Retail News South Africa

It's about the people, people!

Companies expend a lot of effort on strategy, often forgetting that what makes or breaks business is its most valuable asset: its personnel... despite the latest business buzz words of 'sustainability', 'global competitiveness' and 'performance'.

These are obvious goals for companies wanting to succeed in a new order, where change is something we need to deal with on a daily basis. Along with these buzz words come the expected paradigms - performance management frameworks, models, maps and measurement tools.

The problem is that while management spends a lot of time on strategic intent, what often gets lost in the process is the real issue, PEOPLE.

People, the one asset of a company that is talked about more and understood less than any other, yet it is the people within organisations that management entrust to take companies forward into the future.

The people dynamics of an organisation are vital to a company's success or failure and more so now than ever do management need to understand the dynamics of their organisational culture before implementation of strategic performance models and measurement.

But how do organisations apply this on a practical level? "It is no coincidence that successful companies are the ones that make people values the hallmark of the workplace. The true reflection of an organisation does not come from management consultants or experts. It comes from the employees itself, why they like or dislike working for a company, and what kind of people fit in or don't fit into their unique culture".

It is the people and social relationships that shape a company's 'character' or culture, and it is a recognised fact, although often grossly neglected that an organisations culture powerfully affects bottom line and ultimately makes or breaks a business.

There are a number of different variables that come into play within organisations, whether it is merely satisfaction with the job, to support for change, communication issues, alienation, empowerment, to demotivation, wastage and blaming. Management need to understand the factors within their organisation that underpin the everyday actions of staff.

It is an ideal for all organisations to turn their staff into a strategic asset. Management do however have to ask the questions that sometimes they don't really want to hear the answers to, for example, if 50% of your staff wouldn't recommend your product/company to friends or family, are they the best ambassadors for your organisation? What if, for example, a majority of your staff contingent said they saw no prospects for themselves within the company in the future or that the good people are always leaving? This has an implicit impact on the retention of valuable members of staff.

There is no one right culture for a business. Only a right culture for a business situation. Most organisations are characterised by several different cultures at once and management need to position ones organisational culture for greater competitive advantage. This can only be done by understanding the existing dynamics at play within an organisation. Only then can management strategically fine-tune and transform an organisations culture, achieving support for change by getting to the core of what makes people 'tick'.

About Karon Clare

Karon Clare is with The Corporate Scoreboard, a consultancy specialising in the research and analysis of organisational culture and related "softer" issues. More info: .
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