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By
Paul Deis, CEO, PROACTION
Article Summary
This article continues the discussion of how to
create high sustained levels of engagement by those
that comprise an organization. Here we detail the
concept of Best Practice Cultures, one of the 4
Essential Factors on the Path to Best Practices.
Included are characteristics of the way people that
comprise an organization are led, the way they
interact with each other, and the inner, human,
‘from-the-heart’ motivations and inspirations that
cause them to devote significant portions of their
lives and energy to the organization for which they
work.
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Essentiality of Leadership – Recap
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What a Best Practice Culture is.
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Where to start; moving forward now.
In previous PROACTION Best Practice Newsletters, we
previously discussed three of the 4 Essential
Factors, including:
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Effective systems and processes
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Effective continuous improvement programs
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Education and training
The fourth Essential Factor is Effective Leadership
and Culture. In the previous Newsletter we focused
on the Essentiality of Leadership, along with
empirical research validating the idea that
investing time and money in this “soft” area pays
substantial returns in measurable performance –
higher sales volume, better profitability, quality,
customer satisfaction, lower turnover, and others.
Essentiality of Leadership – Recap
From this starting point, we will next explore what
other characteristics must be present in an
organization’s culture for a sustained, Best
Practice Culture to emerge and endure over long
periods of time. To recap, the key elements of
leadership in this context are:
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Driven by leaders
– effective leaders set difficult, almost
“unreasonable” goals that require real striving
by everyone.
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Vision driven
– consistently articulate a compelling vision of
the future.
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High performance-driven environment – highly focused, high-energy work environments – striving
toward clear objectives.
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Simple structures and processes
– effective leaders avoid complex organization
setups; clear, simple accountability lines
enable everyone to function well, knowing
exactly what their role is.
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World-class skills
– also called “operational excellence” – this is
a striving for high performance in every area of
the organization.
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Strong people systems
– clear, strong focus on performance and
motivation of and assigning the best people to
critical jobs.
What a Best Practice Culture Is
With effective leadership driving and role-modeling
these characteristics to others in the organization,
the next question is to identify what the other,
somewhat more detailed aspects of a Best Practice
should one either look for, or strive to create in
one’s current organization. As this is a potentially
“large” topic, for brevity we will present this as a
checklist, aspects or characteristics to look for,
together with a very brief explanation that will
help understand each.
These are:
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Employee commitment
– related to high levels of engagement, for
everyone, not just managers and supervisors.
Individual, “front-line” employees are
motivated, even inspired, to work for
the company and its goals.
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Fully empowered employees
– Authority for action has been sufficiently
delegated so individual employees have
enough authority to act on their own,
without having to seek “supervisor approval”
for a long list of activities that are an
integral part of their normal work flow or
job responsibilities. Another word for this
is “autonomy” – independently responsible.
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High integrity workplace
– The actions of leaders and people at all
levels is such that everyone’s “word is
their bond.” It is expected that
promises made, will be kept. This enables
all participants to avoid time-wasting,
discouraging “CYA” actions, reports, memos,
and approvals. If a leader, especially, has
to “go back on his word” he/she understands
that this will be regarded as a serious
breach of trust by others, and so will go to
great lengths to “make it right” with
everyone.
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Strong trust relationships – Closely related to high integrity is strong trust
relationships, up/down the structure of the
organization and laterally. People at the
same level in this context, view their
co-workers as team-mates, whom they can
count on to do their part, be straight
shooters, honest, and to not leave their
co-workers “hanging out to dry.”
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Highly effective leadership
– Key part of the overall culture; repeated
here to emphasize that this means leadership
at all levels not just the C-level
managers, but first line supervisors,
mid-level managers, lead people, people in a
supportive role such as Quality Assurance
people with a “dotted-line” reporting
relationship to others.
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Effective systems and processes
– any problems with basic daily work flows
are worked out, resolved, so that everyone
may focus on getting the work done without a
myriad of error-producing exception
conditions, inaccurate/untimely information,
and other factors that clog the work flows.
This means a certain, basic level of
effectiveness has been established, and is
re-established quickly after any
reorganizations or realignment of
responsibilities, such as might occur with
implementing a new enterprise software
system. It is distinct from the continuous
improvement process in that it assumes at
least a certain, minimum standard of
effectiveness has been establish for all
processes, including minor ones.
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Performance-based compensation and reward
programs – bonuses, profit-sharing, stock
options, and the like, all keyed to revenue
and profitability and/or other goals are in
place, so that everyone who helps accomplish
these goals has the opportunity to benefit
personally from their achievement. Ideally,
the reward/compensation system is designed
to be responsive to work groups or units
that an individual person can relate to, not
just the company as a whole.
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Customer-focused
– everyone understands, and “gets” that the
company, its performance, products, services
are entirely driven by customer needs,
desires, and that the purpose is to create
“delighted” customers, beyond just
“satisfaction” in a minimal sense. This is a
feeling, pervasive in the way people act,
both internally, between each other, and
externally, to customers and suppliers.
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Effective 360-degree communications – the review process includes one’s subordinates and peers,
as well as just “keeping the boss happy.” In
many job situations, it may be appropriate
to seek in put from those outside the
company, such as customers or key suppliers
with whom the person regularly interfaces.
The benefit of this is not only expanded
understanding of how a person is functioning
so managers can make better assessments, but
for the person’s benefit as well, to support
and drive personal and professional
improvements as well.
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Commitment to learning and skill development – This characteristic is integral to one of the
Four Essential Factors – an ongoing,
effective education and training program for
everyone. For a fully effective Best
Practice culture, it is vital that those
doing the jobs, and the improvement process,
themselves continue to improve over time –
to “improve the improvers,” so to speak.
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Emphasis on recruiting and retaining
outstanding employees
– realizing that highly effective people are
critical, Best Practice cultures pay close
attention to who is doing which jobs, so
that each job can be performed as well as
possible. The key to this is careful,
effective recruiting, and then working hard
to retain the best people possible.
Significant turnover is a sure sign of
culture difficulties.
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High degree of adaptability – Like the US Marine slogan, “improvise, adapt” – the
effective Best Practice culture participants
do not cling to established work structures,
job assignments, etc., but embraces the
truth that change is desirable and required
for the kind of success everyone is seeking.
So, it is expected that learning new skills,
technologies, ways of interacting and
working together are all part of this steady
march forward to success in today’s arenas,
and tomorrows which may not have even been
innovated yet.
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High accountability standards
– key to integrity and trust is the notion
that people are responsible for delivering
on what they commit to doing. The
organization’s work flow, and social process
depends upon this high standard of personal,
work team, organization, and business unit
accountability. If extraordinary efforts are
required, it is assumed that these will be
taken if necessary. It is a ‘no-excuses”
environment.
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Demonstrated support for innovation – An essential aspect of a Best Practice culture is a
pervasive thought-process of always
developing, trying out, experimenting with
new, potentially better ways of doing
things, for both products and services, as
well as “purely internal” functions as well.
So, in addition to obvious things such as
new, exciting products, a Best Practice
culture will experiment with internal
functions such as self-service employee
benefits intranet web sites. |
Where to Start – Moving Forward Now
In order to make an “get started” action list, we
suggest that you take this list in hand, or at least
in mind, and compare it with the working
environments, the cultures, of companies and
organizations you have work with, worked for, or
served in a leadership role.
Think about each one, comparing it to what you
perceive, and the result will be a “gap” list – a
list of where to start. Bear in mind that very few
organizations exhibit all of these characteristics
at a high level.
The key insight is that the more of them, and the
more completely they are evident, the stronger the
culture will be, the more resilient, adaptable, and
“count-on-able” it will be to produce high
performance results, in quality, revenue/sales
growth, and above industry-standard profitability.
Finally, remember that even small improvements will
bear fruit, will show results you can measure.
We welcome your feedback and comments. Send us your
questions and we’ll answer them in a future
Newsletter. Please type in the address.
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