COACHING News letter
The topic of this number:
The new business frontier/The New Principles of Business
Edited by: Viktor Kunovski
Who You Are and What You Stand for Are Just as Important as What You Sell
As we move into the twenty-first century it is clear that the old paradigms of business are floundering.
The theories of business that created the modern age are no longer serving companies and they are no
longer serving society. The new theories that are emerging:
· Protect and sustain our environment;
· Treat people and communities with respect; and
· Serve the common good.
We are entering into the era of compassionate capitalism. It is no longer sufficient to deliver a great
product or service; you must also live by rules that support the common good. There is a growing awareness
all over the world that the greed and self-interest of business are at the core of so many of society’s ills.
The most successful companies in the twenty-first century will be those that are responsible members of
the community and good global citizens. They will be seeking to align the company’s values with society’s values.
The values that companies live by will play an increasingly important role in the public’s purchasing decisions
and the quality of employees that a company can attract.
The New Theories of Organizational Effectiveness
Principle 1: Cultural Capital is the New Frontier of Competitive Advantage
As competition increases through the globalization of the economy, companies are recognizing that their
competitive advantage lies in hiring and keeping the best people, and at the same time tapping the deepest
levels of productivity, creativity and knowledge of their employees. To do this they must invest in their cultural
capital. They will need to focus on creating a corporate culture and working environment that brings personal
fulfillment to everyone in the organization. This means caring for the physical, emotional, mental and spiritual
needs of their employees.
Work/life programs that care only for employees’ physical needs are not sufficient. Companies will need to reduce
bureaucracy, encourage accountability, reward entrepreneurship and actively seek employee participation, as well
as providing employees with a decent wage and working conditions. In addition, they need to give employees’ an
opportunity to satisfy their “spiritual” motivations by providing work that brings meaning to their lives, by giving
them the opportunity to make a difference or be of service to their communities. They will need to create a climate of accountability, openness and trust that encourage and supports employees in becoming all they can become.
Principle 2: Organizational Transformation Begins with Personal Transformation
Organizations don’t transform. People do. Organizational cultures are created and developed by leaders.
In Corporations the organizational culture reflects the personality of the current leader and the legacy of personalities
of previous leaders. Successful companies promote from within. Unsuccessful companies bring in outsiders to turn
them around.
If you want to transform your company then you must first transform the belief systems, values, and behaviors
of your top people. Millions of dollars are wasted each year sending middle managers on personal development
courses. They taste and experience transformation. When they return, they find the newly acquired knowledge
and skills are not appreciated by their superiors. The training serves only to frustrate and alienate managers from
the company. If the management team is not able to model the values and behaviors that are conducive
to creating a high performance organization then there will be no organizational transformation. No matter what
your position in a company, if you want to transform your organization, you must start by transforming yourself.
Leaders owe it to their colleagues and shareholders to be continually concerned about their personal development.
Personal transformation and emotional intelligence training are becoming essential aspects of professional growth.
Principle 3: Measurement Matters!If you can’t measure it you can’t manage it.
Performance management lies at the heart of cultural transformation and continuous renewal. You must be able
to identify the change that you want to make happen (critical success factors), and measure progress towards
that change (key performance indicators) if you are going to create an effective organization. More and more
organizations are recognizing that cultural capital is one of the most important drivers of organizational
effectiveness, and organizational effectiveness is, in turn, one of the most important drivers of financial performance.
Traditionally, organizations have shied away from measuring cultural capital because:
a) they did not have the
framework or the tools for measuring and mapping values, and
b) the leadership lacked commitment to personal
transformation and behavioral change. The tools for measuring cultural capital now exist, and the pressures
to increase shareholder value and compete for talent in the global market place are forcing organizations to
look inwards, to examine their souls, and to embark on renewal projects that focus on personal transformation
and behavior change.
More and more organizations are recognizing that the attainment of their critical success factors, such as financial
performance, service quality or societal impact, are driven by cultural capital. They are seeing the need for a
balanced approach to measuring performance that includes key performance indicators such as values
alignment, trust, teamwork, enthusiasm, commitment and employee fulfillment.
More information on Building a high Performing Value driven organization please go to www.skyisthelimit.org\ctt.html
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email:viktor@skyisthelimit.org
Your most essential questions regarding coaching will be answered and published in the next numbers of the news letter and on our web site:
www.skyisthelimit.org
In the next number: Pleasure at work
Till then,
Maximize performances or die trying
..
