10.10.09

Inspiration for Side by Side Leadership®

Posted in Leadership, Research at 11:59 am by Dennis Romig

In 1996 my associates and I were implementing teamwork systems around the world for Texas Instruments, Dell Computer, Amoco, Raytheon and other Fortune 500 clients.  All of the organizations obtained breakthrough business results including $100’s of millions worth of documented improvements.  Texas Instruments’ Portugal and Texas Instruments’ Singapore each won their country’s National Quality Award using breakthrough teamwork skills to implement best in class quality.

One of my company’s, Side by Side, Inc.*, clients was so successful that it won an international award for excellence and made their company a ton of money at the same time. I and my associates loved coaching and training with this client.  Their people came to work excited and bouncy with smiles on their faces.  The Vice President of the division was effective.  He led the formation and training of cross-functional teams, which had highly effective communication, cooperation, coordination, and creative improvements.  He included workers from all levels of the organization in goal setting and business strategy execution meetings.  This Vice President was so good that he was promoted and transferred to another division of the company.

The new division Vice President came in from outside of the organization.  The first thing he did was discontinue involvement of the employees in organizational goal setting and strategy meetings.  He did all of the talking in the meetings he held with his subordinates.  The new VP was impatient and critical if any of the managers or supervisors tried to contribute their own improvement ideas.

Gradually all of the workers began trudging into work with their heads down.  The business results plummeted.  The workers and supervisors saw the breakthrough culture crumbling before their eyes.  Some of the more tenacious supervisors came together as a group armed with factual data identifying a major business problem and wrote up a series of solutions. They sent the plan to the VP.  He ignored it and let it sit on his desk.  The division’s business results got so bad that it crippled the parent company.

As I observed the destruction of the division’s breakthrough teamwork culture and the corresponding loss of millions of dollars, I asked myself the following question, “How can one person so negatively impact a whole organization of bright, intelligent, and highly motivated workers?”

I knew that the answer to the question was not only useful in business organizations but would also be relevant for government, non-profit, and even faith-based religious organizations.

With the help of my associates at Side by Side, Inc. I gave myself a three-year, half time research assignment: find research on leaders who produce the best organizational and business results.  I reviewed almost 3,000 relevant studies to find 300 hard data studies.  Along the way I also found new research on the human brain that was extremely relevant.

One Monday, I gave myself the assignment to review again in one week summaries of the 300 hard data studies which documented business improvements of 5% – 40%.  On Friday afternoon of that week after scanning the results of the last study, I looked up the definition of leadership in the dictionary.  The dictionary said that to lead meant: “to direct; to command; to be first; and to influence.”

The next morning, Saturday, I woke up earlier than usual.  I went into my living room and I exclaimed to myself, “It’s wrong! The dictionary definition of leadership is wrong.”  I knew that the one-way influencing model of leadership with leaders “directing, commanding, or influencing“ did not produce outstanding business results.  The hard data research studies painted a picture of leaders who:

  • listened as much as they talked;
  • developed goals with their people;
  • used participative decision-making and problem-solving; and
  • asked for, as well as offered, help to subordinates during coaching and performance evaluation meetings with their employees.

Initially I called it Two-Way Leadership.  Later, my colleague, Paul Radde, offered the name Side by Side Leadership.

As I developed and implemented Side by Side Leadership training and coaching, I got a big surprise.  I discovered that my own leadership style needed to become more Side by Side.  Each work week I observed how I must fight the culturally driven model of one-way, top-down leadership.

Fortunately I wrote a book that helps me lead more productively.  It is called Side by Side Leadership : Achieving Outstanding Results Together.   Evidently Side by Side Leadership is helping others as well. It is a Wall Street Journal Bestseller and New York Times Bestseller.

To the extent I backed off and led more two-way, I and the people around me became more thoughtful, creative, and productive.

*Side by Side, Inc. was formerly named Performance Resources, Inc.

Copyright, Side by Side, Inc., 2009

The Origins of Side by Side Leadership® Success

Posted in Leadership, Research at 11:20 am by Dennis Romig

For 28 years Side by Side, Inc. has collected and summarized research studies on leadership and teamwork.  In the beginning the most popular approaches included recreational teambuilding and interpersonal confrontation trust building.  We discovered that these approaches had no research support for improving productivity. On the other hand productivity soared when leaders asked for and listened to their contributors’ ideas for:

  • Setting goals;
  • Solving problems; and
  • Making decisions

Motorola University discovered Side by Side, Inc.’s research and training when they visited with two training managers at the Austin Motorola computer chip factory, Dave Olski and Dave Willis.  Motorola contracted to develop their entire leadership, management and teamwork training around Side by Side, Inc.’s research.

After Motorola implemented the research-based training programs their corporation’s revenue grew from $3.3 billion to almost $11 billion in eight years.   Texas Instruments, Motorola’s main competitor, who was ahead in 1981 with $4.4 billion revenue only grew to $6.6 billion in the same eight years.  Motorola University invented the now famous Six Sigma quality program using Side by Side Inc.’s participative management and teamwork programs as a foundation for employee involvement.

Motorola, along with Ford and Xerox, led the way through the late 1980s showing how research based participative leadership and teamwork combined with quality programs increased both revenue and profits.  Motorola’s high tech competitors as well as other corporations visited Motorola in Schaumberg, Illinois to learn more. Some of the visiting leaders and training managers asked Motorola University who had helped them with their leadership training.  Motorola answered Dr. Dennis Romig in Austin, Texas.  Through Motorola referrals Side by Side, Inc. provided leadership training and coaching to most of the other major high tech companies – Texas Instruments, Dell, IBM, Raytheon, and Advanced Micro Devices.

Energy companies from Houston, Texas heard about Side by Side, Inc.’s successes in High Tech and engaged Side by Side to coach and train their leaders as well (Arco, Shell,  Vastar Resources, Inc. and Noble Energy).  In all cases companies achieved 20-40% improvements per year.  These case studies and the research behind the team approach were published in Breakthrough Teamwork, 1996 and Side by Side Leadership, in 2001.

Side by Side, Inc.. had some good luck and help with the book, Side by Side Leadership ; It was a 2001 Wall Street Journal and 2001 and 2002 New York Times Business Bestseller.  Side by Side Leadership also won the award for Best Business and Career Book of the Year for 2002.

One of the chapters in Side by Side Leadership  presents how Side by Side, Inc. assisted an Arco’s subsidiary, Vastar Resources, Inc., in growing its market cap from $2.8 billion to $8.3 billion using Breakthrough Teamwork and Side by Side Leadership .  All of the research-based success stories in both books were published with the permission and endorsement of the executives of the corporations who had benefitted from the leadership training programs.

The results sound unbelievable, but they are real. The outstanding results are because of the hard work of our clients and us applying the best scientific research on leadership, teamwork and synergy. Every month I am excited by reports from current and previous clients on new breakthrough results!

(Side by Side, Inc. was formerly named Performance Resources, Inc.)