3.8 Business Excellence: What it Means, What it Looks like, How it is Achieved

3.8 Design the Organisation for Overall Wellbeing, and Performance will come

Reflecting on my early encounter with the science of happiness, I vividly recall being inspired by Martin Seligman's TED Talk, "The New Era of Positive Psychology" in 2004[i]. At the time, my perception of happiness was focused on achieving financial freedom to enjoy things like such as dining out, watching a good film, or going on vacation. Happiness, to me, seemed like a series of fleeting moments rather than something sustainable. However, Seligman’s insights challenged my view and introduced a deeper understanding of true well-being—something far more profound than just episodic pleasures, which I have explored in earlier articles.

Seligman’s PERMA model (first published in 2011[ii]) outlines five core elements of well-being: Positive Emotion, Engagement, Relationships, Meaning, and Accomplishment. These concepts struck a chord with me, as they mirror the principles I've applied in business turnarounds and start-ups over the years. While my first startup in 2006 wasn’t built with these ideas in mind, by 2009, we intentionally sought to create a flourishing organisation based on Barbara Fredrickson’s broaden-and-build theory of positive emotions[iii]—an idea that aligned naturally with Seligman’s work published subsequently.

As I reflect on this journey, I see how these principles align perfectly with the successful transformation of Harley-Davidson in the late 1980s[iv]. Harley’s turnaround offers a striking example of how organizations can flourish by embracing key elements of the PERMA model:

1.????? Positive Emotion: The shift from a toxic, crisis-driven environment to one of positive engagement and celebration of achievements was transformative for Harley. Employees moved from surviving to thriving, with joy and gratitude at the forefront.

2.????? Engagement: Harley fostered an environment where employees were fully immersed in their work. By giving them ownership and responsibility, the company created an atmosphere where people found "flow"—a deep engagement in activities that utilized their strengths.

3.????? Relationships: One of Harley's most significant changes was moving away from traditional top-down leadership to one of inclusivity. Trust was built, and meaningful relationships were cultivated both internally and externally through initiatives like the Harley Owners Group (HOG), which united employees and customers alike.

4.????? Meaning: Harley’s employees began to view their work as more than just a paycheck. They saw their efforts as part of a larger, meaningful cause—helping restore Harley-Davidson to its rightful place as an iconic American brand.

5.????? Accomplishment: As the company reduced costs, increased sales, and revitalized its dealer network, it recognized both individual and collective accomplishments through gain-sharing programs. This reinforced the sense of achievement within the organization.

Adding to PERMA, in 2013, Norrish and colleagues introduced a sixth element to the model: Health. This addition highlights the critical importance of both physical and mental health for overall well-being, an idea that has become increasingly relevant in today’s fast-paced work environment.

The implications for organizational design are profound. By nurturing these elements, companies can foster environments that enhance employee well-being, which in turn boosts engagement, productivity, and overall performance. Research consistently shows that organizations that integrate positive psychology principles experience higher employee satisfaction and stronger organizational outcomes.

This does not mean a “soft and fluffy” organisation. Fredrickson showed that the minimum balance of positive to negative is 3:1, but it regresses at 11:1. Therefore each element of PERMA needs to be considered to get the maximum benefit and avoid, what I call the “marshmallow” environment.

So, how can we embed these principles into our organizations? Here are a few key practices:

Positive Emotions: Celebrate wins and appreciate effort. Recognize and reward the right behaviors more often than jumping on the negative behaviours and mistakes.

Engagement: Align roles with people’s strengths to maximize their satisfaction and engagement and the potential to create “flow”.

Relationships: Foster an inclusive culture, break down hierarchies, and encourage cross-functional collaboration to work on solutions to problems and innovations.

Meaning: Align work with the value it generates for customers, clients, and key stakeholders.

Accomplishment: Set clear goals, celebrate milestones, and apply learnings for future growth.

However, one challenge many organizations face is that they rally around new initiatives—like PERMA—but within months, these efforts lose steam. I’ve witnessed firsthand how great programs—whether it’s TQM, Lean, Six Sigma, Agile, or Change Management—can gather metaphorical dust if not continually reinforced.

To ensure lasting success, it's essential to have a single, well-embedded program that becomes part of the organization's DNA. This is where change management comes in. A successful change management program is built on consistent leadership, effective communication, active engagement, and celebrating progress along the way.

Here are some core components of a successful change management program:

1.????? Leadership: Lead by example. Leaders must become knowledgable about the content, continually use the language, "walk the talk", and actively support the transformation.

2.????? Communication: Ensure clear communication that reinforces the message—change is here to stay.

3.????? Engagement: Involve everyone in the process. Encourage dialogue and input from all levels.

4.????? Celebrating Success: Acknowledge and celebrate wins along the way.

5.????? Sustainability: Create a plan to ensure that knowledge is refreshed and new employees are onboarded effectively.

Routine assessments and feedback mechanisms are crucial for ensuring the transformation sticks. Tools like the Authentic Happiness questionnaire from the University of Pennsylvania and other sentiment-monitoring tools can be invaluable in tracking employee engagement and well-being. It needs to be a continuous-change environment.

One of the most powerful things leaders can do is to ask questions. Questions challenge and empower people to think critically and take ownership of the change process. A great resource to begin with is the PERMA Pack, available at www.PositivePsychology.com.

In conclusion, if you want change to succeed, the leadership team must understand the concepts, embrace the language, and visibly live them out every day. There’s no substitute for leadership walking the talk.

Thanks for reading, and I look forward to the next two editions, which will complete this section on Winning with People.

If you found this article useful and would like to explore how to create a positive and thriving work environment in your organization, feel free to reach out to me. I specialize in change management and decision-making frameworks.

Contact me at [email protected] or visit www.oliverwightasiapacific.com.

Stay well, stay positive, and let’s build better organizations together.

#excellence #organizationalsuccess #changemanagement #wellbeing #PERMA #positivepsychology #leadership #workculture #engagement #motivation

[i] Seligman, M. (2004), The new era of positive psychology, Link

[ii] Sleigman, M. (2011), Flourish, Simon & Schuster.

[iii] Fredrickson, B.L. and Losada, M.F., (2005), Positive Affect and the Complex Dynamics of Human Flourishing, American Psychologist.

[iv] Teerlink, R., (2000), Harley’s Leadership U-Turn, HBR