High-functioning firms have leadership teams that assess situations, develop strategies, and make and execute decisions with relative ease, speed, and success. Others, however, function with a drag that pulls against their momentum, causing the business of leading, managing, and executing to take longer and produce less-than-stellar results. High-functioning firms seem to share the following eight attributes:
Operate with vision. The most successful firms pay
attention to market trends and demographics. They seek new ways of
operating, better technology, smarter processes, and better talent.
They are committed to driving the firm forward, improving, and
reaching a future “destination” that will be better for the firm, its
people, and its clients. Leaders encourage many viewpoints when
defining the firm’s vision, and they thoughtfully enroll their entire
team in achieving it.
Build trust. High-functioning firms operate with a
level of trust that speeds decision-making and raises confidence in
risk taking and change management. The leaders operate transparently,
with nothing to hide. They build trust by keeping their word and not
overpromising, by admitting mistakes, and by sharing the good and the
bad with their people. High-functioning leaders follow agreed-upon
governance procedures.
Treat each other with respect. In high-functioning
firms, people respect one another’s unique talents and abilities;
diversity and different perspectives are appreciated and sought out.
Humor is present, but isn’t used to jab or belittle anyone. When there
are problems, people do not gossip and instead discuss the issue
directly with the person with whom they have an issue. Yelling is
never acceptable.
Encourage people to take responsibility.
High-functioning firms encourage their people to own their mistakes
and failures. Blame is not assigned, and throwing someone under the
bus is considered extremely unacceptable. Instead, people acknowledge
things that could have been done differently, and teams are encouraged
to learn and emerge from failure better than they were before. When
things are difficult, people are encouraged to ask themselves, “What
can I personally do to improve this situation?”
Value humility. When wins occur, people at
high-functioning firms look for ways to acknowledge all of those who
contributed. Seeking glory is not the norm. People allow others to
recognize their contributions and trust that “credit” will be given appropriately.
Act with generosity. High-functioning firms
encourage their people to place the needs of the firm, the team, and
the client ahead of individual ambitions. They compensate their people
well and tie rewards to successful outcomes. They encourage their
people to think beyond their walls and give back to the community.
Strive for positivity. Culturally, high-functioning
firms expect to succeed, but they also expect setbacks. They face
challenges with grace and resolve. People are encouraged to maintain a
positive perspective when things don’t go their way. Complaining is
not prevalent or accepted. Problems are acknowledged but followed with
ideas for change that will improve the situation.
Value communication. At high-functioning firms,
leaders think strategically about the messages they communicate and
who should receive them and when. There are many avenues for
collecting and delivering feedback. Performance feedback is valued,
and time is spent making it meaningful. Upward feedback is encouraged.
Firm leaders receive performance appraisals. Project postmortems are
held, and firm-improvement suggestions are requested.
Editor’s note: This checklist is adapted from the article “The Eight Attributes of High-Functioning Firms,” CPA Insider, May 19, 2014.
—By Jennifer Wilson (
jen@convergencecoaching.com
) partner and co-founder of ConvergenceCoaching LLC.
