Tag: blog

The desire for collaboration reaches across sectors. Gilbert Probst of the World Economic Forum has called collaboration “the paradigm of the 21st century” based on the growing trend toward public-private partnerships in addressing complex environmental, social and economic challenges that single entities cannot solve on their own.

While collaboration can be as simple as the dictionary definition of “working with someone to create or produce something,” we think this definition from 99U gets closer to the heart of what most organizations are seeking when they set a goal of improved collaboration: “A collective approach that promotes accountability and cross-pollination, two critical forces in generating meaningful productive creative output.”

Based on our observations and experiences across the public, private and nonprofit sectors, we’ve identified five critical elements of healthy collaborative cultures:

1. Shared purpose and values
   When the organization’s reason for being – and its core beliefs – match up with the passion of its people, the foundation is set for effective collaboration.
2. Clear expectations and accountability
   Top leaders must establish the expectation to collaborate – and hold people accountable. When this happens consistently, collaboration becomes the norm. When it doesn’t, credibility is lost. Employees believe what they see rather than what they hear.
3. Continuous two-way communication flow
   When communication is viewed as a strategic imperative – and leaders value listening as much as speaking – obstacles can be removed or adjusted before they become debilitating limiters to innovation.
4. Risk-taking safety net
   Organizations that use mistakes as learning opportunities and leaders who let employees know they have their backs strengthen the organization’s ability to generate meaningful productive creative output.
5. Organizational curiosity
   When the organization’s top leaders are curious about their industry and the world – and model healthy collaboration themselves – they set a tone that inspires and motivates the organization to get better and better.

“… Morgan, it is said, would never lend money to a business where the boss was paid more than 20 times the wages of the lowliest employee. Anything more, Morgan thought, showed that the boss was only in it for himself and the business was therefore a credit risk.”

By this measure, J.P. Morgan would likely withhold loans from many 21st century U.S. companies. And, within the next several months, we will know with certainty as more U.S.-based public companies disclose, for the first time, the ratio of chief executive officer (CEO) compensation to the median compensation of all other employees (in keeping with the adoption of a final rule by the Securities and Exchange Commission (SEC) as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act).

Because the SEC rule provides companies with considerable calculation flexibility, the reported ratios are expected to span a wide margin. According to the AFL-CIO Executive Pay Watch, the 2015 average total compensation for S&P 500 CEOs compared to the 2015 average compensation for nonsupervisory employees working in the U.S. was 335:1, while, according to PayScale, the median 2015 cash compensation for 168 of the highest-paid CEOs in the annual Equilar 200 study compared to the compensation of the median employee in those same 168 companies was 71:1.

Beginning in 2017, this pay ratio disclosure will present significant strategic and communication challenges for public companies, as key stakeholders, particularly employees and investors, seek to understand their corporation’s calculation, compensation positioning relative to the market, and current and future reputation implications.

Communications, Investor Relations and Human Resources teams will be expected to address questions, such as:

• How was the compensation of the median employee determined?
• Is compensation for seasonal employees, or contractors, included in the calculation or are only full-time employees included? What about non-U.S. employees in a multinational company headquartered in the U.S.?
• What compensation elements (equity, cash bonuses, overtime pay, etc.) are included in the calculation?
• Why was our company’s ratio significantly higher or lower than other companies of similar size, or other companies in our industry or geography?
• Why is “my” compensation so far below our company’s median employee compensation level?

And, corporate boards and financial community members may consider issues like these:

• Are our compensation practices rewarding desired behaviors and outcomes at our company, including strategic clarity, innovation, thoughtful risk-taking, financial stewardship and long-term performance?
• Are our compensation practices attracting and motivating talent at every level of the organization?
• Is there an “optimal” pay ratio within our industry … or for companies of our size and growth trajectory?
• What changes in compensation policies and practices should the company consider in light of pay ratio disclosure implications?

While much has been previously written about the operational burden and financial costs inherent in implementing this SEC rule as well as the challenges of clearly communicating the disclosure to key stakeholders, in our view, it also offers an excellent opportunity for companies to demonstrate genuine leadership.

In the coming months, corporate leaders who understand the importance of enhancing their brand and reputation will:

• Patiently and transparently communicate information and relevant context about their pay ratio to key stakeholders,
• Take actions that address significant compensation inequities, and
• Leverage their employees’ power and passion in pursuing a greater business purpose.

Through strategic communication and a respectful, rewarding corporate culture, organizations can inspire the commitment and alignment that is essential to elevating long-term performance and reputation.

 

By highlighting this painful, growing chasm, this election has perhaps provided the medicine we need to begin to cure our nation’s sharp divide. Many, on both sides of the political aisle, have been shaken out of their complacency to a place of action, and that involvement just may be the start of a new dawning of civility, equality and tolerance within our democracy. Or at least that’s what we have to hope, believe and act on in such a trying time.

Last month, First Lady Michelle Obama reminded us that the measure of any society is how it treats its women and girls, saying “People who are truly strong lift others up. People who are truly powerful bring others together.”

The best leaders do exactly that. They lift people up and bring people together. And if our president-elect is indeed the great leader he claims to be, he will show us that he can change the tone of our national discourse, bring civility and respect to the forefront, and foster trust in each other and the institutions that underpin our democracy.

And the rest of us must give him “an open mind and a chance to lead,” as Hillary Clinton urged us this week. It’s time for all of us to take the high road.

Taking the high road is what it means to live and lead with integrity. To put what’s best for the country, organization or team ahead of our own self-interests. To be assertive and make sure our voices are heard, but never use the pulpit of leadership to behave like a bully.

We must be strong without being obnoxious … direct without being offensive. We must demonstrate that we can have discussion and debate – and even get angry – without name-calling or shaming. And we must unequivocally reject all acts of discrimination and hate. When we stand strong in the shared belief that civility, equality and respect are principal American values, we will re-shape our nation’s narrative and its future.

The complex challenges of the Fourth Industrial Revolution demand this from us. No single leader, party or entity can move us through this new terrain alone. We all need to truly listen to people with views different from our own, even when we can’t fully relate to their ideas and opinions. And we must collectively hold our country’s leaders accountable for putting America’s progress before partisan politics. If we want government of the people, by the people, for the people, then we have to stop accepting partisan antics from either party.

Even in our earliest days and decades as a country, there were stark disagreements among our leaders about the best policies, direction and actions to achieve a successful future. Disagreement and debate are foundational to our democracy. But, to continue to achieve our collective promise and potential, we must stop being so mean, hateful and rude. No more pointing fingers or denigrating and blaming others. Now’s the time to look in the mirror and take responsibility for our own actions and words.

Indeed, now is the ideal time to become a tireless advocate and role model for the civility, equal opportunity and respect we want America to be known for. Given the state of the electorate – and the nature of our now well-developed social media habits – this won’t be easy.

So in the spirit of unity, here are five small steps we can all take now to be the role models we want to see:

1. Be curious about what others think. Expand your circle. Talk to people with views different from your own.
2. Acknowledge others’ points of view and pain. Look for the humanity in everyone. Remember, acknowledgement is not agreement.
3. Challenge your own prejudices, labels and entrenched views. This is the hardest part – but perhaps the most crucial. We all have built-in biases. Step away periodically to welcome fresh air.
4. Slow down. Pause before responding – in real and virtual conversation. Give your head a moment to catch up with your heart.
5. Go high when others go low. As Maya Angelou said, “Be somebody’s rainbow.” Our world has enough clouds.