In a recent interview our Managing Principal and Co-founder Laura Smith said, “I think there’s been a call in the world to do business very differently. I think there’s a new paradigm trying to be born.” Our mission at Cadence is to act as a catalyst to help this new paradigm become the norm rather than the exception.
We call this the Conscious Organization. It’s about creating a work environment where leadership makes conscious decisions about how to operate with integrity, seek the wellbeing of its staff and engage them to contribute their best. We’ve found that this approach creates new business opportunities, empowers people to make better decisions, and maximizes profitability in a sustainable way.
We’ve learned:
- Every organization is based on a sense of purpose that serves the individual, the community, the customer, the need and society at large.
- This kind of organization is founded on the inner work that leaders and individuals must do to connect to their authentic self.
- Every organization must integrate this individual and corporate purpose with their effective daily operations.
“I believe in creating businesses where we solicit and engage people and we make it a true partnership to unlock their creativity.”-Laura Smith, Cadence Managing Principal and Co-founder
The Soft Skill Vacuum
Recent studies have uncovered surprising gaps in workforce competence. With the rise of AI and automation, workers who have social skills and emotional intelligence are of the greatest value to companies in the 21st century.
Employees with better social skills are more effective at collaborating and “task-trading” which a machine can’t do. In a survey by Korn Ferry, 44% of executives said that the American workforce lacks soft skills. In a recent Forbes article top executives said the top skills needed in the 21st century will be problem solving and emotional control. In a separate survey human skills training has been shown to improve productivity by 20%[1].
All of this points to the need to train employees in skills they won’t get from their formal education. This kind of training must come from leaders who are committed to their own development and translating this to help their employees grow. Leaders need to have access to personal development that they can’t receive in executive MBA programs, because this kind of coaching comes only from deep experience, authentic self-connection and wisdom acquired from years in the workplace.
[1] https://wordpress-ms.deakin.edu.au/deakinco/wp-content/uploads/sites/261/2021/07/Deloitte-Access-Economics-2019-Premium-Skills-Final-Report-WEB.pdf?_gl=1*1wtim5n*_gcl_au*NjA0NDM3NDEwLjE3MjcxMjY3Mzc.*_ga*MTQyOTEwNDA2Ny4xNzI3MTI2NzM3*_ga_JPTMKQ5P9D*MTcyNzEyNjczNi4xLjAuMTcyNzEyNjczNi42MC4wLjA.
The Dollars and Sense of Building a Conscious Culture
Creating a culture takes a conscious commitment by leaders over the long term. Culture can be elusive when you start a company, and when it is growing. Leaders must be clear about what kind of company they are creating and embody the values of that company. Maintaining a corporate culture requires a conscious commitment to build it with employees, developing ways of operating that support it, and allowing it to evolve. Equally as important is knowing how to repair it when things don’t go as planned.
Culture arises naturally from the authentic vision of a company’s leaders and solidifies through the day-to-day workings of a company. Identifying the deeper purpose or reason for being in the market offers a foundation for the culture and guides its inherent values . Finding those individuals that match both in skillset and have inner alignment with the organizational purpose and values creates a powerful combination.
According to a recent survey of 500 executives among the World’s Most Admired Companies (WMAC) nearly two-thirds of those executives attribute at least 30% of their market value to culture[1]. They also cited it as the most underrated factor as determinant of a company’s future success.
[1] https://www.kornferry.com/content/dam/kornferry-v2/featured-topics/pdf/WMACC050.004_WMAC_Infographic.pdf
Keeping the Right People
Culture is also an important factor in recruiting and retaining qualified staff. In a 2023 study[1] 4,000 respondents found that the number one recruiting challenge is finding skilled candidates. 80% of respondents said that recruiting was ‘very’ or ‘quite’ competitive. The cost of replacing skilled labor is well documented with estimates ranging from $15,000 – $45,000 per employee, not to mention the cost of training or lost revenue during the candidate search. Setting aside the expense, for the conscious organization keeping well-matched staff once you have recruited and trained them is essential to building culture.
[1] https://www.morganmckinley.com/article/7-key-recruitment-challenge
“Fear has this way of driving people to decisions that just don’t make sense long term. ” – Laura Smith, Managing Principal and Co-Founder
Using Your Head While Following Your Heart
No matter how clear the vision, no organization can be successful without pursuing operational excellence. Our definition of operational excellence depends on four areas.
In some companies this is considered the boring stuff. We’ve found at Cadence that focusing on operations has led to better decision making, enhanced client service, and improved profit margins. From the simple act of analyzing time utilization to the more complex aspects of managing cash flow and making investments in future growth, we’ve learned how data can move the company toward better decisions.
We’ve also found that focusing on policies and processes has given us a competitive edge. Our ability to address compliance, security, and privacy issues has led to becoming preferred vendors with Fortune 50 companies.
These are the things that are often ignored, not prioritized or relegated to the engineers and accountants. We’ve found that ensuring company processes and policies are clear to employees encourages feedback and engagement, and fosters greater efficiency. Decisions made based on data, such as implementing a new sales strategy or prioritizing spend, can be measured and validated. This allows for course corrections with transparency and confidence. Focusing on data, policies, and processes has given us a competitive edge.
Our ability to address compliance, security, and privacy issues has led to becoming preferred vendors with Fortune 50 companies.
These pillars of operational excellence provide people with the opportunity to make a difference and feel the value they bring to the company.
“Adding numbers to any argument can sway decisions.” – Sugata Biswas, Principal and Co-founder
Having team members who are Six Sigma certified, and trained in kaizen and LEAN methods has helped create processes that are useful for staff without being burdensome. An unexpected benefit has been empowering employees to make quicker, better-informed decisions when faced with challenges. It’s also provided them resources to understand their roles and how the organization works.
Conclusion
Taken together, any organization that adopts a conscious culture with strong fundamental operations, will increase market value, productivity, recruitment, and retention. More than that, the benefit of employees enjoying their work, their co-workers, and being committed to the company mission is impossible to value.
