In recent years, Apple Inc. was
announced the most valuable stock to ever be traded, reaching a peak market cap
over $950 billion. Since the departure of founder and CEO, Steve Jobs, company
shares have continued to grow. From debut through the present, Apple has been a
driving force outside its original core competencies and a poster child for
innovation.
Apple’s performance is
unlike any
other company. Thus, the question remains, “What allowed for it to happen?”
Either success is the result of a single-minded focus on maximizing shareholder
value or Apple has something happening inside that other organizations lack.
Steve Jobs and his successor, Tim
Cook, were committed to creating an environment that engages and empowers
people to effectively work together in the customers’ interest. Too often, CEOs
focus too heavily on maximizing shareholder value, developing strategies to
target the stock price. Apple however, for all of its top line growth, customer
loyalty, and employee satisfaction, climbed through the rankings because of its
culture.
Though CEO’s most critical creation is culture, it regularly
gives way to excuses like “nice to have, but hard to create.” This excuse can
create a default culture with poor results. And businesses with a poor culture
often find themselves meeting roadblocks to innovation and top line growth.
For all the wonder of a successful culture, it does not just
happen. There is something that allows for a successful culture like Apple.
Social anthropologists call it “a network of conversations”.
Therefore, CEOs in partnership with their top managers need to decide what the
conversations will be when all stakeholders refer to their enterprise. Whether it is the incumbent CEO or a new CEO, he/she must have
a vision for the type of culture desired and the correlated conversations that
drive it. That way it is intentional and can be built into strategy.
When well designed, a successful culture implies collaboration,
open communication, the ability to attract and retain top talent, constructive
disagreements at every level, and a network of conversations that are
empowering. To drive and sustain this type of workforce, there are many
important conversations that should be built into the organization and part of
every meeting. To name a few, there are four conversations that can allow for
the kind of environment at Apple:
-
What is in the best interest of all involved?
-
What additional value can be added to the customer?
-
How do we exceed customers’ existing and anticipated
needs?
-
How do I intentionally develop my people and myself
personally and professionally?
These four tenets are the walk the CEO must walk and ensure
it is reinforced, rewarded and continuously developed. That way he/she can
build change and innovation into strategy with a culture that will more
effectively accomplish outcomes, keeping Wall Street and Main Street
happy.
Everyone’s Best Interest
Companies answer to a number of stakeholders: employees,
management, owners, the community, government policymakers, etc. They must
carefully consider every potential action, to ensure the general well being of
everyone. That is not to say however, that corporations need to try to make
everyone happy.
Instead, acting in the best interest of all involved forces
the discussion between “What can these stakeholders gain?” and “What do these
stakeholders lose?” The ultimate goal is to minimize damage while pushing the
organization onward.
As an example of minimizing damage, a job is an expression
of self-interest. At the same time, if self-interest is the only motivation of
an individual, it will be difficult to have harmonious relationships between
colleagues and clients. Therefore, an appropriate question for leadership to
ask is: “What is in the best interest of everyone involved?” People are forced
out of a stubborn position between right and wrong and can look at the bigger
picture to focus on doing the right thing.
Customer Value
No matter the corporate department, without people to buy
the product a company cannot function. Changes to the product must be made with
customers in mind. What will give them additional satisfaction?
Exceeding customer needs
There are things consumers need, and there are things they
want. Nonetheless, companies tend to struggle in finding the things consumers
need to want. Fundamentally, customers must be engaged in a conversation.
“What’s possible beyond what we’re already doing?”
Meeting customers’ existing and unmet needs requires happy
employees. Employees and clients are like a married couple, who will perpetuate
that happiness by always anticipating the needs of their spouse, even when not
articulated. It happens through engaging conversations.
In a business, this process has to be intentional. To name a
few, it means different parts of the company are talking to one another about
what they are working on, what they do for customers, why they are not selling
to non customers and what’s possible as a result of recent developments.
Externally it means to discover where clients are going. And
asking them: what do we do well for you? What do we do poorly for you? And what
would you like us to do that we have never done?
Employee Development
Now more than ever, CEOs can leverage people smarter than
themselves because of the proliferation of knowledge workers. If you assume all
employees are knowledge workers, how must a corporation be structured for
employees to perform their best? The answer is organizational culture.
Nonetheless, a successful culture does not manifest by itself.
The corporation is filled with initiatives that require
staff and management to learn new skills and competencies. Additionally, when
projects stretch people, it can cause frustration and confusion. Therefore, it
is imperative that people develop interpersonal skills that allow them to work
together more effectively. Employees must learn skills to better handle
disruptions, frustrations, opportunity, failure and success.
In the past, command and control was the strategy of
leaders. With knowledge workers,
collaboration between colleagues, customers and suppliers are imperative. To add, in an ever-changing
environment, constant development is the way to prepare staff and management
for the future.
What do you think? I would love to hear your feedback. And
I’m open to ideas. Or if you want to write me about a specific topic, let me know.
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