CUTTINGS - New Directions · 2011-08-26 · Most organisations do have a purpose and for many it...

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CUTTINGS CUTTINGS is edited and published by Geof Cox of New Directions Ltd.. The contents are the property of the publisher but may be used if the publisher is identified and if copies of such use are sent to the publisher. New Directions Ltd is a member of Number 91 April 2011 Compiled and edited by Geof Cox The ‘Golden Thread’ of shared purpose rganisations whose employees share a sense of purpose outperform those who don’t, according to recent research by the Chartered Institute of Personnel and Development published in the report Shared purpose: the golden thread? Most organisations do have a purpose and for many it tends to be ‘profit‐based’. However, despite this being a common purpose, making profit for investors and owners does not ‘fire up’ the workforce, in fact those organisations with a profit base purpose tend to be out of sync with employees. Just having a purpose is not enough to generate performance. Whilst a high proportion of employees surveyed believe their organisations have a clear sense of purpose, far fewer believe it is a shared sense of purpose throughout the organisation. Alignment is the key issue here. Alignment between an organisation’s purpose, its values and its goals is more important than the specific purpose of the organisation as indeed is the alignment between an employee’s goals and the values of the organisation and ultimately understanding where they fit. Organisations who achieve this sense of shared purpose outperform those with none on both soft and hard measures. In addition, the research indicates strong indications that if employees know and share what their organisation’s purpose is then they are more likely to be engaged and satisfied. This has been one of the questions in the Gallup Q12 survey ‘The mission/purpose of my company make me feel that my job is important’. On the down side, a lack of understanding around purpose can lead to de‐motivation and emotional detachment, which in turn lead to a disengaged and dissatisfied workforce. Despite the benefits, few organisations appear to achieve a sense of shared purpose: 35 per cent of the respondents identified that their organisations’ core purpose was detached from their day‐to‐day jobs. And, while 76 per cent of respondents said they knew clearly what their organisations’ core purposes were, just 28 per cent believed that purpose was shared throughout the whole organisation. For those organisations whose purpose is fully shared by their staff, the benefits are clear: • improved timeliness and efficiency of service delivery • increased market share • higher employee engagement: 84% of respondents were engaged, compared to 32% of respondents without a shared sense of purpose Decision making Having a sense of shared purpose not only affects satisfaction and engagement; the research indicates that it also affects how decisions are made. Employees who feel their organisation has a sense of shared purpose are more likely to see their organisation involving them from the outset in contributing to and shaping big decisions; those with no sense of shared purpose see decisions being made ‘behind closed doors’. A sense of shared purpose tends to produce a ‘co‐creation’ atmosphere, while lack of purpose results in a ‘tell and sell’ approach. While the research identifies the importance of communications and leadership in developing a sense of shared purpose, just informing employees is not enough. The research clearly identifies that employees need to see their senior clearly demonstrating that they live the values and purpose they espouse. This ‘on board’ attitude from senior management also has the ability to improve job satisfaction respondents who feel senior management keep the organisation purpose at the heart of their visions and strategies are more likely to be satisfied with their job than those who do not. Conclusions An organisation’s purpose is at the core of its very reason for being. Different organisations have different purposes that resonate differently with their employees. But whilst employees are more motivated by a non‐profit‐related purpose it is more important that purpose, values and goals are aligned. Where there is alignment people not only understand the purpose and values of the organisation but also see where they fit into it – then levels of engagement and satisfaction are increased and the perception of the organisation as one that outperforms its rivals is tangible. A greater sense of purpose is achieved if their goals are aligned with the organisation’s values. The research also highlights the importance of communication and leadership. And whilst mechanisms such as appraisals and one‐to‐one meetings will help, leaders must demonstrate that they too ‘live’ the values. Many employees believe that this does not happen. Shared purpose: the golden thread? CIPD report, December 2010 “Golden thread” of shared purpose highlighted by research, TJ January 2011 O

Transcript of CUTTINGS - New Directions · 2011-08-26 · Most organisations do have a purpose and for many it...

CUTTINGS

CUTTINGS is edited and published by Geof Cox of New Directions Ltd.. The contents are the property of the publisher but may be used if the publisher is identified and if copies of such use are sent to the publisher.

New Directions Ltd is a member of

Number 91   April 2011    Compiled and edited by Geof Cox 

The ‘Golden Thread’ of shared purpose rganisations whose employees share  a  sense  of  purpose outperform  those  who  don’t, 

according  to  recent  research  by  the Chartered  Institute  of  Personnel  and Development published in the report Shared purpose: the golden thread?  Most  organisations  do  have  a 

purpose  and  for many  it  tends  to  be ‘profit‐based’.  However,  despite  this being  a  common  purpose,  making profit  for  investors and owners does not  ‘fire  up’  the  workforce,  in  fact those organisations with a profit base purpose  tend  to  be  out  of  sync with employees. Just having a purpose is not enough 

to  generate  performance.  Whilst  a high  proportion  of  employees surveyed  believe  their  organisations have  a  clear  sense  of  purpose,  far fewer believe  it  is  a shared  sense of purpose throughout the organisation. Alignment  is  the  key  issue  here. 

Alignment between an organisation’s purpose,  its  values  and  its  goals  is more  important  than  the  specific purpose  of  the  organisation  –  as indeed  is  the  alignment  between  an employee’s  goals  and  the  values  of the  organisation  and  ultimately understanding where they fit. Organisations  who  achieve  this 

sense  of  shared  purpose  outperform those  with  none  on  both  soft  and hard measures.  In  addition,  the  research  indicates 

strong  indications  that  if  employees know  and  share  what  their organisation’s  purpose  is  then  they are  more  likely  to  be  engaged  and satisfied.  This  has  been  one  of  the questions  in  the  Gallup  Q12  survey ‘The mission/purpose  of  my company make me feel that my job is important’. On  the  down  side,  a  lack  of 

understanding  around  purpose  can 

lead  to  de‐motivation  and  emotional detachment,  which  in  turn  lead  to  a disengaged  and  dissatisfied workforce.  Despite  the  benefits,  few 

organisations  appear  to  achieve  a sense of shared purpose: 35 per cent of  the  respondents  identified  that their organisations’ core purpose was detached  from  their  day‐to‐day  jobs. And,  while  76  per  cent  of respondents  said  they  knew  clearly what  their  organisations’  core purposes  were,  just  28  per  cent believed  that  purpose  was  shared throughout the whole organisation. For  those  organisations  whose 

purpose is  fully shared by their staff, the benefits are clear: •  improved  timeliness  and  efficiency of service delivery  

•  increased market share  • higher employee engagement: 84% of  respondents  were  engaged, compared  to  32%  of  respondents without a shared sense of purpose 

Decision making Having a sense of shared purpose not only  affects  satisfaction  and engagement;  the  research  indicates that  it  also affects how decisions are made.  Employees  who  feel  their organisation  has  a  sense  of  shared purpose  are more  likely  to  see  their organisation involving them from the outset in contributing to and shaping big decisions;  those with no sense of shared  purpose  see  decisions  being made ‘behind closed doors’.  A sense of shared purpose tends to 

produce  a  ‘co‐creation’  atmosphere, while lack of purpose results in a ‘tell and sell’ approach. While  the  research  identifies  the 

importance  of  communications  and leadership  in  developing  a  sense  of shared  purpose,  just  informing employees  is  not  enough.  The 

research  clearly  identifies  that employees  need  to  see  their  senior clearly  demonstrating  that  they  live the values and purpose they espouse.  This ‘on board’ attitude from senior 

management  also  has  the  ability  to improve  job  satisfaction  – respondents  who  feel  senior management  keep  the  organisation purpose  at  the  heart  of  their  visions and  strategies  are  more  likely  to  be satisfied  with  their  job  than  those who do not. Conclusions An  organisation’s  purpose  is  at  the core  of  its  very  reason  for  being. Different organisations have different purposes  that  resonate  differently with  their  employees.  But  whilst employees  are  more  motivated  by  a non‐profit‐related purpose it  is more important  that  purpose,  values  and goals are aligned. Where  there  is  alignment  people 

not only understand the purpose and values  of  the  organisation  but  also see where they fit into it – then levels of  engagement  and  satisfaction  are increased  and  the  perception  of  the organisation as one that outperforms its rivals is tangible.  A  greater  sense  of  purpose  is 

achieved  if  their  goals  are  aligned with the organisation’s values.  The  research  also  highlights  the 

importance  of  communication  and leadership.  And  whilst  mechanisms such  as  appraisals  and  one‐to‐one meetings  will  help,  leaders  must demonstrate  that  they  too  ‘live’  the values. Many  employees  believe  that this does not happen.  Shared  purpose:  the  golden  thread?  CIPD report, December 2010 “Golden  thread”  of  shared  purpose highlighted by research, TJ January 2011  

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CUTTINGS is edited and published by Geof Cox of New Directions Ltd.. The contents are the property of the publisher but may be used if the publisher is identified and if copies of such use are sent to the publisher.

A collection of thought provokers and quotations… “The  greatest  of  faults,   I  should 

say,   is  to  be  conscious  of  none.” Thomas Carlyle 

“The  key  to  successful  leadership today is  influence, not authority.”  Ken Blanchard  

“Managers have  their  eyes on  the bottom  line;  leaders  have  their eyes  on  the  horizon”  Warren Bennis 

“Managers  work  in  the  system; leaders  work  on  the  system” Steven Covey 

“Love  is  an  act  of  endless forgiveness,  a  tender  look  which becomes a habit. “ Peter Ustinov  

“Keep  your  fears  to  yourself,   but share  your  courage  with  others.” Robert Louis Stevenson 

“When  pure  sincerity  forms within,  it  is  outwardly  realized  in other people's hearts.” Lao Tzu 

“If  we  don't  change,  we  don't grow. If we don't grow, we are not really  living.  Growth  demands  a temporary  surrender  of  security.” Gail Sheehy  

“We  can  teach  from  our experience,  but  we  cannot  teach experience.” Sasha Azevedo 

“You  can't  expect  your  employees to exceed the expectations of your customers  if  you  don't  exceed employees'  expectations  of management.” Howard Schultz 

“The culture of  the mind must be subservient  to  the  heart.” Mahatma Gandhi 

“A tree is known by its fruit; a man by his deeds. A good deed is never lost;  he  who  sows  courtesy  reaps friendship,  and  he  who  plants kindness gathers love.” St. Basil 

“I  pay  no  attention  whatever  to anybody's   praise  or  blame.   I simply  follow  my  own  feelings.” Wolfgang Amadeus Mozart 

“Life  can  only  be  understood backwards;  but  it  must  be  lived forwards.” Soren Kierkegaard 

“Opportunity  is  missed  by  most people  because  it  is  dressed  in overalls  and  looks  like  work..” Thomas A. Edison 

“The  farther  behind  I  leave  the past,  the closer I am to forging my own character.” Isabelle Eberhardt 

Three Strategies from the Best Companies for 

Leadership 2010 “Leading  companies  today  are structured  more  like  a  neural network than a hierarchical machine,” so  says  Rick  Lash,  co‐leader  of  the Hay  Group  Leadership  study.   They operate  as  a  flattened  matrix,  where information and authority move in all directions and cross‐functional teams are  as  important  as  formal  vertical structures.  Their  managers  facilitate diverse  teams  with  members  from different cultures and time zones who report  to  multiple  bosses.      These forward‐looking  organisations  use three fundamental strategies.   1. Drive collaboration  The  Best  Companies  for  Leadership expect  everyone,  at  all  levels,  to exercise  leadership  and  create  value. They  seek  out  successful  ideas  and practices  disseminate  them throughout  their  organisations.   In this  environment,  a  collaborative approach  is  essential,  and  ninety  per cent of the Top 20 Best Companies for Leadership reward collaboration with incentives.   2. Gain value from diversity  Leading  companies  have  recognised that  they  can  compete  more effectively  in  markets  around  the globe when  their  leadership  includes people native to them.  All the Top 20 consider  cultural  diversity  an enrichment rather than a threat. They develop  local  leaders  rather  than expatriates,  and  help  all  leaders develop  the  competencies  to manage diverse workforces more effectively.     3. Build a sustainable workforce  In  response  to  the  values  of  a  new generation  of  leaders,  leading companies  are  adapting  their approach  to  employees'  work‐life balance,  and  to  social  and environmental responsibility.  Ninety‐five  per  cent  of  the  Top  20  have  a family  friendly  culture  and  use  their socially  responsible  practices  in recruiting.  And  there  is  a  massive  investment 

in  development.  Over  the  six  years that  Hay  Group  has  conducted  the Best Companies for Leadership study, leadership  development  at  all companies  has  steadily  increased.  At the  Best  Companies,  they  stay  ahead by investing more and doing more.  Hay Group newsletter February 2011 Hay Group Best  Companies  for  Leadership study report 2010 

Book sales 

Still  on  sale: my  latest  book Getting Results  Without  Authority  (RRP £12.00)  for £10.00  including p&p, or bundled with  a  copy  of my  previous book Ready­Aim­Fire Problem Solving (RRP £16.00)  at  a  special  promotion price of £16.00 including p&p. Go  to  www.newdirections.uk.com 

and  click  on Shopping  cart  to  place your order. 

2011 Public courses The  next  dates  in  the  2011  public course programme for Getting Results Without Authority are: 11‐12 April 2011 (London) 9‐10 May 2011 (Frankfurt) 7‐8 June 2011 (Brussels) 

And  don’t  forget  that  the  course  is also  available  in  Australia  through our  partnership  with  Hargraves Institute. www.hargraves.com.au  

Cuttings  has  been  published continuously  for  the past  20  years  by New  Directions,  an  international network  of  consultants  and  trainers who work together to learn, research, design  and  provide  consulting  and training  in  individual,  management, and organisation development.  On our website you will find copies of all past issues of Cuttings, a discussion blog,  articles  and  information  on  all our  services,  including  links  to  our partners’ sites. 

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ To discuss any ideas please call me: 

Geof Cox New Directions Ltd, 

26a Downleaze, Bristol BS9 1LZ, UK phone: +44 (0)117 968 1451 mobile: +44 (0)7753 626284 email: [email protected] web: www.newdirections.uk.com           www.learningconsortium.eu www.gettingresultswithoutauthority.com 

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