What or How?

What is more important to an organization, What you do, or How you do it?

That's the question Bec Kennedy of Australia asked Richard Branson in Entrepreneur magazine.

Is the organization's purpose and mission more important, or are the methods and efficiency of how the organization works more important?

After reading the question, I was curious as to what Mr. Branson's answer would be. What would you say?

Mr. Branson answered that while efficiency and profitability are certainly important to every company, but acting responsibly is more important for long term success. Do you agree? It's hard to argue with the logic.

Acting responsibly helps to motivate and engage your employees. This is especially true for many non-profit organizations. Motivated and engaged employees strive to work more efficiently and effectively to continue with and build upon the success of the organization. Motivated and engaged employees translates into higher levels of customer service. Motivated and engaged employees search for ways to develop, build, and deliver higher quality products and services.

This all translates to more loyal customers, more customers, and lower operating costs. That leads to higher profits. Mr. Branson calls this the virtuous cycle. Does this work in your organization? Can it?

Preaching to the Choir

I was speaking with a colleague the other day and we were talking about our business and the current tough economy, how it's effecting businesses, and how we can help. Basically we were ranting, or "preaching to the choir" (each other).

In these tough economic times organizations have to operate as efficiently and effectively as possible. Their performance has to be exceptional. But my argument is that this is how organizations should operate at all times. Sure, in this kind of economic environment there are some actions that have to be taken that wouldn't be considered in normal times, even in tough normal times. But for the most part, organizations should always be examining how they do things (their processes) and working to make things work better. To me this means working towards defined goals. Develop a plan with defined goals for the organization, develop an action plan that will get you to those goals, and develop a performance measurement system that ties everything that everyone does to those goals. I call this Goal Attainment.

This should be done in the best of times, but it is imperative that it be done now. You can't afford not to.

Innovation: What it means for you

I’m reading a group of articles in Inc. magazine about innovation. Apparently there are a fair number of consulting companies that specialize in innovation. I’m not sure how that works. Hire somebody to be creative for you, or something, I guess. Nothing wrong with that. As I say, do what you’re good at and outsource the things you’re not good at. That applies to creativity and innovation too. But that’s not what I find interesting in the articles.

What struck me is one article in particular, about how these innovation companies keep their employees thinking creatively and innovatively. I work a lot in the area of process improvement, and I advocate creativity during process improvement activities. I also advocate taking care of your employees and fostering a work environment where employees want to be, not just someplace they go just to get a paycheck. It turns out that the same things that these innovation companies do to keep their employees thinking creatively and innovatively are the same things you should do to keep your employees engaged and creative in their everyday work and in process improvement activities.

I tell people that if your employees aren’t making mistakes, you’re doing something wrong. Because if you’re not making mistakes, you’re not trying anything new. If you’re not trying anything new, you’re doing the same old things. You can’t expect different results if you’re doing the same old things, and you certainly can’t grow, improve, and become more successful and profitable.

You won’t be able to do all the things that these innovation companies do for their employees, but you can do many of them. You can, and should, encourage your employees to try new things and allow them to make mistakes. One of the innovation companies even presents an award to the employee who made the biggest or best mistake, which means they give an award for failure. If you punish failure, no one will ever try anything new. If you reward it, people will try all sorts of grand new things. You don’t want people making the same mistakes over and over, of course. I’m talking about trying new things in the context of making improvements to processes, products, and service offerings. Try it, and reap the rewards.