Profits and Purpose

Tuesday, April 04, 2006

Organizations and the BAR Formula™

How do organizations utilize the BAR Formula™? Organizations often do not take the time to consider the path that they are on or the deeper meaning behind their work. All too often, tensions build up within an organization, particularly when the results are less than satsifactory. When the organization does take time to review its (or its employees') performance, the examination usually centers around the objective numbers on the financial reports and the actions that may have caused the numbers to be what they are (both positive and negative). By focusing on results and actions, these evaluations only look at 2 of the three components of the BAR Formula™.

To be truly effective, an organization needs to be willing to look deeper. Actions, and the results produced by those actions, are driven by the individual and collective beliefs of the people within the organization. Therefore an overall assessment of the organization must include an examination of the organization's belief systems. Those that are empowering should be reinforced and celebrated. Those that are not should be eliminated entirely or at least marginalized as much as possible.

For example, in many smaller companies (where the founder is still involved), I often find that decision-making occurs at the highest level in the organization (namely, by the founder). In these circumstances I usually find that the founder is extremely burned out and frustrated with the lack of accountability or concern that she/he perceives among the staff. The staff, in turn, feel disempowered and disconnected from the organization's deeper purpose.

What's usually going on in these circumstances is a belief system within the organization that says that all decisions need to be made by the founder. Quite often this reflects the entrepreneurial nature of a startup enterprise where the founder is the source of psychological (and physical) energy, vision, and capital. However, over time the fact that the founder feels compelled to make every decision becomes an ingrained belief within the organization. This belief, in turn, drives the actions of the employees. Rather than trying to think for themselves or make decisions that involve any risk at all (including such monumental decisions as whether to buy pens and stationery at Office Depot or Costco), employees run to the founder every time. The founder at first feels in control of his/her "baby," but soon grows frustrated with the lack of imagination and responsibility of the staff. "Why can't they make a simple decision?" the founder wonders.

Of course they CAN make this decision; they are simply operating under an erroneous BELIEF that they are not supposed to make any decisions. The belief drives the actions of the employees, which in turn produces a series of results (frustration and burnout by the owner; frustration and disempowerment by the employees).

Many additional examples can be given. Suffice it to say that, as with individuals seeking to create better results, organizations that are looking to produce more effective results need to break the age-old habit of examining only results and actions and instead go deeper by looking at, defining, and questioning the organization's deeply-rooted beliefs. It is in the belief system that the organization likely will find the key to the results that are being produced.