Posts Tagged ‘Good To Great’

Keeping the Right People on the Bus

Monday, June 21st, 2010

I’m the guest author in the June edition of the STRe Solutions Newsletter. You can find the entire newsletter here, or read my article below.

What’s your secret for keeping your best employees engaged and motivated?

In the classic business book Good to Great: Why Some Companies Make the Leap… and Others Don’t, Jim Collins states that to be effective, organizations need to first get “the right people on the bus (and the wrong people off the bus) and then figure out where to drive.” In essence, who you have on your team, is more important for the organization’s success than where you are headed and how you get there.

While I agree that getting the right people on the bus is as critical today as it was back in 2001 when “Good to Great” was first published, today’s leaders are faced with more complicated challenges.

Most companies have done a good job hiring highly talented, super-smart people. Especially in today’s economy, finding the “who” is not the problem. Where they struggle is keeping them engaged and focused on the “where” and the “how”. To say it another way, you can have strong individual players, but unless there is an overarching purpose that requires them to become a team, little will be accomplished.

For this to happen, organizations need to be two things.

First, they need to be smart. Smart organizations have the basics: Sales, Finance, HR, R&D, Product Development, IT, Services, Support, etc… — all the bits and pieces that keep a company running. The truth is most companies are plenty smart. In today’s world though, that’s not enough.

Organizations have to be more than smart — they have to be healthy as well.

Healthy organizations have low politics (not no politics — but politics that don’t get in the way). They have high morale, engaged employees, and no surprise, they have high productivity. Another thing I see in a healthy organization is a lack of confusion about where the company is going and how what every employee is doing fits.

I saw this time and time again in my 13 years with Federal Express where employees would regularly do amazing things to ensure that our customers were getting the service they expected — delivering critical payroll checks in a blizzard and completing customer pick-ups during the Loma Prieta earthquake are just two of many examples.

The trap that many companies fall into is that you can’t do one without the other and you can’t think about them separately. For organizations to be effective, you must embed the smart stuff with the healthy stuff, keeping the right people engaged and productive.

Employee engagement happens when four things occur:

* The Leadership Team is aligned and cohesive
* There is absolute clarity about the organization’s direction (strategy)
* Every person in the organization understands how what they do fits with the strategy
* Organization policies and practices support the above (this does not happen nearly enough)

One of my favorite quotes is from General Norman Schwarzkopf, who I heard speak not long after Desert Storm. He said: “Great leaders never tell people how to do their jobs. They set the goals and establish the framework. Lousy leaders think they know it all, and all the while, their organizations sit there, aquiver with potential.”

What are some of your best practices for keeping the right people on the bus? I’d love to hear them in the comments below.

“How Would You Know?”

Sunday, May 17th, 2009

That’s the question posed to Jim Collins (best-selling author of ‘Good to Great’, ‘Built to Last’, etc.) that became the inspiration for his latest book, How the Mighty Fall.

In the cover story of the May 25th edition of Business Week, Collins identifies the FIVE STAGES of corporate decline, and how organizations at (almost) any stage can identify where they are and correct. In the article, Collins goes into these in greater depth, but here they are briefly:

• STAGE 1: HUBRIS BORN OF SUCCESS, or success borne from entitlement. In this stage, companies attribute their success to their knowledge and ‘smarts’, failing to understand the real reasons why they have done so well, including the acknowledgement of luck and chance.

• STAGE 2: UNDISCIPLINED PURSUIT OF MORE. Here companies begin to compromise on their values or lose sight of who they really are, in the pursuit of the latest ‘big’ thing. In this stage, expansion is undisciplined and few (if any) restrictions are put on adding more and more infrastructure and resources.

• STAGE 3: DENIAL OF RISK AND PERIL, which begins when warning signs begin to appear, but are discounted. Positive data is amplified and ambiguous data is either neutralized or looked at in its most positive light. The light at the end of the tunnel is daylight ahead for sure. Another sign of this stage is when leaders choose to blame external factors for failures versus accepting responsibility.

• STAGE 4: GRASPING FOR SALVATION, or grasping for the ‘silver bullet’ solution. By then the signals of decline are visible to all and the company jolts around reactively In some cases, they bring in a high profile CEO to turn things around; in others, a bold new product or ‘life-saving’ acquisition (think AOL/Times Warner). Here Collins believes the solution is not more but less – he says, “If you want to reverse decline, be rigorous about what not to do”.

• STAGE 5: CAPITULATION TO IRRELEVANCE OR DEATH, when the continuous setbacks and false starts become too much, and the organization loses its spirit, becomes irrelevant or, in the most extreme cases, is gone forever.

According to Collins, while it is possible to survive and even thrive from the depths of Stage 4 (“Our research indicates that organizational decline is largely self-inflicted, and recovery largely within our own control”), once an organization gets to Stage 5, there is no turning back.

When you think about the challenges/opportunities your organization is currently facing, how would you know…?

Cheers,

Amelia

P.S. At the end of the article, Collins uses Ann Mulcahy as an example of a leader who pulled her company out of the depths of Stage 4, when most had given Xerox up as lost. See my previous blog for some additional perspectives on how she did it.