A Return to the Worthy Organisation?
We all know that in the final analysis, people are what make things happen and that effective managerial leadership at all levels is possibly the most critical success factor.
As corporate executive teams, investment houses and shareholders reflect on the current financial debacle there is a growing recognition that it will once again be both fashionable and good business to get back to value creation for the long-term.
The traditional worthy organisation is now ascendant.
A "worthy organisation" is one that has earned the continued and enthusiastic support of those upon whom it relies to exist, prosper, and grow – its investors, customers, suppliers and employees.
In recent decades the worthy organisation had come to seem a bit old-fashioned as the share market punished firms that quaintly insisted on a long-run focus.
As the world now begins its efforts to recover from the tremendous financial hangover created by that destructive short-term focus, there is beginning to emerge a wiser, more sober emphasis on those steps required to enable organisations and economies to grow through authentic and sustainable value creation.
As we begin 2009, and as the world struggles to recover from the destruction that this short-run focus has wrought, we are now seeing shifts in public opinion, as well as in the political and regulatory environment.
In an increasingly globalised world human capital management is arguably the only remaining sustainable source of competitive advantage for organisations, particularly those operating within high-wage, developed nations.
This means that effective, forward-looking human capital management must become a core competence for all organisations that expect to survive (much less prosper) as the world economy continues to evolve.
There is a great opportunity for Australian companies to make a positive impact on their various stakeholders and lead the way to improved bottom line performance.
We need to be careful in our time poor very busy work environment not to be fooled by the increasing variety of wonderful new quick fix alternatives that are flashed around the world in increasing numbers. Many of these are complex and really have little substance and do not add value to the enterprise.
We all know that in the final analysis people make it happen and that effective managerial leadership at all levels is possibly the most critical success factor. Traditional values include courtesy and respect – both out of stock in many places today.
So let’s embrace the present and be excited about the future, recognising that sustainable success is largely based on proven criteria tempered with that rather scarce commodity called common sense.
The basic criteria for achievement of worthy organisation status require executive leadership to:
- Earn the support of their stakeholders by continuously seeking to create win-win economic exchanges.
- Focus on long-run, sustainable value creation.
- Optimise their human capital capability
- Recognise that it is impossible to be a worthy organisation without also being a worthy employer
Senior executive teams can be winners if they adopt a philosophy of dynamic conservatism….learning from the past, managing the present and planning for the future.
Future success demands a genuine focus on the longer term. This requires a high level of understanding, trust and co-operation between board members, senior executives and operating management. This is frequently missing and good corporate governance and business leadership are replaced by ego tripping, individual point scoring and personal career building.
Becoming a worthy organisation can bring great rewards for all stakeholders – so how well equipped is the senior management team in your organisation to move towards attaining worthy organisation status?
What do they need to do to get there?
Do you know of any organisations which meet this criteria?
Les Pickett is Partner for Australasia and South East Asia for international human capital management organisation McBassi & Company and Chief Executive of Pacific Rim Consulting Group. His professional career has taken him to over twenty countries. Former roles include General Manager Management Services with Coles Myer and Deputy Director United Nations System Staff College. He is an Ambassador to Tomorrow’s Global Company, a UK based business led think tank and a past international president of the Institute of Business Administration.
lespickett@humancapitalasiapacific.com, 0418 330 544
Les Pickett is an adjunct of Victoria University, member of the Australian Government Consultative Committee on Knowledge Capital, member of the International Board of Advisors International Public Management Association for Human Resources, former Deputy Director United Nations System Staff College, Past National President Australian Institute of Training and Development, Past Chairman Executive Board International Federation of Training and Development Organisations and International President Institute of Business Administration.
peter fritz
February 17, 2009 at 2:38 am
I agree
I agree with you Les on practically all the points made in this blog.
What strikes me as being at the heart of the issue is that human capital, intangibles in general, but knowledge capital in particular, suffer from having no yardsticks by which we can review and report upon them.
Most companies understand the rhetoric of being a worthy organisation. Fewer achieve it because the practice is not in line with the theory.To actually be a worthy organisation, not just have the corporate mission statement of one, incentives need to be established.
As much as we may criticise ego-driven decision making, we must accept it is a part of human behaviour. That is not to say we must tolerate it, human behaviour can be disciplined and trained.
Manners and etiquette are not taught in university courses, they are gleaned by example and learned as a young child at home.
At the moment we reward the opposite sort of behaviour that we wish to encourage; with Alpha types ruling workplaces. To achieve what Les is talking about the incentives have to be redirected in the other direction.
People naturally yearn for recognition and respect. Perhaps that universal quest could be better manipulated to encourage individuals, and by extension companies, to behave in a way that is more in line with the human values which must be at the core of any worthy organisation?
I'd be happy to work together to figure out how we can change the world. The trick is to make sure that the good ideas don't come down to more of the same. Whatever the answer is, it needs to be a concerted and long term involvement; it will only be through a consistent push that change in human behavior can happen.
sally.rose
February 19, 2009 at 12:27 am
Identifying Worthy Organisations
The view of how "worthy" an organisation is can be radically different depending on whether you are on the inside looking out or on the outside looking in.
To make an organistion appear worthy from the outside seems relatively easy, strategic marketing & a great PR team can acheive a lot. Good HR can keep the view from inside rosy.
Some of the smarter traditional energy comapnies have realised that fossil fuels have an image problem and have developed "green" initiatives in response. Whilst these pragams of their own may be "worthy", spending 10 times or more as much on the accompanying publicity campaign than was spent on the actual initiative is, how shall I say it, a bit "dodgy".
An unamed asscoiate, who works for an unamed tobacco company, once told me that although they are acutely aware their employer is trading in a business of very dubious "worth" that they would continue working their because they were such a fantastic, family friendly, "worthy" employer.
A genuinely worthy organisation needs to tick a lot of boxes. Unfortunately there is a general view that being worthy is a luxury that can only be afforded when business is good. les, your view thta being a worthy organisation is actually a road to surving when business is bad could be revolutionary – I hope it gathers momentum.