The Best Organizations Do 5 Things Really Well

Dissatisfied team members typically underperform. Data suggests that average productivity output decreases by approximately 30% when morale is low. An engaged team has reliably demonstrated 44% increases in productivity. The best organizations, however, have team members who work ‘inspired’ and in doing so, deliver 125% increases in productivity outputs [Eric Garton and Michael Mankins]. So what inspires a person to deliver their best performance within an organization? To me, it’s predicated on 2 beliefs: 1. I understand the organizational vision, 2. I believe I can genuinely participate in this vision. 

The best organizations, however, have team members who work ‘inspired’ and in doing so, deliver 125% increases in productivity outputs [Eric Garton and Michael Mankins]

Having travelled widely and interacted with hundreds of exceptional teams, organizations, and leaders around the world, there is a recurring set of principles that differentiates the best organizations from the rest. Five principles under a convenient acronym, S.T.A.R.T., provide motivation that it is never to late to begin.

First Principle: “We are stronger united and weaker divided”

A fundamental truth about great organizations is a clear (and often simple vision) that aligns all members towards action. When visiting a Department or University, I’ve made it a habit of asking people 2 questions—“Can you tell me your Department’s vision, and how you participate in it?" Anecdotally, among 100 people asked in the last 100 organizations 60% were not able to articulate the vision of their University or Department, 30% articulated a vision that was different from those of the leadership, 5% correctly identified there was no clear vision, and 5% both aligned and correctly identified with a leadership vision. It's no surprise that the latter 5% of organizations were also the strongest ones. 

Uniting in vision in many organizations also means removing silos. When one member of the organization succeeds (regardless of Department, Division, Group, Hospital, or Clinic) everybody succeeds. And as important, one members challenges become the challenge of the organization. This has been a fundamental strength in the top organizations I’ve visited over the years. Strong organizations unite teams under a common vision, remove silos, and restructure success metrics—away from competition between individual members of the organization, towards what the individual is contributing to the overall competitive advantage of the organization. Changing from a mindset of “what’s in it for me?” towards “how am I contributing to our success?

Second Principle: “We target solutions, not just problems”

A solutions-focused organization believes in finding the solution instead of emphasizing the problem. Rather than wasting energy on blame, it focuses time on developing action steps towards the solution. Of course, the problem, and its source, is both known and acknowledged. The team, however, is not unduly distracted by problems; rather, they are driven to solutions for the future. Rich Goodman identifies traits of a solutions-focused leader. These include: 1. looking at a problem and seeing the possible outcomes, 2. thinking systematically and strategically, 3. having little time for excuses, 4. resisting problem-oriented questions, and 5. taking a collaborative approach. Being solutions-focused doesn’t universally signal an aversion to failures. Actually, it’s quite the opposite. The greatest organizations I’ve seen have built a culture of experimentation and as impressive, celebrate risk-taking.  Heather Marrasse writes, “ If you're wanting your people to be innovative and dare greatly with their actions, then there needs to be room for mistakes."        

Third Principle: “We can aspire to anything, but we can’t do everything”

The hardest decisions an organization makes is not what to do, but what not to do. The late Jack Welch was heralded by many as the greatest leader of his era. As CEO of General Electric for 2 decades, Welch famously tagged the line, "Fix it, close it, or sell it." – a statement he often attributed as derived from Peter Drucker. Basically, if a business unit wasn’t ranking as number 1 or 2 in the marketplace, it was at risk of being sold or closed out. The drive to win only where you could was the hallmark of GEs growth and success over Welch’s tenure.

Great organizations I’ve visited have aligned people with their passions. They realize that every member has the opportunity to participate in the success of the larger entity, if they feel inspired and are contributing their talents. Too many people are doing things that are ‘mal-aligned’ with their talents. A poignant sports example comes from one of the greatest basketball players of all time, Michael Jordon. He led the Chicago Bulls to an unprecedented 6 championships over 7 years. The one outlier year, 1994, was Jordan’s decision to retire (for a year) and pursue major league baseball. That year, one of the greatest generational talents in basketball, was well below average in performance in baseball. The point of this story--in 1995 he famously tweeted two words the basketball community “I’m back”, and went on two win 3 more championships in a row. There are many ‘Jordan’s playing baseball’ [ that is, individuals doing things that don't align with the greater talents] in many organizations around the world. Great leaders, I’ve noted, have aligned talent with roles. In doing so, they have differentiated their hospitals, departments, and divisions as the best in class.  

Fourth Principle: “We remember when everybody participates, everybody wins”

As important as a unifying vision, great organizations ensure that every person, regardless of level, has an equal opportunity to participate in the company's success. Too often, the most effective solutions are missed because the leadership bubble is looking in the wrong place—or even worse, not looking at all-- and simply trusting their own intuition. Better solutions are derived from inter-disciplinary inputs. A solutions-focused enterprise must ensure that solutions from every member of the organization are solicited. Engaging people is not a trivial exercise. Peter Drucker notes that ”executives spend more time on managing people and making people decisions than anything else”.” Leading CEOs spend a lot of their time getting the right people in the right places and then helping them succeed.

In a time of virtual communication, engaging all team members means listening to them. To speak and not be heard is a common complaint in many struggling organizations. It usually sounds something like this: “I’ve been trying to tell the leadership for years, but nobody’s listening—so I gave up trying.” Sometimes, the issue is not having access to leaders to share your ideas, but moreso that the ideas are not being heard because the people who need to hear them are too busy responding—than actively listening. Wanda Thibodeaux suggests “ most people struggle to be mentally quiet as another person talks. They listen to answer, formulating responses before the other person has even finished, rather than listening to learn.”

Fifth Principle: “To be nice, does not mean being weak”

Alyson Van Hooser believes “when it comes to successful leadership, there are people who believe kindness equals weakness. So in order to be perceived as strong, some leaders are choosing to be forceful, extreme, or brutal in hopes to earn their seat at the table.” Michael Fertik adds, “few people want to be the bad person. But leaders are also expected to make the tough decisions that serve the company or the team’s best interests. Being too nice can be lazy, inefficient, irresponsible, and harmful to individuals and the organization.” Fair point, leaders perceived as “too nice” may lead to accepting the status quo, inability to tackle important issues, and addressing underperformers for fear of conflict. Here’s the issue: failure to address underperformers has a disproportionately greater impact on the high performers who become disillusioned and lose motivation to go the extra mile. Kindness in an organization is not ignoring the difficult issues. On the contrary, it’s embracing them for the betterment of the whole team. In my experience, the idea that being strong can only align with tough is misguided. Leaders today understand that they can be both nice and strong—that is, creating a culture that is inclusive, supportive and engaging—and also have the strength to make difficult choices. Strength comes from the unity. Acting on behalf of the team, and thinking more about others than yourself, is a powerful motivator to make tough decisions.