Monday, September 16, 2024

Entrepreneurial Corporate Cultures

Ever wish your people would accept more personal responsibility in the workplace, and make decisions on their own without having to come to you for every answer? You’re not alone. Business owners and managers often tell me, “I just wish my people would be more independent. I wish they didn’t feel the need to gain my approval for every little detail before taking action.” I understand their frustration. This type of dependence on leadership impairs speed and agility within the organization, and usually the person who suffers the most is the customer. While the employee is busy trying to find out what they can or should do, the customer’s needs go unmet. And dissatisfied customers will hurt any organization.

What you need instead is an entrepreneurial company culture that fosters personal responsibility within people, and encourages them to step out on their own and make decisions, even if it means making a few mistakes along the way. Here are the key ingredients I find essential in creating that type of environment within an organization.

Select the right people
The last thing you want to do, is turn individuals loose to make key decisions when they don’t possess the necessary talent, knowledge or skill to formulate a well thought out course of action. This begins with selecting the right people. Years ago, when I sold advertising, I was always amazed at how many “media buyers” were ill-equipped to make the right choices on advertising purchases, yet their organizations had entrusted them with huge advertising budgets to spend as they saw fit. I saw many of them make “gut” decisions that were neither based on statistical data or experience. Instead, many times their purchases were based on how well they knew me or the account executive selling to them. Other times it depended on what mood you caught them in that day. Before you empower people to make decisions, first be sure you have the right person for the job. Select new hires, and promote existing employees to new positions based on their ability to operate effectively. If you are truly looking to create more independence, the “warm body” approach to hiring will not work.

Focus on results not processes
Once you feel you have selected the right people, you can focus on creating the right culture. Creating a corporate culture that fosters independence begins with having a clear understanding of the desired outcomes, and being able to communicate those objectives. Usually one of three things happens in an organization where there is little or no independent decision making. One, the people within the organization have no idea what outcome is expected by leadership. Two, they know the outcome, but the leadership has instructed them to follow such ridged guidelines that it leaves little room for discretionary decision making. Or three, people lack the necessary training or tools to effectively reach the organization’s objectives. You first need to be clear about what you expect. This applies to issues of productivity, sales, budgets, growth, customer satisfaction, and virtually every other measurable element of your organization. Then communicate your expectations, and stop there. Allow your people some flexibility in how they achieve the objectives. It will amaze you how creative and innovative people can be when given the opportunity. This does not mean that you have no guidelines for performance. But, where possible, allow people to search for their own methods of accomplishing the desired outcomes. They must know that it is OK to develop their own methods. One way to implement positive change in an organization where everyone is coming to you for all of the ideas and decisions is to begin helping them slowly gain their independence. When people come to you for the answers, even if you know what you believe to be the best answer, try asking them, “What do you think?” Encourage them to think independently. Challenge them to discover their own solutions. This will have an immediate effect, because they will realize you trust them to make good decisions on their own. If a lack of training or tools is preventing people from acting more independently, you should act fast to remedy the situation. Our People Builders training system requires each participant to complete an Employee Feedback and Suggestion Form at the conclusion of each monthly learning module (People Builders is a monthly audio/video learning system for improving employee performance and productivity). One question asks them to list any additional training, tools or support they feel would improve their performance and productivity in the workplace. This is a question you should be regularly asking your people. They will tell you. Then you can take steps to equip them with the resources they need. You will notice immediate improvement, not only in performance, but also in employee morale.

Make it “OK” to make mistakes
One major reason many people never step out of their comfort zone to make independent decisions is that they fear making mistakes. Actually they fear the potential consequences of their mistakes. They fear losing their job, being reprimanded, suffering ridicule from peers and superiors. Overcoming this major road block requires a company culture where it is OK to make mistakes. The key issue is that people need to see the value in learning from their mistakes. In my speeches I often say that there are three kinds of people in the world…stupid, smart and successful. The stupid people never learn from their own mistakes. The smart people do. And the successful people learn from the mistakes of others. So, create an environment where people can make mistakes and then learn from those mistakes. I used to tell my partners and associates that I don’t mind making mistakes. I just don’t want to make the same mistakes. If an organization is openly communicating its failures and successes, it has the opportunity to grow and improve.

Inspect what you expect
Encouraging independence in the organization does not mean lack of accountability. People need to be held accountable for their actions. One of my favorite phrases is to “inspect what you expect.” If you have communicated objectives clearly and effectively, be sure to follow up to see that your people are making progress in achieving those objectives. If they tell you that a project will be complete by a specific date, follow up to make sure they hit their goals. If they have assured you that sales performance will hit a determined goal, check with them to see that they hit it. Your actions will accomplish two things. One, it will keep them focused on the objective, knowing that someone will be checking to see that it is reached. And two, they will realize that you are interested in their results.

Reward positive behaviors
If you want to encourage repeated positive behaviors, reinforce them with rewards. People need to know when they are winning. They need to know when they have made the right choices. When you catch them doing the right things, reward their behaviors. If they make a decision that positively affects the organization, let them know you noticed. When they hit their goals and reach their objectives, praise them openly. I asked a client recently, “how do your people know when they are winning?” This organization really had no system in place for recognizing and rewarding positive behaviors. I immediately suggested that they implement a program that publicly praises the positive performance of their people. That way, individuals will know that even though they might make mistakes sometimes, when they do well their actions will be recognized. One of three key motivators I often talk about is recognition. Many times people will do for recognition what they will not do for money. They will contribute more to the organization if they feel their ideas are appreciated. They will work harder if they feel their efforts are valued. Look for every possible opportunity to reward and reinforce positive behaviors.

Encourage individuality
One of the oldest management myths is that in order to be successful at managing your people you must treat each person the same. That is impossible. Each and every person possesses unique knowledge, skills and talents. They each respond differently to situations. They each have unique opinions, and formulate choices differently. They are each motivated by different factors. The real challenge of successful management is learning to recognize each person’s unique talents, and capitalizing on their special abilities. By encouraging individuality, a leader helps each person maximize their potential in the workplace. Instead of treating each person the same, they allow their people to shine in the areas where they are strongest. Great leaders spotlight the strengths of each individual, allowing the person’s differences to become their advantage. Rather than trying to fit everyone into the same mold, these leaders build cohesive organizations made up of unique parts. If you have ever found yourself wishing your people would be more personally responsible, and less dependent on you for day-to-day decision making, now you have some ideas for creating a company culture that encourages and supports independence. The real question is whether or not you have the discipline to allow your people to explore, fail, learn and grow on their own without you stepping in to “save the day.” As tough as it is to step back, the success of your organization’s growth depends on establishing this kind of entrepreneurial corporate culture.

JP Maroney specializes in helping companies create entrepreneurial corporate cultures where people at every level think and act like owners, and accept personal responsibility for the organization’s success. http://www.JPMaroney.com

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