Posts Tagged ‘Organization’

yolly

The author, Stephen Yolland

Or  USING THE SIX VITAL PRINCIPLES OF INTERNAL COMMUNICATION TO MOTIVATE YOUR STAFF

Either title works.

This is an article I first wrote some years ago. Coming across it by chance, not only does it still stack up well, (with a very little judicious editing) but sadly, I do not see the ideas in it being understood or implemented, at least not to any great degree.

Which is shame. Because this article is the distillation of some 35 years very successful experience in both management and communications – both internal and external – working with some of Australia’s leading organisations across a vast gamut of industry and public life.

If you are a senior executive, there is gold in this article. What you do when you’ve read it? Well, that’s entirely up to you.

Enough said, let’s go:

In any modern organisation, the power relationship of the executive and management team vis-a-vis the rest of the company has changed radically in recent years.

Many people will argue that that the primary responsibility of the boss or bosses is to shareholders, stakeholders and owners.

And that job is important, no doubt.

But if a happy and productive group of employees is the best possible way to ensure a viable and growing return on investment, then it follows that an executive’s first priority, logically, must be to create the environment that will deliver that type of workforce.

We all pay lip service to that principle. But “How?” is the question.

RE-THINKING THE BOSS’S ROLE

It is a cliche to point out that just as any chain is only as strong as its weakest link, so any organisation is only as strong as the motivation and skills of its entire range of employees.

So in smart organisations today, executives are not appointed to “rule the roost”, but to guide and advise those around them and that means looking both up and down the corporate ladder.

Today, executives are making decisions and taking actions, in effect, as “ruling delegates” of the company’s entire staff – on their behalf, and in pursuit of greater harmony, efficiency and productivity.

“I’m warning you. If we tell them why we chose the coffee supplier we did there’ll be no damn end to it. It’ll be executive salary packages they want oversight of next, you mark my words.”

If one accepts that this is a healthy and effective model of modern corporate leadership, then it also follows that staff have an innate right – a need, in fact – to understand the activities of the executives that run their lives, and in detail if they so desire, or if it will help them perform their job role.

THE PRINCIPLE OF TRANSPARENCY

To achieve this, executives must thoroughly adopt a mindset that a matter is available to all to know, unless there are strong reasons of legality or personal confidence why that should not be so.

This reversal of the norm that applies in most organisations inevitably produces a markedly different result to the alternative mindset, which is, of course, that everything is innately confidential unless an argument is made that it should be public.

This extends to matters that appear that they should be confidential, but in reality need not be.

“I think they’re all gone. Quick, let’s take the chance to move the parking space allocation around a bit.”

Many matters are held tightly to the chest when in reality good things would result from them being made public at an early stage, and more thoroughly.

I once knew a 20+ year employee leave a company (and he was a good employee, too) because they moved his car park space without asking him politely if he minded. I kid you not.

It wasn’t the car park space that pissed him off, it was the secrecy with which it was handled.

Suddenly a thousand tiny resentments at a secretive management team boiled over, and off he went, taking his wit, wisdom and priceless knowledge with him.

Also: think clearly. You know that the free flow of ideas, suggestions, warnings and information is enhanced by a reduction in confidentiality.

That is why democracies, for all their faults, operate more efficiently than totalitarian states, and are inevitably more stable in the long term.

But the assumption that no-one else really has any right (or need) to know what “we” are doing is usually entrenched and often difficult to over-turn. It belongs to an older and more cynical age, when capital and labour were permanently locked in an atmosphere of mutual mistrust and mutual blame, but many executives today still live in that paradigm.

Confidentiality – the knee-jerk, unthinking assumption of confidentiality – is a cancer.

It grows inside our organisations, eating away at our vitals, until we reach the oft-quoted situation that the left hand doesn’t know what the right hand is doing. In the resulting confusion, people are often unwittingly working actively against each other, duplicating effort at best, and stymieing each other at worst.

In fact, confidentiality can become such a corporate habit, that the left hand sometimes doesn’t even know that the right hand exists.

Confidentiality is also a drug. It entices and bewitches those who have it within their grasp to conceal matters.

Why? That’s easy. To hold confidential information is to be of the inner circle. To be “in the know”.

And whether or not knowledge really is power (which it undoubtedly sometimes is) it is certainly a heady brew for many. And it produces workplaces that are excessively “political”  and internally competitive.

So: the solution to all this nonsense is simply to reverse the paradigm.

We should make people argue on a case-by-case basis that people should NOT know something, with the highest possible requirement for any such argument to be very convincing, rather than requiring people to prove that others should know before information is routinely made public.

“I don’t want you to feel threatened, but there’s a guy in the next building who I’ve been told has a really good idea.”

Just as one example of this style of thinking: why should any team meeting be routinely “closed” to “non-members” of the group who are having the meeting?

Why, indeed, should it not be actively advertised, with all those who feel they have useful input invited to attend?

Yes, yes, yes. One can instantly sense busy executives shuddering at the thought of endlessly extended meetings – as if we don’t all have enough of those already – enthusiastically infested by the eternal committee-sitters that are so easily identifiable in any organisation.

But restricting meetings to an elite few is not the solution to that problem.

Rather, the solution to THAT problem is to have meetings that have clear and concise agendas, chaired by people who are skilled at controlling wafflers and time wasters.

Or in other words, it’s better to have one waffling air-bag punctured in public than to have one staff member who actually has the answer to a problem excluded from contributing because no-one thought to ask them along to the meeting.

Here again, the democratic principle is a useful guide: Councils and Parliaments, for example, all have “Stranger’s Galleries”, and the most stringent conditions have to be met for those galleries to be cleared and for the body to go into secret session.

And needless to say, on those occasions when a cabal or clique is seeking to do the wrong thing, then corporate governance is enhanced when more people know what’s going on.

Which leads us neatly to:

THE PRINCIPLE OF PRO-ACTIVITY

In order to give meaning to the first principle, (instead of merely adopting it as a high-minded ideal that means very little in practice), there should be an assumption that a company’s bodies will make every effort to disseminate information pro-actively, straining every sinew to ensure that information reaches the further possible point of the corporate family in a timely and easily-understood manner.

“Goodness me yes, I’m pro-active. I sometimes even shout at them BEFORE they need it, just to keep the little blighters on their blessed toes.”

The leaders of organisations should critique their efforts in this regard, constantly testing to see whether such pro-activity is genuine, thoughtful, enthusiastic and effective.

Where this requires extra effort or expenditure, such burdens should be managed with equanimity, secure in the knowledge that what is being done is vital to the health and growth of the organisation, rather than a tiresome annoyance.

The goal should be to seek out the gifts of the widest possible audience as early as possible in any decision-making process, content that the best advice is frequently commonsense, and that commonsense frequently appears from the least-expected quarter, and frequently from outside the management team. (See: How to save eight million bucks by spending twenty.)

But of course, there is no point doing this unless organisations also adhere to:

THE PRINCIPLE OF SIMPLICITY

Information that is convoluted, partial, or badly explained is less useful that no information at all. It will cause misunderstanding and confusion, leading to mistrust and disputation.

As a logical consequence, every effort should be made to reduce unnecessary and tortuous prolixity, the purpose of such verbiage merely being, as far as one can ascertain, as much to obscure as it is to enlighten.

Simple enough for you?

Simple enough for you?

Or in other words, use fewer words.

And then communicate those words briskly and effectively. By embracing …

THE PRINCIPLE OF PROFESSIONALISM

If the foregoing principles are to succeed, then executives should seek out the best means possible to disseminate the information available, constantly critiquing performance in this area to check that other, more powerful mechanisms or technologies have not presented themselves as a better way to get things over to people.

And every communications item, whatever its medium, should be attractive and engaging, properly laid out and presented, or well performed, well-written, enticing, intriguing, and informative, and avoid unnecessary legalism, conventionalism, and conservatism.

“You want me to upload a video to our intranet website and send out an EDM to everyone at one minute to 9 so they start their day by watching it? And then copy the video to their partners on their home email with a polite explanatory note asking them to a company celebration? Yessir, Mr Hopgood, Sir.”

So here’s the homework. If you apply these standards to how your organisation works, how are you doing?

Bear in mind that any changes that organisations adopt will amount to a hill of beans, and a small hill at that, unless every decision taken is consciously subjected to the following checklist:

  • The matter we are discussing can anyone see any compelling reason why everyone shouldn’t know about this?
  • How can we best let the largest number of people know about it, and as quickly as possible at that?
  • What is the simplest, clearest way we can present the information?
  • What will be the most effective medium for transmission?
  • Do we know what we’re trying to achieve?
  • Have we made it easy and effective for people to respond?

If leaders are prepared to sign up to these principles as a guide, then work can begin promptly on the changes necessary to begin implementing them in a practical way.

As a first step, these principles could be “read into the minutes” of a Board, for example, and formally adopted as the principles by which the organisation’s peak bodies operate.

The next step would be to implement a communications program to have these principles understood by all management, and, in turn, by the staff as a whole, and to decide what impact the principles have on the way communication flow happens within the organisation.

But we have to be clear about one thing.

Effective communication is not a mechanical issue. It is a state of mind.

If anyone senior in an organisation has any serious reservations about adopting this style of management, and also has the power to “white ant” the process as soon as it gets underway, then there’s simply no point worrying about the “how to”.

Because it is clear that, like most things, achieving genuine progress in internal communications requires real visionary leadership.

So ask yourself: are you that leader?

Stephen Yolland is a businessman and business consultant working primarily in Melbourne, Australia, and also in the United States, Malaysia, China, and Britain. He lectures on matters of business interest and is a sought after public speaker on business, marketing and other topics. He has worked in a variety of senior roles in sales, marketing and advertising for 35 years, and is the founder of and major contributor to the Wellthisiswhatithink blog. He is also a popular commentator on political and civics issues, and is a published poet.

Image

Nick Barnett

Oh well, back to business. I am indebted to my colleague Nicholas Barnett and his team at Insynch Surveys for sending me their latest newsletter which includes this excellent article on the factors that separate really successful, fast-moving organisations from others.

As Insynch have one of the best employee engagement survey businesses around – if not the best – then I find their research really compelling. If you want a copy of their newsletter, or to get the whole report, just flick them an email to info@insyncsurveys.com.au. It’s always a good read – and if your business or organisation has got some sticky bits that defy improvement, why not ask them if they can help you find out why? Trust me: I’ve been around the tables a few times. They’re good.

I saw lots of graphics for High Performance Organisation and they were all crap and predictable. Then I just saw this and liked it. Is it relevant? Dunno: just a nice illustration, honestly. Yee-har.

Um … I saw lots of graphics for High Performance Organisation and they were all crap and predictable. Then I just saw this and liked it. Is it relevant? Dunno: just a nice illustration, honestly. Yee-har.

Oh. PS. The 7 Habits aren’t rocket science. But they do require a committed focus. How good is your situation, measured against this list?

Article follows:

Our latest research unveils the 7 habits of high performance organisations that have steered them through a low growth economy and an increasingly competitive environment.

The research helps leaders of all organisations, regardless of size or type, understand how to increase productivity, performance and profitability.

Here’s a summary:

1. Live an inspiring vision

An organisation with a clear and inspiring vision is far more likely to gain employee buy-in and the extra discretionary effort, energy and focus from employees that are essential to achieving sustainable high performance. More than half (54%) of employees from high performance organisations believe their leadership team has an inspiring vision, compared to 24% from low performance organisations.

The lesson: High performance organisations understand that they don’t only need to develop a shared, compelling and inspiring vision; they must make a habit of continually espousing that vision and make it integral to everything they do. The vision then becomes authentic, relevant, aligned, achievable and memorable and something all employees can understand and be proud of.

2. Communicate clear strategies and goals

An inspiring vision becomes the single guiding light that points the way for employees. Strategies and goals aligned to that vision add focus and urgency to the individual plans, actions and goals of employees. High performance organisations make it a priority to communicate their strategies clearly. More than two thirds (69%) of their employees are clear on the strategy.

The lesson: High performance organisations engage their employees in developing their strategy which gains their buy-in and increases the likelihood of achieving the strategy. High performance organisations also spend a lot of time considering how the strategy can be simplified and best communicated to all employees.

3. Develop your people

Nearly half (45%) the employees of low performance organisations state that their organisation doesn’t have effective plans for developing and retaining its people, compared to only 19% for high performance organisations.

The lesson: Many executives say that they can’t afford to develop their employees because the investment is often not worth it, as many employees leave too soon after they receive the relevant education and training. This is a “cup half empty” perspective and not conducive to building leadership talent and capability. The concern should not be “what if we develop our people and they leave?”, but “what if we don’t develop them and they stay?”

4. Go out of your way to recognise people

Over half (55%) of employees from high performance organisations believe their senior leadership team goes out of their way to acknowledge and thank people for their contribution. This is compared to 27% for low performance organisations. On this factor alone, employees of high performance organisations are more likely to be engaged and happy to come to work each day.

The lesson: Until acknowledging and thanking people for their contribution becomes a habit, leaders need to consciously make the extra effort to increase the extent to which they recognise their staff. There is very little extra cost, other than a small amount of time, and the payback will be significant.

5. Genuinely care for your people

The psychological contract refers to the often unwritten expectations of an employee towards their employer. If employees perceive that this contract has been broken, their trust in, and commitment to, their employer will be diminished. The majority (59%) of employees in high performance organisations perceive their organisation to be caring and committed to them. There is also a strong reciprocal relationship, with more than three quarters (78%) willing to recommend the organisation as a good place to work to family and friends.

The lesson: Some organisations aim to manage the psychological contract more effectively by making their employee offer explicit (documented), rather than implicit (unwritten). These organisations take great care in crafting and documenting an employee value proposition (EVP) that appeals to the people most suited to working in their organisation.

6. Listen and adapt to customer needs

More than three quarters (79%) of employees in high performance organisations believe that their organisation consistently shows a commitment to achieving long term customer loyalty compared to only 47% in low performance organisations.

The lesson: High performance organisations demonstrate a much greater, more structured and thoughtful commitment to their customers, and take a longer term view to customer loyalty. They are more likely to partner with their clients by getting to know them and how they can service them better. They understand that, as they demonstrate a true understanding of their customers’ needs and deliver services that meet those needs, they build customer loyalty and advocacy.

7. Continually improve your systems

Almost three quarters (73%) of employees in high performance organisations agree that their organisation is committed to continually improving its systems compared to only 41% in low performance organisations.

The lesson: High performance organisations ensure that their systems are fit for purpose and well integrated as a key enabler for improving productivity and customer service. Inadequate systems hinder many organisations in executing their strategy. If you genuinely care for your people (habit 5), you will ensure that they are not frustrated as a result of inadequate systems.

blind

This is reproduced from the January 1, 2006 Harvard Business Review, by Paul Rogers & Marcia Blenko. It was sent to us by a client experiencing the need to clarify their decision-making on a particularly significant marketing matter, and he kindly thought it should be of interest to a wider audience.

We found it fascinating and relevant – and we hope you find it useful, too.

We have seen more chaos caused in organisations by the true decision-maker being obscured (or inadequately supported in their decision-making) than from any other single factor, except, perhaps, confusion over what the decision that is actually being taken really is. Understanding who has the real authority in any decision is vital, as is a formal process to make key decisions.

That’s why a big part of our business isn’t just generating ads – any ad agency worth it’s salt can come up with decent ads. We now spend at least as much time helping our clients decide what those ads should be about, and who they’re talking to, and why, and how the business needs to respond to decisions taken in the marketing area.

Marketing shouldn’t be a silo, but often is. And marketing should really drive every other department – drive the business strategy of the whole organisation – not merely respond to it, like a glorified production centre.

This very clear article solves the first problem – who is really taking the decision – and we recommend it to you.

And crucially, whoever is really taking the decision needs to be on top of it, at every stage.

To help you solve all the other problems about devising a successful business strategy – the end outcome of which is communications – call Magnum Opus on +613 9426 4500.

The Idea in Brief

Decisions are the coin of the realm in business. Every success, every mishap, every opportunity seized or missed stems from a decision someone made-or failed to make. Yet in many firms, decisions routinely stall inside the organization-hurting the entire company’s performance.

The culprit? Ambiguity over who’s accountable for which decisions.

In one auto manufacturer that was missing milestones for rolling out new models, marketers and product developers each thought they were responsible for deciding new models’ standard features and colors. Result? Conflict over who had final say, endless revisiting of decisions-and missed deadlines that led to lost sales.

So how to clarify decision accountability? Assign clear roles for the decisions that most affect your firm’s performance-such as which markets to enter, where to allocate capital, and how to drive product innovation.

Think “RAPID®”.

Who should Recommend a course of action on a key decision? Who must agree to a recommendation before it can move forward? Who will perform the actions needed to implement the decision? Whose Input is needed to determine the proposal’s feasibility? Who decides-brings the decision to closure and commits the organization to implement it?

When you clarify decision roles, you make the right choices – swiftly and effectively.

The RAPID Decision Model

For every strategic decision, assign the following roles and responsibilities:

PEOPLE WHO ARE RESPONSIBLE FOR

Recommending

  • Making a proposal on a key decision, gathering input, and providing data and analysis to make a sensible choice in a timely fashion
  •  Consulting with input providers-hearing and incorporating their views, and winning their buy-in

Agreeing

  • Negotiating a modified proposal with the recommender if they have concerns about the original proposal
  • Escalating unresolved issues to the decider if the “A” and “R” can’t resolve differences
  • If necessary, exercising veto power over the recommendation

Performing

  • Executing a decision once it’s made
  • Seeing that the decision is implemented promptly and effectively

Inputing

  • Providing relevant facts to the recommender that shed light on the proposal’s feasibility and practical implications

Deciding

  • Serving as the single point of accountability
  • Bringing the decision to closure by resolving any impasse in the decision-making process
  • Committing the organization to implementing the decision

Decision-Role Pitfalls

In assigning decision roles:

  • Ensure that only one person “has the D.” If two or more people think they’re in charge of a particular decision, a tug-of-war results.
  • Watch for a proliferation of “A’s.” Too many people with veto power can paralyze recommenders. If many people must agree, you probably haven’t pushed decisions down far enough in your organization.
  • Avoid assigning too many “I’s.” When many people give input, at least some of them aren’t making meaningful contributions.

An example of the RAPID model in action

At British department-store chain John Lewis, company buyers wanted to increase sales and reduce complexity by offering fewer salt and pepper mill models. The company launched the streamlined product set without involving the sales staff. And sales fell.

Upon visiting the stores, buyers saw that salespeople (not understanding the strategy behind the recommendation) had halved shelf space to match the reduction in product range, rather than maintaining the same space but stocking more of the products.

To fix the problem, the company “gave buyers the D” on how much space product categories would have. Sales staff “had the A”: If space allocations didn’t make sense to them, they could force additional negotiations. They also “had the P,” implementing product layouts in stores.

Once decision roles were clarified, sales of salt and pepper mills exceeded original levels.

Making Critical Decisions the RAPID way

It is increasingly important, no matter what the size and complexity of your organisation is, to have a defined decision-making process.

Having been a leader of extensive global and regional underwriting and marketing business units that require many fast and accurate decisions, our teams had no choice but to establish formal decision-making roles and responsibilities.  In retrospect, while these written authorities provided some clarity, they were fairly one dimensional written “lines of authority”.  To support these basic decision-making rules required constant interaction and an enormous amount of communication.

Executing a strategic plan successfully depends upon the success or failure of the actual people executing the plan to make good decisions.  It stands to reason that if you can improve your team’s decision-making abilities then plan execution and results should also improve along the way.  The RAPID decision-making model goes a few steps further than what we call “written lines of authority” and is an easy but effective way to instil professional decision making within an organisation.

According to a Bain and Company Study, the average organization has the potential to more than double its ability to make and execute key decisions.

On a decision-effectiveness scale of 0 to 100, the best companies score an average of 71, while most companies score only a 28, according to Marcia W. Blenko, Michael C. Mankins, and Paul Rogers, authors of Decide & Deliver: 5 Steps to Breakthrough Performance in Your Organization.

Quick summary of RAPID

  • RAPID was developed by Paul Rogers and Marcia Blenko – two Bain & Company Consultants.  Their article: “Who has the D? How clear decision roles enhance organizational performance” which appeared in the January 2006 Harvard Business Review has since become one of HBRs “10 must reads”.
  • The Acronym RAPID describes the various roles and responsibilities for clear decision making within an organization.  With respect to critical decisions, it ultimately shows how power flows through an organization and/or business unit.
  • The objective with this approach is to create a more formalized, participatory approach towards decision-making process within an organization.
    It is also useful as a “post mortem” tool to diagnose failed decisions – to see what element or elements in the RAPID process was/were lacking or missing so the next time a critical decision has to be made so you are not repeating the same mistakes over and over again.
  • Implementing RAPID can be messy; it can reveal a convoluted and faulty decision-making process so there must be a full commitment to “check egos at the door” and accept the need for adopting RAPID as part of an organizational improvement initiative.  If your organization is in flux, it may not be the appropriate time to implement RAPID.
  • The web site http://www.decide-deliver.com designed by Rogers and Blenko can help you assess your decision making prowess and also, do the same type of assessment of your organization.
  • One of the pitfalls of this approach can be that it actually slows decision-making down. Therefore, at the outset of a project it is recommended that you decide which projects will follow RAPID and which ones will not.

Characteristics of High Performance Companies That Use RAPID

High-Performing organizations make good decisions quickly. Some of the characteristics they exhibit are:

  • For complex issues that require rapid decision making, achieving the right mix of control and creative freedom is critical for sustainable success.
  • A list of critical decisions in priority order must be part of the Strategic planning process. Determining which ones will follow the RAPID process is also required.
  • Decisions that build value are most important and thus, have the highest priority on such a list.
  • Action is the Goal.
  • Ambiguity is the enemy.
  • Speed and adaptability are key.
  • Decision roles trump the organizational chart.
  • A well-aligned organization reinforces roles and responsibilities.
  • Practicing beats preaching.  That being said, a communication plan needs to dovetail with the RAPID process.
  • Remember the “Rule of 7”: once you’ve got 7 people in a decision-making group, each additional member reduces decision effectiveness by 10%. Thus, a group of 17 or more rarely makes any decisions.
  • Managers spend 50% or more of their time in meetings, but Bain & Company research shows that two-thirds of meetings end before participants can make important decisions. Not surprisingly, 85% of executives are dissatisfied with the efficiency and effectiveness of their companies’ meetings.

If you think your meetings, strategy planning and decision-making as less than optimal, perhaps RAPID® is the answer?

RAPID® is a registered trademark of Bain & Company, Inc.