MPowerment Matters

Mpowerment Matters

July 2006

In last month’s newsletter, the importance of maintaining
entrepreneurship and innovation in your organization was discussed in
some detail. This month I would like to delve into how Management
Mpowerment Associates can work with you to inject these traits into
your business.
Interestingly, entrepreneurs by nature have a high innovation quotient.
But as they build a business around their ideas, they seem to want to
hang on to the entrepreneur’s role for themselves, holding it close and
almost making it a function of their position in the company rather than
as a competency that should be held by all. They feel that they “own”
the area of entrepreneurship and that their employees are there solely
to take his or her ideas and implement them and make them
profitable. Without realizing it, entrepreneurial owners can stifle their
employees, and create a suffocating, stagnant environment. This
causes high employee turnover, and the owners are too busy doing
what they do to notice or understand why it is happening.
At the same time, the owners are getting caught up in doing a variety of tasks and filling a variety of functions, and
before they realize it, they have lost the ability to take time to think, strategize and innovate-lo and behold innovation
is totally gone from a company that began in true entrepreneurial mode. And even worse, the entrepreneur typically
does not realize it has happened.
So, how do we interest such an owner in instilling a spirit of innovation in his or her company? A major part of the
process involves helping the owner make the vision for the company more tangible. The owner may be thinking in
terms of world dominance, going international, being the biggest, owning a niche, or saving the world. But ultimately,
it is a lot more personal than that. It may be about securing the future of the next generation; or retiring early to fulfill
a number of personal dreams; or creating a foundation to cure a disease that has had a personal affect on the owner’s
family. Or it may be about leaving a certain legacy. In order for any of these things to happen, the owner must create
an organization that has value after he or she is no longer there. If all of the ideas and entrepreneurialism leave when
the owner leaves what is left behind? Thus from a very practical point of view, an owner must care about the business
itself being innovative.
Once the vision is clarified, then we work with the owner to clarify those values that the organization must cherish in
order to let innovation flourish. They include trust, curiosity, collaboration, inclusiveness, client focus, passion,
motivation and future orientation. The owner must believe in these values and must share them and encourage them
in all employees. And the organization’s culture must support these values by encouraging the right behaviors. Behind
each value are a set of behaviors-how management will act toward employees in support of those values, and how the
organization will act toward its customers, its vendors and its community to truly live those values. Development of
these values and behaviors does not happen overnight or even in weeks.
Managers have to trust that employees doodling or leaning back in their chairs with their eyes closed are thinking or
strategizing or dreaming about new ways to deliver services or new products to fill a client need. Employees have to
trust that if they raise new ideas they will be encouraged and taken seriously and not laughed at or ridiculed. Then a
system has to be established to reward the desired behaviors and discourage undesirable ones. All employees must learn to be accountable, not just to their managers, but to each other.
Those doing the hiring must learn to hire for the values and competencies that the culture supports and not just for
skills and knowledge. The company needs to mentor and nurture employees new and old to build this innovative
culture. This does not just apply to new hires, but to all employees. Any employee could be the one that comes up
with an idea, product or process that can make a huge difference by creating revenue, cutting cost.
Of course, all of the new ideas are nothing more than intangibles unless they are tested for marketability, for cost and
profitability and for quality. The company management must provide the metrics to be used on new ideas. This
includes customer surveys, financial backup for design and production costing, pricing and profitability estimates and
for the resources required to introduce the product or service. Only after an idea gets over those hurdles is it ready for
market. If employees actually see their ideas get to market, that further reinforces the culture of innovation.
Lastly, if employees are rewarded for their winning ideas, the reward gives validity to all of the value statements. It
says that the behaviors that led to this idea being implemented are important to us and we want to encourage more
like them. Companies may even reward ideas that don’t get to market, again as a way of encouraging employees to
keep thinking, keep innovating.
Now, what has happened is that a stagnant organization is now alive with innovation. Everyone is living and breathing
the values. Employees are enthusiastic because they are trusted; managers can mentor rather than badger, and can
know that there is a high degree of accountability among the troops. And the owner can point to a company full of
innovators that can flourish as long as the culture in place is encouraged.
In summary then, Management Mpowerment employs some of the important aspects of strategic planning (vision,
values and culture), mixes them with some key elements of building high performing teams (trust, accountability,
collaboration, communication, clear goals and a results orientation) and throws in a dash of business metrics along
with a heavy dose of mentoring. This is all done through facilitation with the owner first and then the rest of the team.
In some companies the process can take hold in a matter of six months, in others it could take more than one year. Is
it worth it? Is achieving your vision worth it? Is leaving a legacy worth it?
Injecting innovation into your organization is a future-oriented, strategic approach that says that you are looking
beyond today. The world is changing quickly, and those that do not change with it will disappear. Clients will need
different goods and services, or new means of delivery, and some companies will provide them and will grow
profitably. Others will figure they can do what they have always done how they have always done it, and where will
they be in five years? Ten years?
We would be happy to meet with you to discuss how we can work with you to inject innovation into your business to
help you achieve your vision.