Building an Organizational Culture Rich in Innovative Product Development and Creative Problem Solving
Thirty years ago, when you had a unique product, you knew you were probably going to be safe from a competitive price war for two or three years. Today, the time it takes a competitor to figure out what you are doing, copy your product or service, and have it on the market competing head to head with you at a lower price has dropped to days, not months or years. And when everyone has basically the same products and services, it may seem that the only way you can differentiate your products from a competitor’s, is on price. When the only differentiator is price, eventually margins erode and everyone loses.
If a low price doesn’t make you stand out, what will? Innovation. Exactly what is involved in innovation depends on several factors, such as your desired company culture, mission statement, vision etc. However, one thing that successful organizations on the leading edge of their industry have in common is this: empowered employees. Employees who feel like they have a voice within their company will strive to find new and better ways of doing things that the organizational leaders may have never thought of. It is these changes, not lower prices, that will make a business succeed.
The following 10 tips will help you build a culture that thrives on innovation and continuous improvement rather than lowering prices to beat out competitors. Competing in a price war is a losing battle. Instead, compete with continuous innovation.
Great Managers Keep Their Employees Uncomfortable!
Most managers feel they should keep everyone on their team happy and comfortable. But, we have found such managers usually have poor long-term job security. They are secure for a period of three to five years, then they are let go or moved to a less significant position by the organization. Why are they moved to positions of less influence? Because the whole world rapidly changed while their focus was on keeping people happy and comfortable. Major problems in the areas of customer satisfaction, quality, timeliness, or cost-competitiveness have usually occurred.
To be successful, your focus needs to be on staying ahead of your competition. The problem with rapid change is that it usually makes people feel uncomfortable, unhappy, and fearful. The following recommendations can help keep your people “uncomfortable” while ensuring your department or firm’s long-term success.
Good managers, supervisors, and leaders take specific actions to create a climate that is conducive to open and honest communication. In this open communication climate, people feel free to give their input and ideas, information is shared freely, conflicts are openly discussed and worked through, and people are more willing to express innovative ideas and to take risks.
The basis of the open communication climate is trust. The leader establishes an environment of trust within and among all the people in the group. To begin to build or expand trust in your organization and to foster an open communication climate, try some of the following tips.
Invest in Employee Engagement: it will prove worth your while
The buzz word most associated with employee satisfaction these days is “engagement.” As recently as two years ago we were writing about the impending talent drain, as boomers would be leaving the workplace in masses for retirement. We stressed the importance of creating a workplace where employees would feel motivated, enthused and most importantly, “engaged.”
That was before. Today the whole business landscape has changed. Between 2008 and 2010, massive layoffs have had a profound impact on not only the way we do business, but on the employees who are left shell-shocked after layoffs, wondering if and when the axe may fall on them. We’re not hearing the word “engaged” much these days as it relates to employees. In fact, some leaders have been so bold as to say, “I really don’t care what employees think and how they feel. They have a job and should be grateful to have survived the last round of cuts.”
Robert F. Kennedy once said, “About twenty percent of the people are against any change.” Our findings, in working with managers and supervisors tasked with leading organizational change, support Kennedy’s theory. No matter how effective a leader you are, it is not uncommon for you to periodically find your change efforts being challenged, or even sabotaged. Some people seem to come programmed with a basic distrust of any change and will work frantically to preserve “the way things used to be around here.” While we can’t change the behavior of others, we can change our own. The following six tips will help you successfully lead your team forward, even if you face a sea of resistance.
In this video, Peter gives 10 keys to strategically lead organizational change. This is a continuation of our November issue of The Quest for Workplace Excellence. Sign up here!
Here is a quick summary of the tips that Peter outlines in the video above:
Changes in the economy and the business environment have forced some organizations to change the way they do business. Whether we like it or not, managers and supervisors are the ones who have to implement the changes. In addition to the more traditional skills we possess as supervisors, it is critical that we understand our role as leaders, or change agents, in these rapidly changing times.
Unfortunately, all employees do not respond to change with the attitude, “Fantastic: another organizational change, and I’m excited to be a part of it!” Given that change is here to stay, why do some people seem to dig in their heels and resist it at all costs? The following 10 reasons best describe why some people have a tough time changing their mindsets and behavior:
True leaders understand that success does not depend on their titles, but on the values they uphold and the choices they make on a daily basis. They know that leadership is not achieved through technical expertise, but rather is based on a relationship with their followers. It is our hope that the following insights will help you with the “relationship savvy” you need to be a great supervisor, and an outstanding leader.
Acknowledge that the world is rapidly changing.
You can decide that you are going to help create change and learn from it, or you can try to resist change. The current state of the economy is proof that it is important to change. Managers and employees alike will need to remove themselves from their comfort zones, whatever those may be, to enable their organization to survive the economy and come out on top.
Employees’ responses to organizational change can range from fear and panic to enthusiastic support. Understanding why people respond to change so differently can help managers and supervisors design an appropriate change strategy. The following are some of the factors that influence a person’s response to change:
Family upbringing
Our attitudes about change are partly determined by the way our families reacted to change during our early years. People who live in the same house, attend the same church, shop at the same stores, and drive the same routes daily throughout their formative years may have more difficulty dealing with change than people who grow up in several different neighborhoods. In the same vein, those who become accustomed to associating with people with the same values and ethics may find it more difficult to appreciate the diversity of today’s work force. An employee who was raised in a family that viewed change as a challenge to be tackled will probably have a more optimistic outlook about change than a person who was raised in a home that considered change an unwanted evil that upset the predictable family routine.
Learning, unlearning, and relearning are important tactics to apply when faced with a major change. Depending upon how familiar you are with our work, you may know that we have three different ways of describing how people adapt to change. First, there are people that fight all change, whether it be organizational, societal and so on – we call them the dinosaurs. The second group’s responses are more moderate ones and while they will not actively fight the change, they behave like a rabbit in the road who is staring at upcoming headlights. Last, the third group of people are the ones who are able to accurately assess the future and possess the flexibility to adapt accordingly. We call them the dolphins. Dolphins are one of the brightest mammals in the ocean who possess the skills to adapt to any environment they swim in.
In conducting interviews with executives, the feedback is split almost fifty-fifty between those executives who love Employee Satisfaction Surveys and utilize the results to build an even more successful organization, and those executives who have had a bad experience with surveys and hope to never participate in one again. When Employee Satisfaction Surveys are conducted correctly, they become a valuable resource for leaders and their organizations. In designing your Employee Satisfaction Survey, follow these four keys for best results:
We are proud to announce that we have our very own YouTube channel: www.youtube.com/peterbstark. Currently, the theme of our videos is change, whether it be personal, economical, environmental or organizational, just to name a few. However, our video library will continue growing with a wide range of topics so stay tuned!
To get a glimpse into our channel, watch this video where Peter delves into the importance of an, “I can learn, and I can change” attitude. To watch the rest of the videos, visit our YouTube channel.
Throughout our twenty years of experience as management consultants we have been conducting Employee Opinion Surveys, also known as Employee Satisfaction Surveys, in hopes that the feedback would enable management teams to build organizations that are even more productive and profitable. Many times people ask the question, “Is the goal of an Employee Satisfaction Survey to make the organization more ‘warm and fuzzy’?” While we are certain that some CEOs or Human Resource professionals would say that is the goal, the majority do not.
One of the most frequently asked questions by managers and supervisors is, “How do I motivate employees when the workforce is downsizing?” If employees have a fear of losing their jobs, motivating the workforce can be a manager’s toughest challenge.
Lack of motivation costs more in productivity, both tangible (workers are able to accomplish more than they presently are) and intangible (the waste of capability), than we will ever be able to calculate. Most people would agree they are capable of accomplishing more in life. The big question is how do we, and the others who work for us, get motivated to accomplish more.
For the last five years, the only reason I picked up the white pages phone book that was dropped on my doorstep was to see if my name was still in it. Come to think of it, I have not looked up a business in the yellow pages either for at least four years. So, why do we keep receiving these costly books that fewer and fewer people are reading? To use as a booster seat so small children are sitting higher up to more effectively eat their meal?
These days it feels like we should be grateful just to be employed. But that doesn’t mean it’s always easy to go into the office–especially in the aftermath of layoffs and the midst of uncertainty. Peter Barron Stark and Jane Flaherty, the authors of several books about corporate leadership, have just written Engaged: How Leaders Build Organizations Where Employees Love to Come to Work. In it, they offer advice on how managers can get their staffers enthusiastic about being on the the job–and doing their best work…
There may be 50 ways to leave a lover but there are only 2 ways an employee leaves an organization: physically, as in moving on to a competitor, which is manageable and the company hires a great employee to take over the job; or mentally. It is this second one that strikes fear into the heart of every manager: the employee who mentally quits, but stays with the organization…
According to a study in 2007 by the Manufacturing Performance Institute, over 70% of the 984 manufacturers surveyed expected their revenues to increase. What a difference two years can make! Today, manufacturers are one of the leading industries dealing with managing labor costs in an economy experiencing headwinds that most of us have never seen before. With health care and retirement benefit costs increasing, consumer and business demands for products decreasing, and the challenge of gaining credit and raising capital, lay-offs have become the best viable business option for many manufacturers.
It’s time to get ready for 2009. Do you have a strategy in place to outwit, out-produce and out-service your competitors?
As we look ahead to a new year with some very turbulent times, a number of our clients have called and asked, “What can I do to prepare my organization for the changes forecasters predict in 2009?” This is a great question that every manager should ask. The winds of change-the new economy, globalization, technological advances, and financial institution melt downs-are threatening to create the “perfect storm” for many businesses, but, those organizations that are prepared will use these same winds to propel their business where they want to go. We advise you to ask the members of your workforce how these forces will affect the way your organization does business in 2009, and what they think your organization needs to do about it. Their answers will determine whether you glide effortlessly across the horizon, or find yourself beached on a deserted island…
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Thirty years ago, when you had a unique product, you knew you were probably going to be safe from a competitive price war for two or three years. Today, the time it takes a competitor to figure out what you are doing, copy your product or service, and have it on the market competing head to head with you at a lower price has dropped to days, not months or years. And when everyone has basically the same products and services, it may seem that the only way you can differentiate your products from a competitor’s, is on price. When the only differentiator is price, eventually margins erode and everyone loses. 
Most managers feel they should keep everyone on their team happy and comfortable. But, we have found such managers usually have poor long-term job security. They are secure for a period of three to five years, then they are let go or moved to a less significant position by the organization. Why are they moved to positions of less influence? Because the whole world rapidly changed while their focus was on keeping people happy and comfortable. Major problems in the areas of customer satisfaction, quality, timeliness, or cost-competitiveness have usually occurred.
Good managers, supervisors, and leaders take specific actions to create a climate that is conducive to open and honest communication. In this open 
Robert F. Kennedy once said, “About twenty percent of the people are against any change.” Our findings, in working with managers and supervisors tasked with leading organizational change, support Kennedy’s theory. No matter how effective a leader you are, it is not uncommon for you to periodically find your change efforts being challenged, or even sabotaged. Some people seem to come programmed with a basic distrust of any change and will work frantically to preserve “the way things used to be around here.” While we can’t change the behavior of others, we can change our own. The following six tips will help you successfully lead your team forward, even if you face a sea of resistance.
Changes in the economy and the business environment have forced some organizations to change the way they do business. Whether we like it or not, managers and supervisors are the ones who have to implement the changes. In addition to the more traditional skills we possess as supervisors, it is critical that we understand our role as leaders, or change agents, in these rapidly changing times.