The Stuff of a Winning Organization

Sustained rapid company growth requires a human resources program characterized by certain approaches and philosophies. In the first, place, the best top management team in terms of proven performance records that can be secured should be put in place through outside recruiting and internal development and advancement. This team should consist of executives with High Achievement Motivation which can be tested for by various test instruments including The Achievement Motivation Inventory and the Achieving Tendency Scale. A baseball analogy is appropriate here. Which major league team has the best record in baseball? Answer: The New York Yankees. They have won 26 World Series, 16 more than the runner up St. Louis Cardinals. Why have the Yankees been so successful? The answer is found in the philosophy of the Yankees’ current owner, George Steinbrenner, which is also reflective of the philosophy of past Yankee owners: “I want this team to win. I’m obsessed with winning, with discipline, with achieving. That’s what this country‘s all about.”  Just as the Yankees have consistently fielded the best players, so also should a company field the best managers.

How did the Yankees get these top players? They paid for them. The Yankees’ payroll is the largest in baseball by a significant amount. In my experience, the top companies’ compensation policies are such that they can secure the top business “players”, keep the ones they already have on board, and motivate all of them to extraordinary levels of performance. You get and keep what you pay for!

Many small to mid-sized firms believe that they can’t secure these top business players. They feel they are too small or too unsophisticated. Not so. Small to mid-sized firms can secure these top executive resources if they try to go after them. Often, highly accomplished executives are blocked in their large corporations and wish to move to smaller firms where they can shine, imprint an organization with the innovations they have been incubating for years, and secure equity by helping to take the firm to a leadership position in its industry. But how does a small to mid-sized firm secure these top performers? First, it should set up compensation ranges reflective of firms its size and firms much larger, perhaps five times larger. This will provide the compensation leeway to attract top executives from much larger firms. Second, it should employ on a continuing basis an hourly fee executive recruiter to search out and present these top “players” to management. This approach to executive search is much more cost effective than using fixed fee executive search firms on an individual assignment by assignment basis. The in-house human resources person just does not have the time, know how, or independence to perform this executive search activity.

The leadership philosophy and corporate culture that will best motivate top executive “players” is one in which performance is more important than politics. With respect to personal and career growth, the appropriate corporate culture should include a policy of growing the “growables” and helping those who become obsolete and/or fail to meet performance objectives to move on.

In this “winning” corporate environment, executives should be encouraged to work for consensus on important decisions and to speak their minds without fear of recrimination. The only reason an executive or any employee should fear losing his/her job is failure to perform. Above all, all employees must be motivated to commit to a business philosophy in which all efforts are aimed at satisfying the needs of the customer in the marketplace, creating new customers, and constantly improving themselves. They must be given an environment in which they find hard work enjoyable and financially beneficial and winning a common experience.

With respect to rank and file employees, management behavior must be such that they are convinced that they can trust management and that their goals and those of the company as a whole are the same. This kind of management behavior is characterized by the following:

—Effective communications up and down the organization.

—Encouragement of employees to speak their minds.

—No favoritism.

—Showing and individualized concern for every employee.

—Setting goals, paying for performance, and providing the opportunity for continuity of employment.

—Providing the best equipment and a pleasant working environment.

—Screening new employees carefully.

—Developing employees to highest potential.

Simply stated, the company that secures the best people, motivates them most effectively, and nurtures their creativity will surpass its competitors in the marketplace. The success of this kind of company is assured.