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Collaborating for High Performance

Sep 1, 2011

Harness collaboration to achieve unparalleled business outcomes.

Harness collaboration to achieve unparalleled business outcomes.

Collaborating for HIGH PERFORMANCE

BY HOWARD M. GUTTMAN

“Build a culture of trust and innovation. Collaborate.”

That’s the advice splashed on the cover of Harvard Business Review’s July-August 2011 issue, devoted to the subject of collaboration. HBR’s decision to spotlight this topic underscores an important truth: While collaboration has always been an important component of success, in the 21st century, it has become a “must-have.”

Gone are the days when organizations could be run effectively using the hierarchical, command-and-control model, with its clear leader-follower distinction and concentration of power at the top. The advent of globalization, the growth of information technology, new forms and intensity of competition, and the pressure for rapid innovation have all combined to require a new organizational model: one with fewer layers, where decisions can be made faster and by those closest to the action, and in which functional silos have been replaced by cross-functional, collaborative teams at every level.

In the past decade, more companies have recognized the value of moving to this new horizontal model.


Teaming for Success

Collaboration is one of the hallmarks of a high-performance team. On such teams, the old leader-follower paradigm has been replaced by a radical new notion: Every member is a leader in their own right, and everyone is equally accountable for the success of the business.


One executive likens this mindset to that of individuals on an athletic team: When the team wins, everyone wins; when it loses, everyone shares in the loss. Another apt analogy, drawn from business rather than sports, compares members of great teams to members of a board of directors. They stay focused on overarching goals—the results the company needs to achieve to stay competitive—and prioritize swift, effective action to maximize ROI with every decision.


Members of high-performance teams rebalance their attachment to their specific functions. They are team members first and functional representatives second. They don’t vie for the largest handout during budget cycles unless a solid business case supports it. They contribute technical expertise across functions when needed and weigh in on the performance of other functions when necessary.


Aligning for High Performance

The first step in creating a high-performance team is aligning it in five key areas:

  1. Common direction: Clarity and commitment to a shared direction.

  2. Business deliverables: Focus on goals that evolve from that direction.

  3. Roles and responsibilities: Clear definitions for each member.

  4. Protocols: Ground rules for decision-making and interpersonal behavior.

  5. Business relationships: Open and honest communication.

When teams align in these areas, they gain performance muscle and foster unprecedented collaboration.


Cascading the High-Performance Model

As Mars, Inc. learned, there is no better way to spread the increased efficiency and collaboration achieved by aligning a senior team than by holding multi-tier alignments.

The Redken USA Case

Redken USA, led by Pat Parenty for 10 years and now president of brands for L’Oréal’s Professional Products Division, is another organization that benefited from this approach.

When L’Oréal acquired Redken in 1993, the brand had fallen from number one in hair color sales to third or fourth place. Despite numerous initiatives—including advertising strategies, communication tools, and new product development—the team’s efforts floundered due to internal conflicts. As Parenty noted:"You can’t get the work done if you are dealing with infighting all the time."

In 1997, Redken’s top team decided to make a radical shift to the high-performance model.


Immediate Impact

The alignment session brought immediate change:

  • Clarified roles and responsibilities: Decision-making power concentrated with the SVP was addressed.

  • Encouraged candid feedback: Once frowned upon, open dialogue became the norm.


When the SVP retired, Parenty assumed leadership, and the team continued progressing toward high performance. The results were so impressive that the senior team expanded the alignment process to the second tier—the company’s 25 directors.


Multi-Tier Alignment

The two tiers were aligned around the same five key factors:

  1. Common direction

  2. Business deliverables

  3. Roles and responsibilities

  4. Decision-making protocols

  5. Business relationships


The directors received training in leadership, conflict management, and influence skills to function at high-performance levels. Collaboration between the tiers improved, redundancies were eliminated, and decisions were made faster and more effectively.


Extending Alignment

The process continued with the 100 managers reporting to the directors and was repeated until all managers and field personnel were aligned. New employees were introduced to the culture through a structured process to ensure enthusiastic adoption from day one.

By 2007, Redken had achieved 10 consecutive years of double-digit sales and profit growth—a record unmatched in the hair care industry during the past decade.


Conclusion

When all is said and done, the results organizations achieve depend on how well their people work together. The horizontal, high-performance model fosters collaboration and provides a framework for teams to lead, own, question, challenge, create, solve problems, make decisions, and plan as a cohesive, goal-driven entity.

It is the best way to create a collaborative enterprise that delivers results everyone can be proud of.


Howard M. Guttman is the principal of Guttman Development Strategies, Inc., a Mt. Arlington, NJ-based consulting firm. He is the author of Great Business Teams: Cracking the Code for Standout Performance (www.greatbusinessteams.com). His most recent book is Coach Yourself to Win: 7 Steps to Breakthrough Performance on the Job and in Your Life (www.coachyourselftowin.com).

American Management Association MWORLD FALL 2011

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