Sometimes, uncomfortable changes are necessary to create a high performance culture, writes Dave Hanna
A HR manager in Germany, Herbert, was doing a community wage survey and had just finished his interview with Frank, his counterpart at a pen manufacturer. During the interview, Frank mentioned they had been having a terrible time with employee theft. Hundreds of pens were unaccounted for each week. As Frank was escorting Herbert to the exit he stopped, filled a small bag with pens and said to Herbert, “Here, take some of our pens with you!” Could there be a connection between Frank’s behaviour and a culture that informally used company product as “gifts” for others?
This example highlights one of the great principles of organisational culture: “all eyes are on the leaders”. In any organised endeavour, associates look to their leaders for answers to some basic questions, such as: What is really important? What might get me in trouble? What are the “safe” violations? Do you mean what you say? The answers to these questions shape associates’ behaviours and forge the work culture.
Contrast this example with that of Nader & Ebrahim S/O Hassan Philippines (NEH), a banana exporter to several foreign markets. After a period of growth for several years, NEH plateaued in 2009 and was stuck there. The worldwide recession was squeezing out those who could not produce higher quality bananas at ever-lower prices. NEH launched an intensive initiative with the HPO Center in the Netherlands to become a high performance organisation (HPO).
The HPO initiative encompassed a systems approach, focusing on needed improvements in work processes, organisational alignment, leadership and employee engagement. One cultural element that was strongly recommended by the HPO Center consultants was to rescript communication patterns from the current top-down announcements to more open dialogues between all employees. True dialogue, the consultants said, could help NEH more quickly understand what some of the process and organisational barriers were to delivering higher quality at lower costs. And dialogue could increase understanding and commitment to make the few changes that would have the greatest impact on reaching their goal.
“Leaders, remember: all eyes are upon you. Your associates aren’t watching your lips; they’re watching your feet”
But having a dialogue with free exchange of viewpoints, constructive criticism and direct feedback to one another was not comfortable in the Philippine culture where the norm is to get along with others and not offend them. Jeroen de Haas, the general manager of NEH and a foreigner to the Philippines, felt awkward asking his organisation to make such a change. But NEH was either going to find a way to stay competitive or it was going to disappear. Jeroen and his leadership team moved beyond their comfort zone to lead the efforts to develop a culture of dialogue.
During the past three years, no small miracle has occurred at NEH. Dialogue has become part of the NEH culture and has enabled progress in all of the other HPO initiatives. Problems that were typical for the industry and other Philippine businesses have been solved. The quality of NEH bananas has increased, justifying increased market prices, while NEH’s costs have dropped due to myriad process and organisational improvements. Bottom line: NEH’s profits have increased 500 per cent.
Leaders, remember: all eyes are upon you. Your associates aren’t watching your lips; they’re watching your feet. If the market-driven changes in your culture are too much for you to embrace, don’t be surprised if others don’t embrace them either. Instead – listen to the market. Shape its imperatives into your strategy. Be clear with your associates about why some uncomfortable changes must be made for everyone’s good. Change your own behaviours to align with the strategy, and watch your organisation perform miracles, whether you are selling pens or exporting bananas!
How you can shape a high performance culture
- Understand any changes that are market driven and required for organisational survival. Identify the few things your organisation needs to do to move ahead of competitors, and help your associates understand the market imperatives behind these changes.
- Be clear about values and priorities – and make sure they are a win-win for yourself and key stakeholders. Remember – self-interest motivates. It is easier to engage others when they win as the company wins.
- Lead out and set the example – especially when the going gets tough. Tough times reveal our real values and motives. If your backup style is “business as usual” in times of stress, others will readily sink to the same level.
- Foster a culture that produces the organisational capabilities to deliver your strategy and goals. These organisational capabilities (i.e. dialogue at NEH) may have to supersede local culture and corporate culture. Which capabilities must you demonstrate every day to ensure you deliver your new strategy? Then realign processes and systems to develop these organisational capabilities.
The leader-supervisor perception gap
How employees view their leaders |
48% say employees have trust and confidence in the job leaders are doing |
45% say senior leadership has sincere interest in employees’ wellbeing |
39% say senior management does a good job developing future leaders |
How employees view their supervisors |
63% say their manager assigns tasks suited to employee skills |
58% say their manager clearly communicates goals and objectives |
54% say their manager acts in ways consistent with their words |
53% say their manager helps remove obstacles to doing their job well |
49% say their manager coaches employees to improve performance |
46% say their manager has time to handle the people aspects of the job |
Source: Towers Watson 2012 Global Workforce Study of 32,000 employees in 29 countries. Image source: iStock