Some leading thinking about why organisations need strong relationships
“Other people aren’t just a part of our environment, they are our environment. We are the most relational species on earth...... Everything runs through relationships” Gurnek Bains
As leaders we are involved in a wide range of activities, but the most important of all is managing people, interacting with colleagues and with our external partners. Forming interpersonal relationships is a basic, inherent and inescapable part of being a leader. As Goffee and Jones, in their book “Why Should Anyone Be Led by You?” say, we need to recognise that one of the three foundations of leadership is that it is relational. Leadership is not something you do to others, rather you do it with others. They point out that one cannot be a leader without followers - leaders are actively engaged in a complex series of relationships that require cultivation and nurture.
Gurnek Bains and his colleagues at YSC Business Psychologists, in their book Meaning Inc., show that when they look at those companies they would regard as iconically successful over recent years, all have organisational cultures which are both demanding and relational. This relational culture is evident in a range of companies across many sectors – including companies like Southwest Airlines, Apple, Google, Gap, Virgin, Goldman Sachs and Orange. They believe that these organisations have recognised the importance of a relational culture and are reaping the benefits by being ahead of the curve.
They also list the following business benefits when relationships are great:
· Consistency without process is possible. Process is important, but companies that excel in this area use relationships as much as possible to substitute for process.
· Strong relationships and trust are the precondition for nimbleness, risk-taking and innovation. In all the companies that are leading edge, their relationship cultures create permission for people to take risks.
· Great relationships are the key to effective execution – they are not the only enabler, but they play a huge part.
There are also a number of personal benefits:
· Relationships create a platform for your own personal growth. When relationships are great, people give you the gift of feedback, which can help you grow.
· Relationships can energise you and provide a sense of support. When you have great relationships the burdens are shared.
· Great relationships create a sense of belonging. We are a relational species and have a need for attachment. Work is for many people becoming a place where they can get this sense of belonging.
· Relationships sustain us, and make our journeys enjoyable and fulfilling.
Bains and YSC also point to the importance of businesses partnering with external stakeholders – customers, suppliers, community organisations, regulatory bodies, etc. We all have important external relationships, and making these relationships powerful is critical to maximising value. Just as it is possible to identify how our internal relationships can improve, so it is possible to do this for our external relationships. The key is to find common purpose and mutual advantage.
Lynda Gratton, Professor of Management Practice at London Business School, in her book Hot Spots points out that we spend a good deal of our life working, and it is at work that we make friends, learn about ourselves, grow, develop and become innovative, energised and stimulated. We are able to create the positive energy that adds value to our companies by working cooperatively with others. She defines Hot Spots as places and times where cooperation flourishes creating great energy, innovation, productivity and excitement – any place or time where people are working together in exceptionally creative and collaborative ways. She suggests a formula for Hot Spots which is:
Hot Spots = (Cooperative Mindset x Boundary Spanning x Igniting Purpose) x Productive Capacity
A cooperative mindset, boundary spanning and igniting purpose have a multiplicative effect on each other. The lack of any one of these significantly reduces the energy of the Hot Spot. Working cooperatively is important for the exchange of knowledge and for understanding what others know, but innovation arises when new ideas from people in different groups and communities are brought together. Spanning these boundaries is critical. A mindset of cooperation and the capacity for spanning boundaries creates a well of latent energy in the organisation. People feel a sense of goodwill toward one another, they trust each other and are prepared to work across boundaries. But in order to release this latent energy a point of ignition is required – an igniting vision or task. – something that people find exciting, interesting and worth engaging with. Without this the energy will dissipate and its potential will be lost. Productive capacity is the extent to which people within the Hot Spot are capable of working together in a productive manner.
Gratton also refers to the work of Ron S. Burt and David Krackhardt in analysing relationships at work. Ron S. Burt, from the Graduate School of Business at the University of Chicago introduced the concept of structural holes which can develop between groups or functions within organisations. When people and organisations focus only on their immediate tasks and activities, holes emerge in the social organisation, and the groups or functions lose track of other groups and functions and the external environment. He suggests the importance of brokerage in the theory of organisational networks – people connected across groups or functions who are more familiar with alternative ways of thinking and behaving. Network bridges, which connect people otherwise not connected, span the structural holes in the organisation, and result in more positive peer relationships and reputations amongst others. He warns that these bridges can delay at an alarming rate, so need to be maintained.
Both Burt and David Krackhardt, from Carnegie Mellon University were interested in Mark Granovetter’s 1973 theory of strong ties and weak ties and built on his research. Strong ties are defined as relationships which go back years, are based on trust and reciprocity and have an emotional element. Most of us have about three to six strong ties at any point in our lives. However, many of the relationships we have at work and outside of work do not have this extent of history, trust or emotion. These are our acquaintances, people we meet less frequently, with whom we do not have strong emotional attachment – these are our weak ties. We can sustain many more of these weak ties than we can strong ties since they take up less of our time and energy. Some of us have many thousands of such connections, but we devote far more emotional time and emotional resources to maintaining our small network of strong ties than to our larger network of weak ties. Granovetter believed that weak ties are often more important than weak ties and are likely to provide new information from disparate parts of the organisation.
David Krackhardt built on Granovetter’s original research, particularly regarding his acknowledgement that strong ties are more likely to be useful to an individual when that individual is in an insecure position, Krackhardt noted the strength of strong ties in cases of severe organisation change and uncertainty, maintaining that strong ties can reduce resistance and provide comfort in the face of uncertainty. He argued that change is facilitated not by weak ties, but by a particular type of strong tie. He named this type of tie a philos, which requires three conditions to be present:
· The people involved must interact with each other, the result of which is most likely to be that each will have access to information that the other has. Frequent interactions provide opportunities to exchange such information.
· The people involved must feel affection for each other, in a ‘liking’ relationship
· The people involved must have a history of interactions that have lasted over an extended period of time. There is no such thing as instant philos
The combination of these three conditions produces trust, and without any one of them trust falls apart. Krackhardt’s goal in his work was to get organisations to refocus on strong ties within the organisation, in particular to see how strong ties can become important in organisations when they are well spread out. He believed that change is the product of strong, affective and time-honoured relationships.
Contributed by: Graham Louden-Carter former Group HR Executive - Diageo PLC, currently visiting tutor Henley Business School (U.K) and independent consultant