Investor's Business Daily, May 11th, 2007
It begins with a simple premise.
If you accept that people are a company's only real competitive advantage -- and that the chief executive is a facilitator who spreads power among all levels -- then you set the stage for collective success.
That's the lens through which Richard Teerlink, retired chairman and CEO of Harley-Davidson HOG, views leadership.
"An organization has an obligation to be clear about what behaviors it expects," said Teerlink, co-author of "More Than a Motorcycle." "Leaders must take responsibility for creating an operating environment where communication gives power to everyone, so that the leader is not the font of all wisdom."
He found that by asking four key questions, he could engage employees in a dialogue that helped them grasp which behaviors were needed to meet a firm's expectations.
'How should we behave?' The first question focuses on an organization's values. At Harley-Davidson, employees worked with Teerlink and his management team to define five values such as "tell the truth," "keep your promises" and "encourage intellectual curiosity."
If people are an organization's only sustainable competitive advantage, then it follows that the company will want curious staffers who don't engage in hearsay. Articulating simply worded values removes the mystery of what type of behaviors everyone needs to embrace.
'What's important?' The second question spotlights company issues that merit attention. Harley-Davidson's workers identified five issues: quality, productivity, flexibility, participation and cash flow.
Each issue spurred a series of more detailed questions. In terms of quality, for instance, employees probed to analyze who their customer is, what constitutes quality work and how to prevent defects.
'Who do we serve?' The third question shifts the emphasis to stakeholders. While Teerlink calls stakeholders "anybody who can put you out of business," his colleagues at Harley-Davidson applied a broader definition to include employees, customers, suppliers, the government and society at large.
'How do we measure success?' The final question encompasses the organization's vision. The Harley-Davidson team concluded that their company's vision is to develop mutually beneficial relationships with all stakeholders.
"The vision is the product of the other three questions," Teerlink said. "Yet many CEOs make the mistake of starting with the vision without setting the context first."
You can lead employees through these four questions using both formal and informal channels, Teerlink says. It's fine to hold retreats and round-table discussions, but it's equally important to engage staffers in casual conversation and solicit their input.
Invite them to ask themselves, "How do I add value?" This enables them to reflect on their role, find purpose in what they do and offer insights that help enhance the organization's values, issues, stakeholders and vision.
