Financial Times Europe - 05.08.2019

(Darren Dugan) #1
12 ★ FINANCIAL TIMES Monday5 August 2019

WORK & CAREERS



Three cheers for positive thinking! The
evidence suggestsinstilling what the
psychologists call “positive affect” has
a variety of knock-on benefits.
Happy individuals enjoy
improvements in intuition, creativity
and resilience. Happiness reinforces
our immune function, reduces
susceptibility to strokes, among other
things, and even improves longevity.
Positive emotions also widen the
number of ways in which people react
to threats and challenges. Too much
negativity merely encourages us to
fight or flee from danger.
So it is entirely logical, even
desirable, that leaders should aim to
encourage this self-reinforcing attitude.
Listen to the London Stock
Exchange’s chief executive David
Schwimmer on the prospects for his
group’s $27bn high-stakes takeoverof
Refinitiv, the data provider:
“We feel that this is a very strong
combination that we feel very good
about strategically, we feel very good
about the leverage and our ability to
pay it down. We feel good about
integration and we feel very good about
the combined team.” It is fair to say he
feels good and wants everyone around
him to feel good.
Boris Johnson is the current highest
profile exponent of this art. The UK’s

new prime minister has evoked a “can
do spirit” to defeat “the doubters, the
doomsters, the gloomsters”, whom he
believes threaten Brexit.
Government insiders have already
dubbed his economic policy
“boosterism”. That is either a
deliberate or an inadvertent echo of the
coinage by Sinclair Lewis, the US
writer, who satirised midwest
American cities’ hyperbolic self-
promotion. The property-speculating
protagonist of Lewis’sBabbittis an
active member of “the International
Organization of Boosters’ Clubs... a
world-force for optimism, manly
pleasantry, and good business”.
Mr Johnson has drawn heavily from
club members for advice. Around him,
he has assembled a group of
supposedly can-do ministers and
advisers, who are themselves seeking
counsel from pro-Brexit outsiders.
After convening a roundtable last
week, loaded with business leaders
who favour leaving the EU, Andrea
Leadsom, the new UK business
secretary, said she had urged themto
“continue their positive approach to
the future” and lauded their optimism.
On the other side of the Atlantic,
Donald Trump cuts a different figure:
more aggressive, less ludic. His
inauguration speech played on fears of

“American carnage”, whereas Mr
Johnson emphasised British “pluck and
nerve and ambition”. Yet the US
president, too, was raised on the power
of positive thinking — the title of the
bestseller by Norman Vincent Peale,
the pastor who presided over Mr
Trump’s first marriage and preachedat
the church to which the president’s
father used to take the budding real
estate magnate.
In business, the influence of
psychologist Carol Dweck’s concept of
the “growth mindset” — openness to
learning and trying new approaches —
is spreading. It has been key to Satya
Nadella’s planto change Microsoft’s
culture. When he stepped in as chief
executive of Volkswagen, mired in the
“Dieselgate” scandal, Matthias Müller
talked of the need to change the
carmaker’s mindset and adopt “the
right attitude and mentality”. Both
CEOs recognise relentless positivity
alone will not achieve results, though.
Prof Dweck herself has criticisedthe
common misconception that just by
assuming a growth mindset, “good
things will happen”.
Leaders who set a strategic goal,
without rooting it in reality, or laying
out the steps to execute the strategy,
set followers up for disappointment,
cynicism and chaos. Boosterism risks

being exposed as mere blusterism.
Before leaders take to the
battlements to rally their troops with
positive messages, they must
understand their own abilities. Adam
Grant of Wharton business school
points outthat “whether people
succeed is not a matter of thinking
positively or negatively, but rather
whether they choose the strategies that
match their thinking styles”. A
defensive pessimist will look foolish
and unconvincing making a tub-
thumpingly upbeat speech to the
Boosters’ Club.
Leaders who are strategic optimists
actually perform no betterthan
pessimists, who are able to turn
anxiety into action. What is needed is a
mix of both. “We do not wish to knock
the booster,” Sinclair Lewis wrote, “but
we certainly do wish to boost the
knocker.”
Studies back him up. Too much
positivity can be bad for you. In fact,
there’s an ideal ratiofor human
flourishing of about three to one,
between positive emotions —
amusement, hope, joy and so on — and
negative ones. Three cheers, then, for
positive thinking — and one carefully
modulated catcall.

[email protected]

Leaders who set a
strategic goal,

without rooting it
in reality, set

followers up for
disappointment,

cynicism and chaos


How to stop


boosterism


becoming mere


blusterism


Andrew Hill


On management



I


n these days of near-instant uni-
corns and listings that net a fortune
for founders, selling an innovative
small business in order to join a
large established company might
seem counter intuitive.
When Jason Field did just this, joining
WL Gore & Associatesin 2005, it could
have been seen as an indication of burn-
out, or at the very least a tacit declara-
tion of desire for a more routine, less
pressured existence. But you do not join
the US materials science group, which is
best knownfor Gore-Tex waterproofing
but which also makes products as varied
as guitar strings and heart patches, for a
quiet life and sedate progress through
the ranks of a conventionalcompany.
For a start, there arenot any ranks.
Before joining Gore, Mr Field, then in
his thirties, had owned a horse veteri-
nary practice in Flagstaff, Arizona,
where he had pioneered the idea of a
new kind of stent.By the time he joined
Gore, he had picked up enough about
the unique culture of the “enterprise”
(its preferred identifier) through his
customers, some of whom worked at
Gore’s nearby medical business head-
quarters, to be intrigued.
Mr Field says that the scientific exper-
tise of his customers that worked at
Gore had pushed him to be a better vet,
whilealso helping him identify an
opportunity “to apply my technological
background in a new setting”. This ini-
tially led to him taking a research and
development role in the company. First
product: his stent.It was a natural fit.
Other aspects of Gore’s unusual work-
ing culture — including quite different
reporting structures —took more
adjusting to. Although roles and respon-
sibilities at Gore are clearly defined,
they are not captured inneat organisa-
tional charts, and the only concession to
hierarchy is the word “leader” on a
select number of business cards.
In Gore’s “lattice organisation”, any-
one can talk to anyone, and no one tells
another what to do. Instead new
employees — all of whom become share-
holders if they stay — are encouraged to
navigate their own way through the
business.
The self-propelled culture suited Mr
Field. So much so, thatsomewhat to his
surprise, he maintains, he emerged last
year from Gore’s selection process as the
fifth chief executive in six decades of
history. A successful career at Gore and
a close fit with the board and founding
family over values and future direction
were obviously important in his
appointment. But those alone would not
have been enough: no one gets to the top
leadership role at Gore unless they have
the strong support of colleagues, known
internally as “associates”.
“We extend a lot of freedoms to asso-
ciates,” says Mr Field. “For individuals

who are strongly personally motivated
and self-driven, that usually works well
from the outset. For those who are used
to being directed and told how to do
things, it’s a challenge.” Not everyone is
able to adapt, he notes.
Gore has a disarmingly simple work-
ing definition of leadership: a capability
to attract followers, for which no other
qualifications are a substitute. Mr Field
quickly discovered that his previous
business record counted for little. “That
can be challenging for someone joining
later with career experience, and I cer-
tainly went through it looking for my
opportunity to build credibility and fol-
lowership,” he says. “You really do have
to demonstrate those capabilities, not
just talk about them.”
As Mr Field describes it, to lead Gore
is to steward a company that prides
itself on innovating. It has a constantly
expanding portfolio of more than 1,
products, ranging from Gore-Tex to aer-
ospace cable wiring assemblies.
But Gore’s most significant innovation
may not be a particular product, but
rather the unique non-hierarchical
management model that enables the

new products to emerge. “We do see
companies trying to replicate some of
what we do,” says Mr Field. “But it’s hard
to take bits of it and apply them piece-
meal, because it’s an ecosystem — a
truly holistic way of working.”
When Bill and Vieve Gore founded the
company in 1958, in Newark, Delaware,
the aim was to build an organisation
where inventive people could “have fun
and make money”. But they did it seri-

ously. Bill Gore was greatly influenced
by human relations school theorists
Douglas (Theory X, Theory Y) McGre-
gor and Abraham (“hierarchy of
needs”) Maslow, and emphasised the
importance of purpose. In the case of
Gore, this meant applying technology to
have a meaningful impact on society. He
also wanted to supporthuman fulfil-

ment, embodied in a set ofprinciples
and management practicesdesigned to
foster trust, initiative and enable the
emergence of natural leaders.
“We talk about the sweet spot where
personal interest, skills and experience
and business needs intersect,”says Mr
Field. “Where that happens, we really
encourage associates to chase those
experiences.” This, he believes, supplies
the fun, the energy for forward momen-
tum and the fuel for Gore’s creativity.
Nurturing this all-important culture
absorbs much of Mr Field’s attention.
And as the company has grown — in
2018 revenues were $3.5bn with a head-
count of 9,500 — being so atypical a
company has cut both ways.
There have beenno shortage of
growth opportunities in healthcare, avi-
ation, electric vehicles and telecoms, for
instance, but the company has learnt
the hard way that it cannot expand
faster than it can scale the culture — one
person at a time.
It helps that Gore is privately held, so
it does not need to react to every spike in
the news cycle or short-term demands
from Wall Street. But inventing your
own rules means there are no conven-
tional management short-cuts to fall
back on. It has had to define decision-
making roles and attribute accountabil-
ity more clearly. There have also been
uncomfortable moments when the
company has struggled to reconcilethe
founding principles with the need for
more structure to support growth.
“Gore isn’t perfect,” Mr Field says.
“But we’re a human organisation, a
learning organisation, and we think
about our organisation and practices in
the same way as we think about our
technology... the more we can find
proof points that we’re going in the right
direction and allocate resources against
those practices, the better off we shall
b e .”

WL Gore: the company others


try and fail to imitate


The group behind the
Gore-Tex fabric thrives on

its unconventional
corporate structure,

writesSimon Caulkin


Jason Field,
chief executive
of WL Gore,
owned a horse
veterinary
practice before
joining the
‘enterprise’
Charlie Bibby/FT

Words matter at Gore, and they do not
always mean what they do elsewhere.
To those who work there, Gore is the
enterprise, not the company. It has
leaders, never bosses.
Associates(included in the corporate
identity) is not a euphemism for staff —
it reflects the fact that they are
shareholders who play an active part in
upholding the four founding principles of
freedom,fairness,commitmentand
waterline.
The latter refers to avoidingactions
that risk holing the boat without first
consulting others.
Freedomis as much about helping
others grow as oneself, and is boundby

the further obligations to fairness and
accountability to personal commitments.
Gore encouragesknowledge-based
decision making, based onrelationship
building(so you know where the
knowledge resides) andface-to-face
communication, on the basis of which
teams self-organise around the best
ideas for new products or market
opportunities.
Associates emerge asleadersby
virtue of attractingfollowership, the only
way of demonstrating leadership
credentials — your business record is not
sufficient. ‘If you call a meeting and
people turn up, you’re a leader,’ as one
associate has put it.

Gore-speak


Culture

It helps that the company


is privately held, so it does


not need to react to every


spike in the news cycle


Managing others


Rich, the family-business
man
I’ve taken the liberty of
ordering pastries for our
breakfast meeting. Where’s
Milo? Sleeping? Go and fetch
him, Sophia. Theo, yes, you
can start on the croissants.
Glad you could join us,
Milo. So: I thought we’d start
the holiday with a family
meeting. I think of my
business as one big happy
family, so why not run my
family like a business? It’s
rather a brilliant idea. Says
who, Milo? Me and my
deputy. Sorry, Liz, I mean
joint CEO. You prefer
Chairman? OK, I suppose.
Don’t cry, Theo: you can still
call her mummy.
Every company needs a
mission statement. With
thanks to Google, I’ve come
up with “Don’t Be Lazy”. I
know this is a holiday but
that’s no reason to be
unproductive.
We’ve set some KPIs. First,
improve your swimming. By
the end of the holiday, you
must have halved your
100m personal best. I’ll log
times on this spreadsheet.
Second, clean up after meals
without being asked. Last,
learn daily three French
words for every year you’ve
been alive.
By the end of D14, or day
14, Theo, that’s 168 wordsen
français pour toi, Sophia 336
etpourMilole grand total
will be 546. These will be
reviewed every quarter.
Theo, do keep up —
Tuesday afternoon.
Each of you has a budget
for the two weeks. Yes, Milo,
you’ll pay your own meals in
restaurants. Might think
twice about those ice
creams, eh, Theo?
Being four years
old is no excuse
for poor cash
flow management.
You can make
extra money with a
side-hustle
outside the core
business. Theo,
you could maybe
sell some of your teddy
bears? I’ll review spending at
the interim meeting the
morning of D8.
I haven’t forgotten we’re
here to have fun. I’ll be
awarding performance
bonuses. Breakfastpains au
chocolatfor those who put
in 110 per cent. Croissants
for those with good attitude.
Baguettes for the others.
Right, tuck in. Make the
most of the onboarding
session.

Janice, the deputy of the
deputy
Welcome to the call,
everyone. I’m deputising for
Jeremy, who, as you know,
usually deputises for Jonty.
Jonty’s on business in
Australia and Jeremy is on
holiday. To quote his out-of-
office response, he is “out of
range”, which I didn’t even
think was possible these
days. So you’ve got me.
Hang on. Caller with the
ice-cream van in the
background? Please mute
your phone. Now I’m hearing
baby noises. Sounds like
your little one needs
feeding, whoever you are.
Could you mute, or muffle?
Or even stifle? Thanks.
So, welcome to our fort-
nightly update on Project
Coiled Spring. Who’s on?
Betty, thanks. Sandeep,
excellent. So you’re the one
with the ice-cream van! And
crashing waves. I thought
you were working from
home, Sandeep. Anybody
heard from Jeff? I couldn’t
find him this morning, but I
can’t tell whether he’shot-
deskingor just somewhere
hot. Leonard... Leonard? I
don’t know who you are,
dear. You may be on the
wrong call. But do stay:
according to the rota,
everyone else is away,
anyway.
Talking rotas, Jonty likes
to block out the last week of
August and first of
September. He already did,
in fact. Last December.
Jeremy’s taking all of August
this year. Hence the overlap
with Jonty’s Australia trip.
So we don’t have a full team
until we are one week away
from the Coiled Spring
deadline.
Who’s that? Hi,
Charmaine — I
thought you were
off sick. You’ve got a
rota amendment?
Riiiight. Yes, I’d
forgotten that you
like to take
advantage of cheap
flights after the
schools go back. Just adding
that week to the shared
document. So we’ll have a
full team again one week
afterthe project deadline.
Great. Just great.
Thanks for asking,
Sandeep. No, by the time I
got to the rota, all summer
slots were accounted for. It’s
fine. I need to save some for
Christmas... where I see
Jonty has already blocked
out another two weeks.
So. Agenda item one...

Work Tribes


‘Why not run my family like


a business?’


EMMA JACOBS AND ANDREW HILL

Meet the tribes
Read the series
ft.com/
work-tribes

                 


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