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Can you guess which book topped the list of recommended summer reading
by the BC Human Resources Management Association? If you guessed Road
to Respect: Path to Profit you'd be right - check out their
recommendation
- Culture, Creativity and the Bottom Line
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The central theme of my book Road to Respect: Path to Profit is that
building a strategic, values based culture is a business imperative in
today's multi-cultural marketplace. So it came as no surprise to me
that a study by international business consulting firm McKinsey & Co
concluded that corporate culture is the key to achieve ongoing
superior business performance.
The study found that cultural factors accounted for more than 70
percent of the obstacles that prevent a business from reaching its
performance improvement goals. The significant cultural factors which
inhibited organizational performance were management resistance to
change, and a reluctance of employees to embrace innovation.(1)
Why is willingness to embrace change and innovation important?
When market conditions change, particularly when they change rapidly,
businesses need to be ready to react and respond. In their
groundbreaking study on the relationship between corporate culture and
performance, Harvard business school professors James Heskett and
John Kotter concluded that only those companies with responsive and
adaptive cultures remain profitable over time.(2) Ongoing
profitability requires innovative employees that are eager to embrace
change.
The relationship between innovation, culture and profitability is
examined in a new book by Kimberly Davis entitled The Firefly Effect:
Build Teams That Capture Creativity and Catapult Results. Ms. Davis
argues that "innovation is the only ticket out of this recession.
Companies that can churn out innovative ideas will be able to adapt to
the new realities we face. Those that can't, won't."(3)
How does one build a culture of innovation?
According to Ms. Davis, one critical factor is the ability of leaders "to create a safe and respectful environment where individual
creativity can emerge to its fullest potential."(3)
As I discuss in Road to Respect, to build a respectful environment
leaders must foster relationships based on ongoing dialogue, both
within teams and across hierarchical power lines. Genuine dialogue
includes questioning, listening and giving feedback. It is about
collaboration, empowerment and accountability.
In a respectful workplace, employees are not afraid to speak up, or to
engage in constructive conflict. On the other hand, disrespectful
behaviours like harassment and bullying produce fear based cultures.
Fear causes a cone of silence to descend upon employees and is the
kiss of death for both innovation and profitability. Staying silent is
a cultural behaviour that affects a business's ability to survive a
recession, according to research by U.S. training company
VitalSmarts.(4)
When employees are afraid to speak up, when they are afraid to give
feedback and challenge the status quo, it is impossible for either
creativity or innovation to flourish.
As Bob Dylan sang so many years ago, the times they are a-changin'.
We are in a new business reality, one that demands a new business
model, based on respect, empowerment and collaboration. Those
businesses that don't adapt will, in the words of that famous song, sink like a stone.
Creating a respectful workplace culture will unleash a wealth of
creativity and innovation within your employee group. It will attract
the best and brightest to your business, and ensure superior ongoing
performance and profitability. It is the ultimate win/win for
business.
Why wait? Make today the day your business starts travelling on the
Road to Respect: Path to Profit !
(1) "What's Your Corporate Culture," Ilya Leybovich, ThomasNet
Industrial Newsroom, Industrial Market Trends, June 23, 2009
(2) Corporate Culture and Performance, John P. Kotter and James L.
Heskett, The Free Press, Simon & Shuster, 1992
(3) "9 Ways to Ignite Innovation Inside Your Company... and Light Your
Way Out of the Recession," RISMEDIA, July 15, 2009
(4) "Avoid These 'Bad Boss' Mistakes and Get Ready for Rebound," Beth
Mirza, SHRM Online, April 27, 2009
Links:
McKinsey & Co
VitalSmarts
lyrics to The Times They Are A-Changin'
Call Erica to eliminate disrespectful behaviour and ensure your business survives and thrives.
Erica Pinsky, M.Sc, CHRP, is an engaging and inspirational speaker, author and consultant working with organizations to build respectful and inclusive workplace cultures that attract and retain quality employees. Erica's book, "Road to Respect: Path to Profit" gives companies a road map to success in today's challenging business climate. It offers engaging stories, powerful insights and concrete strategies to guide businesses on the Path to Profit. Erica has been featured in the Globe and Mail, Business In Vancouver and Canadian Retailer Magazine.
Erica
welcomes feedback on her newsletters. Please contact her at erica@ericapinskyinc.ca.
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