November 11, 2003

 

Baldrige winners must “confront brutal facts”

 

Gene Mage

 

“Truth stood on one side and Ease on the other; it has often been so.”(Theodore Parker, 19th Century Abolitionist)

 

Jim Collins’ book Good to Great describes seven factors that enable companies to break away from the herd to become industry leaders.  How do those criteria compare to the seven criteria for performance excellence articulated in the Malcom Baldrige National Quality Award? 

 

Last week we examined Collins’ first two factors:  “Level 5 leadership”, and “First who, then what”.  For both of those criteria, the Good to Great factors and the Baldrige criteria support and complement one another, as two sets of eyes peering through different windows into the same room.  Collins’ book emphasizes leadership behaviors, while the Baldrige criteria emphasize responsibilities and processes.

 

The third of Collins’ criteria, “Confront the Brutal Facts”, also harmonizes well with the Baldrige criteria.  Indeed, the idea of confronting the brutal facts” is the life blood of the Baldrige assessment.  If the Baldrige Award criteria teach us one thing, it is to listen and learn, and use data to improve organizational performance.

 

So for this week, let’s look deeper into Collins’ third factor, “Confront the brutal facts”.

 

1.  Courageous leadership.  Confronting the brutal facts is a courageous act made by leaders of high character.  According to Collins’ research, leaders of Good to Great companies listen to bad news, and encourage others to speak openly about problems.  They create a climate free from fear.  Secure leaders suspend their egos for the good of the organization.  In that environment, employees and leaders feel comfortable analyzing and learning from mistakes, and facing up to their problems with a commitment to making things better.  In doing so, they tap into the vast mind power of ordinary employees.  They also bridge traditional “turf” battles by working together to solve problems.

 

From a Baldrige perspective, the Leadership criterion demands that leaders create the kind of empowering work environment described in Collins’ book.  Moreover, the Strategic Planning category in the Baldrige assessment places special emphasis on embracing a realistic view of customers, markets, and the competition.

 

2.  More than reports and meetings.  But what really sets the Baldrige winning companies apart are the processes employed to capture and utilize information, feed it back into the organization, and follow up with corrective actions.  In other words, gathering, analyzing, and utilizing data goes beyond mere reports and meetings.  The “feedback loop” from customers and employees translates into specific action, and leaders are held accountable for implementing those actions.  The Customer Focus and Measurement categories lay out crystal clear requirements for the what, how, and why of confronting the brutal facts. 

 

But while the Baldrige assessment calls for fact-based management, Collins lays that responsibility squarely on the shoulders of senior leadership.  “Prima Donna” leaders who cannot hear bad news without throwing a tantrum simply cannot face the facts at the critical moments when the organization really needs open dialog.  Furthermore, senior leaders are responsible for creating a work environment that makes truth-telling safe.  That means asking questions, engaging in skillful dialog, and responding appropriately to difficulties.  Gutsy leaders take personal risk and admit it when something is wrong, even when that openness might be embarrassing.  They place the needs of the organization above their desire for deference.

 

3.  Five leadership actions.

 

·        Take a problem solving approach.  The leader’s posture towards bad news can make or break the work environment.  Rather than shoot the messenger, work together with others to solve the problem and capture the learning.

·        Admit when you are wrong.  If you blow it, talk about it.  Some vulnerability on the part of the leader can be very disarming.

·        Celebrate truth-telling.  When someone steps up, and has the guts to tell the hard truth, visibly and vocally recognize that person.

·        Hold leaders accountable.  It must not be “OK” to ignore uncomfortable data.

·        Share data openly.  As one notable authority on the subject once said, “You shall know the truth, and the truth shall set you free.” (Jesus Christ)

 

For more information on Jim Collins visit http://www.jimcollins.com .  For more information on the Malcom Baldrige National Quality Award, visit http://www.quality.nist.gov .

 

Got a business or leadership challenge?  Ask Syndicated Columnist Gene C. Mage at http://www.makingitwork.com .