Creating a culture of result
Every business has a culture of some kind. (There are many books on this topic.) But you can’t change your culture any more than you can change your brand by just talking about it, or even teaching it. You have to make systemic changes in your organization that transform the way people think and behave.
People are deeply influenced by their work environment. Weaker people can become highly productive and stronger people can lose their edge, depending on your company culture.
The magic really begins to happen when the right people come together with remarkable business systems to create a culture of results through discipline, enthusiasm and high performance.
It is the primary concern, and responsibility, of every business owner, manager or executive to create a culture of results inside their company. This is created and maintained through disciplined adherence by every employee to ensure profitability and continuance of the company’s operation.
((Efficient People + Motivation) * Accountability) = Effective Team Results
Where does it start?
HIRE THE RIGHT BEST PEOPLE
Let me repeat from author Jim Collins, « Those who build great companies understand that the ultimate throttle on growth for any great company is not markets, or technology, or competition, or products. It is one thing above all others: the ability to get and keep enough of the right people. GET THE RIGHT PEOPLE ON THE BUS FIRST, AND THE WRONG PEOPLE OFF THE BUS, THEN FIGURE OUT WHAT DIRECTION TO DRIVE THE COMPANY » (Good to Great).
Only hire « A » employees. These people have a history of getting results. They aren’t afraid of accountability and scorekeeping. They are self-confident and able to apply past successes to new assignments, but they are also teachable and eager to learn. « A » employees make good things happen, especially when their personal goals are in line with your company goals.
Keep in mind: You always pay for the « A » employee. The lesser cost of a « C » employee, plus the hidden cost of lower performance, poor decisions, and costly mistakes, is equal to or greater than the higher cost of the « A » employee. Replace « C » employees with « A » employees to improve performance and get results.
Take Away: Hire and empower goal-oriented people. Tell them why the system was created, how it works, and why it will benefit them. Enlist their knowledge, talents, energy and resources to improve the system and raise the bar on performance standards. As people achieve results, their self-esteem and sense of value to the company will go up. They will set new performance records. When they create greater value, compensate appropriately.
MOTIVATE YOUR PEOPLE
Inspired and motivated workers, that know how their contribution helps, make well-designed systems hum! Results are a natural and ever increasing outcome of understanding this concept.
Motivation is the drive that moves people to action. People are motivated when they feel they are doing something in their best interest. Because motives come from feelings, you can’t directly motivate others; you can only influence their feelings about the work they do. You can create an environment or culture of results that motivates them to positive action.
Fear doesn’t work as a motivator for very long. Incentives and rewards can be effective if administered properly. Opportunities for personal growth and advancement are among the best motivators in business. When people trust that you are giving them a legitimate chance for a better future, when they think you really care about their welfare, they want to perform well and please you. It’s human nature.
Ownership and Accountability
Ownership of a task, objective, or result unlocks the inherent power of motivation. This happens when the « right people » are allowed to influence goals, participate in the development and improvement of the systems, and choose their own rewards.
Team goals shape personal goals. Personal goals are the foundation of all achievement. Goals must answer the questions of how many (or how much), by when, and by whom.
- « How many » is the desired result.
- « By when » is the adrenaline-boosting deadline.
- « By whom » indicates ownership and accountability for the result.
Performance is determined by individual capability and willingness. Remember, people perform at their highest potential only when focusing on the most valuable use of their time. Personal goals must fit within the prescribed organization boundaries and be consistent with team goals. When a person chooses a goal, he or she simultaneously chooses to pay the price to attain it, and the payoff for its accomplishment.
Effective teams continually measure performance and compare current results to past results and to desired results (e.g., performance standards; Balance Scorecard targets). Information from company financial statements also provides lagging indicators of performance and can expose weaknesses within the business or team.
Business and religious leader Thomas Monson teaches, “When performance is measured, performance improves. When performance is measured and reported, the rate of improvement accelerates.”
Are You Getting Effective Team Results?
Maybe I can help you too…. If improving your business results and increasing the effectiveness of your staff is one your priorities. Because, I help companies improve their productivity by Creating a Culture of Results.
Stop Throwing Your Profit In The Trash Can Every Day!
The signs are there, plain as day, and you don’t notice or stop it?
WHY? Because, it grows less noticeably.
At the root of all business problems is some form of waste, either defects in products and services, or time-wasting delay. This is what causes your prospective and current customers to go to competitors. This is what raises your cost and erodes your profit margins. This is what ultimately drives owners out of business.
Every business has two “factories” running simultaneously according to Jay Arthur, author of Small Business Guide to Six Sigma. The « Main Factory, » where you focus most of your energy, produces goods and services for your customers.
The second factory is less noticeable. It is the « Fix-it Factory, » which cleans up all of the mistakes, rework, defects, breakage, returns, scrap and other problems of the Main Factory. This frustrating underbelly of the business primarily deals with waste and delay. Every business has a Fix-it Factory that requires people and financial resources. You might be surprised by the cost of running your Fix-it Factory!
Most business owners don’t face the brutal reality of waste in their business. However, experts estimate that the average small business has at least 3% waste (Jay Arthur). Many have more. Some have much more!
For a company with one million euros in sales, 3% waste amounts to 30,000 euros in cost. This expense, however, is not paid out of revenue euros, but is paid out of profit euros! If the company’s net profit before taxes is expected to be 8%, or 80,000 euros, waste would reduce the profit to 50,000 euros.
Stated another way, the company has to sell nearly 400,000 euros more to replace this 30,000 euros loss in order to achieve the desired profit level. (I don’t want to depress you, but it actually gets worse because there are additional costs in handling the waste.)
Do you realize what I just said? All wasted time and material come directly off the bottom line.
In this example, waste of 3% of sales translates to nearly 40% in lost profit!
How do you determine the location, size and cost of this internal albatross, and most importantly, how do you eliminate it?
To discuss your particular situation right away, you can contact me.