Star Wars, Expectations, and Leadership

Star Wars The Force Awakens

You know you have a problem when you start seeing leadership issues in everyday things, such as the new Star Wars Movie, Episode VII, The ForceAwakens. I guess that’s our lot in life.

Star Wars The Force Awakens
Our current research efforts here at DecisionWise are focused on the best way to define expectations in the workplace. We call it “The Contract,” which is the explicit and implicit contract (the psychological contract) that exists between an organization and its workforce. What we have learned in our research is that all successful contracts – whether it’s purchase orders or the psychological contract and expectations you have built with your team – are built upon a clear understanding of the underlying expectations.

So, what does this have to do with the new Star Wars movie? At first the film received near universal praise and acclaim. Then, as time went on, more and more bloggers, critics, and fans began to complain about the film. Their complaints ranged from a lack of character development to the notion that the film was a re-tread of Episode IV. How did the movie go from a “masterpiece” to one that “stinks?” Did the movie itself change? Of course not. But our perceptions of the implied expectations did. And it’s all in the expectations.

The film’s director (and co-writer/producer), J.J. Abrams, was tasked with “re-booting” the most beloved film franchise in history. He needed to create a link between the original film from 1977 and today. That was task number one. Next, he was supposed to set the stage for a variety of upcoming Star Wars films to be released by the Disney Empire (pun intended), which includes episodes VIII and IX, along with other films that are based on the Star Wars expanded universe. Abrams was not tasked with strong character development; nor, was he tasked with creating dialogue worthy of an Oscar.

In sum, his primary job was to send a “love letter” to Star Wars fans everywhere. This was Mr. Abrams’ “Contract” with a large segment of the human population.

In my opinion – job accomplished! The Contract was fully satisfied. As we look at the “contract” Abrams had between the viewer and the film, those that approached the movie from a perspective of satisfying the requirements above, contract fulfilled. In that light, Mr. Abrams should not be judged on a set of expectations outside this Contract. That’s why the movie received near universal acclaim at first. To those fans that mattered, those that waited in line for hours (probably in costume), he fulfilled the Contract. He delivered.

Now, for some armchair Jedi knights and part-time movie critics, there was another implied contract. To them, this contract was not fulfilled. Why? Because their perceived contract was different from the contract created in the minds of fans who felt the film hit its mark.

Now, my comments aren’t intended to be yet another film review to add to the tens of thousands already out there on this movie. Rather, it’s to point out another concept—that of “the contract.” We all go into interactions (movies, relationships, employment, business negotiations, etc.) with a contract in mind. Sometimes, as in the case of a business negotiation, much of that contract is formal and in writing. It’s explicit and clear (“you do this, and I’ll do that in return.”). However, much of the contract isn’t explicit, it’s implicit.

As in the case of an employee, the organization may very well be fulfilling the terms of the explicit contract. But fulfillment of the written contract isn’t what creates engagement. It’s fulfillment of the implied contract—the contract that says, “Look, there are certain requirements that we both know we need to fulfill, but what we’re really both after is _______, and I’m going to make sure we both deliver.” In the case of employment, when this implied contract is fulfilled, the employee engages. When it’s broken, the employee disengages (mentally, physically, or both).

What’s the lesson for today’s leaders? Know your audience and know your expectations, both explicit and implicit. Then deliver on the contract. The rest will take care of itself.

The new Star Wars movie will make Disney a ton of money. Why? Because Disney and Abrams knew the contract it had with its true fans, and they kept their side of the bargain. You need to do the same with your organization.

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How Steve Jobs Changed the Employee Contract at Apple

Young Steve Jobs

There is a scene in the 2008 animated movie, Kung Fu Panda, which makes me think of Steve Jobs. Most pundits compare him to geniuses or narcissists. Not me. I am going to compare him to a fat panda named Po. In this film, a Kung Fu master nKung Fu Panda Po

amed Tigress explains to the jocular Po the nature of a messianic character that will save the people – the “Dragon Warrior.” Po had been selected by a wise turtle to become the Dragon Warrior. Tigress’s exchange with Po goes something like this:

Tigress: “It is said that the Dragon Warrior can survive for months at a time on nothing but the dew of a single gingko leaf and the energy of the universe.”

Po: “I guess my body doesn’t know I’m the Dragon Warrior yet. Gonna take a lot more than dew, and universe… juice.”

So, how is Steve Jobs related to this scene? Well, with Steve’s passing it’s as if Steve has become the Dragon Warrior of business – able to drive billions in revenue with nothing more than his yogi mind and the energy of a glowing apple encased in aluminum.

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There are a lot of explanations for Steve’s success. Many of them have merit and should be studied. I would like to add another reason to the growing list. My proposition is that Steve’s success was not mystical; it was simple and practical. When he came back for his second tenure at Apple, he changed Apple’s contract. Which contract? Apple has signed thousands of contracts during its lifecycle, and if you consider each consumer sale a contract, then billions. Those are not the contracts I am talking about. I am talking about “the” contract; the one that is written with a capital “C”. I am referring to the tacit three-party Contract between Apple, its employees, and its customers. Some might call it Apple’s psychological contract. Every organization has a Contract, and the parties are usually the same. They consist of the organization, its workforce, and those that buy the organization’s products or services.

Our research suggests that a key driver in an organization’s success is whether the organization’s leaders take the time to build and nurture this ever-important Contract.  Sometimes leaders aren’t even aware they have a Contract, let alone understand what it means. Good leaders, however, take the time to understand, build, and carefully define their Contract. They focus not just on slogans and catch-phrases, but also on culture, value propositions, and whether the terms and exchanges contained in the Contract are fair to all three parties. They grasp the concept that their Contract is like an iceberg. Some of the Contract is explicit (i.e. above the water), like the exchange of compensation for an employee’s time and effort at work. But, the vast majority of the Contract’s terms are implicit – or as is the case with an iceberg – below the water. Successful leaders take the time to make sure the implicit terms (the psychological contract) are aligned with where they want to take the organization.

When Steve took over for the second time, nothing much changed, and yet everything changed too. The employees were the same, the inventory was the same, the sales channels were the same, and the pipeline of future products was set. Nonetheless, the moment Steve’s indomitable personality walked through the door everything was transformed. That’s because Apple’s Steve Jobs

Contract was turned on its head. Steve’s iconoclastic presence made everyone know that the ground-rules for what it means to be an Apple employee were now different. The new requirements were: precision, commitment, love of design and aesthetics, thinking differently, exactness, and a passion for really great products, among other things.

Returning to Kung Fu Panda and the story of Po. Po is able to save the village from the ravages of psychopathic leopard. Not because he became an amazing Kung Fu artist; rather, it was because the people “believed” that, as the Dragon Warrior, Po had the power to save them.  For those that know the movie, that was the “secret ingredient” – the belief that Po was the Dragon warrior. I suppose when you look at it this way, Steve Jobs really is the Dragon Warrior of business. Steve made the most of his second chance at Apple by redefining Apple’s Contract. He made his employees believe they were going to build the very best products and that Apple really would become what is now the world’s most valuable company.
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