1. Responding to new ideas with openness

Instead of immediately responding to a new idea with “no,” isn’t it better to say, “let’s look at it, why not?” Naysayers create an environment where no one wants to take chances. The famous statement attributed to Robert Kennedy, “Some people see things as they are and say why? I dream things that never were and say, why not?” apply also to the ideas that your employees may have. If they are free to express them, you have created a culture that nurtures innovation. If you believe innovation is important, then openness to new ideas is a must. Without this cultural orientation, your company is at risk of passing by many ideas that could, if adopted, add to the growth and profitability of the business. By having a habit of saying no, you also run the risk of losing quality talent – talent that continues to grow impatient with corporate sluggishness and either leaves or becomes lethargic.

2. Collaborating

The old adage “no man is an island” is especially true within an organization because the talent of all is needed to pursue a common goal. Yet, lack of collaboration remains an important barrier to progress. Why is it that people prefer to work in silos instead of collaborating? There are many reasons. However, the root cause in our experience is the desire of each individual to apply his or her own solution toward the fulfillment of the common goal. The thinking goes something like this, “I know that my scheme works; I don’t understand the schemes proposed by others; I’ll do mine and prove it’s efficacy; I’ll convince others to follow my way.” But if everyone thinks this way, no scheme will have sufficient support to succeed. Cultural transformation requires a change in this behavior.

We have developed five laws necessary for collaboration: First, never make a command decision unless there is an emergency. Second, never take back responsibility after delegation unless the collaborator is incompetent and is being replaced. Third, never take a decision about your own area of responsibility without first getting the input of those who have indispensable influence on your success. Fourth, never take a decision that impacts the performance of a person on whom you have indispensable influence without first consulting with them. Fifth, if you are managing people who have indispensable influence on someone else’s results, never encourage them to take over from the person who is accountable. Their contribution should be only through influence and persuasion.

3. Responsibility / Accountability

What does taking responsibility mean and what do you do when you are responsible? A closely related question is accountability, what does it mean and what do you do when you are accountable? The answers to these questions are not clear in many organizations. When you ask managers in a company, who is responsible for sales? Everyone will come forward. When you ask, who is accountable for sales, everyone will come forward. Our response is that if everyone is accountable, then no one is. Accountability should be assigned to the person at the lowest appropriate level of the organization, to the person who logically has the scope to perform. In a sales organization, this person would be the sales person. Managers of sales people at upper levels of the organization don’t sell. They influence sales through their management influence. While they are responsible to be sure sales quotas are achieved, accountability for sales is at lower levels. Companies need to define accountabilities for all the key performance indicators in the company to the appropriate levels. Setting up a corporate rewards system that links performance to rewards is encouraged to motivate people to be more responsible and accountable.

4. Proactive Action Planning

Ideally, each manager in the organization should be held accountable for at most 5 main performance indicators. More than that would cause the person to lose focus. But, for the five indicators, proactive action planning is necessary. What do we mean by that? We mean the person should analyze what he or she can do to cause the indicator to improve. The analysis should determine the root causes that affect the indicator in the negative or positive fashion, and a proactive action plan for dealing with them must be developed. This is not an exercise you do one time. Rather, it is a habit you form to improve your performance on a day-to-day basis. The promotion of the action planning mentality along with applying the problem solving tools that enhance the quality of the action plans are important characteristics of cultural transformation we are proposing.

5. Following through

Naturally, following through with commitments that emerge from the action planning process is key to good execution. In many organizations, managers make commitments, but forget them as time passes without making sure that the commitments are done, or if they are not relevant, they are deleted or the deadline is moved. In one-on-one vertical meetings, collaborators review the commitments completed with managers and get approval. The cultural transformation we propose promotes the discipline of completing commitments on time and with proof of completion. We also propose incentives for follow through to be linked to compensation in order to strengthen this important element of the cultural transformation process.

6. Making decisions based on facts

Successful corporations and leaders make decisions based on facts and not emotions, biases or opinions. Fact-based decisions help mitigate our inherent cognitive biases. They reduce the chance of these standing in the way of rational decision making. The habit of making decisions based on facts requires looking for data to validate or eliminate conclusions. It is at the heart of the action planning process we discussed above. This habit presents a huge cultural change for many managers. Yet, it should not be taken to extremes as it could stifle valid conclusions that are based on intuition.

7. Reflecting on action and learning

Many people think without translating their thoughts into action, or act without a sound thinking prior to action. Many act, but don’t reflect after action to figure out what they could have done differently, what they learned, and what they would do differently going forward. The cultural transformation we propose encourages managers to constantly evaluate how things are progressing and what behaviors need to be adjusted to ensure meeting goals. The habit of planning, action and reflection is key to the learning culture that promotes innovation and moves the organization to greatness.

Employing these 7 habits will lead to more rewarding behaviors, and in turn to a great culture.

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With today’s workforce of a different generation that is more educated and diverse, it is important to reevaluate a process that has been in place since the last century. Today’s generation works best in collaborative and empowering environments, requiring continuous feedback from managers and co-workers. Without feedback, talent tends to leave and look for  jobs with more support and career development. It’s time to abandon the performance appraisal concept of the last century and build a new one. Here is how:  

Have a more frequent conversation between you and your collaborator and change the format and content. Call it vertical results process and focus the conversation on improving results through building capacity. Make it a process rather than an event, a process that begins with a conversation followed by action and then reflection and learning. Improving results implies helping the collaborator improve his results, and is very different than evaluating the collaborator and putting him or her on the defensive. Building capacity implies giving the collaborator the support and accompaniment he or she needs to improve competencies. Feedback is at the center of this process. Given in a constructive and positive manner, feedback is a powerful driver of talent improvement. How and when you give feedback is as important as what you say. If done badly it can actually hinder a person’s ability to learn and damage their confidence.

Create an environment in the vertical meeting where hierarchy is not allowed to extinguish valuable contributions by your collaborator. This is different than the environment in performance appraisals where collaborators are on guard and careful about what they say. You want to create an empowering environment where the two of you are exploring how the collaborator can become more competent, and how the results for which he or she is accountable can be improved.  

Four Topics for Conversations

In a vertical meeting you can cover four topics: culture, performance, development and other important topics. Culture conversation aims at discussing the values of the organization and encouraging congruence of behaviors with values. By initiating a conversation about culture, you become the agent of change and help the collaborator align his or her behaviors with the company’s core values. You are not only helping your collaborator align his or her behaviors, you are reminding yourself to reflect on how you can lead by example. And when this vertical process is cascaded downwards, your collaborators will have a similar conversation with their collaborators.

The next topic is performance conversation. Here is your opportunity for reviewing the performance of the collaborator over the pervious month. By looking at, highlighting and reinforcing the positive performance, your collaborator gets the energy needed to pay attention to areas needing improvement. Specifically, take the opportunity of looking at and improving the action plans the collaborator has developed. Be sure the environment you are creating is one of collaboration and exploration, where you are helping to improve the action plan already developed rather than evaluating and criticizing it.  And, as this performance conversation is cascaded downwards to the next levels, all levels will have the benefit of paying attention to performance and results.  

Development conversation is the next topic in a vertical meeting. The purpose here is to ascertain that your collaborator is improving his or her competency on the skills needed to succeed in the job. This is a valuable discussion as it aims to develop capacity at the next level of the organization and aid in succession planning. Your collaborator may or may not know exactly what skills he needs or how to improve on the skills. During the conversation, help your collaborator zero in on the needed skills, and encourage him to develop a self-improvement plan. With your support as the manager and assistance from the Human Resource department, capacities are enhanced that improve your collaborator’s results and through that, the bottom line of the organization. Imagine the impact of this conversation on strengthening the pool of talent and impacting results when this conversation is cascaded downward to cover all levels!

The last conversation covers other topics that are important to either you or your collaborator. We have provided this space to be sure that your collaborator leaves the vertical meeting having covered all the important topics he or she needs in order to stay focused on the job. Ideally, your collaborator leaves the meeting highly focused and motivated.

It is important to remember a few key points in order to get the most out of this powerful process. See your collaborator as an equal who needs your accompaniment to learn, and also one who can provide you with the opportunity to learn. When giving feedback, be sure you focus on the positives, the strengths. Be sure you give specific examples of how his or her performance has added value to you and the organization. When giving negative feedback, remember you are not criticizing the person; you are giving an example of behaviors that are undesirable. Be sure that your style of leadership is appropriate to the development level of your collaborator. If you are too directive when you should be supportive, then you will freeze creative input. Be sure you maintain discretion and privacy when discussing your collaborator’s performance. Nothing ruins trust between a manager and an employee more than a violation of trust and confidentiality. These are the characteristics of an important management process that replaces the existing performance appraisal.

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Being trustworthy

It’s important to start with the value of trust. Being trustworthy is what the word actually coveys, being worthy of someone’s trust. It means behaving consistently in a manner that attracts people’s trust in you. This is probably the greatest asset you could have. Why? Because with this value, your customers will trust you and buy more of what you are offering; your suppliers will trust you and give you their best; your employer and boss will trust you and empower you to act. Trustworthiness establishes a level of comfort between leaders and their team. If your team members and the others in the organization inherently trust you, they will be more motivated to follow your lead and this will, of course, benefit the corporation.

Being customer oriented

Creating a culture of being ‘customer oriented’ is an important key to the success of any business. But what does it mean? It means knowing your customers so well that you understand their needs and their pains. It means empathizing with their pains, being concerned about their wellbeing and striving to serve them. This orientation will make you responsive to their feedback; it will cause you to look at the service or products you offer from their point of view – not just because they are important contributors to your bottom line. When you take care of the customer and provide excellent products or services – the bottom line will take care of itself.

Being quality conscious

Similarly, paying attention to quality enhances the customer experience and creates repeat customers. If the value, customer orientation, is respected, then you would want your customers to have the best quality you can offer them. You would want them to feel good about the product or service every time they use it. You would want the product or service you are offering to maintain quality and last as long as possible. Being quality conscious doesn’t only apply to external customers; your team and employees are your customers as well. Creating a culture of high quality encourages people to raise their standards and performance.

Being positive

We are habitually prone to focus on the negative, on what is not working right, and criticize or offer suggestions for improvement. A change in this orientation is necessary. Instead of immediately focusing on the negative, try to discover the strengths and build on them. Being positive gives people the confidence and energy necessary to improve. Placing value on positive attitudes in your organization benefits everyone’s outlook. Studies show that people feel inspired and empowered when they are surrounded by positivity. Barbara Fredrickson’s Broaden-and-Build research demonstrates that as people experience more positive emotions, they become more resilient to stress and develop a broader perspective that allows them to see the big picture and identify solutions. This is all good news for leaders who want to see more creative solutions from their team!

Being respectful

Respect is a human right and everyone deserves to be respected. While we all agree with this value, many are unaware of what it really implies. When someone speaks and we interrupt, we are not showing respect. When someone speaks and we don’t listen, we are not showing respect. But what if we arrive late to a meeting? Is that not disrespectful to the others present? We would probably never show up late for a meeting with someone of a higher social status. The value of being respectful is often ignored because people are so preoccupied with their own agenda. Yet we long for creativity and innovation in our organizations! Innovative ideas come from people at any level of an organization who are not discouraged from expressing their views, and are treated with respect. A culture of respect enables people to contribute knowing that they would be heard, and to share their ideas without fear. Treating people right because they truly matter fosters a healthy and trusting organizational culture.

Being in a learning mode

With all of the technological and scientific advances in recent years, we have access to vast amount of information to feed our learning. We are reminded how important it is to be lifelong learners. But being in a learning mode is not just being up to date with technology and information. A learning mode is an attitude that enables you to learn from your experience. It is an attitude that avoids rigidity and insisting that it’s “my way or the highway”. It is an attitude that encourages improvements and innovations. When you are in a learning mode, you are showing your team that you are open to change, that you respect the opinions of others, and listen to learn. You never know where the next great idea will come from!

Values permeate organizational culture in many ways. Setting clear ones, and the right ones, will lead your team to success.

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1. Know yourself

Leaders must know who they are, what drives them to excel and what their strengths and weaknesses are. Everyone has some things about their character that make them powerful and unique. Use your strengths to your advantage. Not sure what your strengths are? Think about those things that people often compliment you on. Validate by asking someone you trust to look at the list of strengths to see if they agree. Third-party assessments can also help you see and understand where you are strong. While focusing on your strengths, it is important not to ignore your weaknesses. We all have weaknesses, and self-awareness requires a clear understanding of what they are.

2. Clarify your mission and vision

Leaders without a mission in life tend to be opportunistic and only interested in promoting themselves. They take a position and then change it depending on convenience. A sincere sense of mission is inspiring to those hundreds or thousands who will have the privilege of your leadership. You should also clarify your vision, know where you are going, how you visualize yourself, your family, or your organization fulfilling your mission in the future – say five years out. What does the picture of success look like? The clearer this vision is the greater will be your ability to communicate it to others and rally people around you to share the journey with you.

3. Promote Values

You already have a set of personal values that probably come from your upbringing. These may be complemented with organizational values that are suited to the business you are in. Take time to examine your values and be sure they are consistent. Once you have defined a set of values for yourself and the organization, make a promise to yourself that you will not compromise them. When you stick to your values, you can effectively promote them in the organization.

4. Surround yourself with talent

It is clear that you cannot accomplish a challenging vision all by yourself. You need many to help you. Here you must be selective and surround yourself with the best talent you can find. This is a challenging but extremely rewarding step. The best talent is not always the most technically qualified person nor is it someone with a string of degrees after their name. You need talent who also agree with your vision and values. You need talent that is humble enough to want to learn and is not a “know it all.” Those who know everything are not fit for a journey of collaborating and learning together from vision to reality. It is not sufficient to just find talent and invite them to join your team. You must also be committed to their continuous development. Develop your successors and have stellar, high-performing people around you.

5. Involve your people

You don’t have to make all the decisions yourself. There are some decisions you should make, some you make in consensus with your team, and others you don’t make at all as you have already delegated them to people in your organization. For those decisions that you do need to make, first obtain input from your people. The more you involve your people, the more you increase their sense of ownership of working with you on the journey toward your vision.

6. Empower

Empowerment is delegation with power. Delegate the processes already in motion in your company to the lowest appropriate level of your organization. At the same time, ensure that those individuals have the skills and are competent to accept responsibility. Let the lower levels be charged with taking care of the present, while you and your upper level team are focusing on strategy, on building new processes and on the future.

7. Promote learning

To foster innovation, the key to success, you need a learning organization where people are in a constant mode of learning. You want your people to learn, not just from technology or from the vast amount of available information, but also from doing and then reflecting. You must promote learning and insist that people be in a learning mode, that they try new things without fear of mistakes and reflect on what worked and what didn’t and needs improvement.

8. Catch people doing things right

When the present operations of the company are delegated to the lowest appropriate levels and the future is delegated to the highest appropriate level in the organization, your job will be to motivate, encourage and catch people doing things right. Don’t forget to recognize anyone who is making the effort, who is learning and producing results. Reinforce them by meaningful rewards and recognition.

9. Be trustworthy

When you are in a position of leadership, people will naturally tend to trust you. Be worthy of their trust. This includes staying true to the values you have defined. It includes paying attention to make sure to follow through on plans and promises. Quite simply, you as a leader need to keep your word. And if you’re going to miss a deadline or experience a setback, communicate it. It’s not good enough to just apologize afterwards. It comes down to showing respect for one another and it all begins with you. Being a person of your word garners respect and trust from your team and organization and benefits everyone around you.

These are the characteristics of great leaders. By focusing on these nine steps, you have the opportunity of becoming a great leader.

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