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August 6, 2008
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The Robert E. Nolan Company is an operations and technology consulting firm specializing in the banking industry. Since 1973, we have helped banks innovatively redesign processes and apply technology to improve service, quality, productivity, and costs. Our consultants are senior industry experts, each with over 15 years of specialized experience. This depth, coupled with our collaborative approach, enables us to expedite and magnify improvement initiatives for our clients.

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The Behavioral Benefit That
May Go Unnoticed
By Bob Grasing
President
bob_grasing@renolan.com

Nolan executives routinely follow up with clients to see how implementation has gone and to ensure that the identified improvements have been realized. Two of our clients I met recently talked about how pleased they were with an unexpected benefit that each characterized as a change in behavior and culture. We often note in our proposals that our participative approach might result in behavioral change, but this is not always valued as tangible and measurable when weighed against stated objectives of lower unit cost, lower cycle times, lower error rates, and increased income.

What is interesting, and most gratifying, is that our clients are as delighted with this result as they are with the tangible and measurable improvements we helped them achieve. During a project update early in my management career, I recall having a CEO tell me that a side benefit from the redesign was that he saw "different people eating lunch and conversing," and another executive at a super-regional bank said that it was the first time that people in the different divisions cooperated in a redesign effort.

Positive behavioral change is not easy to accomplish in a company, even when it is intended. It takes a change to create a new environment that helps people imagine the possibilities. The power of behavioral change can transform a company or a society when instituted effectively. Recently, the Los Angeles Philharmonic hired Gustavo Dudamel to be their next music director as of the 2009 season. This 27-year-old "rock star classical music conductor" is a product of Venezuela's "El Sistema" ("The System"), a program instituted to rescue young people in extremely impoverished circumstances from the crime and drug influences that they would likely be drawn to. El Sistema was established in 1975, and today they have more than 200 youth orchestras in Venezuela involving 250,000 children; the program's stated objective is participation of at least 500,000 by 2015. It is a remarkable life example of how taking people out of their current environment—giving them a new view of what the world offers—can change lives.

I recently read in The New York Times Magazine about another program that changed the culture of crime in Chicago. One year ago, there was an average of five shootings per day in that city. A program called "Cease Fire" was developed to train ex-gang members still connected on the street to intercede when disputes smolder. They have one objective in mind—to prevent shootings. The trained and connected staff members, called "Interrupters," talk to the gangs' leaders. The early result from this new initiative, in six of the seven neighborhoods where the program exists, has been a reduction in shootings by between 16 and 27 percent. There is still violence in Chicago, but this program is showing early hope. It is now being instituted in Baltimore with excellent early results there, as well.

Behavior change requires a process of intervention in society or in business to become effective. There needs to be a different path than the one historically provided. One client mentioned that their executive committee had recently accepted a proposal from a "coalition of departments" that worked together and solicited ideas from a wide variety of disciplines in the company. Prior to developing a recommendation, the coalition used the input to test the viability of their ideas. The client said that this cooperative approach would never have happened prior to our redesign process. While this business result is unmeasured, the behavioral change is certainly not going unnoticed.