Companies are under pressure to deliver better performance at lower costs in today's competitive environment. This requires leaders to build strong cultures where employees collaborate effectively and share knowledge across teams.
Organizations should adopt a time-tested approach called the "Gift of Red" to achieve these goals. Rhythm Systems has utilized this concept for over 15 years, helping companies execute through better leadership and accountability. We have found that the key to building high-performance cultures is permitting employees to speak their minds without fear of reprisal or punishment. I recently spent some time with a customer of mine that I have been working with for years; here is that story.
It was going to be a bad day. Tony received news from his supplier in China last night that they could not get critical components shipped and delivered in time to meet his deadlines. It seems like everyone has their own issue with their supply chain. His first thought was, "It's not my fault. I did everything on my end, but the supplier can't get their shipment to us, so I will provide a status of "GREEN" because I did everything right on my side."
But this did not feel right to Tony. He recalled his CEO sharing that if a goal is in danger of not being met on time, it should be stated RED. His internal chatter continued, "Man, I hate being red on this priority. It's not my fault. I don't want to be embarrassed in our weekly meeting that's about to begin. But Jack (his CEO) thanked someone a few weeks ago for sharing a RED status instead of embarrassing or even telling him off. And it was ok. Ok. I think I should status it RED and give everyone a heads up that we will have a problem in about nine weeks from now". Tony took a deep breath and braced himself for the meeting.
Then the weekly meeting started. Regarding this priority, Tony shared sheepishly that it was RED and that the supplier could not get transportation arranged in time to make the deadline. Jack smiled and reassured Tony, "Tony, thank you for providing today with the gift of red. We still have nine weeks, and you were courageous enough to share the issue today. This means we won't be blindsided or surprised, and we have nine weeks to solve this problem." Tony breathed a sigh of relief. Jack continued to lead a discussion to explore ideas on how to solve this problem. The team devised three possible ideas to fix the issue before it became more significant. Tony and two other team members were tasked to explore these ideas to see if they would provide solutions in time for their deadline.
What we can all learn vicariously through this real-life example (actual names and company have been hidden to protect the heroes) is the following:
Culture is intentional, even when you think it is unintentional. If you want a high-performing culture that can have candid conversations to solve problems, you need a rhythm of work that will provide the process, language, skills, metrics, KPIs, and OKRs to solve such issues as they arise. Doing this well will help you address problems before they become crises. Just like Jack's CEO did in this story, you will need to create a language that promotes the sharing of bad news to turn it into action that yields performance even when there is bad news. The intentional use of phrases like "thank you for the gift of red" is one of many language cues that create a culture of performance with accountability to results without unnecessary negative energy.
Let me know if you would like to learn more about the language of performance or if you would like to share your own story of success.
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