All organizations are focused on outcomes, and rightfully so. They need to produce outcomes to appease shareholders, meet goals and keep the business operational. However, a relentless focus on "outcomes" often leads to a culture of burnout, misalignment and disengagement, and it also doesn't guarantee the desired results will be achieved.
What often delivers results, however, is a people-first culture. I don't mean people-first in the sense of fun and extravagant perks. What I mean is a culture where people are enabled to do their jobs and are aligned to goals.
This isn't just a nice-to-have. Companies that have this mentality and culture are proven to perform better. Consider that "the top quartile of publicly traded companies in McKinsey's Organizational Health Index (OHI) delivers roughly three times the returns to shareholders as those in the bottom quartile."
This is why business leaders must reconcile the difference between focusing on results and focusing on enabling people to achieve those results. They must realize that investing in human performance is an investment in financial performance — it's just as mission-critical as any priority task or project.
Capability in your workforce is the ultimate business outcome. If we, as HR professionals, can help our leaders see this and focus on driving human capability — rather than simply outcomes — it will greatly contribute to our effectiveness and role as a strategic business partner.
So what are the main components of a work culture that drives both human capability and performance?
Focus On Alignment
Past research has shown that 95% of employees were either unaware of or did not understand their company's strategy. Only with the highest level of clarity around direction and vision can people make a meaningful impact, especially when they understand how their work contributes to a greater purpose in the company. This requires an investment in education and consistent, frequent communication.
Tools That Provide Access
While many elements of a people-first culture are "soft" in nature, "hard" infrastructure components are of equal importance. People cannot effectively do their jobs without tools and technology that facilitate access to information and other people. The internal technology stack is foundational to increasing the capability of workers.
True Leadership
Leadership that is inspirational, supportive and connected is central to empowering people. Breaking down barriers between leadership and employees requires significant effort in the form of leaders practicing transparency and communication, heightening their sense of emotional intelligence and improving their ability to identify and nourish potential in people — all while encouraging and celebrating intrapreneurship, creativity and innovation on their teams. All of this helps ensure others have what they need to help get the company closer to its goals.
Commitment To Diversity And Inclusion (D&I)
D&I, in its broadest sense, is a necessary ingredient. If workers don't feel respected, valued and heard, they will neither perform to their highest potential nor will they be motivated or comfortable sharing what could be game-changing ideas for an organization. Programs that encourage diversity, inclusion, equality and equity will result in tangible benefits for any organization.
Employee Engagement
One of McKinsey's core elements of organizational health is motivation. Human performance is that much greater when people are engaged with the work they're doing and the people they're doing it with. This requires an overhaul of processes and structures to allow for autonomy and investing in a rewards and recognition program to showcase efforts that embody company values and contribute to the big picture.
Flexibility And Agility In The Way Work Gets Done
Business leaders need to adapt to the simple fact that nine-to-five jobs are not the only (or most effective) means of achieving their goals and getting the best performance out of people. They must support and make room for flexible hours and remote working, and they must run, not walk, toward alternative work models. By incorporating a mixture of traditional (full- and part-time) and agile (gig, contract, project-based) workers alongside automated tools, employers can ensure their people are focused and elevated to work on projects that matter.
Commitment To Employees And Communities
People-first organizations show commitment to the people in their company as well as people in their community who know their company, by doing good deeds. Those who invest time and resources in this area are rewarded with loyalty and commitment in return.
There are many variables that come together to drive business outcomes — whether that's more sales, new product development or something else entirely. The most important variable is undoubtedly human performance and capability. That intersection, where businesses maximize people's potential to drive outcomes and results, is where we, as HR, must help our leaders reside.
