| In the years since World War II, the organizational environment has changed from |
| one of static, mechanical efficiency optimization to another of dynamic, organic, |
| effectiveness evolution. Global competition, innovation and limited resources in the |
| face of a growing and wealthier world population have lead to non-stop, disruptive |
| change in all industries. This change is accelerating, impacting all organizations |
| which now need to improve their activities or face extinction. |
| In addition to competitive industry threats, organizations must compete for highly |
| qualified staff as never before. The increased requirements for success mean that |
| there are more organizations pursuing a limited number of high potential employees. |
| Increased organizational demands for mastery level skills, flexibility, innovation, |
| accountability, teamwork, tolerance, self-control, service, self-motivation and loyalty |
| have outstripped the ability of labor markets to provide these new versions of the ideal |
| employee. Organizations with the greatest needs and resources are providing |
| compensation and work environments to attract, motivate and retain these |
| individuals. |
| There is a growing consensus by thought leaders that success requires: |
| A. Innovation |
| The ability to digest changes by staff members at all levels and functions. |
| The ability for all staff to innovate and apply innovations made elsewhere. |
| A customer focus that shapes decisions and relations that first meet external needs. |
| B. Best Human Resources |
| Access to the very best human resources at all levels and functions (inside, outside) |
| A work environment that is attractive to the very best human resources. |
| Cost-effective recruiting/retention of high value employees, contractors, suppliers. |
| Staff members whose value-added assets and results grow by 5% annually. |
| Embracing diverse talents, perspectives and cultures in decisions and practices. |
| C. Cost-Effective Use of Resources |
| Best use of all resources by matching talents and experience to needs. |
| Best use of resources through developmental delegation focused on results. |
| Best use of leadership, management and professional roles. |
| Synergy from combining complementary talents to produce breakthrough results. |
| D. Alignment Within Complex Systems |
| Engaged, self-motivated staff with a minimum of management overhead costs. |
| Shared accountability, reducing the need for oversight and measurements. |
| Complex processes that connect many individuals, departments or organizations. |
| Systems that motivate achievement, rather than attempt to control behavior. |
| Less detailed planning/forecasting, with more capacity for adapting to situations. |
| Commitment to a team, organization or mission that motivates personal effort. |
| Alignment of global supply chains, without fully integrated planning systems. |
| Elimination of waste, duplication and conflict through coordination mechanisms. |
| Overall Strategies |
| Organizations that are able to evolve and adapt in a challenging competitive |
| environment must have several complementary overall strategies, including: |
| Effective Strategic Plans … |
| … clearly defining direction, evaluating situations and choosing priority actions. |
| Human Resources … |
| … attracted, engaged and motivated by a true commitment to win-win results. |
| Leadership … |
| … to set direction, coordinate plans, engage staff, serve customers and inspire. |
| Resources … |
| … financial, supplier, brand, processes, patents, intangible and tangible assets. |
| Performance Management Systems … |
| … planning, reporting and improving systems. |
| Culture … |
| … a set of values/expectations that create alignment and motivate optimal results. |
| Culture |
| A well-defined organizational culture honestly reflects the expectations of staff |
| members for each other and for the organization as a whole. A set of values defines |
| what is expected in terms of behaviors and habits, and what is deemed |
| unacceptable behavior. These values are consistent with the organization’s history, |
| customers, experience, strategy and institutional features. A well-defined culture is |
| internally consistent. It captures the history and expectations of the organization. |
| An effective organizational culture supports the drivers of success. It promotes |
| innovation and change management. It values and rewards high performers. It |
| embraces cost-effective practices, especially in terms of delegation which |
| empowers strong employees. Finally, it honors accountability and promotes the |
| ability and commitment of staff members to create alignment as an intrinsic part of |
| their daily work. |
| In the end, an organizational culture serves to make explicit the bargain between |
| employee and organization in a challenging environment. Organizations are |
| modifying the way they do business to attract, engage, motivate and empower |
| individuals who can create the most value. In return for a commitment to the |
| organization and the benefit of their services, employees are provided with an |
| environment that maximizes their personal growth, rewards and market value. |
| Different organizations select different individual values to define the essence of their |
| ideal or preferred cultures. Taken as a collection of values, they clearly provide an |
| answer to the question, “what is it like to work at …?” The values represent ideals, |
| both of staff and organizational attainment. They describe what employees want to |
| be like, what they aspire to show at their best. Organizations can slowly change their |
| values if they find that the existing set is inadequate to meet the needs for survival. |
| This is a slow process, requiring very significant investment in selecting, defining, |
| complementing and implementing. |
| As an ideal system that coordinates and controls behavior, cultures and values in |
| organizations are like those in other social institutions: families, churches, |
| communities and clubs. They are effective only when the members believe in them. |
| This means that leaders are held to a high standard. It means that trust is essential. |
| It means that individuals must have personal relations with others and that emotions |
| matter. Inconsistent messages or behavior can rapidly undermine commitment. |
| Like an emotional bank account, organizational values can be a reservoir of goodwill |
| or an overdrawn checking account. Directors, management and staff are required to |
| hold each other accountable or the values and culture can quickly become |
| worthless. |
| In addition to setting an example in their personal behavior and creating an |
| environment of trust, senior managers are responsible for ensuring that |
| complementary policies, procedures, processes and plans are consistent with the |
| organization’s values. The primary focus is on human resources systems for |
| recruiting, performance management, training, advancement and benefits. Systems |
| for planning, measurement and control are equally important. Managers must also |
| commit to enhanced communication to ensure that consistency is understood or |
| inconsistencies addressed. In addition, managers must operate consistently, |
| holding all to the same standards. Managers must develop open, constructive |
| relationships with their bosses, peers and staff which allow for constructive |
| communication to address situations that appear to challenge the organization’s |
| values. |
| Summary |
| The demands on organizations are greater today than ever before. Organizations are |
| concluding that global competition, innovation and competition for the best staff will |
| continue. To survive in this environment, they are adjusting their structures to |
| promote innovation, best human resources, cost-effective use of resources and |
| alignment within complex systems. A key strategy is to define a set of values which |
| comprise the organization’s culture and expectations. By formally defining their ideal |
| values and committing the organization to operating in accord with these values, they |
| are seeking to attract, engage and retain the best employees, who are then motivated |
| and aligned to produce the greatest results for the organization. This organizational |
| effectiveness strategy is being adopted and refined in all industries with increasing |
| success. It is not the easiest strategy, but it promises the greatest individual and |
| organizational rewards to those who can commit to living up to the high standards of |
| an ideal culture. |
Good News 