12/1/2014 2:19:00 AM
HEADLINES
Cravens at NFDA: High Performance Culture Offers Advantages
Creating a “high performance culture” in a company offers advantages over competitors, Gary Cravens told the National Fastener Distributors Association.
“People who like what they do work harder and those who share common values work together better,” the president of Advance Components Inc. explained.
The high performance culture includes “more openness to new idea, and more sharing of information,” Cravens said. “It empowers our people.”
Cravens offered six steps to creating a high performance culture in a fastener company:
1. Develop and implement an effective Performance Management System
“Start at the top,” Cravens emphasized. The atmosphere created at the top will begin cascading, he added.
Next develop a merit-based, transparent reward system where employees are able to influence the rewards, he advised.
Define company standards and “clearly articulate shared goals,” he said.
Cravens quoted the saying, “People tend to do what is inspected versus what is expected.”
Cravens said he believes “employees benefit the most” from a performance management system.
2. Empower employees and delegate authority
“If you have all the answers when you enter a meeting, then you are missing 80% of good ideas,” Cravens warned.
“Empower your employees to create efficiency and value,” Cravens urged. “We strengthen innovation and create efficiencies by empowering our workforce.”
By decentralizing, “people will contribute more. It improves their ability to respond to changes,” he added.
Ask employees: “What do you need to do your job better? Get input from employees.”
“Are you giving employees a day or even an hour a week to find better ways to do their job?” Cravens asked.
3. Increase leadership accessibility at every level of the company
“We have to communicate something that personally connects,” Cravens said. “Be intentional with conversations and let employees know they are needed and appreciated.”
“Challenge them,” Cravens said.
4. Develop a “customer-centric” strategy
“Look at your company from the outside-in rather than inside-out.” he quoted Harvard professor Ranjay Gulati.
There are four levels of customer attachment to you as a supplier: 1. Confidence, 2. Integrity, 3. Pride and 4. Passion. Cravens described the “pride” level as “I only buy from you” and the top level of “passion” as “I can’t live without you.”
5. Increase/Improve communication and collaboration
Cravens quoted author Paul Alinsky: “It does not matter what you know about anything if you cannot communicate it to your people. In that event you are not even a failure. You’re just not there.”
6. Provide training
Employees need “renewal” time – breaks; to be valued by supervisors; focus; and the feeling they have a “meaningful purpose.”
As you create a high performance culture, some employees may not fit in. “Do you have the right people to have a high performance culture?” Cravens asked.
Cravens summarized with two “key take-aways”: First is “success begins with your simply making the commitment to change,” and second is, “There is room for improvement in every company.”
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