Friday 5 November 2021

THE ULTIMATE SECRET OF ORGANISATIONAL SUCCESS

 

Truth Not always Obvious 

Prima facie, M[1] is ‘just another’ employee of the firm. He was one amongst the 20, I was hired to train. Outwardly shy, to the point of being withdrawn, he spoke only when asked to.

But, as the session progressed and activities rolled out, I saw him, a different person. He was the natural ‘centre of gravity’ and literally made group activities come through. Though everyone in the group was individually brilliant and did their very best, both individually and collectively, his sense of commitment to the group and accomplishing the task was palpable. He was commitment personified. As I stood watching the group[2] strive and accomplish various tasks assigned, I realised I was witnessing a group’s success mantra unfold at work. 

Profitability and Productivity 

Profitability is an inevitable survival-ingredient for organisations involved in commercial activities. Business strategists consider productivity and profitability as inseparable Siamese twins and spin survival and growth strategies around the dictum ‘higher the productivity better the profitability’. Most fly by night operators and even some mega brands pitch all their efforts only for profits in sight. They never realise that profits alone don’t define brand value. 

Confined to productivity-profitability linear relationship, management machinery gets down to the act of conjuring numbers, which if achieved would ensure bottom-lines that is ‘owner’s pride’[3] and graphs that could be ‘competitors’ envy’. Such numbers, once approved are driven down the hierarchy. However, in its journey downstream to the foot soldiers, the numbers start bloating up unrealistically. Everyone in the chain generously adds his or her bit of cushion. Managerial activity becomes creating, crunching and controlling numbers, accompanied by carrots and sticks. Fudging and cheating is common in such an environment. 

Carrot and Stick 

Organisations, to ensure productivity and profitability, arm themselves with sweeping powers to reward performers and weed out non-performing assets. Those who manage to reach stipulated targets survive to struggle the next quarter or fiscal, those who don’t, end up being discards. However, magicians who tame the unassailable, with numbers beyond targets are differentially rewarded. 

Crunch numbers right, convert it to targets, assign it to people, get them to achieve it. Reward those who comply, jettison non-performers overboard and ride to eternal profitability! It sounds almost like a fail-proof strategy? No. Companies fail, flail and vanish. Even ruthless titans have bitten dust! 

Compliance Don’t Guarantee Success? 

Stipulated outputs demand compliance with instructions on standards, procedures and all aspects of roles assigned including targets to be achieved. These are arrived at after due deliberations. If compliance was the key to success; then operational viability and profits should have lasted till eternity. It doesn’t happen. If retrenchment was a remedy, human resources discarded based on competence should not have found acceptance outside and head hunting would cease to exist. 

Clearly there’s something more to success or failure than compliance; something not very obvious yet existential. It is commitment. Commitment of individuals to the cause of the organisation is the soul that keeps entities going. Close look at the trajectory of organisations that have survived adverse conditions like recessions wars and political witch-hunts, reveal that there were more than a handful of committed individuals who stood firm and steered it through rough seas and storms to greater glory.   

Incidentally, that sense of commitment I witnessed playing out as the group I was training, attempted to complete the task assigned. Seeing them operate, I knew this company is bound to make waves. 

Compliance versus Commitment 

Adhering to instructions and standards is what compliance is all about. It is merely execution of what is expected. Compliance has a legal connotation and brings along accountability, mostly legal. Compliance is closely associated with rewards and individual growth in hierarchy. It is a demand that has to be met and failure has a cost associated. Commitment goes far beyond compliance. 

Commitment is all about ownership and sense of belonging. It instils an additional sense of responsibility. It elevates individuals from being mere employees to being owners. The committed need mentors not supervisors. Commitment is an attitude that breeds a two-way trust system and often considered a personal trait. 

Cultivating Commitment 

Commitment, though an inborn personal trait, can be cultivated and nurtured by organisations to reap dividends. But for that to happen, organisational culture must be holistically conducive. Functional and progressive organisations invariably have few committed individuals spread across verticals. They are Islands of ownership and cannot be considered as products of organisational culture. 

For an organisation to be reap rewards of employee-commitment, majority of its employees must feel and shoulder ownership. Many companies allot shares to its employees to inculcate ownership and ensure retention. However, equating ‘sense of ownership’ with ‘owning shares’ is the biggest fallacy in vogue. This model of lured allegiance is being aggressively propagated. Unfortunately, ‘commitment on sale’ will move towards better prices. After all, that was not commitment to start with. Monetising everything and handing over a document to establish claim on the company's assets and profits do not instil or cultivate commitment. 

Commitment is a sublime, amorphous entity that commences existence beyond lure and monetary rewards. It starts and ends with emotions. It defines how central an organisation is to the individual’s existential wellbeing. The easiest and the surest way of cultivating commitment is recognition of an individual as the organisation and driving home, his irreplaceable role and impact on organisational goals. When an individual feels his relevance in an organisation, commitment is mostly the outcome. Yes, there would be some who may ride it rough. But those would be exceptions and can be taken care of.



[1] Real name of the individual kept guarded for sake or privacy. My enquiry about him later revealed that he is a very valuable asset of the company and makes his presence felt across verticals. 

[2] The dreamers’ group, design and convert our fantasies into working electronic devices! 

[3] Inspired by the tagline from an advertisement of a Television that has become extinct. Ironic though!

11 comments:

  1. What to say,yes Commitment,that is all.The magic of employee transforms himself into owner. The true sense of "commitment"is bloomed into words.This true not only in organizations but in all walks of life .It is realy a special feel even in bitter returns.
    Congradulations Jacob.

    ReplyDelete
    Replies
    1. Thank you Jessy.
      The magic of transforming an employee into the orbit of ownership happens when the conditions within become conducive. That requires collaborative existence.

      Delete
  2. Enjoyed the Onida connect.. Owners pride, neighbours envy!
    Compliance and Commitment.. What goes beyond.. Nicely brought out. But as organisations get larger, whether emotions get the right connect across the length and breadth is one point I am circumspect. My conjecture is that it is this shortcoming the large organisations endeavour to overcome through esops.

    Well done.

    ReplyDelete
    Replies
    1. Thank you Ramesh.
      Yes; you are right. Larger the orbit less stable the electron. but its natural for everything to settle into a state of stability, may be even chaos settles down eventually! esops over time has lost its characteristic 'sense ownership' once associated with it. it is now more of a fiscal dole than an umbilical cord!
      BUT you gave me an idea for the concluding session for the corporate training which i am currently doing at DC Technologies
      Thank you

      Delete
  3. Well written 👌. I feel the resonance in thought. Once people realise difference between "money/price" and "value", human behaviour would change. I believe it is applicable to individuals, organisations, society ....

    ReplyDelete
    Replies
    1. Thank you very much.
      If there is a human being there is bound to be human characteristics. Emotion is one. umbilical cord is another. one has to find it and re-attach it!

      Delete
  4. So well written and conveys the right meaning. Commitment is a rare quality. Can be identified and judged only by those who are them selves committed not to targets, but to individuals and the companies as such.

    ReplyDelete
    Replies
    1. Thank you very much.
      Yes. The difference is where we are focussed on - Numbers the short term goal or People who can take you far.

      Delete
  5. Dear sir

    Your articles are marvellous as usual.
    Looking beyond the horizon, very few people go into such deeper analyses, to get to the bottom of facts and figures, which most of us instinctively know to be true but not really give due importance to emotional aspects which are not easily quantifiable on scales of business but certainly make or mar biggest of the businesses

    Regards

    ReplyDelete
    Replies
    1. Yes , so true.
      Most intense emotions are hidden and seldom expressed. Life is always unfurling itself around us, close and intimate. most of us look far beyond and miss the beauty abundant in proximity.

      Delete
  6. Deep in everyone is a sense of belonging. tickle it, arouse it commitment follows!
    Thank you very much

    ReplyDelete

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