Many of us have heard or even lamented that the “soft stuff is hard”; but what does this mean and what are the implications for organizations interested in growth?
First off, admission is often a good first step. Yes, that soft stuff is indeed hard as heck for a couple of reasons:
- One: “soft” means intangible or even invisible which makes it hard to put your finger on, or quantify;
- Two: “soft” stuff is largely connected to people and culture dynamics
The inconvenient truth is that the soft stuff really matters given its connection to value creating activities that drive sustainable growth.
The objective and critical challenge for growth focussed leaders is to tangibly link people and culture with profits and performance. In effect, make the intangible people and culture dynamics tangible so that they can be measured and directly linked to the company’s ability to scale and grow through new value creation and adaptive change.
Much thought, research and refinement working with many of our clients has produced a practical tool and methodology to help growth focussed leaders measure that elusive soft stuff in such a way that tangibly assesses, identifies and improves the company’s ability to grow.
“Soft Stuff” Truths of Organizational Growth
1. All organizations no matter the size or type have a dominant cultural mindset.
2. A company’s cultural mindset is directly linked to its growth capability, that is its actual revenue growth potential.
The cultural mindset tells the story around where the organization currently focusses its resources and attention to driving growth. Further, codification of the company’s cultural mindset identifies areas that are impeding the company’s ability to scale and grow and points the way to tangible improvement.
3. Creativity is a necessary but not a sufficient condition to driving innovation and growth. Having worked with several R&D groups has validated the “truth” that creative ideas can become diluted as they touch other functions within the organization. Great ideas need to be transformed into new value, and this requires a disciplined innovation process, not just a good idea.
4. Innovation is a leading indicator of an organization’s ability to sustain future success. Finding ways to do it better amidst disruption and accelerated change is essential.
5. Misalignment between leaders, functions, talent and culture will strongly impede an organization’s ability to scale and grow.
Five practical tips to help leaders better align their teams and culture for growth
1. Clearly Communicate Purpose and Vision
Leaders must consistently articulate the organization’s purpose, vision, and growth objectives. Teams need to understand not only what they are working towards but also why it matters. This helps individuals align their daily tasks with the broader goals of the organization, creating a sense of shared purpose.
- Tip: Use regular communication channels like town halls, newsletters, or team meetings to reinforce the company’s purpose and how each role contributes to growth.
2. Foster a Growth Mindset
Encourage a culture where learning, experimentation, and adaptability are valued. A growth mindset, which views challenges as opportunities rather than threats, is essential for fostering innovation and continuous improvement within teams.
- Tip: Recognize and reward teams or individuals who take initiative, experiment, and learn from failures, ensuring that risk-taking is seen as part of the growth process.
3. Align Goals and Incentives
Ensure that team and individual goals are closely aligned with the organization’s growth objectives. This includes aligning performance metrics and incentives to reward behaviors and outcomes that contribute to innovation, efficiency, and customer-centricity.
- Tip: Regularly review team and individual KPIs to make sure they are aligned with broader strategic initiatives. Update them as growth strategies evolve.
4. Build Cross-Functional Collaboration
Promote collaboration across different departments and teams to break down silos. Growth often happens at the intersection of diverse perspectives and expertise, and cross-functional collaboration helps harness this potential.
- Tip: Create cross-functional project teams for major growth initiatives, and establish regular forums where teams can share insights, successes, and challenges.
5. Develop Leadership Skills at All Levels
Growth leadership is not just for senior executives. Leaders should work to develop growth-oriented leadership skills across all levels of the organization, enabling individuals to lead from where they are.
- Tip: Offer training and mentorship programs focused on leadership development, particularly in areas such as adaptive thinking, strategic problem-solving, and emotional intelligence. This will build a culture where leadership in driving growth is everyone’s responsibility.
By implementing these strategies, leaders can create a cohesive culture where teams are motivated, aligned, and better equipped to drive sustainable growth. In the webinar on November 19th, we will unpack our 3rd Dependency Model for growth-focussed organizations, exploring its impact with client organizations to improve the realization of their growth ambitions.
- Align Your Team and Culture for Growth - October 21, 2024
- Linking Culture and Mindset to Organizational Performance and Growth - May 24, 2024
- Leading With Emotional Power® - April 10, 2024
