The single greatest
cause of corporate underperformance is the failure to execute. According to
author Ram Charan, such failures usually result from misfires in personal
interactions. And these faulty interactions rarely occur in isolation. More
often than not, they’re typical of the way large and small decisions are made
(or not made) through an organization.
The inability to take decisive action is
rooted in a company’s culture. Leaders create this culture of indecisiveness, Charan says – and they can break it by doing three things: First, they must
engender intellectual honesty in the connections between people.
Second, they
must see to it that the organization’s social operating mechanisms – the meetings,
reviews and other situations through which people in the corporation transact
business – have honest dialogue at their cores.
And third, leaders must ensure
that feedback and follow through are used to reward high achievers, coach those
who are struggling, and discourage those whose behaviors are blocking the
organization’s progress.
By taking these three approaches and using every
encounter as an opportunity to model open and honest dialogue, leaders can set
the tone for an organization, moving it from paralysis to action.
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