Having the right mindset is a critical foundation to running a business. On a typical day, close to 60,000 thoughts will cross your mind, and that same phenomenon will occur within the minds of everyone with whom you work. The question is, How will you harness the power of these thoughts and guide them to benefit the stakeholders you serve?
To survive and thrive in the VUCA world of today and tomorrow, individuals and organizations must be adaptive, flexible, and resilient to pivot effectively when external factors, over which a company has no control, threaten the foundation and direction of a company. The COVID-19 pandemic caused many businesses to shutter because the world, as we knew it prior to this event, suddenly changed. How did companies survive versus those that didn’t? Most likely, you are reading this series of articles with a much different perspective than you had in 2019. What knowledge are you seeking to help you secure your company’s future against future threats?
As noted in previous articles, the power of your Human Capital is what sustained businesses, regardless of what the media might portray. Although some people may have lost their jobs, many others were retained because they were “essential” to keeping a business afloat. Those who did stay had to “pivot” and think about how to do business differently, how to deliver products and services, when the means through which business was done previously changed beyond one’s paradigm. If nothing else, COVID-19 demanded paradigm shifts, the ripple of effects of which are still being felt.
Recent studies by Deloitte Consulting and Mercer regarding the effects of COVID-19 on the workforce have shown that less than a third of executives understand organizational culture and the ROI of human capital toward achieving success. As noted previously, culture will happen regardless of circumstances, and those executives who fail to design their cultures for success will suffer the consequences. Effective decision making, especially during periods of rapid change, requires a good understanding of your company’s DNA, which is part of organizational culture because it affects how you get work done within the company.
Years ago, prevailing wisdom accepted the uniqueness and the immutable nature of human DNA, and despite scientific research and experimentation, human DNA is still permanent and indestructible. In contrast, organizational DNA can change and will change as the people within develop their mental acuity and capacity related to the four building blocks over which organizational leaders have direct control: Decision rights, information, motivators, and structure (Neilson et al, 2004).
The secret of business success lies in how all forms of Human Capital are aligned within the context of the building blocks of organizational DNA. Consider these thoughts:
- Each time a person joins or leaves a company, the culture changes as does the DNA because the Character of the company, which is built upon the KASH each person brings to work each day, either grows or diminishes. = Motivators.
- The Knowledge each person brings into the company and the capacity to convert knowledge into Intellectual Capital, which is the foundation for ideas that are transformed into innovative solutions, grows when employees are trusted to do their best work. = Information.
- Relational Capital is built, both internally and externally, through the application of Moral Character in building trust with others. Level 4 and 5 leaders who practice Servant Leadership develop learning organizations through which everyone’s KASH expands, enabling effective decision-making at lower levels of the organization and developing capable leaders at all levels. = Decision Rights and Structure.
Sustainable success is the result of a purposeful design that is continuously evaluated and tweaked for better performance. This is especially true in developing leaders at all levels. Team building is an essential requirement for creating Level 2 leaders (Contributing Team Members), regardless of the size of a company. Consider how teams can address the following recent paradigm shifts in organizational DNA:
- Changes in laws and regulations: Decision rights and information.
- How the company responds to the external environment: Information and structure.
- How the company deals with shifts in strategy: Information and motivators.
Too frequently, company leaders classify “groups” as teams, failing to recognize the difference and getting less than desired results because of poor design, direction, and execution. Many times, leaders fail to capitalize on the potential power that resides within teams that are properly structured for success. The next article on Organizational DNA will address teams versus groups and how learning teams engage four distinct stages through which they convert information into action.
Additional Suggested Reading:
Neilson, G., Pasternack, B.A., & Mendes, D. (2004). The 7 Types of Organizational DNA. Strategy + business, 35, 95-103.
Questions for the Week: How do I use teams now to address sticky issues? Do I effectively empower others to make decisions, or do I still retain control? How many times do I delegate decisions during the day and for what purposes? How do those with whom I work perceive their roles as decision-makers? Are they confident or do they still look to me for answers?
| About the Author: Dr. Ray Benedetto is co-founder of GuideStar, Inc.® a practice in organizational leadership for performance excellence (www.guidestarinc.com). He is a retired Air Force colonel with a distinguished active-duty military career. He is board certified in Healthcare Management and a Life Fellow of the American College of Healthcare Executives (ACHE). Dr. Ray taught leadership for 12 years for the University of Phoenix Chicago campus. He holds degrees from Penn State (BS), the University of Southern California (MSSM), and the University of Phoenix (DM). He is co-author of “It’s My Company TOO! How Entangled Companies Move Beyond Engagement for Remarkable Results” (Greenleaf Book Press Group, 2012) and numerous ezine articles available online. You can reach him at ray@guidestarinc.com. |