The scrap yard of management programs is overflowing with familiar ideas that worked in a handful of organizations, but failed when applied in a broader setting. This article looks at some basic concepts that can help in avoiding mistakes of the past and illuminate the transition to future greatness.


THE FIVE KEY DRIVERS:
It’s important to understand that the five key drivers have been tested individually and collectively in many organizations over an extended period of time. They are neither all encompassing nor individually earth shaking. Their value is found not only in their simplicity but in the large impact they can have on all levels of a modern company or institution. Together they reach into the heart of an organization, cutting directly to what really matters. They constitute the core gauges that should be on every manager’s organizational dashboard. They are not necessarily the only things that matter in building a successful organization, but they are vital. More than twenty years of experience has shown that when leaders invest the time and energy to focus on them, the bottom-line also improves. It’s both that simple and that profound.

DRIVER ONE: HAVING A LASER-LIKE FOCUS
Some years ago, a medium-sized city government took on the task of qualifying as a “100 Best Companies To Work For” organization. A simple analysis revealed that their biggest obstacle was the lack of a clear, inspiring organizational goal, sometimes called a critical vision. Like many organizations, the complexities of their many departments led to internal divisions and departmental protectionism. This naturally meant that departmental direction setting often took precedence over the larger organizational goals that needed to be met. So, the leadership of the organization went to work identifying and effectively communicating to everyone the organization’s critical success factors built around a carefully thought out vision which was developed with input from many employees. Eventually each department’s goals were realigned to better fit with the overall goal. As a result, the organization eliminated inefficiencies, made much better use of their resources, and thus saved a great deal of money. The results helped them become perennial candidates for the award. When everyone within an organization understands and believes in its focus, key results are bound to improve. A clear focus is one of the first steps to world class performance. It just makes sense that when we know where we are going and every one is committed to the same goal, doubts and cross purposes can usually be avoided. Toyota and Wal-Mart, along with many smaller but equally impressive organizations, know exactly how this principle works.

DRIVER TWO: POWERFULLY EFFECTIVE INTERNAL COMMUNICATIONS
Perhaps the most common ailment identified by employee surveys in all types of organizations is the lack of consistently effective communication. The negative impact of this chronic condition is difficult to overstate. As identified in the example above, it’s not enough for a senior management team to have a clear focus. They must also be able to clearly communicate their vision to every member of the organization. A simple organizational assessment tool will quickly indicate the degree to which management has successfully communicated what it sees as its focus. Stories are rampant about “the left hand not knowing what the right hand is doing,” resulting in a significant disconnect between those who devise strategy and those who must try to implement it. Imagine a basketball team with five starting players who know they must win the game but who all have a different view of how to do it. No matter how great the personal performances, it is only when the team discusses and understands the game plan, and each individual hears, understands and buys into his or her individual responsibilities for making the plan succeed, that sustainable winning is possible. Some ask: “What about external communication?” Isn’t communication with the customer or client even more important?” The answer is that it may well be, but experience tells us that if we don’t have clear, precise communication internally, we usually haven’t solved the external needs either. A leading soft drink and snack food maker dramatically helped to change their bottom-line results and improved their management/union relationship by developing a comprehensive communication plan. The often mishandled problem of dealing with informational “voids” was identified and corrected. Information sharing became a priority and the mechanisms for enabling clear, concise communications were introduced. Interestingly, even things like the handling of grievances and disciplinary issues became less difficult and divisive because of the improvement in overall communications.

DRIVER THREE: ORGANIZATIONAL DISCIPLINE AND ACCOUNTABILITY
Organizational discipline and accountability simply mean having the right people doing the right things at the right time, every time. They mean that every employee is seen as vital to overall success. Everyone is accountable for their performance while also having a sense of responsibility for the well-being of the whole organization. Knowing that they have a voice in what happens and are trained to constantly do their best work, while being encouraged to leave a legacy – even a small one – turns so called “ordinary workers” into disciplined, result deliverers. Harley Davidson is an example of what happens when creativity and teamwork are placed in a framework of responsibility and organizational discipline. Those who advocate unrestricted, do-your-own-thing attitudes usually find only a relatively brief reprieve from the unrelenting demand for organizational excellence that has become a staple of survival in today’s business world. Organizational discipline is not about taking real meaning or enjoyment out of work. It’s about making sure the focus we talked about earlier is clearly understood by every employee and is not lost in the daily rigors of trying to compete. A major North American city Transit Authority introduced a carefully planned program that explained how each employee was vital in delivering the necessary service levels to the public. Each department was shown the legacy they could leave and was challenged to make improvements to both individual and departmental accountabilities. With some guidelines from management, each department accepted the challenge to become a “no excuse for less than the best” group. Within a few weeks, service levels jumped dramatically and managers reported a positive response to the request for individuals to become accountable for the results they and their departments delivered. While discipline and accountability require significant effort, they are vital to moving an organization from good to very good to great.

DRIVER FOUR: CONSTRUCTIVE REWARDS AND RECOGNITION
It’s a fact that most organizations reward the wrong things, and then wonder why the results they are looking for don’t always happen. Even if an organization has a crystal clear focus that has been effectively communicated and every employee is sufficiently trained and held accountable for results, eventually the organization will drift back toward whatever behaviors are most rewarded. Unfortunately, what often gets rewarded has little to do with what is most important. The ongoing challenge of having employees feel as though they are fairly recognized and rewarded is a constant and often difficult matter, but certainly not insurmountable. Many organizations have learned that one key to satisfied employees lies, not solely in the amount of pay they receive, but in the perceived fairness of the organization’s reward system and the creativity that is applied when recognizing success. Wise leaders make sure that using sincere and creative recognition is a mandatory tool for all managers. Fairness in terms of wealth sharing is an equally vital requirement. The average employee may not get the same size bonus as the CEO but should expect to receive a fair share for their efforts towards the improved results. In the case of delivering constructive rewards and recognition, the answer usually begins with a desire by leaders to simply recognize the value of developing a program that truly acknowledges individual and group effort.

When facing difficult times, a multinational food company achieved significant improvement in their management/employee relations by offering a creative win/win arrangement that shared the gains from needed cost savings with those employees who came up with helpful, constructive ideas that were then approved by a joint committee of hourly workers and managers. The company paid out nearly two million dollars under the plan but gained more than twenty million in bottom line savings. Even simple reward systems can create excitement and help drive critical results.

DRIVER FIVE: CREDIBLE LEADERSHIP
Perhaps nothing has a more lasting and positive impact on any organization than the skilled, energetic and thoughtful role played by a credible leader. Unfortunately, when this is not the case, the damage can take years to repair. Credible leadership is manifest in clear goal setting, personal accountability, fairness, honesty, and an ability to see the leadership of others as a privilege, not a divine right bestowed by virtue of intellect or experience. Individuals want to follow someone they trust and can believe in, someone who is inspirational, not necessarily with words, but in character and values. Those who are brought into an organization to simply do a quick turnaround or to prepare it for sale often do long term harm to employee morale and can create not only animosity but also dissatisfaction that can last for years. On the other hand, those who see their role as a responsibility to develop the best in every individual and in the organization, usually wind up with an army of loyal employees who will go to battle every day even through the worst business situations. Nothing can lift an organization to a higher level of performance faster and more effectively than a truly credible set of leaders. A leading food processor going through a much needed organizational redesign brought in a new CEO who immediately laid out a plan for change that included twice a week breakfast meetings with different groups of employees from all levels and departments. He pulled no punches in discussing the problems that plagued the organization, but he also painted a very clear picture of a much more exciting and hopeful future. Each group was engaged in the improvement effort. After two years of significant challenges, major progress was made and verified by bottom line results. The vast majority of employees stayed through the tough times and helped to significantly turn things around. Their loyalty came mostly from their belief in the integrity and vision of the CEO and his leadership team. Contrast this with a Texas-based company who also hired a new leader. The CEO immediately reduced pension benefits and downsized the medical program with nothing more than a one-paragraph announcement that offered no reasons for the changes. He spoke openly of his intention to get his annual bonus no matter what had to be done and generally lost the confidence of most of the company’s employees. The results were highly predictable, turnover of key personnel soared and absenteeism followed a similar path. Morale sunk to new lows and business results stagnated. The opportunity for much different results was there from the beginning but leadership took the wrong approach and never gained the confidence of employees.

SUMMARY:
Each of the “Five Key Drivers” has a role to play in helping bring about success. However, we have learned through experience that together they constitute a powerful, interdependent set of standards that will bring higher performance and better results to all types and sizes of organizations. We also know they must be continually measured and reviewed in order to assure that organizations receive the maximum benefits they have to offer.