Winners and Losers
Why is it that the most successful companies, even in times of recession, are still the least satisfied with their results, becoming even more determined to do better, while others languish in the sea of mediocrity? The answer is that 'belief' and the 'desire to excel' permeate the hearts and minds of employees in successful companies, while not in mediocre companies.
So what have successful companies done that mediocre companies have not?
Underlying a carefully crafted strategy and business plan is a philosophy of doing business that believes that sustainable profit growth can only be achieved when there is a reciprocal relationship between a company and its employees to the extent that:
- The company does not see its employees as merely a resource in the pursuit of profit, but the reason the company is able to generate profit.
- Employees willingly align themselves to the business as partners and custodians of its vision, opportunity and plan, seeking to enhance their own strategic performance and opportunity by achieving goals that are significantly beyond their current experience, thereby accomplishing sustainable growth.
This is the difference between winning companies and losing companies. Winners take more market share and profits - losers take less.
The Bureaucratic Trap
Empirical data from ProDex measurements on many companies indicate that CEO's often feel 'trapped' in the gap between their strategic intent and the operational reality of mediocre organisational performance that produces mediocre results. Where this stressful and pressurised environment occurs, it is common to find a culture where the company limits (although it may not admit or realise it) its expectation of employee performance, while also inhibiting them from defining ways to excel through poor leadership.
Taking the Shackles Off
On the other hand, companies that 'raise the 'bar' of performance by working hard to ensure a culture of shared vision and belief in goals that stretch peoples' capabilities, expect them to go beyond their current experience to contribute in new and valuable ways, while rewarding them accordingly. This desire within people to perform at the highest levels can only be inspired - it cannot be 'managed'. Few organisations have leaders who are able to accomplish this using natural ability only - most need help.
In the articles to come we will be demonstrating the direct link between 1) a company's profits; 2) the measurable level of competitive engagement of its people (the Profit Drivers) in executing the business strategy; and 3) the level of significance, and fulfilment experienced by people at all levels in the workplace. This three-way relationship is the fundamental basis of sustainable prosperity.
