two years shows that managers are invariably confronted with the same dilemma when attempting to work on KM initiatives.

On the one hand, most managers intuitively understand that improvement in the ways in which knowledgeis acquired, shared and applied across their organisation has the potential to generate significant value.Theyalso perceive KM as a highly complex endeavour, given that the achievement of such improvements isdependent upon a constellation of interdependent variables (culture, rewards, processes, policies, systems,behaviours, etc.). On the other hand, managers must apply their limited resources where it matters mostfor the organisation. Experience has taught most of them that working at all levels at the same time dilutesthe impact of any initiative, de-focuses their people, and at the end, results in no changes. They feel compelled to choose between:

- working with all aspects of KM and risk no real achievement of change (because of diluted impact), or

- reducing the complexity of the task and risk no achievement of change (because of overlooking key aspects.

In this article Nicolas Worms and Rory Hendrikz discuss the approach that they have developed to overcomethat dilemma. The case discussed is that of one of their client organisations - one of the business units ofa world-leading corporation, referred to as BigCorp in this article.

Rory Why did BigCorp become interested inKM and why did they contact you?

Nicolas BigCorp felt intuitively that within itsincredibly fast moving and turbulent environment,it had become essential to effect a step change inits capacity to leverage and commercialise itsknowledge, as a way to sustain competitiveadvantage.

They intuitively felt that better knowledgemanagement practices would result in animprovement in their business performance.However, they were uncertain about where to start,what to do or how to do it.

Rory So how did you help them? Where didyou start?

Nicolas Firstly, we helped them to achieve acommon understanding of what KM meant forthem, and secondly to identify what KM could dofor them, in their particular context.

Rory How did you achieve that?

Nicolas We worked with a representativesample of the organisation (a mix of managers,group leaders, and individual contributors) throughdifferent phases. Initially, we conducted a numberof one-to-one interviews during which we capturedwhat people perceived was currently limiting better

performance by their organisation. We wereequally interested in examples of times when theymanaged their knowledge particularly well. Thenext step was to bring together all these differentviews and help to build a collective representationof the current situation of the organisation withregards to KM, i.e.

• What was working well

• What was not working well

• What were the consequences of things notworking well

• What were the reasons for things not working well

We then shared these findings with the population we initially interviewed and togetherwe developed a representation, in the visual formof a cognitive map, that everybody felt comfortable with.

Rory What were the benefits of doing that?

Nicolas The benefits were twofold. Throughdiscussing, questioning, and challenging thecontent of the map, people from differenthierarchical levels and different areas starteddeveloping a shared sense of their current reality.They also developed a common understanding of

19

Nicolas Worms and Rory Hendrikz discuss...

TALKINGPOINT‘knowledge management’

20

managers who initially thought that they weregoing to have to try and tackle many perceivedproblems throughout the organisation, which werein fact just symptoms.

Rory I think many organisations would havesimilar concerns about potentially defocusingthe organisation with yet another initiative.Many are put off by a perceived requirementfor additional work, which is ill-afforded inorganisations under pressure to meet shortterm targets. Is it possible effectively toenhance an organisation’s KM capabilitieswhile simultaneously maintaining thenecessary business focus?

Nicolas This is a pre-requisite. Any KM initiativeshould have a clear link to the business objectives.If that link is not clear at the start, and frequentlyre-clarified, then KM will be perceived ashappening in parallel to the business processes andwill quickly lose momentum.

Rory Do you have any examples of thefocus areas that emerged for BigCorp?

Nicolas Yes – and I’m sure many organisationswould arrive at a similar list, in a similar order ofpriority!

• Lack of understanding of the business strategyand its critical processes. Why has this strategybeen chosen and how will it be implemented?This made it difficult for them to clarify whichknowledge was essential for them to acquire, orwhich had become obsolete.

• Cluttered channels and processes for sharing ofknowledge. Most sharing was done by e-mail,often with large attachments, which would floodthe system. More information didn’t equate tomore knowledge – often it just createdconfusion.

• Decision making was problematic, with constanttension between trying to make decisions quicklywith the available knowledge and trying to makedecisions effectively with additional and newlyacquired knowledge.

• Many organisational processes were embeddedin a few individuals heads, and this meant theywere generally implemented in ad hoc ways, andeither duplicated or ineffective

• Inadequate technology support meant thatinformation was fragmented across theorganisation and was difficult to access andconsolidate.

Focusing and working on the areas identified as theroot problems helped BigCorp to demonstratesuccesses fast, and people could quickly experiencethe benefits of working differently with knowledgein areas that they had identified as really importantto for them. That also gave the initiative furthercredibility and momentum.

Rory How did you then support people atBigCorp to establish what to change to inorder to improve these focus areas?

Nicolas We supported people to construct andtest potential solutions before implementation. Theobjectives were to develop, expand and completethe solution and to identify and solve or preventnew problems created by implementing thesolution.

To achieve the first, the process surfaced theassumptions related to each of the root problems.Once the assumptions had been surfaced,strategies or actions to break the assumptions andhence solve the problems were determined.

The process we used to achieve these action planswas highly interactive and creative and generated ashared understanding as to what the future mightlook like and what the organisation could becapable of doing if the improvements wereachieved, generating further energy for change.

Rory So I guess what’s left now is todevelop a plan to transition the organisationfrom where it is today to realising thestrategy, the how to cause the change part?

Nicolas Yes. Here we needed to determine whatactions must be taken, by whom and by when. Atthis point a number of obstacles emerged thatcould potentially block implementation, soobjectives for overcoming the obstacles were alsodetermined. Again, throughout these processes wepaid particular attention to building activeconsensus and collaboration in order to ensurepeople were ‘on board’ and happily ‘on board’.

We ended up with a clear project plan that wasalso realistic, as people ultimately responsible forimplementing the plan had been involved indeveloping it.

Rory So, in a KM initiative what do youthink are the key success criteria thatmanagers should be aware of?

Nicolas For a KM project there is always animportant educational component. As peopleunderstand collectively what KM means withintheir respective contexts the more comfortable theybecome with it. KM also has a strong changecomponent. Therefore the process deployed indelivering a KM project has to continuously andsimultaneously enable the change process rightfrom the outset. KM is complex and multifaceted. Itrequires an approach that acknowledgescomplexity and at the same time is capable ofworking with the whole system in a focused way.

Like most strategic and important initiatives itneeds executive sponsorship, and what is referredto as extra-ordinary leadership, where:

• conditions are created which foster innovation and renewal

• there is an increased flow of information (it is not suspended at the top)

• connectivity is fostered

• diversity is promoted

• power differentials are reduced

Rory You seemed to have paid a lot ofattention to ensuring that people fromacross the whole organisation were involvedthroughout the process, why was thatimportant?

Nicolas Yes absolutely, this is a critical point fora number of reasons:

• Firstly, KM is a relatively new area. It is thereforenecessary to establish a common platform ofunderstanding. For example, do people equateKM with the use of technology, or do they see itas being more of a social phenomenon? Do theyapproach it from a process improvement angle,or do they see it more as a learning anddevelopment journey, etc.?

• Secondly, when working with knowledge, whichencompasses every part of an organisation, it isimportant to work from a holistic perspective, sothat isolated actions do not create negative sideeffects in other parts of the organisation.

• Thirdly, knowledge is created, recreated andshared between the interactions of people withinand external to the organisation. It is thereforeessential to include opportunities in the processfor these interactions and conversations to occurright from the outset .

• Finally, whenever organisations are looking toimprove, some form of change is required. Weknow from our experience of working withtransforming organisations, that failing to involvepeople from all levels and from across theorganisation in co-creating a way forward,seriously limits the possibilities of sustainablechange.

For more information contact:nicolas.worms@ashridge.org.uk tel: +44 (0)1442 841187 or rory.hendrikz@ashridge.org.uktel: +44 (0)1442 841438

The term Knowledge Management is used as adescriptor throughout this article, as it has becomethe business terminology for the discourse in this field.The authors however, don’t subscribe to the notion thatknowledge as such can be managed, but rather that the‘management’ of knowledge consists of creating theright conditions for it to circulate, grow and sustain thecompetitive capabilities of the organisation.

Professor Reg Revanswas the architect ofAction Learning,which has beenwidely adopted atAshridge. He died on 8 January 2003aged 95.

Two associates overmany years look backon his life and work:David Pearce outlines his work and influence andDavid Casey recallsthe man he knew.

David Pearce, Ashridge Consulting AssociateReg Revans’ work has had a considerable influence on the devel-opment of Ashridge as a learning institution, complementing itsacknowledged expertise in the teaching arena. He would havebeen disappointed that Ashridge still feels the need to use lecturesand case studies to develop managers and leaders.Ashridge Consulting’s Action Learning for Chief Executives isacknowledged as a major contribution to the development of ’topleaders’. The programme has no syllabus and no teaching. Eachof the CEOs brings current key issues to the group of ’comradesin adversity’ where they ’learn with and from each other by tack-ling real-life problems’ in conditions of mutual challenge andsupport – in an attempt to find new solutions to their issues by’rewriting their cortical slates’.Ashridge’s MBA and a wide variety of its programmes now makeuse of Action Learning groups as a means of bringing real-lifeissues into the classroom and of transferring the learning back tothe workplace.Ashridge Consulting has fully embraced Action Learning in thedevelopment of its own consultants and in the way it consults withclients.Revans’ ideas spread far and wide – influencing Mrs Ghandi onthe regeneration of Indian villages, the Egyptian Ministry ofIndustry on the regeneration of the Nile Delta, the Australian gov-ernment on the running of the Civil Service, and the improvementof patient care to reduce recovery times by improving the com-munication between the various functions in hospitals in theUK. The list is huge and continues to grow.Probably his biggest success was the way he influenced the governmental, commercial and educational sectors of Belgium ata time of major transition to become a vibrant economy.The Kingof Belgium recognised his contribution by creating him a Knight.In the UK his best-known convert was Lord Weinstock, the CEOof GEC. Weinstock recognised that there was a great need for abetter understanding between government, industry and tradeunions. In GEC’s pioneering Programme for Developing SeniorManagers, Action Learning sets were created which includedmanagers, civil servants and trades union officials – revolu-tionary! It even led to some management developers of the timesaying it had made management development ’untidy’.Revans was ahead of his time in recognising that organisationsrequire leaders who can deal with the big change issues whichrequire them to learn faster than the rate of change in the environment. He was well placed to do this, using his mathemat-ical and scientific mastery to develop equations and graphswhich expressed this very clearly. He was a direct link to Einsteinand Maynard Keynes, who influenced him personally in hisyounger days.

A disappointment for Revans would be the fact that very little useis made of his other tenet of Action Learning, that organisationsand countries should swap senior people to undertake significantprojects in each other’s workplaces, while working together inAction Learning sets.Reg Revans’ influence on us has been profound and wide-rangingAND there is still a long way for Action Learning to travel.

David Casey, former Ashridge Consulting AssociateIn the Summer of 1969 I met Reg Revans in a smoky lunchtimeTottenham Court Road pub. It was not what I had planned. I hadinvited him down from Manchester to discuss our programmes ofManagement Training in Reed International and had booked a fineLondon lunch, assuming such an eminence grise would expect thebest hospitality. Wrong. He preferred a pint of beer and onecheese sandwich please; he didn’t own a watch; he didn’t drivea car; if it was too far to walk, we would take a bus.In the pub he was soon probing deep into my work, his steadybrown eyes watching me. As it happened, I had just finishedrunning a two-week programme for senior company managerscalled Leadership of Working Groups. It had gone very well – lotsof gushing feedback – I was still on a high. Professor Revans askedme one quiet question, "What did they learn, Mr Casey?" Thatwas easy enough to answer – I had studied the feedback and Iknew what we had taught – I rattled off a long list. Reg took adeep pull on his pint and wiped his mouth... "They set up somehypotheses; they didn’t learn anything", he said. I rememberstaring back into his intense gaze in that noisy bar and thinking"This guy is either the rudest man I’ve ever met or an originalthinker from whom I shall learn a great deal". In the years aheadI would discover that he was both.A walking set of paradoxes was our Reg! The endless fascinationwas that one never quite knew what would happen next. He cameto stay with my family and when his dinner plate was over-flowing with the best we could offer, he looked at it and said simply"This would feed a family in Ethiopia for two weeks". My wifeforgave him because she loved him; "You have to love RegRevans before you can like him", she used to say.John Morris at Manchester Business School wrote a perceptivepiece lamenting that such a towering intellect was tangled up insuch a difficult personality. If only, John cried in despair, he wouldshare with his academic colleagues some of the great love andwarmth he showers on the managers he works with!Reg Revans was hard to work with; compromise was not allowed;he knew he was right. Those of us who had the stamina to staywith him, and accept him for what he was, learned massively andat a rather fundamental level. He has shifted forever some of theworld’s assumptions about how managers learn, and for this hedeserves to be remembered with honour.

21

Reg Revans - a tribute

“This guy is either therudest man I’ve ever metor an original thinkerfrom whom I shall learn a great deal”.

The learning and development needs ofleaders at the very top of organisationshave traditionally been neglected.Despite their public pronouncements ofcommitment to leadershipdevelopment, CEOs and top managerswere, it appeared, beyonddevelopment. They were either notconscious of any personal need forleadership development, or unable tofind anything that fitted in a timely andappropriate way. Either way, they weredangerously cut off from usefulfeedback. Internal managementdevelopment staff were understandablyfearful of suggesting it. In an era whenCEOs were regarded as all-powerfuland all-knowing, any admission of gapsin their knowledge was regarded as anadmission of weakness or failure.However, business leaders are nolonger regarded as infallible. They areconstantly being scrutinised and mustcope with an unprecedented level ofpressure and uncertainty. They mustlearn to do things differently, openingup dialogue rather than hiding theirfears. Leadership education anddevelopment is relatively new. It wasn’tso long ago that these subjects weren’treally covered on most MBAprogrammes. Even more recently,genuine doubts have been expressedas to whether the qualities and skills ofleadership can be learned in the sameway as finance and marketing. For along time, comparisons have beendrawn between business and militaryleadership. The post-war era, in whichmany senior managers grew up, wasinfluenced by military leaders as rolemodels. The physical, Outward Boundtype of activity (often led by formermilitary personnel) has heavilyinfluenced leadership development.It’s probably true that very little can be learned about leadership by sittingin classrooms listening to lectures onthe subject.

In Ashridge Consulting, we areincreasingly convinced that the mostvaluable source of learning is one’sown experience, in interaction withothers. This offers the opportunity forfeedback from peers who can relate tothe situation, but are not part of thepolitics. This view sometimes causessurprise. It seems we’ve been educatedto believe that useful learning lies inthe experience of ’successful’ others.There is a strong call for examples andcase studies in which we can identifythe causes of successes and failures inthe experience of others. Theassumption is that we can avoid failingbehaviours and adopt the successfulones. We would argue for theuniqueness of experience and thefutility of simple imitation.CEOs get a real buzz from their topjobs and like achievement, success andassociated power. But often they have

sacrificed too much, neglected closerelationships or are missing something.CEOs enjoy working with their peers,but are chronically short of time.Isolation, loneliness and heavy personalresponsibility in conditions of risk andambiguity are common themes. Theyneed a safe place among friends wherethey can both recognise their strengthsand admit their difficulties, get bags offeedback, stimulation and supportalong the way and learn a lot. In ActionLearning, the leader’s own work/lifesituation and the issues and challengesarising are the main sources oflearning: nothing can be more realthan the job itself.Ashridge Consulting uses ActionLearning as an effective way ofdeveloping and supporting its ownconsultants. There has also been a bigincrease in the number of ActionLearning groups that we’ve been askedto facilitate as part of our in-companyconsulting work.

’Action Learning for Chief Executivesand Top Managers’ has been run atAshridge since 1980, with greatsuccess. Groups of 4 to 6 work with an experienced facilitator for 5 workingsessions of a day each (meeting fordinner the previous evening) over a 6 - 9 month period and many groupsagree to extend over longer periods.The meetings act as a refuge and aresource from which CEOs can gainencouragement, support and learningthat they desperately need and findvery infrequently.

If you are interested in talking throughthe appropriateness of the programmefor yourself you can contact Tracey Field on: +44(0)1442 841106 ortracey.field@ashridge.org.uk who willput you in contact with one of thefacilitators.

You may want to book into one of thenew groups scheduled to meet atAshridge later this year. The first datefor each group is as follows:

7 August 200316 September 200327 November 2003

21

LEARNINGAT THE

TOP

Action Learning for Chief Executives and Top ManagersBy Martyn Brown, Programme Director

23

RESEARCH TELLS US THAT…“The recruitment, deployment and development of sales peoplein new and different ways is a strategic imperative.”Anthony Kasozi, Ashridge Consulting and Phil Auden, Caliper UK Ltd

Having consulted with

marketing and sales

organisations in many

different industry sectors,

Ashridge Consulting and

Caliper UK Ltd were in

no doubt: clients were

finding that their sales

organisations needed to

develop and change in

order to be able to respond

to the changes in the

marketplace.

Conversations with senior managers, directors and CEOsof commercial organisations consistently demonstratedthat they are seeking to understand better how they cancreate and sustain effective sales organisations in today’shighly competitive and fast changing markets. For example,many clients were working in commercial environmentswhere their customers’ buying processes were constantlyevolving and placing increasing demands on them as suppliers. To engage more effectively with their clients,Ashridge Consulting and Caliper set out to conduct a pre-liminary study into the changing role of the salesprofessional in progressive markets.

Preliminary findings show...There is little doubt that sales has been undergoing a rev-olution over the last 10 - 20 years. Sales professionals atall levels have seen customer demands escalating, internalprocesses changing and their own roles and organisationsbeing transformed. For many this has enriched their jobsand presented new and challenging development andcareer opportunities. However this study suggests that onthe whole sales organisations and professions are stillfacing considerable shortfalls in capabilities in criticalareas such as structure and organisation, role definition

and integration and personnel recruitment and subsequentcompetence development.Our study suggests that businesses recognise this and aredoing something about it. There is not only a growingnumber of specialist sales and service / relationship man-agement roles, but these roles are increasingly bettersupported with information systems and integrated intothe rest of the business operations.The sales person’s jobis thus not simply to win orders – it is to build andsustain business.Yet it appears that awareness of the issues has not, so far,necessarily led to satisfactory resolution of them. Ourstudy indicates that organisations continue to be chal-lenged by difficulties of making complex, matrixorganisations work effectively; awed by the skills requiredto operate the myriad of interfaces and service / relationaldemands of their customer base, and stretched by the per-sisting need to improve and integrate customer service andcommunications channels across functions, geographiesand sometimes even across supply chains. Similarly ourstudy indicates that the organisational, role definition,recruitment, retention and competence development ofsaleshasasyetnotadequately risentomeet thischallenge.

The FMCG Sector (Fast Moving Consumer Goods)The FMCG sector has been undergoing a significantrevolution in supply relationships. As the consumerretail industry has continued to reconfigure acrossEurope and worldwide, suppliers to the majorretailers are facing ever greater challenges to co-ordinate and manage their buying relationships,trading policies, pricing strategies, interfaces, andproduct and service offerings. At the centre of allthese changes is the Major Account or BusinessManager – increasingly cast in the ever morestrategic role of a kind of ‘CCO’ (Chief CustomerOfficer). In this role the Account Manager cannotrely on being in charge of everything. Instead theyneed the skills and competencies to span differentenvironments and functions, think strategically, beoperationally nimble and build strong and resilientrelationships. For most FMCG companies thesesenior sales roles are as critical as their most seniormarketing and finance roles.The overall aim of the study was to explore the keyissues influencing the development of salesorganisations and use our findings to provokediscussion, generate new insights, and considerwhat senior sales managers need to focus on toaddress these challenges.

The three key objectives of the study were to:• Explore new trends and changes in the sales

environment• Understand still further the profile of future sales

people• Identify the personal & organisational

development needs of leading sales professionalsand organisations into the future

We selected industry sectors that had complex highvalue sales activities as well as potentially high andescalating transaction and customer service costs –i.e. those with a ’complex and high value sales’model. In particular we looked for:• Multiplicity of decision makers in the sales process• Proposal or tender based selling• Products and services (e.g. strong need for after

sales service)• Tailored solutions• High value sales transactions• Long sales cycles• Post sales support requirements• Technical/knowledge based elements• Consultative selling requirements• Customer relationship focus• Team selling involvement

Our own experience of working with sales organisationsfrom different sectors and of different sizes would supportthis overall conclusion.Yet like all generalisations, the con-clusion hides the wide variation in maturity and capabilityof sales organisations. Our experience would suggestthat some sales organisations are beginning to addressthese issues. Indeed there were indications that some ofthe participants in this study had successfully reorganisedand reformed their sales process and structures to makethem more effective. Nevertheless, it appears to us thatcompared to other functional and professional businessareas (finance, supply, manufacturing, marketing) thesales area has been less rigorous in its assessment of itsorganisational and personal capabilities and much slowerat addressing role, integration, and development issues.

We would now like to engage in...Further enquiry: for example this study did not specificallyask senior executives how they viewed the developmentof profession and organisation relative to other func-tional / professional areas in their businesses. Nor, withhindsight, did we adequately explore whether the salesleaders we surveyed believed that the strategies andefforts that were already being taken were likely to beeffective. We were not able to judge from the studywhether sales leaders were, on the whole, optimisticabout the future effectiveness of the functions they led,or whether they were courageously soldiering away buton the whole pessimistic.Our study, being questionnaire based, identified theissues but obviously did not enable a dialogue.Whilst theinsights are interesting and borne out by our own knowl-edge and experience, the preliminary study was small andsome sectors not at all represented. It may prove fruitfulto extend the study to different sectors and more busi-nesses to identify the similarities and differences and toexchange the lessons of experience and experiments.

For further work it would be useful to draw a number of senior executives into conversation.Any readers who would like to be part of futuredebate and exploration on this subject are warmlyinvited to contact Anthony Kasozi on:+44(0)1442 841168,or anthony.kasozi@ashridge.org.uk

It is already evident that….There are many companies which, having fulfilled thebasics (identified their current and potential offerings,created compelling propositions, differentiated them-selves) are now needing to consider how they createnew customer and account management organisationsthat are competent, integrated and effective. Even withoutfurther research, this study suggests that to do this they

recognise they have to develop the capabilities, behavioursand ways of working they need to be successful in theevolving competitive sales environment.

The challenge now is to ensure that organisationaland personal development efforts maximise thevalue sales organisations offer: providing new waysof managing and developing current and newbusiness opportunities and customer relationships.

Given the changes in customers’ demands, buyingprocesses and technologies, sales organisations need topay particular attention to how they draw upon a widerand less traditional range of skills and expertise; how theychange and support current ways of working, and howthey network within / outside their more complex customerorganisations and sales situations in order to develop andsustain strong and valuable sales / customer relationships.

Against this background of needs and challenges –the recruitment, deployment and development ofsales people in new and different ways is selfevidently a strategic imperative.

Ashridge Consulting works with clients to enable them togain greater insights of the issues they face and theopportunities that they have to address them. In additionto supporting the client to enquire effectively into theirreality we draw on our experience in personal and organ-isational development to help the client identify andaddress the issues they face. In our experience, respondingto major market place / customer changes involvesworking with the business as a whole (cross-functionally– and not just with sales) and at personal and organisa-tional levels.

Copies of the report, entitled Developing SalesOrganisations Capabilities, are available from:Maggie Smith, maggie.smith@ashridge.org.uktel: +44(0)1442 841196

Caliper UK LtdCaliper is a global human resources consulting firm.Its headquarters are in Princeton, New Jersey and itworks with clients in over 38 countries. Caliper UK Ltdhas worked with many major organisations to improvetheir recruitment and development.

PROGRAMME DATES2003

July

7 - 11 Project Management in Action (PMA)9 - 10 Coaching for Organisation Consultants

(CfOC) Programme 1 - 2nd module17 - 19 Ashridge Masters in Organisation

Consulting (AMOC) 6 workshop 4

August

7 Action Learning for Chief Executives and Top Managers (ALCE)

September

2 - 3 Coaching for Organisation Consultants (CfOC) Programme 1 - 3rd module

4 - 6 Ashridge Masters in Organisation Consulting (AMOC) - 6 workshop 5

16 Action Learning for Chief Executives and Top Managers (ALCE)

October

8 - 10 Consulting and Change in Organisations (CCO) - 1st module

13 - 14 Coaching for Organisation Consultants,(CfOC) Programme 2 - 1st module

23 - 25 Ashridge Masters in Organisation Consulting (AMOC) - 6 workshop 6

27 - 28 Coaching for Organisation Consultants Programme 1 (CfOC) - 4th module

November

3 - 7 Project Management in Action (PMA)14 Ashridge Masters in Organisation

Consulting (AMOC) - 5 Graduation26 - 28 Consulting and Change in Organisations

(CCO) - 2nd module27 Action Learning for Chief Executives and

Top Managers (ALCE)

December

3 - 4 Coaching for Organisation Consultants (CfOC) Programme 1 - 5th module

4 - 6 Ashridge Masters in Organisation Consulting (AMOC) - 6 workshop 7

2004

January

7 - 9 Consulting and Change in Organisations (CCO) - 3rd module

12 - 13 Coaching for Organisation Consultants,(CfOC) Programme 2 - 2nd module

15 - 17 Ashridge Masters in Organisation Consulting (AMOC) - 6 workshop 8

22 Ashridge Masters in Organisation Consulting (AMOC) - 7 begins

COS

1CONVERSE

consulting