Givers take all: The hidden dimension of corporate culture

Givers tale allHere is a brief excerpt from an article written by Adam Grant for The McKinsey Quarterly, published by McKinsey & Company. In it, Grant explains how and why, by encouraging employees to both seek and provide help, rewarding givers, and screening out takers, companies can reap significant and lasting benefits. To read the complete article, check out others, learn more about the firm, and register for email alerts, please click here.

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After the tragic events of 9/11, a team of Harvard psychologists quietly “invaded” the US intelligence system. The team, led by Richard Hickman, wanted to determine what makes intelligence units effective. By surveying, interviewing, and observing hundreds of analysts across 64 different intelligence groups, the researchers ranked those units from best to worst.
Then they identified what they thought was a comprehensive list of factors that drive a unit’s effectiveness—only to discover, after parsing the data, that the most important factor wasn’t on their list. The critical factor wasn’t having stable team membership and the right number of people. It wasn’t having a vision that is clear, challenging, and meaningful. Nor was it well-defined roles and responsibilities; appropriate rewards, recognition, and resources; or strong leadership.

Rather, the single strongest predictor of group effectiveness was the amount of help that analysts gave to each other. In the highest-performing teams, analysts invested extensive time and energy in coaching, teaching, and consulting with their colleagues. These contributions helped analysts question their own assumptions, fill gaps in their knowledge, gain access to novel perspectives, and recognize patterns in seemingly disconnected threads of information. In the lowest-rated units, analysts exchanged little help and struggled to make sense of tangled webs of data. Just knowing the amount of help giving that occurred allowed the Harvard researchers to predict the effectiveness rank of nearly every unit accurately.

The importance of helping-behavior for organizational effectiveness stretches far beyond intelligence work. Evidence from studies led by Indiana University’s Philip Podsakoff demonstrates that the frequency with which employees help one another predicts sales revenues in pharmaceutical units and retail stores; profits, costs, and customer service in banks; creativity in consulting and engineering firms; productivity in paper mills; and revenues, operating efficiency, customer satisfaction, and performance quality in restaurants.

Across these diverse contexts, organizations benefit when employees freely contribute their knowledge and skills to others. Podsakoff’s research suggests that this helping-behavior facilitates organizational effectiveness by:

o enabling employees to solve problems and get work done faster
o enhancing team cohesion and coordination
o ensuring that expertise is transferred from experienced to new employees
o reducing variability in performance when some members are overloaded or distracted
o establishing an environment in which customers and suppliers feel that their needs are the organization’s top priority

Yet far too few companies enjoy these benefits. One major barrier is company culture—the norms and values in organizations often don’t support helping. After a decade of studying work performance, I’ve identified different types of reciprocity norms that characterize the interactions between people in organizations. At the extremes, I call them “giver cultures” and “taker cultures.”

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To read the complete article, please click here.

Adam Grant is a management professor at the University of Pennsylvania’s Wharton School. This article is based in part on his book, Give and Take: A Revolutionary Approach to Success (Viking Adult Press, April 2013).

: A Revolutionary Approach to Success, Viking Adult Press

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