Institute of Management
Sharing The Benefits
The three winners of the 2009 NZIM Foundation Awards share their experiences and thoughts of their week-long trip to Australia.
- A Values-Based Approach to Leadership
- The Need for Strong, Value-Based, Visionary Leaders
- Leaders Focus on “People and Processes
A Values-Based Approach to Leadership
Dan Coward
I recently was awarded a NZIM Management Scholarship and had the greatest privilege of meeting two other awardees, Annette Kendall and Robert Levy, and spending 6 days challenging and validating my leadership values, beliefs and theories through attending a conference, meeting representatives from global companies, Wilf Jarvis and importantly, by sharing life experiences with Annette and Rob.
Key aspects of the AHRI Convention scholarship for me were the exposure to expertise & views of renowned international business leaders, and subsequently, the opportunity to apply what I’ve learnt both personally and organisationally and to share these lessons learned with others.
This scholarship has highlighted a number of interesting concepts for me, based on a values-based approach to leadership, which I believe can have a positive influence on my own organisation. Some of these concepts are discussed below.
Professor John Boudreau talked about Beyond HR: The new science of human capital. A key aspect of his presentation was the distinction between what is ‘critical’ and what’s ‘pivotal’. Applying this approach to an organisation’s activities via the ‘value process chain’ allows you to highlight the factor or factors which make or break your brand by shaping customer satisfaction.
The main foci of the value process chain are impacts, effectiveness and efficiency.
Applying this within my own organisational context means recognising that all actions taken by staff will impact on our brand, and therefore on our ability to influence legislative change and promote safer community behaviours. These actions may range from how staff interact with others in emergency and nonemergency contexts, right through to where they park and how they maintain their uniforms.
Determining which organisational functions are ‘critical’ and which are ‘pivotal’ is fundamental to achieving successful leadership and creating shared values. ‘Critical’ systems and processes for us are those which are required to maintain a nationwide hierarchical service. ‘Pivotal’ functions, on the other hand, centre around values-based leadership required to develop a culture of pride in achieving excellence and a recognition that one person’s action is reflected on a national level.
Pursuing values-based leadership is simply ‘walking the walk’ of the commonly-quoted statement, People are our number one asset.
In today’s prevailing economic climate, redundancies are becoming standard news items. Several speakers at the conference predicted a resultant up-and-coming skills shortage, highlighting the need to combat this challenge by integrating work & learning, and by increasing diversity and inclusion of staff.
So can organisations really stem the flow of redundancies in the current global financial crisis, or is it a myth.
Professor Ian Goulter, Vice Chancellor, Charles Sturt University, talked of preparing the work force for future employment, utilising existing workforce to meet new demands of industry. This view supported by a number of links into current trends with baby boomers staying in some rolls longer or seeking greater flexibility in hours of work, or returning to university study, Diversity!
So what would be the benefits of this approach to leadership?
- A business that has engaged and motivated staff
- A business that stands out, both nationally & internationally
- A business that leads its community and outperforms its competitors
Investing in the people, listening & leading people to work the hours they require and need, linking back to the strategy of the company, becoming values based can change the outcome of your organisation.
So how do you reflect the value you place on your people, money is not the bottom line, but do not let the financial crisis be the excuse to not invest!
Dr David Morgan AO spoke of the top 10% performers of your organisation. Not looked after they will become your competitor’s top 10% performers!
It is not all base salary, but do not discard this embrace it as the foundation for building a value base for recognition. What will keep your performers is the simple recognition of achieving, delivering beyond expectations. A book of movie tickets allows your employee an opportunity to reflect on his employer & organisation each time he attends a movie. Engagement with staff, fundamental leadership 101, demonstrates value. Dr David Morgan ensured his management team meet regularly with managers across Australia ensuring there was no passing the buck on issues that could and should be addressed there and then.
During his term as CEO of the Commonwealth Bank of Australia, Sir Ralph Norris has striven to achieve significant changes within that organisation’s attitudes and environment. Partly by changing policy and procedure, but most importantly through getting the right people into positions where they can make changes, and investing in people who can change the face of their organisation. So has it worked? Industry commentators have certainly noted evident improvements in the CBA’s industry rankings, profit, and absenteeism levels, and have clearly attributed these trends to Sir Ralph’s leadership.
For me, the scholarship provided an intense learning environment, a valuable forum for sharing ideas, and an opportunity to build upon my knowledge and continue to lead in my organisation.
I could go on and on about the presenters, the people we meet during our scholarship, and the core message: that values-based leadership will be the answer to leading organisations out of the global financial crisis. But most important for me was the simple fact that what it’s going to take is leadership –the willingness to take a bold step forward, & the ability to inspire others to do likewise.
Finally, a few short highlights of humour & insight that particularly stuck with me:
- ‘It’s only head work’ Sir Ken Robinson’s father’s comment when Sir Ken stated how tired he was from undertaking his book launch.
- If it is something you love 6 hours can feel like 5 minutes
- Reward your top 10% before they become your competitor’s top 10% - Dr David Morgan
- 84.7% of statistics used at conferences are made up. – Lee Hopkins
The Need for Strong, Value-Based, Visionary Leaders
Annette Kendall
Last month (June) I travelled to Sydney for a six day management study tour scholarship awarded to myself and two others by the New Zealand Institute of Management Foundation.
The tour consisted of two days at the Australian Human Resources Institute National Convention, a day with Wilfred Jarvis, founder of Four Quadrant Leadership, and meetings with Ralph Norris, CEO, Commonwealth Bank Australia as well as representatives of Trans Tasman Business Circle, PriceWaterhouse Coopers and NZ Trade & Enterprise.
The trip was amazing, a wonderful opportunity for both learning and networking, and my fellow recipients, Dan and Robert provided good company, thoughtful conversation and even better entertainment!
One of the strongest themes I brought back is that the world is more than ever in need of strong, value-based, visionary leaders to drive a paradigm shift in the way we manage our organizations and people. And what better evidence do we need of this than the global financial crisis. It was mentioned at the AHRI convention that more than 90% of people in positions of power are driven by greed, fear or self-preservation. I wonder if the financial crisis has taught some well overdue lessons?
There is an equation in business that many organizations and managers use. It involves profits, goods and services and people. It appears to me that the majority of businesses get this equation wrong. The majority of business people are focused on profits. Profits come first, then the goods and services and then the people who work for them. Come on, isn’t that obviously the way to run a business?
The most successful organisations, the best places to work, the world’s greatest leaders will all tell you the same thing. Put people first. Ralph Norris is known throughout the business world and beyond for putting people first. In 2007 the Commonwealth Bank of Australia’s record $2.27 billion interim profit was attributed by commentators as largely due to the culture change that had been taking place within the bank in the 18 months following Norris’ appointment. In those 18 months CBA had sought to “reinvigorate’ both employees and customers through changes in human resource policies and procedures. When you put people first, the profits follow. It’s so simple and why isn’t it being done in more organisations? Because it’s scary.
You may be thinking ‘hey, my staff are my greatest asset, I know this stuff’. We all know it. Don’t we? But do we live it. Do our organizations really value our people or is it just a plaque on the wall? If I came to your business tomorrow and asked your people “tell me what’s really going on in this company”, would they tell me that people come first? It’s one thing to say you do it, but do you behave like it and do your people believe it.
“Our staff are our greatest asset.” If I hear another manager or CEO tell me that again I swear I will poke pins in my eyes. There are plenty of organizations who spend loads on food and drinks and making sure staff have a good time. And they can’t figure out why their people still leave.
Two years ago we did a staff satisfaction survey. 32% of our staff were classed as unhappy. What??!! How can they be unhappy??! We’re always having barbeques and putting on drinks. Hmph! Oh well, 68% of our staff are happy, let’s just concentrate on them. They’re obviously our best staff. Yeah right.
Actually, I’m pleased to say the above was not our reaction towards the results of the survey. Instead, we found out where the staff thought we were going wrong. And then we did the best thing we’ve ever done. We put those staff in charge of getting it right.
People are often amazed when I explain to them that ‘our staff make a lot of the decisions round here’. I tell them the head honchos have their name on the sign, I co-ordinate it and the staff run it. Obviously it’s not quite like that but in reality our staff have a lot of input. We use the Four Quadrant Leadership system founded by Wilf Jarvis. In essence we ask the staff to categorise their issues and the decisions they want made into one of four areas:
- Management make the decision. No questions asked.
- Everyone has input, management have the final say.
- Everyone has input and we all agree on the outcome.
- Everyone has input and the staff decide the outcome. Management: butt out.
We really do put our people first. Hand on heart. And our latest staff survey tells me that now they believe it too. 0% unhappy staff. They believe we value our people as individuals, we acknowledge good performance, we train them to high levels, and we create an environment so they can enjoy their work. No we’re not running a holiday camp. In fact we have had a decrease in time taken to do the work and we are ahead of our targets this year by 5.6%.
It’s a philosophy that I’ve been passionate about for the past two years. I know that it works and to hear it backed up and reiterated by equally passionate internationally renowned speakers and business people during my week in Australia confirms that what I know in my heart to be right is right on paper as well. The results speak for themselves. Put your people first, I mean really put them first. Don’t just say you do, live it, believe it and make sure your people believe it. There’s two ways of running a business:
- Profit first = demotivated, undervalued, unloyal staff = high staff turnover, minimum effort = less profit.
- People first = motivated, proud, innovative, passionate, loyal staff = value-enhancing ideas, 150% effort, and opportunities to ‘go the extra mile’ being actually sought after! = yes, you guessed it, more profit.
You make the choice.
And finally, here are a few “golden nuggets” that I picked up during the week:
- Unemployment demonstrates where an economy has been, not where it is going. – David Morgan.
- Bad decisions – if they don’t happen, you’re not doing anything. And yes, intelligent people still make dumb decisions. – David Morgan.
- The only thing that gives you a competitive advantage is the hearts and souls of your people. – Linda Duxbury.
- To get control you’re gunna have to give it up. – Peter Sheahan
- Business is a whole lot of individuals coming together to do cool stuff. – Peter Sheahan
Leaders Focus on “People and Processes
Robert Levy
The 2009 Management Study Scholarship was billed as “an experience which will benefit the individual and enhance his/her value to the organisation”… in practice it was a week which combined an impressive “who’s who” of Australasia’s top business minds and a number of world class keynote speakers. In short, it provided the three participants’ an opportunity to be exposed to leaders; managers and experts in an impressive assortment of fields and industries – and the chance to learn from best practice; successes; future trends identified and even mistakes analysed and recounted, from preeminent business and thought leaders.
A Thumbnail Sketch of the Week’s Study Tour
- Participation at the AHRI (Australian Human Resources Institute) National Convention www.convention.ahri.com.au
- A convention giving access to in excess of twenty presentations; workshops; panel discussions and keynote presentations.
- Boardroom Briefing Opportunities
- Including Ralph Norris/Ian Narev (Commonwealth Bank); NZ Trade & Enterprise; TransTasman Business Circle; Price Waterhouse Cooper
- An audience with Wilf Jarvis – Behavioural Scientist (Leadership Guru)
A Few of the Key Themes and Messages from the Week
Below are a few reoccurring themes and thoughts that stood out for this participant.
Leadership…
A repeated theme amongst the most leading CEO’s was a focus on “people and processes” as opposed to trying to be across individual decisions throughout their organisations. Basically a “long game” mentality and commitment to getting the right people placed throughout their businesses, and providing them with the “tools” (processes) they need to communicate, act and create positive change.
As a leader, when in doubt, use the “glasshouse rule”… would you be prepared to do it if “everyone was watching”.
We are in the midst of a GFC (Global Financial Crisis)…
However, this is not an excuse for “across the board” lunacy. As leaders and managers, it is up to us to understand exactly what gives our businesses and organisations strength. Especially in recessionary times, we cannot afford to neglect these strengths – in simple terms, this means know and understand the top performing people and top performing areas of your business. If there is a business unit or team member that is consistently over performing; over contributing; over achieving… you cannot afford to allow them to be shackled by measures that are in place through the rest of your business (due to these “tough times”). So to, with key personnel – there must be safety valves in place that gives your businesses’ leaders and managers the tools to continue to maximise the contribution of these vital players in your organisation’s future, and of course to reward them for the positive impact they are having.
It is easy to lock down into “survival mode”, however, it is imperative to position our organisations for exiting the recession as well. While there are advantages of an “employers market” – your people must continue to feel engaged and appreciated…. you need them there for the long haul.
The service industry…
More than anywhere else, in the service industry, your frontline people are your brand. We must go beyond simply “looking after” these people, we must also understand that they are able to tell us more about our customers than anyone else. We must create the communication channels that allow us to leverage the information they are prepared to share with us. They will tell us what our customers want, what our customers don’t want and the solutions that will make our businesses better… but only if we listen to them.
The sum of their knowledge is a total understanding of the “user experience” – this crucial information exists within our organisations now! You need a culture where your people will talk to you and the tools are in place to facilitate this.
The place of technology in business communications today and moving forward…
The focus is not “keeping ahead of the bunch” or being first – what our customers want is choice. Basically, where possible, give stakeholders the chance to communicate with you and your business via the medium of their choosing. A successful multi-channel approach means the user always feels that your company understands that they are dealing with real people, with unique “drivers” that expect to be listened to.
Sustainability…
Yes, “triple bottom line” is important, but in this instance, “sustainability” is referring directly to your “unique offering” to the market.
This is referring to continuing to position your business in a manner that means your staff and customers have confidence that as well as delivering yesterday and today – your business clearly has the ability to deliver your product/service and their jobs, tomorrow and into the future.
Clearly, there are some very tough decisions being made in regard to cost cutting in business, and in the current environment this extends to redundancies and closures. However, many also see recessionary times as creating opportunities to implement big beneficial changes that would simply be “pushed back” in easier financial times... culture change; policy change and people change. This is when you can make your business stronger and better.
Closing Sentiments
This week that was set up by the NZIM through their Trans-Tasman network – provided the participants exposure to a variety of experiences and learning situations that gelled together in a valuable and unique insight into how best businesses grow and develop via leadership and management providing and communicating clear direction.
The participants now look forward to bring their learnings back to New Zealand business and the communities they live and work in.