Thursday, May 30, 2013

The Advantage

The Advantage, by Patrick Lencioni, is a very intelligent business book, and if you have read some of the author’s books before, you will find this one is in a very different format from his others as it does not follow a fictional story to illustrate points.  Instead, this book summarizes all of the author’s prior business books in to one, utilizing examples and quotes from his previous works.  In the end, the author’s message is very clear, and that is organizational health trumps all. 

By self-admittance, organizational health is a little bit difficult to define and is even more difficult to measure.  The author states that “organizational health is about integrity, but not in the ethical or moral way,” and that some characteristics of a healthy organization include “minimal politics, minimal confusion, high morale, and low employee turnover.”   The author explains that having organizational health does not require “intelligence or sophistication” but rather “uncommon levels of discipline, courage, persistence, and common sense.”  Thus all companies, if they want it, can be a healthy organization and benefit from what the author terms the advantage.
This book gives multiple points, strategies, or areas of emphasis in order to make an organization healthy and I want to list a few below that I believe to be some of the most critical.

#1  Communication
Communication is so important because how we communicate, when we communicate, and what we communicate forms the opinions of others about our organization.  Because it is so important, every time a leader communicates it should align with the organization’s goals, values, and purpose for existing so that communication is always consistent and constructive.  Communication must bring clarity and must be frequent.  The author suggests employees won’t believe their leaders really mean something until they have said it 7 times.  And communication cannot be delegated to others from the top leaders.  The author believes that communication in most instances is the reason for most organizational problems.  Many companies and many people in life fail to value words and whether we like it or not, our communication tells stories and becomes reality to others.  Thus healthy organizations are great at communicating. 

#2 Values
Every healthy organization has to have a set of values that are so important to them, they drive all decisions.  Everything an organization does must reflect them.  These values guide employee behavior and provide clarity to all in the organization.  And the best organizations are completely intolerant of violations of them.  Even hiring, and termination decisions should be based around these values.  The author states that keeping a strong performer that does not live the values sends a message to everyone else that the organization really isn’t that serious about them.  Truly living up to values makes an organization healthy. 

#3 Top Priority
Too often to many organizations get weighed down with too many objectives or goals or “top priorities” that they do not obtain the “level of focus they need to succeed” and they end up doing a bunch of things in a mediocre way.  Healthy organizations learn to focus on what is most important NOW.  Having a very clear top priority that everyone across the organization is focused on will help the company have superior success.  Companies must frequently ask themselves “if we accomplish only one thing during the next month, or 6 months (etc.), what would it be,” and then they must ensure all are made aware of the most important priority for the timeframe selected.  This top priority should become a “rallying cry”, leaving no room for confusion or disagreement.  Having one top priority improves organizational health.    

These are three of the many important things “healthy organizations” are good at and thus what makes them healthy.  At the conclusion of the book, the author emphasis how organizational health blesses the lives of so many people.  Not only are workers happier but also their families, the customers, and everyone who has any interaction with the company.  I really enjoyed this book as I believe it provides a lot of great insight in to how to run a successful organization.

To see how I rated this book, click here.    

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