Welcome
Welcome to the
latest issue of Bringing Work to Life.
We explored
the following topics in the past twelve issues (all newsletters are
available at
www.elsdon.com/newsletters.htm):
o
Career stepping stones (Fourth Quarter 2009)
o
Portfolio careers (Third Quarter 2009)
o
Career windows (Second Quarter 2009)
o
Handling upheaval (First Quarter 2009)
o
Career transformation (Fourth Quarter 2008)
o
Career interdependence (Third Quarter 2008)
o
Demystifying workforce metrics (Second Quarter 2008)
o
Transforming a Human Resources (HR) career (First Quarter 2008)
o
Stewardship and governance (November/December 2007)
o
Finding the peaks (September/October 2007)
o
Career plateaus – what to do about them (July/August 2007)
o
Workforce planning (May/June 2007)
In this issue
we address “The Purpose of Organizations.”
The Purpose of Organizations
An interesting comment from a friend and colleague
prompted this article. She said “your comments and writing suggest that
you don’t believe in capitalism.” Having spent my working life in a
capitalist environment, and observing the substantial contributions it
makes to our lives, this was a little surprising. It caused me to
reflect and acknowledge that I have become increasingly concerned that
unbridled capitalism, when it becomes only an expression of the
individual greed and ego that led to the recent economic collapse,
presents fundamental challenges. A face of capitalism that honors and
respects societal obligations can be a powerful force for good. One
which does not, diminishes the lives of citizens. So it is in this
context that we explore the purpose of organizations.
What is success for an organization? On one level
an answer to this question is that success is a tangible increase in
organizational value, which is reflected in shareholder value. However,
shareholder value does not address the purpose of nonprofit
organizations and there are other aspects in a for-profit organization
that need to be included. Considering the organization as part of a
broad social network, affecting the lives of employees, the communities
in which it operates, and the destinies of partner, customer and
supplier organizations, it is reasonable to conclude that factors other
than short-term shareholder value are also critically important. One
pre-eminent factor is the social contribution of the organization. This
means the extent to which the organization enhances the quality of life
for those in its constituent communities. Indeed this social influence
is the essence of the long-term contribution of the organization. Value
creation in financial terms, particularly related to shareholder value,
is simply a subset of this larger contribution. The organization makes
this larger contribution by being a key link in the chain between
individuals and the broader constituent communities in which it
operates. This brings us to the following questions that speak to
organizational purpose. They are particularly pertinent for those in
leadership and HR roles in organizations:
•
What is the nature of the relationship that should be built with
people in the organization? Is it based on growing capabilities and
accomplishments over time, or is it based on short-term transactions?
•
How can an environment be crafted that enables each person to
reach his or her full potential?
•
How is the creation of value in the organization maximized while
respecting the needs of each person in it?
•
What is the appropriate role of the organization in supporting
community well-being?
What is the nature of the relationship that
should be built with people in the organization? Is it based on growing
capabilities and accomplishments over time, or is it based on short-term
transactions? The process of workforce characterization described
in Affiliation in the Workplace (Elsdon 2003), and in the
September/October 2006 issues of Bringing Work to Life, provides a basis
for identifying different segments of the workforce and defining the
form of relationship sought for each segment. For example, in one
workforce segment organizational and individual needs may be best served
by an extended relationship of continued development, in another segment
an emphasis on meeting fixed term contractual commitments, maximizing
flexibility and supporting departure when needed may be most
appropriate. The workforce characterization process is an important
precursor to setting mutually acceptable expectations on the part of the
individual and the organization. It leads to multiple forms of
relationship for a given organization that can cover a broad spectrum
from in-depth, extended relationships to short-term engagements.
How can an environment be crafted that enables
each person to reach his or her full potential? Leaders can begin
to address this question by identifying, nurturing and communicating an
inspiring purpose for the organization that causes people to affiliate.
Under the umbrella of such a purpose, the provision of a framework and
tools are needed to enable each person to strengthen their
self-knowledge and then define a fulfilling personal path forward. The
framework and tools also need to include creating an open environment
that provides information about, and access to, opportunities internally
and with workforce partners.
How is the creation of value in the organization
maximized while respecting the needs of each person in it? When
leaders create an environment that enables each person to understand
their aspirations, to understand where they can be most effective, and
systems that allow people to align their work with their preferences
remarkable alignment also occurs between individual and organizational
objectives. This does not mean installing complex bureaucratic
processes. Instead it means equipping people with the wherewithal to
take initiative for their own development and providing incentives,
support and tools to help them do so. It also means structuring rewards
for managers to encourage development of individuals, which may mean
their movement within the organization.
What is the appropriate role of the organization
in supporting community well-being? The organization plays a
pivotal role in bridging from the needs of individuals to those of
constituent communities. Demonstration of contribution to social good
is a fundamental purpose of organizations, with shareholder value
creation a subset of this. With that in mind leaders must continually
reassess the contribution of their organizations to a broad range of
constituents. This is strengthened by developing the equivalent of a
balanced scorecard, only now extending well beyond traditional internal
boundaries to community interaction and influence.
This latter perspective further underlines what
success is for an organization. For the organization’s broad
contribution to all of its constituent communities defines such
success. Reaching for this success means being clear about individual
purpose, a crucial issue for leaders and HR. For it is from this self
understanding that it is possible to reach out to others and create the
needed environments in organizations. It is from this sense of becoming
that behaviors flow which respect others. It is when capitalism honors
such respect, and the community context within which organizations
operate, that it has the potential to be a powerful force for good.
Some of this article is extracted from Affiliation
in the Workplace by Ron Elsdon (Praeger, 2003).
Income, Poverty and Health Insurance Trends
Information from the Center for Budget and Policy
Priorities underlines the increase in income inequality that occurred
from 2002 to 2007. The following figure shows that two-thirds of U.S.
total income gains from 2002 to 2007 flowed to the top 1% of U.S.
households, and that top 1% held a larger share of income than at any
time since 1928, just before the great depression (Center for Budget and
Policy Priorities, September 9, 2008).
Source: Center on Budget and Policy Priorities,
September 9, 2008 Report
Recent information from the U.S. Census Bureau (the
following five figures are from a U.S. Census Bureau Report, Income,
Poverty and Health Insurance Coverage in the United States: 2008,
issued in September 2009) shows that real median household income had
declined in 2008 from the level of the early 2000s as shown in the
following figure:
Over the same time period the number of people
living in poverty increased substantially to 39.8 million in 2008 as
shown in the following figure:
Particularly disturbing is the increase in the
poverty rate since 2000 of those under 18 years old as shown in the
following figure:
Over this same time period there was a substantial
increase in the number of people without health insurance, reaching 46.3
million in 2008 as shown in the following figure:
The private health insurance approach continued to
demonstrate alarming ineffectiveness covering a smaller fraction of the
population as shown in the following figure:
These trends have fatal consequences for many in
our community. The following figure shows how life expectancy is
dramatically shortened when income falls below the poverty line.
Source: Spotlight on Poverty and Opportunity
Report “The Poor Pay More” by George A. Kaplan, September 2009.
“From 1980 to 2000, when the poor were losing
ground to the wealthy, the life expectancy gap between those living in
the most disadvantaged areas (bottom decile) and those living in the
most advantaged areas (top decile) increased from 2.8 years to 4.5
years, a 60% increase (Kaplan, 2009).” This trend will likely have
intensified since 2000 as income inequality has further increased. All
are affected when some are in distress. This underlines why it is
incumbent on us to embrace those policies that offer support to those
who are disadvantaged in our communities.
Quote
"I would love to live
Like a river flows,
Carried by the surprise
Of its own unfolding."
John O’Donohue. Fluent. From Leading
from Within. Edited by Sam Intrator and Megan Scribner.
Elsdon Organizational Renewal (EOR) Mentions
·
Reviews of
“Affiliation in the Workplace: Value Creation in the New
Organization.” Ron Elsdon. Praeger, Westport, CT (2003)
o
Harvard
Business School
·
HBS Working Knowledge: Organizations
o
Global Diversity Institute
·
Global Diversity Institute - The Journal of Diversity Praxis
o
Journal of Asian Economics
·
ScienceDirect - Journal of Asian Economics : Ron Elsdon, Affiliation in
the Workplace: Value Creation in the New Organization, Praeger
Publishers, Westport, CT (2003) 280 pp. (hardcover), ISBN 1-56720-436-8,
$49.95.
o
Greenwood Publishing Group
·
Affiliation in the Workplace — www.greenwood.com
·
Chapter titled
“How Can You Grow Your Practice with Purpose?” in National Career
Development Association Monograph, “Starting and Growing a Business in
the New Economy” Edited by Sally Gelardin, 2007
·
Recorded
webinars for the American Institute of Chemical Engineers
o
Staying Career Fit in Turbulent Times
·
http://apps.aiche.org/chemeondemand/Preview.aspx?ID=5b5ab7c8-d88a-4592-8b97-0a8c25eeea59
o
Networking and Connecting
·
http://apps.aiche.org/chemeondemand/Preview.aspx?ID=ccdc8053-0321-4c3f-b1c7-8c4254e2fffb
o
Progressing in Your Organization
·
http://apps.aiche.org/chemeondemand/Preview.aspx?ID=3fd526f3-ac7e-4a3e-b70b-08d771211e46
o
Negotiating for a New Position
·
http://apps.aiche.org/chemeondemand/Preview.aspx?ID=aea9e4cc-d045-4d20-bebe-cbba93ab0d1a
·
Webcast for
the Human Capital Institute (and associated white paper)
o
Building Workforce Affiliation to Keep Your Best and Brightest Talent
·
http://www.humancapitalinstitute.org/hci/research_community_product.guid;jsessionid=8C417EAC34880D6A38E82D4FBE2598C4?_webcastID=74366
·
Recorded
webinar for the Project Management Institute
o
“Becoming Career Fit in Turbulent Times”
·
http://pmi-issig.org/Default.aspx?tabid=319
·
“Building a
Strong Workforce Through Affiliation.” Chapter 26 in “On Staffing:
Advice and Perspectives from HR Leaders.” Eds. Nicholas Burkholder et
al, John Wiley & Sons, Inc., Hoboken NJ (2004)
o
http://www.wiley.com/WileyCDA/WileyTitle/productCd-0471410691,descCd-tableOfContents.html
·
“The Growing
Divide Calls for Advocacy.”
o
Article in March, 2007, NCDA Career Convergence magazine
·
http://209.235.208.145/cgi-bin/WebSuite/tcsAssnWebSuite.pl?Action=DisplayNewsDetails&RecordID=947&Sections=&IncludeDropped=1&AssnID=NCDA&DBCode=130285
·
“Reaching for
Our Deep Gladness”
o
Article in May, 2005, NCDA Career Convergence magazine
·
http://209.235.208.145/cgi-bin/WebSuite/tcsAssnWebSuite.pl?Action=DisplayNewsDetails&RecordID=625&Sections=6&IncludeDropped=&AssnID=NCDA&DBCode=130285
·
Mention in
article on cost of turnover
o
East
Bay Business Times, April 2005
·
Turnover costs exceed employers' estimates - 2005-04-25
·
“Worklife
Survival: Finding a Fit”
o
Article for HR West, February 2005 (Northern California Human Resource
Association)
·
http://www.nchra.org/StaticContent/Download/EXT0205007.pdf
·
Interview in
the education field “Affiliation as a Unifying Principle in Education”
o
Career Pro News
·
Affiliation and Education
·
MBTI Step II
workshop
o
CCDA News, April 2005
·
Local Chapter News
·
Review of ICDC
Global Issues Forum
o
CCDA, January 2005
·
ICDC Global Issues Forum
About EOR: Our Value Contribution
We enhance
your workforce, leadership and organization by:
·
Using
proprietary approaches to understand workforce and leadership challenges
·
Creating
tailored action plans and solutions to strengthen workforce and
leadership practices
·
Building
individual capabilities and contributions
We enable you
to focus on external results and building value, confident that your
organization and leadership are operating at peak effectiveness.
Our Mission
To support
your organization by enhancing performance, productivity and
effectiveness through revitalized workforce relationships and leadership
practices.
Our Approach and Values
We tailor our engagements to the needs of each organization with a
process designed to surface critical issues, identify root causes, build
effective solutions, monitor progress and implement.
With a scope that ranges from system and organizational interventions to
work with individuals, our focus is on the heart of the relationship
among the individual, the organization and the community. We believe
that organizational and community prosperity are built on enabling each
person to fulfill his or her potential.
Our Services
We work with
individuals and groups in your organization to drive performance and
development for both the short and long term. As a result people will
choose to work in your organization and will prosper there.
We bring
solutions when you need to:
·
Reverse
declining revenues and performance
·
Revitalize
your workforce
·
Stem the loss
of key talent
·
Redirect your
organization to new areas
·
Stop losing
customers or market share
·
Penetrate new
markets
·
Combat
aggressive competitors
·
Handle major
change
·
Break down
communication barriers
·
Energize your
leadership team
·
Successfully
build on an acquisition or merger
Our
proprietary services include:
·
On-site career
services that support the development of your workforce, build strength
in depth, increase individual fulfillment and affiliation, and
accelerate productivity growth
o
On site career counseling
o
Individual and group delivery
o
Metrics to guide on-going system enhancement
o
Integrated with the needs of your organization
·
State-of-the-art tools to take the pulse of your organization and then
move to action
o
Web enabled systems
o
Experts to gather and analyze information, moving your organization to
action
·
Individual
leadership coaching to give you world class leadership capabilities
o
Leaders who know themselves and their aspirations, build their
capabilities and become catalysts developing others
·
Workshops to
build interpersonal skills in your organization so that:
o
Communication is timely, concise, accurate and personal
o
People listen to each other
o
Negotiations are quick and effective
o
Differences create rather than destroy value
o
Teams move forward, get results and quickly commercialize new products
and services
o
People understand and link their motivations to your organizational
needs
o
Your teams understand what it takes to create a committed, energized
workforce
o
People use their time well
·
Systems that
make it easy to drive performance and build capabilities by:
o
Linking objectives throughout the organization
o
Strengthening key competencies
o
Making sure you have the bench strength where and when you need it
o
Giving people tools to take charge of their own careers and development
and have a major long term influence on your organization
·
Proprietary
simulation and modeling techniques that let you explore how to maximize
the value of your workforce
o
Move from guessing what might happen to looking in depth at the
financial impact of different approaches
