Trust is the Lubricant of Organizational Life

22 Pages·2006·0.74 MB·English

Plexus Institute Deeper Learning • Volume I, Issue 1
T L
RUST is the UBRICANT
O L
of RGANIZATIONAL IFE
L from the L and C of H L
ESSONS IFE AREER ENRI IPMANOWICZ
by
Arvind Singhali
On a bright summer day in early June, 2005, ground, as Riitta unbuckles her precious cargo:
a silver metallic Volvo station wagon pulls her two granddaughters, Tessa and Sofia. To my
into the driveway of a large brick house in eyes, Tessa looks about four years old and Sofia a
Summit, New Jersey. The neighborhood, some 30 shade under two.
miles from the skyscrapers of New York City, is “Grandpa, Grandpa, where are you?” Tessa’s
plush and affluent, dotted with large ornate hous- singsong voice echoes through the shrubs as she
es. With its well-manicured lawns, Summit is races inside the house. The toddling Sofia cannot
home to several of America’s corporate leaders keep pace with her older sister, but Riitta helps
and Wall Street bigwigs, who enjoy the comforts her along. As Tessa darts from the kitchen
of spacious suburban living, and easy access to entrance into the living room, a sixty-something
the Big Apple. man, with salt and pepper hair and wearing khaki
Riitta Lipmanowicz steps out of the driver’s trousers and a full-sleeve blue denim shirt, tiptoes
side of the station wagon, and opens the back down the staircase, hiding by the living room
door. A large, friendly dog hops out, sniffing the wall. While Tessa continues to call out to her
©2006. Arvind Singhal and Plexus Institute. Published by: Plexus Institute, 42 South Main Street, Allentown, NJ, 08501.
While this work is copyrighted, we encourage the reader to shareit widely,with appropriate credit and citation, for education-
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the Complexity in Practice Series is available at http://www.plexusinstitute.org/services/stories/show.cfm?id=35
1
grandfather, and as the tiny Sofia catches up with South Africa. The 30 hours of flying and airport
her sister, the man-in-hiding, with a playful wisp time does not show in the presence of adoring
of a grin, steps into the living room, approaches granddaughters.
the two girls and whispers: “Here I am.” There are many ways to introduce Henri
Kisses fly in the air, screams of delight per- Lipmanowicz – Grandpa to Tessa and Sofia, or
meate the tall ceilings, and tiny hands cling to the husband to Riitta for some 36 years. A black and
denim sleeves. white picture on the mantel shows a young Henri
Riitta, glances at her husband, and softly and Riitta on their marriage day in the late 1960s,
exclaims: “Oh, Henri!” walking the streets of Helsinki, Finland. Henri
wearing a formal suit, sporting a playful grin
“What did you get for me, Grandpa?” Tessa asks. (which now seems familiar), holds an executive
Two colorful Ndebele dolls with ornate metal- briefcase, and a glowing Riitta — in a white dress
lic jewelry adorn the side table, suggesting that and neatly groomed hair – walks by his side.
Grandpa prepared in advance for greeting his “Why the executive briefcase?” I muse. “That
granddaughters. He playfully hands the dolls to too on one’s wedding day?”
Tessa and Sofia, explaining the dolls are from The briefcase holds clues to another facet of
South Africa. Henri’s life – a life of extraordinary achievement
Looking at Grandpa Henri, I cannot tell that and accomplishment as a corporate executive.
he has just returned (earlier that morning) from The spacious brick house in Summit — with its
A reflective Henri Lipmanowicz, on the coast of the Dominican Republic with two of the
important ladies of his life. 2006
2
well-manicured gardens, a gated swimming pool, mus, and ice-cold lemonade, Tessa splashes in the
and its artfully decorated living room – further pool. Grandpa keeps a close watch on her while
echoes a life of understated affluence. he ambles down memory lane.
Eight years previously, in 1997, when Henri Born and raised in France of Polish parents,
Lipmanowicz – just short of his 60th birthday — who considered themselves lucky to survive
decided to retire from Merck, the giant pharma- Hitler’s Holocaust, Henri came to the U.S. on an
ceutical company, he was President of Merck exchange scholarship in the early 1960s, to get a
Intercontinental Region graduate degree in chemical
(MIR) and Japan, responsi- engineering at Yale. Bored
“I became very
ble for Merck’s operations with the staid curriculum
in over 160 countries of obsessive about (most of which Henri had
Asia, Africa, Eastern completed in France), and
freedom. I consider
Europe, parts of North “put off” by the all-male
it as the absolutely
America, South and Central elitism that pervaded the
America, and Australia and essential ingredient university campus, Henri
New Zealand — that is, transferred, a year later, to
for people to
everything outside of attend Columbia University
become what they
United States and Western in New York City, earning a
Europe. At retirement, can become.” master’sdegree in industrial
Henri was overseeing engineering and manage-
Merck business worth a ment.
whopping $3 billion (U.S.). Henri’s student visa allowed him, after the
As one spends personal time with Henri, and completion of his degree, to undertake practical
talks to those who have known Henri from his training in the U.S. for 18 months. To“gain some
heady corporate days, and since then, one quick- work experience,” Henri joined the business
ly realizes that Henri Lipmanowicz is, qualitative- planning unit of Anheuser Busch. When his 18-
ly, a different type of organizational leader than month tenure was ending, and it was time to
most others. return to France, Henri sought employment
If one poses the question – what distinguish- opportunities with American companies with
esHenri from others? — the simple answer might business operations in Europe. Around the same
say Henri’s managerial style embodies many prin- time, Henri’s mentor and department chair at
ciples of complexity science. Columbia, Sebastian Littauer, told him about a
Interestingly, for most of his corporate life at letter he received from Merck, “looking for Ivy-
Merck, Henri did not know about the emerging educated multi-lingual Europeans.”
science of complexity; for him, it was “plain com- “I had never heard of Merck and I was not
mon sense”. interested in pharmaceuticals,” recalls Henri.
Consumer product companies, such as Procter
and Gamble, looked more attractive. However,
Henri’s Journey goaded by his Columbia mentor (“it doesn’t cost
As we sit by Henri’s backyard pool, with the you anything to go to the interview”), Henri
afternoon sun shining overhead, Henri reflects on spent the day at Merck’s international headquar-
his life’sjourney.While we munch on a deli lunch ters in New York City. He remembers: “I had the
of open-faced sandwiches, three-bean salad, hum-
3
most fantastic series of interviews and conversa- what was going on. Hierarchy was debunked, fos-
tions. I was offered a job on the spot.” tering meaningful horizontal interactions.
Henri had served in Merck for only 18 Clear organizational objectives were set col-
months (including a nine-month stint in laboratively, foremost of which was “to be uncom-
Canada), when the company posted him to promising in quality and to be different.” By the
Finland as the Managing Director of its small sub- time Henri completed his second year in Finland,
sidiary — a sales, marketing, and medical unit — revenue was up 50 percent. There was also an
which was losing money and considered a lost upside in Henri’s personal life. Henri fell in love
cause. “We have nothing to lose in Finland,” with co-employee Riitta and they married in
Henri was told. “If you can run the place, manage Helsinki.
people, and turn things around, perhaps you will Henri’s success in Finland did not go unno-
have a future in Merck.” “I was just a kid,” ticed. He was soon promoted to be Merck’s
remembers Henri — barely 30 years old. Regional Director in Scandinavia, in charge of
When Henri arrived in Helsinki, he noticed four countries: Norway, Sweden, Denmark, and
the dozen-plus employees took little pride in Finland. His stock within the company was ris-
their work and lacked a sense of identity. “What ing. A couple of decades later, it would take him
changed quickly,” Henri noted, were the intangi- to a top position!
bles – “the relationships, the way people connect-
ed and interacted with each other.” Henri encour-
aged a climate of openness, so everyone knew The Making of Henri
Henri’s parents were Polish Jews, who left
Poland without passports in the wake of
rising anti-Semitism, arriving in France in
1930, wading their way through Germany
and Belgium. They settled in the small
town of Carcassonne in Southern France,
where Henri’s father worked as a tailor.
Henri was born in 1938 in what he notes
was “a poor family of immigration par-
ents” and grew up quite “awareof his fam-
ily’s roots.”
Growing up in France, under the close
shadows of Nazism (his father was pris-
oner of war during World War II), and
deeply mindful of the anti-Semitism
which claimed over six million Jewish
lives in Hitler’s death factories in Europe,
Henri notes: “I became very obsessive
about freedom… I consider it as the
absolutely essential ingredient for people
to become what they can become.”
Adds Henri: “I feel so deeply and so per-
Home represents another haven for learning. sonally about freedom that I hate to be
4
told arbitrarily what to do, or what I cannot do.” Retirement and
So, early in life Henri internalized the belief “that Giving Birth to Plexus
if I don’t like something, it is highly likely that “Why did you retire from Merck?” I ask.
others would also not like it” This personal yard- Henri grins and notes: “I wanted to leave
stick of treating others with respect has charac- Merck at a time of my own choosing — at a time
terized Henri’s life and career. when the going was good. Merck’s
As a child, Henri learned the value of self- Intercontinental Region and Japanese operations
reliance and risk-taking, were thriving; my divi-
noting: “I could not use sion had been the fastest
my name or my father’s “I had no idea what to growing for several years
legacy to move forward. I do and purposely in a row. It seemed like
needed to be good an ideal time to go.
made no plans [for
enough to feel that I was During my years at
not trapped, that I could retirement].I wanted Merck I observed that
be myself. So, to be ‘free’, to leave the space open executives at the top lev-
I had to be successful ” els of the company quite
for the unexpected to
Henri was a brilliant often retired unhappy:
student, jumping a few emerge.” some overstayed, some
classes in school, before were pushed aside. I was
he undertook his studies determined to avoid end-
in chemical engineering ing what had been (for
in Toulouse and Paris. A competitive summer the most part) a wonderful career on a sour note.
scholarship provided Henri, barely 21, an oppor- Also, my father who was living alone in France
tunity to work in Poland. He arrived in Poland was getting quite old, unable to travel to the U.S.
“not speaking a word of Polish.” While he spoke anymore, and I wished to spend more time with
German at work, he picked up Polish quickly. him before it was too late. The idea of not suffer-
Similarly, his English was “dismal” when he ing from permanent jet lag and of having time for
arrived a year later in the U.S. But, thanks to long family and friends was also most appealing.”
stints in front of the television set, he picked it up “Was it difficult to retire?” I ask.
quickly. “It is always difficult to leave a job that you
For Henri, learning a language is not just an love doing and people that you care deeply about
exercise in self-reliance, it also provides a window but it was a ‘happy’ retirement,” reflects Henri. “It
into a different culture, reflecting a different way was happy precisely – and paradoxically - because
of knowing and expressing. Henri’s respect for I chose to retire at a time when I was both happy
diversity – in thought, perspectives, and opinions and very successful. There were a bunch of mem-
– can, in part, be attributed to his wide exposure orable farewell parties in various parts of the
to different languages and cultures – both at world. I remember them as being warm, happy,
home, school, and work environments. and fun. A lot of people came to these parties,
While Henri is fluent in French and English, including secretaries and office personnel whom I
and comfortable with German, Finnish, and had worked with over the years.” After a
Swedish (and Polish, once upon a time), he grins moment’s silence, Henri grins and notes: “In fact,
and notes: “I still swear and count in French.” it was pleasant. My heart was warmed by the ‘I
will miss you’ whisperings and hugs.”
5
“What kind of a retired life did you have in asked him to consider the possibility of joining
mind?” I ask. me to start work on the prospective Foundation.”
“I had no idea what to do and purposely made “What happened then?” I ask.
no plans,” Henri notes. “I wanted to leave the “Ten of us – all interested in complexity sci-
space open for the unexpected to emerge. I decid- ence – met in Pittsburgh”, recalled Henri. The
ed I would not do what retired corporate execu- discussion centered on what work should come
tives traditionally do – that is, serve on corporate next for Curt and how to continue the complexi-
boards. I wanted to do ty network that he had
something meaningful “Trusting people and developed. Out of these
and different, but did not looking after their deliberations came the
know what.” idea of establishing
personal and
Serendipitously, Plexus Institute, a non-
around the time of his professional welfare profit organization. Its
retirement, through some went against the mission: “To foster the
mutual friends, Henri’s health of individuals,
prevailing
path crossed with Curt families, communities,
Lindberg, a senior official management grain organizations, and the
of VHA, Inc. — an which believed in natural environment by
alliance of 2,200 commu- helping people use con-
keeping employees at
nity hospitals — and a cepts emerging from the
leading proponent of an arm’s length.” new science of complexi-
using concepts from com- ty.”
plexity science to address A few months
intractable health care issues. later, in Fall 2000, Curt and Henri took the lead
“Curt is the greatest network builder I have in incorporating the Plexus Institute in
met,” muses Henri. “I admired how he had Allentown, New Jersey. Curt would serve as
brought together corporate executives, health President. Henri was elected Chairman.
care professionals, science writers, and academics So, three years after his retirement from
around the common purpose of learning how to Merck, Henri Lipmanowicz was back in “busi-
use complexity science concepts in health care. I ness” — this time at the helm of a nonprofit cor-
enjoyed the time I spent with this network. We poration, promoting a wider understanding of
met several times over the next two to three complexity science concepts to improve the qual-
years.” ity of peoples’ lives.
“Were some directions emerging on how your “Giving birth to the Plexus Institute with
retirement was going to go?” I ask. Curt and others was one of the most meaningful
Henri notes: “Therewereseveral possibilities. events in my life,” mused Henri.
One brewing idea was to start a small Foundation “How have your last five years been with
and engage in meaningful philanthropy around Plexus?” I ask.
the mission of helping executives develop organ- “I enjoy my time with Plexus immensely for I
izations where people thrive. Around the same feel that I am learning all the time and meeting
time, I heard that Curt’s job at the VHA was being lots of fascinating people such as you,” noted
retrenched. I told Curt what my ideas were and Henri. “And now I am even more convinced
6
about the value of complexity science for busi- “Yes, and it was consistent with what Meg
ness leaders and organizational managers.” Wheatley was writing and what my experience
told me. That is, in a complex system such as an
organization, order arises from the interactions
Experience between the people, and the nature of that order
Meets Science is a function of the quality of those interactions.
It was only a couple of years prior to his In a complex system, such interactions generate
retirement from Merck self-organizing patterns
that Henri was formally that are beyond the con-
introduced to the field of trol of management.
complexity science. “I took risks by Therefore the quality of
Upon the recommenda- relationships between
trusting the ideas of
tion of one of his col- actors is often more
people around me.”
leagues, Henri read two important than the quali-
of Margaret Wheatley’s ty of the actors,” noted
books — Leadership and Henri. “What Meg
the New Science and A Wheatley did was she val-
Simpler Way. idated my convictions, backing them with sci-
The books grabbed Henri: “They gave me a ence. I, of course, had justified them all along on
language, a framework rooted in science, to see the basis of common sense, my lived experience,
the connections and threads of certain conven- and my understanding of individual psychology
tional and unconventional managerial practices in group situations.”
which really worked for me at Merck.” “Did you ever meet Meg Wheatley?” I ask.
“What unconventional practices?” I ask. “Yes, I invited her to Merck. She spent two
“I routinely engaged in what the convention- days with my management team. Wesat in stuffed
al management wisdom considered as deviant comfortable chairs and dialogued non-stop –
behaviors.” there was no agenda. It was beautiful. It was pro-
“Like what?” I ask. found and at the same time we had a ball. She too
“For instance, I made a decision early in my had a ball.”
career that I would choose to trust people. I “So, Meg Wheatley was an important influ-
would give people the benefit of the doubt and I ence on you,” I probe.
would organize on the assumption that, for the “Yes, when I first read her, I said ‘Wow! This
most part, people inside the company could be is beautiful!’ It was something I was missing. She
trusted,” noted Henri. “And, that if people were helped string together my various ‘deviant’ expe-
treated fairly, with respect, the outcomes will riences.”
mostly be good.” After a pause, Henri added:
“Trusting people and looking after their personal
and professional welfare went against the prevail- Trust: The Lubricant of
ing management grain which believed in keeping Organizational Life
employees at an arm’s length.” Iencourage Henri to reflect back on his man-
“So close relationships, personal connections, agerial practices at Merck. “What did you do to
and trust were at the center of your management develop trust with co-workers?” I ask.
practice,” I echoed.
7
Henri reflects: “Consciously, I took the joining our company, he came to me with an idea.
responsibility to act in a way that people could He suggested that instead of using a detailing
trust me. I went out of my way to be truthful, to presentation brochure – which had printed head-
share all information freely, and to reward people lines and text - to make presentations to physi-
for speaking their mind including disagreeing cians, our sales reps should perhaps use a flannel
with me. I tried to avoid manipulating people. I board on which we could stick, and move around,
worked hard to create safe spaces for sharing the various presentation props.”
ideas, and to practice “What did you say to
what I call ‘active hon- Jorma?” I ask.
esty.’ It sounds obvious “I said that’s an interest-
“My trust clearly cost
and simple but it really ing idea. Why not try it?”
the company money.
isn’t, which is why so After a pause, Henri
many leaders don’t But it was worth noted: “In essence, I was
inspire trust. I believed telling Jorma I trust you
every cent!”
that people would not and I am prepared to take
trust me if I didn’t first arisk with your unproven
demonstrate by my idea. This was early on in
actions that I trusted our relationship and it
them. So I took risks by trusting the ideas of peo- was a verybig thing for Jorma as he could not get
ple around me.” his previous boss at Winthrop to even try it out.”
“Can you give me an example?” I ask. “How did the flannel board fare?” I ask.
In response, Henri shared a story from his Henri grins: “All the sales reps thought this
early days with Merck in Finland. The year was was a crazy idea. They had a whole raft of reasons
1969 and Henri was trying to put Merck’sFinnish to explain why it would not work including
operations back on track. He remembered: where would one put the flannel board given the
“I hired Jorma Mantovaara — a very talented, doctor’s table was always crowded. But it worked
knowledgeable, and dynamic Finnish man as my like a charm….it was a big success. Doctors were
Sales Director, luring him from Winthrop, anoth- intrigued by this novel mode of presentation and
er pharmaceutical company. Within weeks of his made space on their tables. The flannellograph
Table 1. Henri’s Dos and Don’ts
Dos Don’ts
Build on Trust Depend on Controls
Give Freedom to Experiment Reward Conformity
Share Problems and Failures Kill Bad News
Celebrate Accomplishment Punish Failures
Admit Your Mistakes Abuse Your Authority
Take Risks Stand Still
Be Connected Isolate Yourself
Be a Role Model Expect Others to do More than You
Make Work Fun Allow Boredom
8
(as it began to be called) resulted in a more inter- have to be blind. In trusting people, I knew that I
active, dynamic, and memorable conversation had to be prepared to be disappointed periodical-
between the sales reps and the physicians. ly. But that was a price I was willing to pay. The
Unbelievably, the physicians, absorbed in the benefits of trusting all the people who deserved it
presentation, were giving our reps double the were far too great to reverse course because of
time than they did previously. They now had some occasional disappointment. Trust is a two-
more questions, which meant that the reps had to way street, and I wanted my employees to know
be better trained. A small that they could trust me
change in a presentation to trust them.”
“Imagine how healthy
prop had a series of cas- “Can you give me
your body would be if
cading positive out- an example of when you
comes. In retrospect, the your lungs started trusted someone, and a
flannellograph is a good price had to be paid?” I
lying to your heart. Or
complexity story. By ask.
if your liver and
changing the quality of Henri scratches
interactions, without kidneys only exchanged his head: “Yes, I can.
changing the actors, Here is a story from
information once a
whole new patterns when my trust clearly
month! Now reflect on
developed.” Then Henri cost the company
broke into a laugh and the feedback patterns money.” But Henri
noted: “Above all, the quickly added: “But it
that occur in most
flannellograph was fun.” was worth every cent!”
organizations.”
“What did the flan- Henri recalled: “In 1992,
nellograph initiative do Merck’s New Zealand
to your relationship with operations were headed
Jorma?” I ask. by Chris Moore, a young bright man, who report-
“It cemented our relationship as we worked ed directly to me. One problem for Merck in New
closely on creating flannellograph presentations Zealand was that their product distribution sys-
and developing this new medium. I gave Jorma tem was expensive, and Chris wanted to try a dif-
credit for implementing this idea, and he became ferent distribution strategy. However, I felt that
more and more creative. By trusting his first idea, the new course of action that Chris recommend-
by opening a space for experimenting with the ed was not the right choice. We had long, open,
flannellograph, other possibilities for innovation free-spirited discussions about the various
and creativity opened up. As the safe and sup- options, and I explained to Chris my position,
portive space grew larger, we moved further and including the pitfalls of his recommendation. But
further out on the edge of our capabilities to do Chris felt strongly about his position, was con-
things that were truly unique.” Henri leaned vinced that it was the right one to fix the problem,
back, sipped his lemonade, and said: “Innovation, and stood by it.”
as you know, happens on the edge.” “What did you tell Chris?” I ask.
“So trusting people can yield surprising, and Henri grins: “I told Chris you know how I feel
even far-out, outcomes?” I ask. about this. But I also see what your position is.
Henri replies: “Yes, if a relationship is You have to do what you personally believe is
involved, trust is fundamental. But trust does not
9
best. You have my approval and full support to try hear ‘I told you so.’ But everyone can make a mis-
out the new distribution system.” take, and sometimes mistakes are costly. But I did
“So you were implying that you trusted his not withdraw any authority from him. If I had,
judgment?” I ask. how could I expect him to trust me – his boss –
“Yes, I genuinely trusted Chris. I also believe down the pike? I had approved his decision and
that it is essential for managers to be given the told him that I would support him. Support is not
freedom to make their own decisions so they can just for good times; it is most needed during bad
take full responsibility for them, something they times. So, as a senior manager I was constantly
will never do if decisions are imposed on them mindful of what I needed to do in order for my
from above. He went to work with the new dis- team members to trust me.”
tributor of his choice. Then some six months “But, Henri, what does a manager do when
later, Chris called me. He sounded very sheepish, there is little or no trust?” I ask.
and noted that his decision to implement the new “That happens a lot at the beginning of new
product distribution system had yielded poor relationships,” notes Henri. “Trust has a soft nur-
results. His tone of voice suggested that he was turing edge that improves the quality of interac-
ready for me to explode and tell him ‘I told you tions, but the absence of trust embodies a sharp
so’.” hard edge that leads to cracks, fissures, and rup-
“Did you?” I ask. tures among people.”
“No. I laughed instead and that totally sur- “So, Henri, what should a manager do when
prised him. I said, Chris, this is an expensive les- trust is missing in a relationship?” I ask. “What
son so let’s appreciate it; let’s get our money’s did you do?”
worth in learning. How is everything else going?” In a measured steady tone, Henri notes: “For
“What was Chris’ reaction?” I ask. me trust in a relationship was the foremost con-
“I think he was flabbergasted. He expected to dition to continue to work together. It was the
be beaten up. To be punished. He expected to foundation of a mutual contract. I prized it even
morethan competence,
as people can always
pick up the needed
skills. If trust contin-
ued to be missing, then
the relationship had to
be terminated.”
“Did this happen
when you were at
Merck?” I ask.
“A number of
times,” Henri replies.
After a pause, he con-
tinues: “As I climbed
the managerial rungs at
Merck, there were
times when in a new
In all areas, Henri is backed by his principles.
position I ‘inherited’
10