I just finished The Advantage by Patrick Lencioni on why organization health is the number one reason companies succeed. Lencioni argues it’s the true competitive advantage companies have.
I’ve read a lot of business books and have gone through an MBA program to learn about competitive advantages and the “it” factors that makes some companies better than others. Most of the readings have been about culture with a sprinkling of motivations. Culture makes the most noise for success, and it’s not a surprise. Culture is more uniquely applied for a company. How it operates with values and its mission. If values and the mission provide the map of a company, then organization health is the step-by-step directions to navigate.
The key take-aways:
- Organizational health starts from the top. Much like culture, leaders can determine the health of company. Eliminating office politics (big points here from Lencioni) while ensuring the leaders row all in the same direction fosters strong health. Removing politics and acting in as a single cohesive executive team cultivates greater success than operating well but in silos.
- Lencioni hits hard on trust across the executive team. This is the key to removing politics. Encouraging individual leaders to be vulnerable enables folks to work better together understanding individual purposes and reasons for actions – he encourages leaders to share vulnerable stories from early years (oftentimes, childhood). Trust enables leaders to have healthy debate, and agreement to move forward together as a team despite opposing feelings individually.
- Healthy organizations exhibit cohesive teams where the whole is greater than the parts. Organizationally healthy companies exhibit functional groups who may operate outside their functional silos and even, at times, reducing effectiveness of a functional role to support another function as long as the greater company is positively impacted. In one case, this could mean sharing engineering resources to help on the marketing or sales side.
- Meetings are big, big deal. Typically, meetings are also a waste today due to not only a lack of action, but poor structure and categorization. Lencioni argues for four types of meetings: the daily check-in, weekly tactical, monthly strategic, and quarterly off-site. In some ways, these meetings can actually increase the number of meetings in the short-term. However, long-term, meetings can reduce, but also be highly actionable making meetings productive. Being structured on the topics and the goals for each meeting type drive results. Lencioni argues that this is the biggest and lowest hanging fruit for companies.