What makes a company or its leaders weak or strong? Is it possible to become stronger by changing attitudes and behaviour? This article looks at nine areas of business and personal performance to focus on in order to move from weaker to stronger.
Look for the Pain?
Quite a few years ago, starting out on my career as an independent consultant, I was given the immortal advice: “look for the pain”.
What was meant by this was that a consultant who wants to help improve the performance of clients should look for companies who are ‘suffering’, shrinking, and/or desperate for help. This advice was bad then and still is now.
From a personal point of view, I know that working for a strong company is a more effective and rewarding experience than working for a ‘suffering’ organisation. Over time, I’ve also come to recognise the characteristics that distinguish strong companies from weak ones. Here’s how I think it works out in the real world…
“Look for the pain”. This advice was bad then and it still is now.
1. Change
Strong companies have an appetite for prudent risk. Change programmes are actively sanctioned and led by senior management, who nevertheless encourage staff to participate and lead. They approach change with a sense of urgency and relish – dare I say it, even fun. The view is that if the organisation isn’t moving, or leading, or changing… then it is a sitting duck as the world around changes without asking permission.
On the other hand, weak companies dread change and implement it poorly. Senior managers wait for well-intentioned middle managers to succeed or fail before publicly getting involved.
2. Growth
Weak companies are focused on cutting costs, but cutting rarely leads to growth. Often this cost cutting is a way in which to make the old failing ideas look more financially viable – but the ideas remain the same.
Strong companies are focused on growth, not merely as a ‘strategy’ or concept, but with an emphasis on delivery. Growth is planned as part of a wider strategy and a keen understanding of markets, products and services. Sometimes it’s unplanned too, as strong managers react quickly to unforeseen opportunities. Cost cutting happens naturally as a by-product of greater efficiency.
3. Innovation
In weak companies, innovation is dangerous.
Corporate attitudes to innovation are dependent on the market or sphere in which an organisation operates. Sometimes being at the ‘bleeding edge’ isn’t the best tactic. But strong companies usually invest in and plan innovation, are fully energised on the subject, and have management teams who are tolerant towards occasional failures.
In weak companies, innovation is dangerous. The management philosophy is ‘command and control’, and bright workers soon learn to keep quiet or move on.
4. Staff
When staff are encouraged to use their initiative, and are valued and celebrated, they are working in a strong organisation. Good managers take heed of the old advice to ‘surround yourself with good people’.
In weak organisations, managers learn that it’s dangerous to surround yourself with good people because working relationships and management structures are ‘political’ in the worst possible sense.
When people tell me ‘things are very political here’, what they usually mean is that there is a poisonous atmosphere of non-cooperation, undermining behaviours and uncertainty about the direction in which the company is going. If this is a temporary situation - as some power struggle or other quickly plays itself out - then all well and good. But what strikes me is that in weak companies, there is always a power struggle, and an underlying disrespect for more junior staff.
5. Outside expertise
This non-productivity usually lasts at least a day and sometimes longer – much longer. It’s bad for everyone concerned.
I know I’m at a weak company within the first hour of an engagement. First, I won’t be able to get onto the premises. There will be no desk put aside where I can work, and no staff available to interview or interact with. It will seem as though the days or weeks planning the engagement had never happened and that my presence is suddenly a huge surprise to everyone. It will be impossible to get an internet connection, and promised meeting rooms will not have been booked. Interviewees are completely confused as to who I am or what I am doing there. Apart from that, everything is fine.
This non-productivity usually lasts at least a day and sometimes longer – much longer. It’s bad for everyone concerned.
6. Alliances
This is the area in which I see most waste in weak companies. Whether the alliance is with a supplier or as part of a joint venture, the counterparty is expected to quickly resolve issues that have bedevilled the weak company for years. This sets the alliance up for failure – but only after months and perhaps years of bitter feuding.
Strong companies approach alliances from a ‘win-win’ perspective. The relationship is open and mature, with each party recognising the valid right of the other to profit from the alliance.
7. Society / Community
Strong companies turn challenges like Carbon Reduction Commitments into opportunities, which indeed is what they are.
Strong companies guard their reputations and seek to improve them. Some are genuinely enthusiastic and active in the area of corporate social responsibility (CSR). At the very least, they ensure compliance with upcoming legislation in areas such as environmental impact and look to turn challenges like Carbon Reduction Commitments into opportunities, which indeed is what they are.
In weak organisations, CSR is seen as an irrelevance at best or an unwelcome burden at worst.
8. Vision and Strategy
The vision for the organisation is well-articulated and part of the culture of a strong company. Strategy guides the organisation and is instrumental in decision making.
In a weak company, if there is a vision I’ve often found that it’s derided, even by those who created it! Strategy is nominal and disregarded completely when opportunities arise – often with unforeseen and detrimental consequences.
Characteristics of strong and weak companies
But that’s only eight!
True, but that’s because the ninth element runs through all the others like a message in a stick of rock.
9. Leadership and action
All of the eight areas we’ve looked at have something in common. Without leadership and action they are just ideas and observations. Leaders are able to motivate themselves and others to take action in every area – from changing working practices, services and even markets; to developing vision and strategies that are credible and exciting enough for others to sign up to.
Setting the example of taking positive action is the role of leadership and it applies to all of us on a greater or lesser scale… as CEOs or workers, as private individuals, social activists and citizens.
