Today, I spoke to Michael Beer, who is a Professor Emeritus at Harvard Business School and author of High Commitment, High Performance. In this interview, Michael discusses how high commitment yields high performance, the six barriers to commitment, how people can succeed in a shifting workplace environment, why leaders need to be transparent and how to stand out at work.
What does high commitment have to do with high performance?
Truly successful companies that have maintained a competitive advantage in their industry and developed resilience over a sustained period of time are characterized by high commitment and high performance. One without the other will not lead to sustainable success.
High commitment is reflected in the commitment of all stakeholders – employees, customers, investors and community – to the values and vision of the company, no matter what the circumstances are. For example, this means employees are deeply engaged in being strategic actors – taking initiative to help the company achieve its strategic goals – and attached to the company, thus reducing voluntary turnover. Customers are committed to the brand. Investors are committed to investing in the firm for the long term and will not sell their stock at the first sign of performance problems. Finally, institutions and regulatory trust the company and provide a favorable context, creating community commitment. These commitments by a diverse set of stakeholders allow the firm to achieve its performance goals and adapt to changing circumstances.
What are the six silent barriers to commitment and performance that must be overcome?
Organizational and managerial barriers can stand in the way of developing high commitment, high performance (HCHP) organizations and leadership practices. The six silent barriers include:
- Conflicting priorities, unclear strategy, or unclear values
- An ineffective senior team
- Top-down or laissez-fair leadership
- Poor horizontal coordination and communication
- Inadequate leadership development and paucity of down-the-line leaders
- Poor vertical communication
These barriers are known throughout an organization, but rarely discussed publicly by senior management. The way to address these barriers is to create a learning and governance process that engages key people in the organization in an open and honest dialogue about these barriers, thereby not only learning what the barriers are but obtaining commitment by everyone – top management and lower levels – to make necessary changes. By enabling truth to speak to power, management sends clear messages that they are open to change and are willing to engage key people in making change happen. Failure to achieve sustained commitment and performance occur precisely because sensitive management problems like the silent killers cannot be discussed with those who can alter them: top management.
How can individuals further their careers in a bad economy?
The biggest challenge to individuals in a bad economy is to remain relevant to the changing conditions of the company. Individuals who learn to adapt and stay relevant in the new scenario are more likely to be successful. To do this, individuals must adapt to the changing environment and be willing to develop new capabilities. For example, operational managers who are willing to learn new cost saving techniques or go even further by taking on new roles in different functions are likely to be more successful even in a bad economy. In addition to adding to their capabilities, this also enhances their reputation and standing within the company.
Why is transparency so important for leaders right now?
The recent economic breakdown has demonstrated that transparency and adaptability underlie a firm’s ability to achieve sustained high commitment and performance. The senior leaders of the failed banks and automobile companies in 2008, for example, did not possess a disciplined and institutionalized learning and governance process that would have enabled them to learn the truth about what was really going on inside their organizations before it was too late.
To enable transparency, leaders must establish a collective learning process that allows leaders and their people to learn together the truth about problems the organization faces and the actions they as leaders must take. By leading honest conversations that engage all employees, leaders establish their own legitimacy and credibility. This will enable continuous improvement in the quality of leadership and management and lead to greater commitment and higher performance from all employees.
How can you stand out in your organization right now and get more visibility?
To stand out in an organization, you must be willing to take on new roles and additional responsibilities. Show the clear desire to acquire new skills. Sign up for the difficult assignments that nobody seems to want. Be willing to show management that you are ready to be held accountable and are willing to show leadership in the way you manage yourself and your colleagues. Finally, show the courage to confront reality and undertake improvement before problems become severe and demand change. Doing so will encourage your colleagues to do so as well.
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Michael Beer is the chairman and founder of TruePoint, a management consulting firm that works with senior executives to transform their companies into high performing, people centric businesses. He is the Cahners-Rabb Professor of Business Administration Emeritus at Harvard Business School and author or co-author of 10 books, including “High Commitment, High Performance” (Jossey-Bass, August 2009).
