Have you ever noticed the more that is written about a particular topic, the more abstract it becomes? No topic better exemplifies this phenomenon than the study of high-performance organizations. It’s simple enough, just create a responsive and dynamic integration of strategy, leadership, talent, culture and markets, and for good measure, throw in a sprinkle of creative innovation. Now keep in mind that all the variables are in a state of change, and at some point you hear your brain screaming “Whoa!” Working with concepts and theory is one thing; applying them is quite another.
Years ago, I attended a conference on a similarly complex concept. Struggling to find practical ways to take advantage of what I had learned, I stopped off at the hotel bar to sort out how I might use the information. I soon found myself engaged in a conversation with a fellow business traveler. What followed has provided a lifetime of value.
Bill the CEO
Bill was what I would call a grizzled CEO, and as long as I kept buying the beer, he kept talking. He explained that his company used to struggle, and during that time he had little to no confidence in his employees. Apparently it got so bad, he even considered shrinking the company to a more manageable size as he was convinced his employees were purposefully undermining his efforts. But things had changed. Bill was now a fan of his employees and his business was booming. “What changed?” I asked. Bill began his story of the goals, roles and rules.
The Goals, Roles & Rules
It was football season, so Bill pointed to the television and asked me to define the game’s goals. We chatted for a moment, and then he began. “Now, imagine what would happen if one or more of the players didn’t understand the goals of the game? It would be chaos!” he said. “It’s no different in business. If your employees don’t understand what you are trying to achieve, then they’ll achieve what they think they should achieve, and that can cause serious problems.”
Roles were next. “Every player on a team has a role. Do they understand their roles?” he asked. “Consider a center that thinks his role is to be a wide receiver. Imagine the game that would follow.” The analogies were beginning to become clear.
“But what about the rules?” I asked, anxious to get to the conclusion. Bill continued, “Every role has a set of rules that define how the position functions. If a player doesn’t understand the rules, you get penalties, and just like in business, penalties are bad.”
Our conversation lasted for over an hour, but Bill’s message was clear. A high performing organization begins with every employee understanding the goals of the company and how their individual roles contribute to those goals. Throw in a clear understanding of the rules, and the organization functions with purpose and passion.
Applying the Insights of Bill
While the story of Bill is entertaining, his message is quite profound. Too often we find ourselves enamored by concepts and theory, which while making for good conversation leaves little lasting impact on our organizations. Bill cuts to the chase and offers us three simple words to guide (and improve) our organizations.
Goals. Let’s be clear, we are not talking about corporate to-do lists. We are talking about the core vision and direction of the company. As leaders, we take every opportunity to communicate, but is the message actually taking hold? Find out. Ask the questions. If your team doesn’t really understand where you’re taking them, at best they will be of little help. At worst, they may actually delay your progress.
Roles. More than a position description, roles address an individual’s sphere of influence, and influence is hardly a passive concept. Look at your team. Do they understand your expectations and are they empowered to act and push for results? If they’re not, you’re leaving progress on the table. Be careful with this one as leaders are often part of the problem in unnecessarily limiting the performance of key roles.
Rules. We all need boundaries. Commonly, we use policy to set rules, but policies can’t and shouldn’t cover everything. Character, judgment, integrity and experience matter greatly and serve to fill gaps in policy and keep our organizations nimble and responsive. Strike the right balance, and position contributions soar.
In Closing.
So back to the study of high performance organizations. Is concept and theory just too abstract to worry about? Absolutely not. Observation leads to theory and good theory applied leads to improved outcomes. The leader’s challenge is to figure out how to convert good theory into practical application. As Yogi Berra opined, “In theory, there is no difference between theory and practice, but in practice there is.” Bill figured this out. Cheers to Bill for sharing.
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About the Author. John Sherwood is the founder and Managing Director of CExOGroup, a professional services firm supporting the leaders and capital partners of privately-held companies in the mid-Atlantic region with assessment, advisory, management and recruiting services.