Principles of Organizational Behavior, 3rd Edition

13Sustain Organizational Performance Through Continuous Learning, Change, and Realignment

MICHAEL BEER

Harvard Business School and TruePoint

Hierarchy makes it hard for lower levels to reveal the whole truth in conversations with those at the top, research and experience tells us (Argyris, 1985; Detert and Edmondson, 2011; Morrison and Milliken. 2000). And there is evidence that the inability to have honest conversations that reveals the whole truth stands in the way of organizational learning and change (Argyris and Schon, 1996; Beer, 2020). Consider recent ethical and performance failures at Boeing, Wells Fargo Bank, and Volkswagen among many equally devastating failures in other companies around the world. In all cases, lower-level people knew of the problems that ultimately caused reputational and financial damage, but there was no means for them to have an honest conversation with those at the top.

Honest organization-wide conversations are only possible if leaders at the top are ready to lead them. Their personal readiness for the conversation has proven to be the single best predictor of whether they will decide to lead such an honest conversation and change process and its effectiveness. That is in part a function of the extent to which they are dissatisfied with the status quo – the effectiveness and performance of their organization. It is also dependent on the extent they are secure and confident and consequently give people a voice and involve them in decisions ...