People First

Thoughts and ideas from Dunnington Consulting
PEOPLE FIRST
On Building a Powerhouse Workforce

People First -Toward Better Ways, Increased Value and Secure Futures

Organizational health comprises three elements: how well the entire organization rallies around a common vision and strategy, how well the organization executes its strategy, and how well the organization innovates and renews itself over time – toward better. It’s about people.

Over the long term, healthy organizations deliver three times the total shareholder returns (TSR) of unhealthy organizations, regardless of industry.1

According to our research, organizational health – “people first” - is the strongest predictor of value creation and a critical factor in sustained competitive advantage. In one evaluation of 1,500 companies in 100 countries, for instance, we saw that companies that had improved their organizational health realized 18 percent increases in their EBITDA after one year.

Health and M&A. In merger situations, healthy organizations—those that applied various health interventions during the integration phase and emphasized organizational health throughout the integration—gained a 5 percent median change in TSR compared with industry peers after two years. The change for unhealthy companies was –17 percent over the same period.

Health and transformations. In large transformations, companies that embedded organizational- health investments and initiatives in their change programs across an 18-month period saw 35 percent higher TSR than companies that did not invest in health.

Health and resiliency. Healthy organizations are not just higher performers, they are also more resilient and better able to manage downside risk. For instance, from 2020 to 2021, during the COVID- 19 pandemic, healthy organizations were 59 percent less likely than unhealthy organizations to show signs of financial distress.

Health and safety. Companies with superior organizational health are better able than their peers to provide safe work environments, thereby limiting their exposure to financial, operational, and reputational risks. Indeed, companies in the top quartile in organizational health have six times fewer safety incidents than those in the bottom quartile.

1. Leadership is undergoing a generational transformation

It’s fair to say that few—if any—executives anticipated the deeply disruptive business (and societal) changes that would emerge because of the 2020 global pandemic and the speed at which organizations needed to transform themselves. As they have reckoned with changes in where and how work gets done, leaders are learning that they need to be both decisive and empowering.

It calls for a paradigm shift in leadership and, among other new requirements, the need for executives to shift from being controllers to becoming coaches who engage employees and help foster in them a bold mindset of testing, learning, and fast adaptation.7

We believe sustainability in its broadest sense – and “people first” in its relentless daily pursuit – are increasingly imperative issues.

2. Data is the fuel for everyday innovation

Leaders have traditionally thought of innovation as a process for bringing “the next big idea” to life. But our latest data reveal that companies are more likely to succeed with innovation initiatives if “big bang ideas” are supported by data-driven insights and supplemented with smaller, more frequent ideas that target improvements in everyday processes or ways of working. Little things add up. The more customer-connected the data, the more effective the efforts to find better ways. And the better the conditioning for resilience, adaptation, and creating secure futures.

3. The dynamic deployment of talent – the heart of people first - is becoming even more of a competitive advantage

Companies that encourage and even facilitate internal role changes – cross training, rotations, mentoring, developmental assignments - can sharpen employees’ skills, maximize their versatility, encourage learning and provide avenues for growth. According to our findings, employees that experience more mobility and variety at work are 27 percent less likely to report feeling burned out, 47 percent less likely to report intentions to leave their organization, and 2.3 times more likely to recommend their companies to others.

Core people first practices include:

  • Strategic clarity. Healthy organizations effectively translate vision and strategy into actionable and measurable objectives that are clearly articulated and shared with employees at all levels. Reinforced through an operating system that is plan, deploy, review. Rinse and repeat.
  • Simplify and Empower. Healthy organizations tend to have structures, processes, and working norms that speed up decision making, remove layers of bureaucracy, and make it easy for employees to get things done—even when situations are new or ambiguous.
  • Personal ownership. Healthy organizations hire and develop managers who have a deep sense of personal ownership for their work and who foster that same sense of ownership in their teams and employees. Caring counts. Recognition is the secret sauce to promote accountability and ownership.
  1. Customer-Connected Culture. Healthy organizations tend to have a clear view of where and how they fit in the competitive landscape and of their value propositions; they use these insights to set strategic priorities, make decisions, and allocate resources...and undertake intelligent experiments to gain results and learning.
    The leadership imperative
    Q: “How do I run the place each and every day—in each and every meeting—in ways that are both healthy and conducive to creating high performance?”
    A: People First

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PEOPLE FIRST
The approach that creates a powerhouse workforce, and hard-to-copy competitive advantage.

MINDSET – If you hire the right people, and create the right conditions, they will gladly deliver value to customers – which will then produce profits. (Profits are the dependent variable.) If you want your colleagues to be there for customers, you need to be there for them. What you build is a powerhouse workforce, in which people are so well trained they could work anywhere, and so well led they stay and grow – and recruit wisely. Turns out this is very good for business – the impacts ripple through the P&L and balance sheet. The magic starts by getting the best people in the jobs at the right time in their careers.

FRAMEWORK – 6 Key Levers

What is a people-first business culture?

A people-first business culture is an organizational philosophy and approach that prioritizes the well-being, growth, and satisfaction of its employees as a central focus of its operations. In a people-first culture, the needs and interests of employees are placed at the forefront, and the organization values and supports its workforce in various ways. Leadership is viewed as a set of behaviors, not a position. Here are some key characteristics and principles of a people-first business culture:

  1. Job Design: People, especially knowledge workers want to do what they are good at. They want their work to be intriguing and challenging. They want clear and valid expectations and accountabilities. They want relationships to be respectful, professional and occasionally fun. And they want to feel part of the organization’s future.
  2. Employee Well-Being: The organization places a strong emphasis on the physical, mental, and emotional well-being of its employees. This can include initiatives related to work-life balance, mental health support, financial and physical wellness programs.
  3. Open Communication: There is open and transparent communication throughout the organization, from leadership to front-line employees. This helps foster trust and collaboration.
  4. Employee Development: The company invests in the professional growth and development of its employees, offering opportunities for learning, skill-building, and career advancement. Everybody has, and regularly reviews and updates their development plan.
  5. Work-Life Balance: The organization acknowledges and respects the importance of a healthy work-life balance, offering flexible work arrangements and promoting a culture that discourages overworking. This is why hybrid work is here to stay.
  6. Employee Engagement: There is a focus on keeping employees engaged and motivated in their work. This can involve recognition programs, feedback mechanisms, and involving employees in decision-making processes. People support what they help create. It’s very good business to teach managers to coach their people to find better ways to make work easier, faster, simpler, safer, more impactful or valuable.
  7. Inclusivity and Diversity: A people-first culture promotes inclusivity and diversity, valuing differences and creating an environment where all employees feel respected and included.
  8. Empowerment: Employees are empowered to make decisions and take ownership of their work. They have a say in how their roles are defined and executed.
  9. Supportive Leadership: Leaders in a people-first culture lead by example and provide guidance, support, and mentorship to their teams. They prioritize the success and well-being of their employees.
  10. Employee Benefits: The organization provides competitive compensation, benefits, and perks to attract and retain top talent. This can include health insurance, retirement plans, and other incentives.
  11. Recognition and Feedback: Well-conceived recogniton, regular feedback and consstruticve dialog are conducted to help employees grow and improve. This can be a two-way process, with employees providing feedback to the organization as well.
  12. Purpose-Driven: The organization has a clear and elevating purpose beyond profit, and employees are motivated by a shared mission or values that go beyond financial gain.
  13. Adaptability: The culture is adaptable and open to change, as it recognizes that the needs and preferences of employees may evolve over time.

Here are several companies that are often cited as exemplary "people-first" companies:

Southwest Airlines – arguably the most people-first business out there. https://careers.southwestair.com/ Check out their website recruiting page.

  • A career <br/>by you, for you
    A career
    by you, for you

    At Southwest®, you're empowered to create your own career; one that fits the goals–and lifestyle–you want.

    Apply for job opportunities
  • A job built on <br/>partnership
    A job built on
    partnership

    Give this job your all, and Southwest will reward you in ways that allow you to support yourself and your loved ones.

    Learn about our benefits
  • Two middle age business workers smiling happy and confident. Working together with smile on face hand giving high five at the office
    A Culture of
    caring

    People come first. We're a Company that takes care of its People and its communities, and our People take care of each other.

    Experience our Culture
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    A part of a
    ​​​​​​​winning Team

    The name on the front of the jersey is more important than the name on the back. One Team. All Heart.

    Meet our People

Salesforce: Salesforce is often lauded for its strong commitment to its employees' well-being. The company offers various benefits, including generous parental leave, health and wellness programs, and a strong corporate culture that emphasizes giving back to the community.

Patagonia: Patagonia is a well-known outdoor clothing company that places a strong emphasis on environmental and social responsibility. The company is dedicated to reducing its environmental impact and offers benefits such as on-site child care, paid time off for volunteering, and an inspiring work environment.

Zoom Video Communications: Zoom gained recognition for its emphasis on employee happiness and flexibility, particularly during the COVID-19 pandemic. The company implemented remote work policies and provided additional support for employees' mental and physical health.

HubSpot: HubSpot, a marketing and sales software company, is known for its people-centric culture. They offer flexible work arrangements, unlimited vacation policies, and a strong commitment to professional development for their employees.

Costco: Costco is often cited for its employee-friendly policies, including fair wages, excellent benefits, and a strong belief in promoting from within. They have a reputation for low turnover and high job satisfaction among employees.

Etsy: Etsy is an online marketplace for handmade and vintage items that values the well-being of its employees. The company offers numerous perks, such as paid volunteer time and flexible work schedules. They also have a strong focus on diversity and inclusion.

A few ideas for building culture w/ hybrid work

  1. Hire people for values first, then skills - from wherever
  2. Don’t skimp on the onboarding, coaching or mentoring
  3. Job design / fit so that people do a lot of what they do best, and feel their work is intriguing and challenging
  4. Get the OKRs right, and if needed, fix them quickly
  5. Support job sharing /cross training for learning and variety
  6. Support peer recognition often, both formal and informal
  7. Every Monday, invite people to share fun photos (eg on slack, etc)
  8. Hold book clubs, or share good books, podcasts people found helpful
  9. Everybody has individual growth plans reviewed quarterly
  10. Quarterly get togethers – as in sports, everybody needs to know what the score is, how much time is left on the clock, and the playbook
  11. Consistently-cadenced client reviews
  12. Measure NPS scores and relentlessly improve them
  13. Gather customer needs, expectations, priorities into planning inputs
  14. Retros / after action reviews - what was done, achieved, learned
  15. Relentlessly stick to boundaries, values, conditions of satisfaction
  16. Fire colleagues and clients who aren’t in sync with these – sooner, not later
  17. Leadership is understood as a set of behaviors, not a position
  18. Make sure to align customer perceptions of brand, process capabilities, learning and development programs, rewards, recognition and advancement, resourcing decisions - with purpose
  19. Ask people “what would you have to see us do?” in order to stand up and say “it’s about time!” …. then act
  20. Run the business so people (colleagues, clients, suppliers, partners) can become better versions of themselves