Saturday, April 03, 2010

Profile of a Healthy Company - Part II Acknowledgement of Work

What Has Gone Before             

There are just fifteen corporate attributes (organizational forces) that completely determine the performance of a company, for better or for worse. 

These are intrinsic to the organization as a whole, operating independently of external forces.  They are entirely within the control of management; they are easily measured; they are easily changed.  And changing them even a little, profoundly changes the bottom line

Collectively, they are known as the Operating Dynamic of the company.  This is the full analogue of a human "character and temperament" profile like the Myers Briggs.  Except it is much more comprehensive and detailed.  And much more mutable.

All successful organizations have similar profiles, be they for-profit or not-for-profit, even government.  Companies of the same performance levels within the same industry bear a strong resemblance to each other.  Also, all stagnant and declining companies, irrespective of industry, have profiles similar to each other, as have entrepreneurial, retrenching and "go-go" organizations.

Like financial statements, the fifteen attributes can each have positive or negative values.  They are divided into two categories: Critical Functions and Generators/Blockers.  The Critical Functions, when measured, constitute the Balance Sheet for (i.e. the intrinsic value of) the Operating Dynamic.  The Generators/Blockers provide the P&L (i.e. the growth or loss pressure) on the Balance Sheet.

Knowing the Balance Sheet and P&L values makes possible the prediction of overall competitive performance much further ahead of anything the financials can provide.

Acknowledgement of Work

This week's attribute, a Generator/Blocker, is Acknowledgement of Work.  It consists of a number of separate elements including (but not limited to):
  • Performance Recognition (high, low, or negative)
  • Time (and quality of time) Spent Discussing Work - by managers and workers and by managers and customers
  • Quality and Frequency of Performance Evaluations 
A positive value (>25%) indicates a positive innate pressure - on the part of the organization rather than individuals - on the conduct of business.  A negative value indicates a negative pressure on business.  The actual measure indicates the level of pressure; it is also predictive of future competitive performance. 

This attribute is easily changed.  A level of positive pressure less than 25% needs correction.  Negative values require immediate and possibly urgent correction.

Complementary Article: Hitting the Ground Running as the New CEO

The Product:     The Corporate 360°-L

Tom FitzGerald (Author: Fire in the Corporate Belly)
FitzGerald Associates, Est. 1976     
Lake Forest, Illinois - Phone  847-599-9960