Find Out What it Means to Me!
How does respect–one of the MBM Guiding Principles–contribute to value creation? I think the easy answer is, “if you don’t show respect, no one will want to do business with you.” Without customers and employees, most businesses would find it difficult to create and sell their products. That makes plenty of sense and should help us see why we need to bring at least a basic level of respect for others into the workplace. I think, though, that there has to be more to the idea of respect. Consider this quote from The Science of Success:
When a workplace culture of respect and trust is promoted, employees share their ideas and seek out the best knowledge to anticipate and solve problems. Verbal exchanges lead to the discovery of new and better ways to create value. When such exchanges are hampered by overbearing taboos, procedures or hierarchy, knowledge sharing is stifled.
Granted, there’s a lot to process here. I want to try to focus on exactly what’s at stake when we fail to cultivate a culture of strong respect. First, let’s get on the same page by defining our terms:
Respect: Treat others with dignity, respect, honesty, and sensitivity. Appreciate the value of diversity. Encourage and practice teamwork.
With these behaviors in mind, I want to try to make the connection between respect and superior value creation. I suppose I should warn you at this point; it’s going to be a bit of a journey to tie all of this together, so hang with me for just a minute.
The first quote at the top of this post refers to a “discovery” process. This process leads to value creation that exceeds the value created by simply producing a firm’s current products using their current methods. Discovery brings new–and more profitable–products and processes. While an entire post (or book) could be devoted to this topic, let’s just stipulate that strong discovery processes contribute to superior value creation (we can argue about it in the comments if you prefer!).
Too often, I think we fall into the trap of limiting our thinking about discovery to formal efforts. That is, we tend to think of discovery as R&D and structured innovation efforts. These are good, but the quote suggests that there’s more to the discovery process. Specifically, it emphasizes the importance of what I tend to call “informal” discovery. A colleague casually mentions something that fits my project perfectly. Our team takes the time to challenge and share ideas; bringing our diverse points of view to bear on a problem. These are simple examples of how verbal exchanges create value.
Respect is the foundation on which this value is created. In order for the preceding conversations to create value, they must first take place. Imagine a firm that can only maintain the most basic level of respect. That is, they treat customers and employees well enough to stay in business, but not much better. How often do you think those firms create value through the types of verbal exchanges mentioned above? Of course, such a firm could certainly implement R&D practices that yield profitable innovation. However, in a competitive market, the firm that combines those practices with the “informal” discovery has an edge over their competitors.
Conclusion: A culture in which “verbal exchanges lead to the discovery of new and better ways to create value.” That’s what R-E-S-P-E-C-T means to me!
- 8 Comments »
- Posted in Knowledge Processes, Principles, Respect
Hey Jeff,
I think you’re right that respect is necessary for a culture of discovery. However, I don’t think it creates that culture of discovery.
The Virtue & Talents dimension of MBM states:
“Ensuring that people with the right virtue and talents are hired & retained [focusing on selection]. Maintain a culture based on the MBM Guiding Principles”
The notes in Academy emphasize that the culture we are trying to foster through the Guiding Principles is one of discovery–and discovery is essential because of the creative destruction that goes on all around us.
So all of that said, it is all the Guiding Principles working together that lead us to this culture of discovery. In my mind Principled Entrepreneurship, value creation, & change are all principles that act as catalysts for discovery while respect creates the space for people to act.
What do you think? Does that jive with what you were saying?
Good point, Paul. I should have emphasized that I think respect is necessary but not sufficient. However, I do think respect does a lot of the “heavy lifting” in supporting the discovery culture.
I think I agree. One advantage I have is being dense enough to have to rephrase things. This rephrasing exercise usually allows me to find out if I’m actually in agreement or not. Lemme try:
You don’t only discover new things when you go looking for new things. Sometimes you discover new things when looking for old things, or by just having your eyes open, so:
Having a culture of respect allows these second types of discovery to happen more often and with more efficiency. Necessary but not sufficient.
?
@David – I think that’s right. In fact, my tendency is to reserve the term “discovery” only for those accidental findings. However, that’s not my understanding of how MBM practitioners tend to use the term. That said, I’m very interested in understanding what organizational frameworks make us more likely to create value using knowledge we didn’t intend to encounter.
Jeff, I think where respect really is important is in the challenge process. The challenge process is important in MBM to spur creative destruction.
“Communication that fosters value creation requires constructive disagreement.” page 116 in The Science of Success.
Yet many people have worked previously in organizations where disagreement was unacceptable and challenge was inherently negative. The MBM value of respect helps raise the level of team trust and can frame the challenge process in a constructive and productive way.
Example – use the phrase “help me to understand” instead of the more confrontational “why?”
@Scott – I think you’re right. I think the reason a lot of people get concerned when they here about strong challenge cultures is that they don’t associate challenge with the requisite level of respect.
@Scott, neat timing.
I just ambushed my Senior VP to get his blessing on an effort I am working on that requires a big-dog to agree that the value-proposition exists (my words not the IT group’s words)
As I was requesting to build capability but not yet grant permissions, I was not being clear about the difference. I used some terms that didn’t seem different to him. He said to me: “help me to understand the difference”
This was about 30 minutes before your comment was posted.
I came away from the ad-hoc meeting thinking what a great phrase that was. It did a few things:
Let me know that he didn’t yet understand
Let me know that he wanted to understand
Guided me to explain it a different way and possibly at a higher level
If he had said “Why?” my explanation would have taken a very different path. I would have gone into DEEPER detail (wrongly) and probably made improper conclusions about his probability of seeing the value.
Because he used the better phrase, we quickly established agreement. He then used the next few minutes to explain to me something in the save vein that he wouldn’t only “align” to but be excited about.
It was, yet again, a great moment in the every day life of working with high-caliber people.
@David – great example. Thanks for sharing it.
Getting used to a challenge process culture takes some getting used to, at least for me.