āDo not repeat the tactics which have gained you one victory, but let your methods be regulated by the infinite variety of circumstances.āāāāSunĀ Tzu
In the late 10th century, a small group of Norse settlers, led by Erik the Red, ventured to the icy shores of Greenland. These settlers established communities and brought with them the agricultural practices and societal structures that had served them well in Europe. They built farms, raised livestock, and constructed churches, hoping to recreate the success they had known in their homeland.
However, Greenland presented a dramatically different environment. The climate was harsher, the soil less fertile, and the growing seasons shorter. Despite their best efforts, the Norse settlers struggled to sustain their communities using the methods that had previously brought them prosperity.
In stark contrast, the indigenous Inuit population thrived in the same environment. They had lived in the Arctic for centuries, developing a deep understanding of the land and sea. The Inuit flourished by hunting whales, seals, and fish with spears, using advanced techniques perfectly suited to their environment.
The Norse settlers, on the other hand, found it difficult to adapt. Clinging to their traditional methods, they failed to learn from the Inuit and adjust to the new challenges they faced. Over time, their settlements dwindled and were eventually abandoned.
This story offers a powerful analogy for many mergers and acquisitions. Just as the Norse attempted to transplant their familiar methods into an environment that demanded adaptation, so too do many parent companies impose their successful practices on local businesses in different markets. While these methods may have worked in one region, they often fail when forced onto a new context, unable to account for local challenges and differences. Like the Norse, companies that fail to customize their approach to the unique needs of the new environment risk seeing their investments struggle or even collapse.
The Karpenter Organisation: A Modern-Day Greenland
In her book, The Progress Principle and on her appearance on The Innovation Show Teresa Amabile tells the story of the Karpenter Organisation (a pseudonym for the actual company). Karpenter had just been acquired by a parent company. Akin to the Norse settlers imposing their methods on a new environment, the acquiring company assigned a new top executive team that reorganized all divisions into cross-functional businessĀ teams.
Each team was to function as an entrepreneurial group, autonomously responsible for everything from inventing new products to managing inventory and profitability, all with minimal interference. While concerned about the merger and what it would do to their successful work practices, the existing Karpenter executives were buoyed by the promise of autonomy.
However, soon enough, like the Norse settlers, these newly-assigned top executive team imposed the practices that had made them successful in their previous environments without understanding the unique context, configuration and needs of the company they had acquired.
The Proof in theĀ Pudding
The phrase āthe proof is in the puddingā originates from the idea that the true value or quality of something can only be determined through experience, not assumptions. It suggests that the real test comes when something is put to theĀ trial.
For Karpenter employees, the proof came during a fateful product review meeting, a major event for one of Karpenterās key product teams. Despite dramatic progress the new leadership team slashed their development budget. This unravelled months of the teamās product development work. This new (viking-esque) team made the decision āout of contextā, devoid of the reasons this new product was developed in the first place. Such eventsāāāall too commonāāānot only provoke unhappiness and frustration but also sour peopleās views of new management, while reducing their discretionary effort.
Over time, similar negative experiences led employees to perceive their new management team as over controlling, ignorant, and bureaucratic. Soon enough, the most talented of such innovation teams leave. Once established in their new organizations, they poach the high potentials from their old job. In time, companies like Karpenter find their performance wanes, just like the Norse failed to adapt in Greenland.
Going with theĀ Grain
āIf you want to create you have to get rid of all conditionings; otherwise your creativity will be nothing but copying.āāāāOsho
In a literal sense, āagainst the grainā is a term from woodworking, where working against the grain of the wood causes difficulty in smoothing and finishing because the tool works against the natural flow of the fibers. To achieve a smooth, polished result, one must go with the grain, aligning with the natural direction of the material. This ensures a smoother, more efficient process.
In the final episode of our 3-part series with Stan Deetz, he addresses the challenge of applying a well-established model to a new context. Stan proposes that the key to success today is customization. Specifically, he asks, can we tailor our work processes, products, and strategies to fit the unique environment, assets, and resources we have? Weāve long known that customized products hold more valueāāāwhile generic products are cheaper, they lack the personalĀ touch.
The same applies to work processes. Customizing work processes makes them more effective because, instead of forcing them to work against the grain, we align them with the natural flow of the environment. Just as in woodworking, where working with the grain ensures smoother, more efficient progress, aligning work processes with the unique needs of the environment leads to greater productivity and fewer obstacles.
On a broader scale, management should not be a one-size-fits-all approach. We should formulate a customized strategy that adapts to the specific goals and circumstances we face. Instead of imposing a preferred system on an existing structure, we should aim to understand the unique context and adjust our strategies accordingly. By focusing on how we achieve objectives rather than sticking rigidly to a predetermined method, we create the foundation for more effective and sustainable success.
Happy Christmas, I hope you enjoy theĀ Pudding!
That capstone episode with Stan DeetzĀ here:
https://medium.com/media/fcb6e15d03aad5f30a4c778face68714/href
And that episode with Teresa Amabile mentioned abo
https://medium.com/media/2d34052199f3e38023e27784a5b060a1/href
Customizing Change: The Proof in the Pudding was originally published in The Thursday Thought on Medium, where people are continuing the conversation by highlighting and responding to this story.