Tag Archives: culture building

The “R” Factor Part 2: Show Me the Money!

Our previous post focused on the importance of relationships within the workplace and the impact on people.

It has also been well-documented with facts and data that the cost of poor relationships in the workplace is significant; and in contrast, improving relationships improves the bottom line.

For example, a Watson Wyatt Worldwide study found a direct correlation between trust and profitability. Where employees trusted executives, companies posted returns 42% higher than those where distrust was the norm.

In a different study, they found that of the 7,500 employees surveyed only half trusted their senior managers. So imagine the impact of improving the relationships with the ‘other’ half!

Another study on trust in the workplace conducted by Leadership IQ, which involved a database of 7,209 executives, managers and employees, revealed that 44% of participants’ responses ranged from not trusting to strongly distrusting their top management, and that trust significantly predicts employee loyalty and their inclination to stay or leave the organization. Having employees “go” is costly and especially so at the managerial and executive level. As once cited in the Orange County Business Journal, the cost of losing one executive who underperforms or one who chooses to join another executive team is an average of $1.5 million per executive hire. Calculated another way, the cost can reach 400% of the yearly salary of a high level employee.

Along the same lines, in his book The Speed of Trust, Covey quoted Professor John Whitney of Columbia Business School, who said “Mistrust doubles the cost of doing business.”

In addition to the obvious and direct costs of attrition (recruitment, severance, training, etc.), there are other costs associated with dissatisfied employees at any level. There is the pervasive, though
often not measured, cost of wasted time and lowered productivity — the unproductive time spent in unresolved conflicts, complaining about management or co-workers, lack of engagement and not putting forth best efforts. It follows that reducing wasted time, like reducing other forms of waste, can contribute to improved profitability.

Imagine how much better-off we all might be if we could better manage our relationships; as noted above, the improvements could be staggering!

5 Steps for Developing a Creative Culture of Continuous Improvement

In a previous post we shared some thoughts on how creativity can be a desirable trait of a good CI Leader, and how it can also be a tool for helping people to accept and adapt to change.

Although not often associated with a leadership goal, establishing a creative culture of continuous improvement can help managers at all levels to achieve higher-levels of performance.

Here are 5 specific steps managers can take to develop and sustain a creative culture, based on findings published by New Horizons Learning Centers:

    1. Encourage new ideas. Management must make it clear that they will embrace new ways of doing things. Managers whose default is to turn against new ideas will quickly stop creative ideas. This simple habit alone is a critical first step toward developing a culture of creativity and change.
    2. Allow more interaction. A creative climate thrives when team members are allowed to interact with their own team mates as well as team members from other departments. Useful information is exchanged, new ideas flow both ways and new views on old challenges are heard for the first time.
    3. Tolerate failure. We have often noted that a culture of CI is one in which people must be given amnesty… a culture in which people are not afraid to fail. This holds true in a culture of creativity as well. While new ideas can sometimes prove too costly or might simply turn out to not be feasible, management needs to accept that time and resources will be provided knowing that the idea(s) might or might not come to fruition.
    4. Provide clear objectives and freedom to achieve them. People or teams who are provided with clear goals will be motivated to meet them. The goals provide a purpose for their creativity. Set guidelines with minimal constraints gives managers a degree of control with regards to the cost and time invested the creative behavior.
    5. Offer recognition. Create individuals prefer to work on tasks that actual motivate them. This also means they, like all other staff, like to be rewarded for a task well done. Management must offer tangible rewards that send a clear message that creative behavior is encouraged, supported and recognized in their organisation.

 

Building a Performance Culture Infographic

Our previous post listed ten behaviors that have proved effective when taking a formalized approach to employee engagement.

But as noted in that, and other posts, engagement alone is not enough if the goal is to improve performance in a measurable way.

Not surprisingly, some of the highest achieving organizations with which we’ve worked are those that have successfully leveraged their engagement effort to develop and sustain high performance cultures.

The info-graphic  summarizes  steps you can take in order to achieve a high-performance culture.

Within this type of culture, people at all levels are encouraged to continually look for better ways of doing their jobs.  They are continually educated about, and coached to use, the tools of improvement; and to understand the link between individual or team performance and organizational goals.

Leaders within such a culture make available the necessary resources for helping people at all levels to understand the core competencies, values and beliefs which drive the culture.  These leaders also devote the necessary time and attention toward encouraging an environment that supports high quality and productivity, and toward effective performance management.