|
OPENING UP BUSINESS:
At Royal Bank Financial
Larry Peterson & Paul Tremlett
December 5, 1995
In early 1995, the new Risk Management Unit of the Royal Bank took a risk.
They planned a meeting for senior management with little pre-arranged agenda.
The task was to engage senior managers from around the world in developing
the strategic directions for the next three years.
After the Executive Vice President set the context, an agenda was created
in less than an hour. In the next day and a half, the managers proceeded to
explore the challenges and opportunities facing Risk Management. It was the
manager’s passions, not those of the EVP, that determined the spirit and
content of those discussions. They led the discussions, produced the reports
and determined the priorities.
The EVP states that the meeting was highly successful. The agenda and the
written reports give a clear picture of the concerns and commitments of the
managers. A clear shared focus for the Unit emerged. This has been visible in
subsequent meetings. Elements of the strategic plan were clarified.
Strategies for improvement were identified and priorities clearly established
with plans to achieve them. All of this came from a meeting with no agenda
and where everyone began by sitting in a large circle.
Canadian business and organizational executives are now discovering that
by opening up space for creative leadership the learning and inspiration
critical to sustained high performance emerges. In today’s competitive global
environment businesses need to create the conditions for human spirit and
team spirit to emerge and soar.
Re-engineering of structures and processes is not enough. There is
increasing evidence that downsizing can actually reduce the ability to change
when it is needed. If employees become jaded and dispirited, then performance
will suffer, now and in the future.
Before its meeting, the Royal Bank had "re-engineered",
developing clearer goals and new structures. The Risk Management Unit was one
of the new structures, pulled together from a number of others. The EVP knew
that a well-rationalized structure and direction would not be enough. Without
openness for initiative and creativity, the re-structuring would fall flat.
He said, "The structure has changed but some people still act as if we
are in the old structure and approach." In an Open Space meeting, you
realize very quickly that you are not in the old structure any more and that
you have a role to play in creating the new.
Not every one in Risk Management liked the openness. However, most did.
New people felt free to speak-up. Others were amazed at how quickly they came
to some solutions with less wrangling than usual. Some noticed the enthusiasm
in the reports and were surprised that chaos works. Concerns were shared. The
real complexity of the task was demonstrated. Yet, there was as sense of
commonality and connection to the whole group and the future of the Unit. The
priorities that were recommended became critical components of the strategic
directions for the next three years.
Note: Risk Management achieved its first 3-year plan in 2.5 years.
I have since worked with the senior team and the 90 senior managers to
develop the next vision.
Contributed by Larry
Peterson
|