Sport. These are very clear mission statements that make the purpose of the organisation measurable, understandable and recognisable in the world around us.
And what about for-profit companies? Their mission can certainly be more than to make profit. Profit is a by-product of business that is obviously very important to shareholders, but not really important to other stakeholders without whose support the business would simply not exist (customers, the community, employees not rewarded with profit-share). Can you guess which companies (or at least which types of companies) own the following ‘beyond profit' mission statements?
• ‘To grow a profitable airline … Where people love to fly … And where people love to work.'
• ‘To care for the world we live in, from the products we make to the ways in which we give back to society. At [company name removed], we strive to set an example for environmental leadership and responsibility – not just in the world of beauty, but around the world.'
• ‘To be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.'
In order, the owners are: Virgin Atlantic, Aveda and Amazon.com. These companies know the power of an inspiring mission, but one that is clear and specific too.
Measuring our vision and mission means choosing a small handful of performance measures that track our progress in making them a reality. They provide real and objective evidence that the organisation is indeed excelling. By measuring the mission of our organisation, whether it's for-profit, nonprofit or government, we take it seriously, we make it tangible and understandable, and we make it easier to align everyone's attention and goals and resources to fulfilling that mission. Our mission is our purpose, and if we don't measure it meaningfully, we can't prove that we're fulfilling that purpose.
One of the most important things leaders need to feel is ownership of the organisation's results.
Stever Robbins, the Get-It-Done Guy from one of the Quick and Dirty Tips podcasts, says that the ultimate responsibility that rests solely on the CEO's shoulders is the success or failure of the organisation. And the CEO's top two duties, which only they can perform, are building culture and setting strategic direction.
In What You Really Need to Lead, Robert Steven Kaplan says leadership starts with an ownership mindset. One of the most important things leaders need to feel is ownership of the organisation's results. That means ownership of the organisation's mission and vision, and ownership of what it takes to make the organisation capable of achieving them.
The high-performance organisation
When we think about high performance in sports, it's easy to understand the term. It's about winning, but it's also about the way the winning is done. Lance Armstrong was everyone's darling in cycling, winning seven Tour de France titles, all of them after battling testicular cancer. But when his use of performance-enhancing drugs throughout his career was uncovered, his titles were stripped and cycling fell out of love with him. Despite his achievements, the deceit and cheating mean he's not a good example of high performance.
The story of Billy Beane and the Oakland A's baseball team is a different matter. Unlike Lance Armstrong, they were performing at the bottom of the league based on wins. But they challenged many of the long-held traditions about how to build a baseball team. They ignored the highest-paid players and recruited players who were rejected or under-used and not valued by more successful teams. Their strategy seemed insane, but the Oakland A's rose to the top rungs of the league on a budget a fraction of the size of their competitors'. They revolutionised the game of baseball. They are a great example of high performance.
In simple terms, a high-performance organisation is one that can perform at a very high level in the game it's playing. The game an organisation is playing is the fulfilment of its mission and the pursuit of its vision. All this means is that a high-performance organisation does well at what it says it wants to do well at.
It's true that there are organisations that say they want to be profitable, and do well at being profitable. There are plenty of organisations that have done this, and at the expense of their people, their customers, or the planet. In their book How Companies Lie: Why Enron Is Just the Tip of the Iceberg, authors A. Larry Elliott and Richard J. Schroth discuss how companies like Enron, Tyco and Sunbeam haven't taken care of all their stakeholders: the people that supported them, and whose support they need to last into the future.
Profit cannot be the ultimate definition of high performance.
Those are not the kinds of organisations that this book was designed for. Profit cannot be the ultimate definition of high performance. It's more than that, and has to be if an organisation is to stand the test of time. And so high performance is more about the culture of an organisation, and the way it pursues results for all its stakeholders. The high-performance culture is one of:
• continuous improvement
• measurement of performance
• alignment with strategy
• consistently reaching for the right targets, without unintended consequences.
Organisational excellence models such as Baldrige Performance Excellence, the European Foundation for Quality Management (EFQM) and the Australian Business Excellence Framework (ABEF) have been around since the 1990s. These models have been used by many different organisations around the world in their pursuit of high performance. Each model is used in an awards process, where entrants are evaluated by an accredited team against a collection of criteria organised into (usually) seven categories. The seven categories are:
1. Leadership. How the organisation's leaders inspire high performance, encourage open communication and transparency, and create a climate for learning, collaboration and success.
2. Strategic direction and planning. How the organisation's vision and values and direction are derived, how goals are set at all levels and aligned to the overarching direction, and how people are engaged in executing the strategy.
3. Data analysis, measurement, information and knowledge. How the organisation uses data analysis, measurement and reporting of performance and other forms of evidence to inform its decision making, strategy execution and continual improvement of performance.
4. People and workforce. How the organisation values its employees and partners, the culture it nurtures, and how it facilitates a safe, healthy and collaborative working environment.
5. Customer and market focus. How the organisation understands its customers and their needs, ensures a customer focus throughout the organisation, and positions itself within its market.
6. Business processes or operations, products and services. How the organisation has designed the flow of work to develop and deliver its products and services, with an emphasis on systems thinking and cross-functional collaboration, in alignment with strategy.
7. Results. How the organisation has defined and attained success, including its impact on customers, its people and society.
Within each of these categories, entrants must demonstrate how they follow some form of quality management plan–do–study–act (PDSA) cycle:
• Plan. The organisation has a deliberate approach for the category, such as a framework or process or model.
• Do. This approach is deployed or implemented deliberately throughout
