20 Reasons People Don’t Change

They Don't Want to Change

If you have trouble getting people to change, perhaps one—or more—of the following reasons are to blame:

  1. They don’t want to change … they find reassurance in the status quo
  2. Their environment is holding them back
  3. They’ve tried to change in the past, failed, and have given up
  4. Your coaching / feedback is garbled … the benefits of change are unclear
  5. They don’t react well to criticism
  6. They’re suspicious of your motives (i.e. fear of manipulation)
  7. They see little incentive to change
  8. They don’t know how to change
  9. They have no role models
  10. There’s no support (or resources) for change
  11. Change threatens their self-image
  12. They can’t tell what’s really important
  13. They don’t feel courageous enough … i.e. they fear failure
  14. They don’t feel enough pain yet
  15. They’re overconfident or arrogant
  16. They fear their weaknesses will be exposed
  17. They’re too lazy and undisciplined
  18. Change requires giving up something they presently value
  19. They resist change that’s imposed from outside … i.e. they’re not intrinsically motivated for change
  20. Change undermines their self-confidence

Idea for Impact: Temper your expectations of others. Old habits die hard. Even Einstein’s doctor couldn’t get the great physicist to quit smoking despite his deteriorating health.

Be realistic about changing others’ hearts and minds. If you can learn to accept them for who they are and let go of your conceptions of their perfection, your relationships become more richer.

Coca-Cola Executive Donald Keough’s “Ten Commandments for Business Failure” [Book Summary]

Coca-Cola executive Donald KeoughDuring a remarkable business career of 60+ years, Coca-Cola executive Donald Keough (1926–2015) developed an inspiring lecture on leadership failures. At the prompting of Warren Buffett, a former neighbor and friend, Keough published his lecture as Ten Commandments for Business Failure.

Keough worked for the Coca-Cola Company for 43 years and rose through the ranks to become its President and COO. Following retirement in 1993, he served on the boards of Coca-Cola, Buffett’s Berkshire Hathaway, and many other organizations.

At Coca-Cola, Keough steered the company’s global product expansion and directed its iconic brand image and enviable distribution network. He became the business world’s most celebrated non-CEO leader.

Keough gained reputation as the public face of Coca-Cola’s 1985 New Coke misadventure—he delivered an on-TV mea culpa (see YouTube video) and announced the volte-face reinstatement of “Coca-Cola Classic.”

Donald Keough’s Straightforward Analysis and Leadership Lessons

'Ten Commandments for Business Failure' by Donald Keough (ISBN 1591844134) Keough’s Ten Commandments for Business Failure is a predictable, yet insightful—even if circuitous—exploration of ten (and a bonus) leadership mistakes.

  1. Quit Taking Risks: “Failures, for all the valuable lessons that they teach us in hindsight about management blunders, are simply risks that just didn’t work out. Such miscalculations, costly though they might be at the time, are part of the price of staying in business. As Peter Drucker pointed out nearly fifty years ago, it is management’s major task to prudently risk a company’s present assets in order to ensure its future existence.”
  2. Be Inflexible: “Flexibility is a continual, deeply thoughtful process of examining situations and, when warranted, quickly adapting to changing circumstances. It is, in essence, the key to Darwin’s whole notion of the survival of the fittest. … Most recalcitrant business leaders would certainly never actually characterize themselves as inflexible. More than likely they would pay lip service to a philosophy of change, expressing the usual platitudes about how they embrace change and welcome it.”
  3. Isolate Yourself (i.e., Be Out of Touch): “One of the traits of many of the legendary builders of business was that they had an uncanny ability to know and relate to their employees at every level … if you isolate yourself, you will not only not know what you don’t know about your business, but you will remain supremely and serenely confident that what you do know is right. Isolation, carried to its most extreme form, tends to breed a sense of almost divine right.”
  4. Assume Infallibility: “The infallible we-know-best attitude of management has caused many companies to ignore reality and miss opportunities … If you want to increase your chances of failure, deny the possibility that you are not always 100 percent perfect in your judgment. Ignore the fact that sometimes others do know a thing or two. … So, if you want to fail, pose as an infallible leader.”
  5. Play the Game Close to the Foul Line: “Business finally boils down to matters of trust consumers trust that the product will do what it promises it is supposed to-investors trust that management is competent-employees trust management to live up to its obligations. In recent years we seem to have quite a few smart, energetic people who have evidenced a rather fuzzy view of the right thing.”
  6. Don’t Take Time to Think: “Time to think is not a luxury. It is a necessity. As Goethe noted: “Action is easy; thought is hard.” Yet action frequently-in fact, more often than not-takes on a life of its own. We pay homage to reason, but we are held hostage to emotion. We are, after all, feeling creatures, and in the excitement of a particular endeavor once the ball is rolling, it’s difficult to stop.”
  7. Put All Your Faith in Experts and Outside Consultants: “The narrow perspective of what appears to be genius is often the inverse of wisdom.”
  8. Coca-Cola Company's COO Donald Keough with Investor Warren BuffettLove Your Bureaucracy: “As [Warren] Buffett said, “It’s unbelievable how much bureaucracy can build up in businesses, particularly those in which you can pass almost all of your costs to the consumer.” … On the hazards of bureaucracy: at their worst, they cannot only impede success, they can also precipitate disaster. … The more cooks there are in the kitchen, the greater the chance that bureaucratic decision making will either be deadlocked or the decision will become an exercise in group wishing. … Ultimately, a bureaucracy can become so dysfunctional that there is literally no one who can rain on the parade. The team can never make anything approaching an objective decision.”
  9. Send Mixed Messages: “Sending mixed or confused messages to your employees or your customers will jeopardize your competitive position, and result in failure.”
  10. Be Afraid of the Future: “The most serious problem with great pessimism is that it is absolutely paralyzing. People are so afraid of dire consequences that they throw their hands up in despair and do nothing. Fear of the future guarantees that the future will be a failure. … To aspire to any kind of leadership in business you simply have to be a rational optimist. One optimist in a sea of pessimists can make all the difference.”
  11. Lose Your Passion for Work-for Life: “A major component of happiness in the business world is finding something you love doing, whatever it might be, and then finding a way to do it. To have success you have to have a high level of unadulterated desire to get up and go to work. … The easiest way to develop an inner passion in a business setting is to focus all your mind and heart on four aspects of your world: your customers, your brands, your people, and, finally, your dreams.”

Words of Wisdom from a Distinguished Corporate Executive

Donald Keough was the public face of Coca-Cola's 1985 New Coke misadventureAmong the myriad offerings of “rules for success” volumes, books such as The Ten Commandments are distinctive for their memorable business stories and examples. Keough’s candid analyses include narratives as captivating as the historical origin of Coke, the commercial history of the xerographic machine, the Coke-Pepsi rivalry, Coca-Cola Company’s ownership of Columbia Pictures, and the New Coke debacle. When asked in an interview if New Coke was worth the risk, Keough famously replied,

I wouldn’t want to do it again. But it was an enormous learning experience, and oddly enough, it turned out to be positive for the Coca-Cola Company. Our sales increased when we brought the original formula back. The reaction from our customers was overwhelming. Once we realized that we had made a mistake, I went on television and simply said that we don’t own this brand, you do. You’ve made it clear that you want the original formula back, and you’re getting it back.

Henry Ford and Model TIn the chapter on flexible and adaptive leadership, Keough blames Henry Ford’s stubbornness for the flagging market share of the Model T vehicle. During the mid-1920s, the industrial triumph of his mass production system and the commercial success of the Model T blinded Henry Ford to a budding customer penchant for cosmetic customization and convenience features. Electric starters, for example, were starting to be perceived as essentials and not as luxuries. Keough argues,

Henry Ford reportedly said, regarding the Model T, “They can have it in any color they want, as long as it’s black.” For a long time that was just fine. But then people began to get tired of the black tin lizzies. Yet even as America was roaring into the 1920s with bigger, faster, fancier, brightly painted automobiles, Henry Ford kept insisting that the Model T, essentially unchanged since 1908, was still what America wanted and needed and he was not going to change his mind. Inevitably, upstarts like Chevrolet and Dodge began to erode Ford’s market and seriously challenge the company’s dominant leadership. At last, more rational minds prevailed and Ford admitted the need to produce a better vehicle. After shutting down his main plant for six months, he successfully launched the Model A in 1928. But Henry Ford’s inflexibility had brought the company to the brink of disaster and cost it a competitive edge that it has never regained.

Recommendation: As a fast read, Donald Keough’s The Ten Commandments for Business Failure is worthwhile for its many nuggets of business history. Even though many of his cautionary lessons are not entirely unexpected, some are insightful. The “play the game close to the foul line” warning about values and ethics is especially thought-provoking. Keough writes, “The fact is, if you play on the edge the organization will step over the line from time to time. It is inevitable. Warren Buffett says: ‘Play to the center of the court’.”

Book Summary of “Marissa Mayer and the Fight to Save Yahoo!” by Nicholas Carlson

Over the holidays, I finished reading journalist Nicholas Carlson’s Marissa Mayer and the Fight to Save Yahoo! This interesting book offers an account of Yahoo’s steady slide towards irrelevance and Marissa Mayer’s early tenure as CEO.

“Complex Monstrosity Built Without a Plan”

'Marissa Mayer and the Fight to Save Yahoo!' by Nicholas Carlson (ISBN 1455556610) Carlson devotes the first third of the book to explaining Yahoo’s beleaguered history and how years of mismanagement and strategy negligence got Yahoo into the mess that Mayer inherited as CEO in 2012.

The second third is about Mayer and her brilliant career as employee number twenty at Google. In 2010, her career allegedly stalled because Mayer got sidelined after conflicts with other luminaries within Google. Relying broadly on anonymous sources, Carlson portrays Mayer’s intense nature and her personality contradictions: in public settings, Mayer is brainy, glamorous, confident, articulate, and approachable. However, in one-on-one settings, Mayer is a self-promoting, dismissive, calculating, tardy, inquisitorial individual who avoids eye contact. “There was nothing especially abhorrent or uncommon about Mayer’s behavior as an executive,” Carlson writes. “She was headstrong, confident, dismissive, self-promoting and clueless about how she sometimes hurt other people’s feelings. So were many of the most successful executives in the technology industry.”

The last third is devoted to Mayer’s initial efforts to turn Yahoo around. Within the first year at the helm as CEO, Mayer motivated Yahoo’s beleaguered workforce, launched the redesign of some of Yahoo’s major sites, and made acquisitions to make Yahoo relevant in the mobile, media, and social realms. Carlson also describes Mayer’s bad hiring decisions, habitual tardiness, tendency to micromanage, tone-deaf style of communication, and dogged devotion to establishing the universally-despised practice of tracking goals and stack-ranking employees.

Yahoo: The Fabled Legacy Internet Company on the Slide to Irrelevance

Yahoo: The Fabled Legacy Internet Company on the Slide to Irrelevance

Anybody who follows the internet content industry understands that the principal question regarding the then-37-year-old Mayer’s recruitment as CEO was never whether she could save Yahoo. Rather, the question was whether Yahoo can be saved at all.

Yahoo has been a mess for a long time. For early consumers of the internet, Yahoo’s portal was the internet—from the mid-1990s until the early 2000s, Yahoo was the number-one gateway for early users of the internet who wanted to search, email, or consume news and other information. Then, Yahoo floundered as the likes of Google, Facebook, Apple, Amazon, Twitter, and Microsoft redefined the consumer internet and content consumption. Yahoo’s successive managements struggled to identify Yahoo’s raison d’etre and failed to set it apart from the up-and-coming websites. Yahoo’s management also fumbled on opportunities to harness the popularity of Yahoo Mail, Yahoo Sports, and Yahoo Finance to get advertising revenues growing again.

Mayer’s Arrival Was Too Late for Yahoo

Marissa Mayer could not succeed in reviving YahooMayer came to Yahoo with extraordinary credentials, drive, technical savvy, celebrity, and charisma. Her tenure was centered on answering the single question, “What is Yahoo? What should become of Yahoo?”

The odds of Mayer succeeding to revive Yahoo as an independent internet content company were very bleak right from the beginning, because Mayer took on an increasingly irrelevant business with very little actual or potential operating value—either as an internet content company or as a media company. Carlson appropriately concludes,

Ultimately, Yahoo suffers from the fact that the reason it ever succeeded in the first place was because it solved a global problem that lasted for only a moment. The early Internet was hard to use, and Yahoo made it easier. Yahoo was the Internet. Then the Internet was flooded with capital and infinite solutions for infinite problems, and the need for Yahoo faded. The company hasn’t found its purpose since—the thing it can do that no one else can.

Since the publication of the book in December 2014, Mayer has dedicated her leadership to selling Yahoo’s core internet businesses and its patent portfolio. Yahoo is expected to then convert itself into a shell company for its investments in Alibaba (15.5% economic interest) and Yahoo Japan (35.5%.)

Recommendation: As a fast read, Marissa Mayer and the Fight to Save Yahoo! is great. Beyond Nicholas Carlson’s gossipy narrative and his pejorative depiction of Mayer’s management style, readers of this page-turner will be interested in Yahoo leadership’s strategic and tactical missteps. Particularly fascinating are how Yahoo missed opportunities to buy Google and Facebook when they were mere startups, the rebuffing of an acquisition bid from Microsoft, a lack of strategic focus, the leadership skirmishes with activist investors, the revolving door at the CEO’s office, and an Asian-asset drama.

A Majority of Formal Training Doesn’t Stick

The Majority of Formal Training Doesn't Stick Most formal corporate training programs fail because (1) they’re not extensive enough to indoctrinate a new behavior and (2) they tend to dwell more on “doing” and less on ingraining a prescribed thought process.

Corporate training programs work best if there is an immediate need for employees to use certain techniques and tools. If more than a few days pass between training and the application, employees may not recall what they’ve learned. Therefore, training programs are most effective when they are about need-to-know-now topics and relate to employees’ current problems.

When employees try repeatedly to apply a new skill and fail, they can get dispirited and revert to their old patterns of behavior.

As I mentioned in my previous article, formal training can be very effective with a good deal of follow-through reinforcement under the watchful eyes of a diligent coach, such as a Process Sherpa.

Idea for Impact: Employees will not use a skill consistently until it’s ingrained in their work habits.

Starbucks’s Comeback / Book Summary of Founder and CEO Howard Schultz’s “Onward”

Starbucks founder, Chairman, and CEO Howard Schultz’s “Onward: How Starbucks Fought for Its Life without Losing Its Soul” is an interesting case study of organizational change as orchestrated by a passionate entrepreneur. The book covers the first two years of the turnaround of Starbucks after Schultz returned as CEO.

'Onward: How Starbucks Fought for Its Life without Losing Its Soul' by Howard Schultz, Joanne Gordon (ISBN 1609613821) In 2007, in the face of falling consumer spending and the upcoming Great Recession, the consumer discretionary sector was hit hard. Like other companies in that realm, Starbucks’ sales and profitability had dropped. The company’s stock price plummeted after Wall Street pared the rich valuations (high price-to-earning) of the company’s once-hot growth stock. Through these trials, Schultz worked at the company’s Seattle headquarters as chairman. Even after retiring as CEO in 2001, he had never left the company entirely and had even interjected often during Starbucks’ presentations to investors.

Starbucks’ financial under-performance was likely as much due to the economic slowdown as it was self-inflicted. In an apparent instance of misplaced cause-and-effect, Schultz blamed the company’s leadership for focusing too much on rapid expansion, opening too many stores, and diluting the in-store Starbucks experience. Behind the CEO’s back, Schultz started working with strategy consultants and other board members to develop a “transformational agenda” centered on the core values of the company he had founded in 1982.

In January 2008, Schultz invited the CEO home on a Sunday evening, fired him, and assumed the CEO position for a second stint. Over the next two years, Schultz rejuvenated the company’s mojo by making operational improvements and focusing on employee engagement, Starbucks’ specialty coffee products and its distinctive in-store customer experience.

Schultz’s vision, focus, and execution of this transformation makes up the bulk of “Onward”. One dominant theme in the book is founder’s syndrome—the intense reluctance of entrepreneurs like Schultz to cede control of their businesses.

Starbucks founder, Chairman, and CEO Howard Schultz

Towards the end of 2009 (when “Onward” was authored,) the economy started to improve. A measured recovery in consumer confidence invigorated the fortunes of most consumer discretionary companies that had suffered during the downturn. At Starbucks, customers returned to stores and spent more. Sales and profitability improved. The company’s valuation on Wall Street soared again. Conceivably, Starbucks may have enjoyed a comeback even if Schultz had remained just the chairman, retained and supported the CEO, and worked with the company’s leadership team to initiate course corrections.

That Starbucks continues to be an American success story and has done extraordinarily well to date under Schultz’s leadership is one more instance of a beloved fairy tale in the world of business—that of a company in distress rescued by the return of its visionary founder.

“Onward” is Schultz’s somewhat grandiose narrative of his return as CEO. The 350-page book is brimming with peripheral details, self-congratulatory superlatives, recurring claims, and Pollyanna-isms that are illustrative of a charismatic entrepreneur and a brilliant corporate cheerleader.

Recommendation: Skim. (For Starbucks aficionados: Read.)

Making Training Stick: Your Organization Needs a Process Sherpa

Organizational Process Sherpa

Corporate training in procedures usually doesn’t stick when the techniques learned are not immediately necessary on the job. If more than a few days pass between training and application, it seems employees cannot recall what they’ve learned.

In order for training to be effective and for employees to retain their newfound knowledge, there needs to be an element of on-the-job reinforcement. A guide can observe, correct, or commend on-the-job application of the training. This follow-up approach will solidify new information and give employees the benefits of experience.

If a certain procedure is required infrequently (say, just a few times each year,) employees may never remember it, not to mention master it. This issue may arise frequently as many organizational processes are only used sporadically.

Until a skill is completely ingrained and natural, employees won’t use it effectively.

To ensure employee familiarity with all relevant processes, even those used infrequently, every organization should consider appointing a Process Sherpa, a process guide.

The Process Sherpa would be analogous to the Sherpas, high-altitude mountaineering guides who help explorers carry loads and negotiate dangerous, ice-covered in the Himalayas and elsewhere. [See yesterday’s article for more on the Sherpas and pioneering explorers Tenzing Norgay and Edmund Hillary.]

The Process Sherpa would understand the wide variety of a company’s processes—filing expense reports, hiring contractors, searching a database of technical reports, preparing quarterly budgets, developing the annual operating plan, preparing for financial audits, and the rest. When the demands of these tasks fall beyond an employee’s understanding, the Process Sherpa could step in and help.

The Process Sherpa position could be adjustable and elastic. It could be a full-time, dedicated role, or the Sherpa responsibilities could be divvied up amongst many employees—after considering the needs of the organization and the expertise of the Sherpas in individual processes.

A Sherpa would not only assist employees, but could also improve the business processes themselves. Having personally witnessed the employees’ challenges, the Sherpa could modify processes to make them simpler and more effective.

General Electric’s Jack Welch on Acting Quickly

General Electric's Jack Welch on Acting Quickly

Jack Welch, General Electric's former CEO Jack Welch was the Chairman and CEO of General Electric (GE) from 1981 to 2001. During Welch’s twenty-year tenure, GE grew into one of the largest and most admired companies in the world. Jack Welch is widely recognized as one of the greatest business leaders of our time. In 1999, Fortune magazine named him the ‘Manager of the Century.’

In an interview with Spencer Stuart executive headhunters Thomas Neff and James Citrin for the book “Lessons from the Top”, Jack Welch regrets not taking action quickly during his tenure at General Electric.

I think the biggest mistake I made is a fundamental one. I went too slow in everything I did. … If I had done in two years what took five, we would have been ahead of the curve even more.

You rarely do things too fast. If you think about your life and the decisions you’ve made, you can’t come up with too many where you said, “I wish I took another year to do it.” But you can sure come up with a list where you say, “I wish I had done a bunch of things six months earlier.”

Call for Action

Procrastinators sabotage themselves. However, procrastination is a learned behavior and therefore can be unlearned.

In all spheres of life, competition has transitioned from “big-eat-small” to “fast-eat-slow.” Good ideas are relatively easy to come up with. However, quick and efficient execution is primary to the success of these ideas. When a hundred people probably have the same idea, execution in a fast timeframe is just about the only thing that matters.

Are you holding back on your ideas? Do the tasks look daunting? Do you lack confidence? Are you uncertain of the direction or afraid of failure? How can you overcome these hesitations? Develop a set of ideas to reach your goals, prioritize them, and commence working on your ideas right away. Why delay?