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Three Secrets of
Organizational
Effectiveness
How the practices of pride builders can help you build a
high-performance culture.
by JESSE NEWTON and josh davis
Preprint 00271
Three Secrets of
Organizational
Effectiveness
How the practices of pride builders can help you
build a high-performance culture.
cultural intervention in which leaders seek out a few employees who are
already known to be master motivators, adept at inspiring strategic
awareness among their colleagues.
These master motivators are invited
to recommend specific measures
that enable better ways of working.
Its noteworthy that pride builders
in a wide variety of companies and
industries tend to recommend three
specific measures time and time
again: (1) giving more autonomy
to frontline workers, (2) clearly explaining to staff members the significance and value (the why) of
everyday work, and (3) providing
better recognition and rewards for
employee contributions.
These are, of course, widely appreciated management methods for
raising performance. But theyre
rarely put into practice. Perhaps its
because they feel counterintuitive
to many managers. Even the leaders who use them, and whose enterprises benefit from the results, dont
know why they work. So the value
of these powerful practices is often
overlooked.
Thats where neuroscience
comes in. Breakthroughs in human
brain research (using conventional
experimental psychology research in
addition to relatively new technologies like CT scans and magnetic resonance imaging) are revealing new
insights about cognitive processes.
With a little knowledge of how these
three underused practices affect the
brain, you can use them to generate
a more energizing culture.
Autonomy at the Front Line
A regional health insurance company, adapting to the U.S. Affordable Care Act, resolved to create
more brand loyalty in an attempt to
attract customers. One of the first
trouble spots was the call center that
managed claims. Customer satisfaction with health insurance call centers is notoriously low, often with
good reason. There are not always
good options for resolving claims.
Staff members are typically judged
on how rapidly and economically
they can get people off the phone.
The technology is often unsophisticated, catching callers in irritating
voice-mail loops. At this company,
call center employees saw consumers as their enemiesas complainers who berated the employees and
blamed them for a miserable system
that wasnt their fault. All the training in the world could not overcome
their fight-or-flight reaction. This,
in turn, led to low levels of effectiveness and high turnover rates. From a
neuroscience perspective, the system
couldnt have been better designed
to bring out the worst in everybody.
Despite all this, some supervisors in the call centers regularly
managed to mobilize service reps
to deliver great customer care. The
company was eager to learn how.
When they brought these supervisors together, it turned out they had
all, independently, discovered the
same technique: taking the time to
help sales reps and other call takers
see and fully understand the why
of their everyday work. This often
took the form of explaining (or, better yet, demonstrating) the significant value of daily tasks, so that the
Consider the job of helping people who call for information about
their insurance policy. The employees goal is tightly connected with
the purpose of the job. If the goal is
to help families, the employee would
ask about the familys challenges and
describe how its policies could help.
If the goal is to get people off the
phone quickly, the employee would
try to convince callers that the company was already doing everything it
could. Employees will favor the former goal only if they see how it fits
the companys strategy, and if they
are confident that pursuing it will
When the global automobile industry began to recover from the severe
slump of 200810, the leaders of
one major automaker recognized
the need to refocus their orientation
from survival to growth. Employees already knew how to make the
production line work better. Now,
could they do the same in their customer interactions, particularly with
strategy+business issue 76
that hard work will be fairly recognized. Most peoples neural circuits
will respond directly to these, and
the automakers were no exception.
This, in turn, made it more likely
that they would continue behaving
in productive ways. The auto supplier thus laid the cultural foundations to support a shift from financial peril to growth.
Pride and the Imitation Process
Jesse Newton
jesse.newton@strategyand.pwc.com
is a senior associate with Strategy&
based in Chicago, and works with the
firms Katzenbach Center. He specializes
in organizational culture and change
management in industries such as financial services, energy, engineered products
and services, and consumer goods.
Josh Davis
joshdavis@neuroleadership.org
is an assistant professor of psychology
at Barnard College of Columbia University,
and director of research and lead professor
for the NeuroLeadership Institute. His research deals with adaptive emotional state
control and mindbody connections.
Also contributing to this article were David
Rock, founder of the NeuroLeadership
Institute; Jonathan Gruber, former Booz &
Company principal; and Jon R. Katzenbach,
senior executive advisor at Strategy&.
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