In Search of Results & Relationships

by Randy G. Pennington

Finding a contemporary business that is not obsessed with improving results is a rarity, and enlightened leaders have discovered that relationships are an integral piece of the puzzle. Company credos, values statements, and annual objectives articulate the need to satisfy a variety of stakeholders that includes customers, stockholders, suppliers, employees, and the community at large. Belief in and support of the following four principles will help you succeed.

Principle #1: Results ultimately depend on relationships.
Scientists now tell us that the ultimate result-our continued existence-depends on relationships. The planet is a holistic system that relies on each part to maintain the whole. Likewise, organizations are built on relationships in which each component must do its part. Customers, employees suppliers, and even communities all participate in a relationship that exists to provide a product or service that meets a need. Each plays a role, and while some are larger than others are, all contribute to success.

The question on the planet's ability to recover from out of sync relationships is still being debated, but there is no question about the impact of poor relationships in organizations. The rapid pace of change means that even small misalignments can have a significant impact.

Principle #2: Behavior, not intentions, communicates what is important to us.
The plaque on the wall said, "The customer is king," but the service I received made me feel like an indentured servant. Similar statements can be heard from employees, suppliers, investors, and communities. The message is the same in every situation. What we do sends the true message about what is important. Credos, vision statements, and annual objectives state intentions. Behavior, however, builds or destroys relationships and results.

Principle #3: Process, not programs, builds on-going results and relationships.
Programs, by nature have a starting and ending point. Process continues forever. Organizations that approach the task of improving results, enhancing relationships, and serving stakeholders from a process perspective still implement new programs, but they view them as another piece of the puzzle. New programs viewed as a tool to improve the process are destined to become important additions for achieving success rather than another example of MBBS.

Principle #4: The honors of long-term success follow the consistent honoring of self and others.
The word "honor" is traditionally associated with one's character or with being held in high regard. However, there is another definition of honor-to treat with great respect and importance. Individuals and organizations that honor themselves and others master the concepts of alignment, admiration, and assurance. They seek alignment to build constancy of purpose and consistency of action. Admiration leads to respect and the desire to give one's best out of personal commitment rather than mandated compliance. Assurance provides the guarantee of both word and deed. It comes from a deep sense of integrity and accountability resulting in quality products, services, and relationships.

From Principle To Practice

A commitment to results, relationships, and making each stakeholder successful makes sense conceptually. The challenge of moving from principle to practical application is more difficult. The following five activities can help.

1. Take the long-view.
The long-view moves the focus off immediate profit or protection of assets. It often requires leaders to take a risk and make tough decisions.

Lennox Industries, one of North America's three largest heating and air conditioning equipment manufacturers, faced a dilemma. They had a history of commitment to providing dependable, high quality heating, ventilation and air conditioning equipment. Yet, in a competitive marketplace, were they willing to risk present returns and future security on a new technology that people might not want anyway? Then President Ray Robbins says, "We had a duty to our shareholders, our customers, our suppliers, and the communities where we work and live. Our first obligation was corporate survival . . .(but) we had a reputation as an industry leader, and that reputation could only be kept if we were willing to take the inherent risks involved in leadership." The result was positive. The Pulse furnace revolutionized the heating industry and produced positive benefits for stakeholders.

Would the same decision be made today? Absolutely, if long-term success is the goal.

2. Identify important relationships and set specific goals.
Washington Irving said, "Great minds have purposes, others have wishes." Moving from principle to practice dictates focused action to achieve a specific purpose. Your action plan should identify stakeholders; define a specific objective for each; articulate a course of action to achieve the goal and determine how success will be measured and evaluated. Most organizations prioritize their commitment to various stakeholder groups with stockholders coming first. Johnson & Johnson, one of the best examples of a commitment to results and relationships with a variety of stakeholders, places them last. The Johnson & Johnson Credo states that their first responsibility is to the users of their products and services. Employees and communities are listed next, and stockholders complete the list. A February 21, 1986 article in the Miami News summarized the impact of this approach as it analyzed the company's response during the 1982 Tylenol crisis, "J&J is in business to make money. It has done that very well. But when the going gets tough, the corporation gets human, and that makes it something special in the . . . business world."

3. Initiate change from the inside out.
Lasting change always occurs from the inside out for individuals and organizations. Couples experiencing problems often make external changes to improve the relationship. However, lasting results are achieved only when both parties make an internal change in the way they view themselves and their partner. Likewise, many organizations found that their efforts to improve results and relationships with customers through Total Quality Management failed because the effort was mandated from the top down and appeared inconsistent with previous actions. Organizations that began the process with an internal foundation of trust and integrity found it a valuable tool to help them achieve their goals.

4. Open up to build ownership.
Absolute ownership is only possible through equity. The ownership associated with a personal commitment to the organization, its goals and its values is possible once people understand and agree with decisions and direction. Building understanding requires the communication of the "what's" and "why's." Most important, it takes our willingness to understand the issues, objectives, and concerns of others. Agreement follows once understanding has been achieved. It is enhanced by the opportunity to participate. Ownership results when the individual or group identifies its goals with the organization and sees their mutual success.

5. Remember the Five S's
Attention to five areas is necessary in order to assure an effective change process. They are strategy, structure, systems, skills, and shared values. Many efforts to improve results and relationships begin with sound strategy and fail in implementation. It is important to remember that structures and systems create habits. A strategic decision to improve relationships with suppliers is ineffective if the purchasing system and hours of business (structure) make it difficult for them to do business with you. Skills ensure that those involved have the ability to perform. Shared values guide how decisions are made and activities implemented. Shared values, also, influence commitment to the desired objective.

We have three tools with which to compete: products, services, and relationships. Products and services have been the focus points of past emphasis, and we have now reached a point where producing a quality product and providing great service are the minimum standards to compete in the game. The search for improving results in the future lies in our ability to establish and maintain solid relationships with each stakeholder group. That is no MBBS.

© 1995 by Pennington Performance Group; Dallas, TX. All rights reserved.
This article may be downloaded for personal and professional development. Copies may be shared within an individual organization. All other uses of this material are strictly prohibited without written permission from the author. This article first appeared in Executive Excellence.

Randy Pennington is President of Pennington Performance Group, a consulting firm that helps organizations achieve the results they want without sacrificing the relationships they need. For additional information or comments: contact via telephone at 972/980-9857; e-mail at Randy@penningtongroup.com; or on the World Wide Web at http://www.penningtongroup.com.

[ back to the articles page | top ]