Filed under Business

Changing the Language of Business

At the beginning of every year, I often find funny stories about which are the most annoying management terms for the previous year (like this one here). And often, there are words like strategy, tactics, market leadership, high performance, efficiency, quality, plan of action etc. which are so much a part of the regular corporate-speak. And then there are great leaders like Steve Job who describe their company’s work as “beautiful”, “insanely great”, “stuff you will fall in love with it”.

I stumbled upon an old article by Professor Gary Hamel, where he talks about “The Hole in the Soul of Business.” In his compelling style, he asks us to re-think the language of business. Here are some excerpts:

Here’s an experiment for you. Pull together your company’s latest annual report, its mission statement, and your CEOs last few blog posts. Read through these documents and note the key phrases. Make a list of oft-repeated words. Now do a little content analysis. What are the goals and ideas that get a lot of airtime in your company? It’s probably notions like superiority, advantage, leadership, differentiation, value, focus, discipline, accountability, and efficiency. Nothing wrong with this, but do these goals quicken your pulse? Do they speak to your heart? Are they “good” in any cosmic sense?

Now think about Michelangelo, Galileo, Jefferson, Gandhi, William Wilberforce. Martin Luther King and Mother Theresa. What were the ideals that inspired these individuals to acts of greatness? Was it anything on your list of commercial values? Probably not. Remarkable contributions are typically spawned by a passionate commitment to transcendent values such as beauty, truth, wisdom, justice, charity, fidelity, joy, courage and honor.

I talk to a lot of CEOs, and every one professes a commitment to building a “high performance” organization—but is this really possible if the core values of the corporation are venal rather than venerable? I think not. And that’s why humanizing the language and practice of management is a business imperative (as well as a moral duty).

Again, there’s nothing wrong with utilitarian values like profit, advantage and efficiency, but they lack nobility. Reflect for a moment on the avarice and irresponsibility that produced the recent banking crisis, and wreaked havoc at Enron, WorldCom, Adelphia and a host of other scandal-plagued companies. If corporate leaders and their acolytes are not slaves to some meritorious social purpose, they run the risk of being enslaved by their own ignoble appetites. An uplifting sense of purpose is more than an impetus for individual accomplishment, it is also a necessary insurance policy against expediency and impropriety.

Every organization is “values-driven.” The only question is, what values are in the driver’s seat?

There was a time when Disney was in the joy business. Animators, theme park employees and executives were united in their quest to wring gasps of wonderment and delight from children across the globe. Today, Apple is in the beauty business. It uses its prodigious software and design talents to produce products and services that are aesthetic stand-outs. There are many within Google who believe their company is in the wisdom business, who talk about raising the world’s IQ, democratizing knowledge and empowering people with information. Sadly, though, this kind of dedication to big-hearted goals and high-minded ideals is all too rare in business. Nevertheless, I believe that long-lasting success, both personal and corporate, stems from an allegiance to the sublime and the majestic.

Now, more than ever, companies and leaders need to build a greater sense of purpose to create great workplaces and produce sustainable results. After all, “meaning” is the new money. Oh! Let me stop writing now before I, inadvertently, start using my own frequently-used-terms!

So, how are you changing the language you use at work? What questions & answers are you rephrasing?

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Change & Communications Study Report: Implications For Asia Pacific

Towers Watson (my employer) recently released a report on The 2011/12 Change & Communication ROI Study report. It has great insights about what could organizations do to build Clarity, Confidence and Community in their organizations through effective communications and change management. While I leave you to enjoy the full report, I found some of the charts interesting as they showed geographical breakdowns including Asia-Pacific level data.

In terms of ensuring that employees are business literate and have a good view of organizational performance, there seems to be little variation across the geographical regions. Even so, Asia-Pacific sits at the bottom of the pack on these important issues related to providing clarity and building a sense of connection.

The second issue I spotted was related to Employee Value Proposition (EVP). Given the nature of the talent race in Asia, I think it’s quite a hot issues these days. And interestingly, a higher percentage of Asia-Pacific companies report that they have a clearly defined EVP. However, when it comes to having a segmented EVP approach (e.g. for high performers, high potentials etc.), these companies fare a bit badly. Also, the bigger question is how effectively is the EVP winning mind-share in the talent market.

And as social media powers the new world of communications, there is a fair distance that companies in Asia-Pacific have to go. Only about 30% of the organizations report that they have a documented social media policy in place, the corresponding number for the USA is 77%! Moreover, only a handful of Asia-Pacific companies report that they have the right tools to measure the effectiveness of social media. So, first there is an adoption issue and then, if measurement is not effective, then establishing a clear business case for social media will be a challenge for companies. As for me, I am more interested in finding out how Asia Pacific companies are leveraging these channels for building an open, transparent and collaborative workplace.

All graphs and data credits to Towers Watson
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After Your Employee Survey…Bias For Action

I work with several companies on rolling-out the results of their employee surveys. I do executive presentations, employee town-halls, enterprise-level action planning, frontline action planning, KPI setting – the whole works! In my experience, the companies who come out successful from such initiatives are the ones with a strong “bias for action”. They have a sense of urgency for getting things done, for making the workplace better, for taking the organization forward. Often companies, leaders and HR professionals fall into the “excessive deliberation” trap. Deliberation is good, but an overdose of it can paralyze actions. It can be demotivating to people. Timelines can go for a toss. And employees are left in the lurch.

Tom Peters talked a lot about bias for action in his book “In Search of Excellence”. He also shared some slides on this on his website. I just loved the quote on the second slide:

“We have a strategic plan. It’s called doing things.” ~ Herb Kelleher

 So, stop staring indefinitely at the employee survey results. Make things happen.

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Building A Sustainable Employee Engagement Strategy

Here is a link to an article I published on Towers Watson’s website, titled “Building A Sustainable Engagement Strategy”. Through this article, I urge companies to take a hard look at their employee research constructs and make sure that the frameworks they are using are helping them focus on the right issues. We need to make sure that the Employee Engagement models we are using are evolving with the times.

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Transformative HR: Book Review

As many of you know, I love to read! While I have an appetite for all kinds of books, news & blogs, I just love great content on HR. And often, that’s the hardest to come by. One of my favourite authors on HR is John Boudreau. I became an instant fan when I read and reviewed his book Retooling HR. I felt that the frameworks, approaches and tools he talked about can not only help HR professionals to up their game, but can also help in talking coherently, logically and meaningfully with the business. The application of usual business analysis tools such as portfolio management, segmentation, conjoint analysis etc. to HR issues was extremely appealing.

So, when I got a copy of the book Transformative HR, I was thrilled. Transformative HR has been written by John Boudreau and Ravin Jesuthasan. Ravin is a senior colleague of mine and is the Global Practice Leader for Talent Management at Towers Watson. I hungrily read the book and I think it is one of the best I have read so far. The key takeaway is that HR professionals and leaders need to make informed human capital decisions to keep their organisations competitive. ‘Informed’ is a key word here and the book outlines an evidence-based approach to human capital decisions. They outline 5 basic principles of evidence-based change:

1) Logic-driven Analytics: How often do we HR professionals have an overload of information and metrics? Do we just have numbers or can we tell a powerful story? In a transformative HR future state, the authors share how we can use frameworks & mental models to go behind the metrics, understand the real picture and produce insights which are in high demand by other organisational stakeholders. After all, getting the numbers right is just the beginning. The real value-add comes from using a multi-dimensional approach by synthesizing business strategies, business metrics and talent metrics to produce real insights that help in achieving those business objectives.

2) Segmentation: Conceptually, most of us agree that one size doesn’t fit all and we need to segment our workforce. But, how? John and Ravin propose 3 fundamental questions:

  • What are our vital talent segments?
  • Which employment elements induce the desired responses at optimum cost (supply-side talent segmentation)?
  • What do we need employees to do (demand-side talent segmentation)?

I think this is a powerful way to think through key talent investment decisions, as it helps to understand how to customize the employment deal to create the highest payoff in terms of business outcomes, at the optimum costs.

3) Risk Leverage: I feel that Human Capital Risks are often under-reported and worst, not well-understood. Now, all organisations face HR-related risks, but instead of just mitigating risks, the focus should be on optimizing risks. The book presents a number of systematic approaches to optimize risks and develop sustainable advantages. Again, the approaches are rooted in management tools that business leaders are used to – tolerance analysis, portfolio theory, stochastic simulations, probability matrices etc. In two words: cutting-edge and powerful!

4) Integration & Synergy: Often, HR processes operate in silos which prevents us from getting the “1+1=3″ effect. This principle talks about how to integrate various HR sub-functions as well as integrating HR with other organisational units. The live example about the Talent Management Game at Shanda (one of China’s largest online gaming company) is just fascinating!

5) Optimization: The principle of optimization follows from segmentation. It is all about identifying where & how the payoff of certain HR investments will lead to exponential returns. It is all about identifying the mix of investments that will have the most desired business outcomes. So, instead of spreading HR investments across the board equally, the focus should be on understanding & positioning ‘fairness’ to mean strategically differentiated treatment.

The book is full of great examples and brilliant case-studies from leading global organisations such as IBM, Coca-Cola, Royal Bank of Scotland, Deutsche Telekom, Ameriprise, Royal Bank of Canada, Khazanah Nasional Berhad etc. Overall, it’s a compelling read. It is for anyone who wants to bring rigorous thinking, informed decision-making and sustainable impactful change in their organisation. Did I say that you just can’t miss this book!

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