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Are Organisational Integrity Issues Damaging Your Business?

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Are Organisational Integrity Issues Damaging Your Business?

The word “integrity” in the world of business is often associated with preventing corruption when in fact Organisational Integrity has much broader connotations˳

We are what we repeatedly do˳ Excellence, then, is not an act but a habitAristotle

In the English language the definition of integrity has two meanings; the first is concerned with reputation, honesty and trustworthiness and the second about internal cohesion, consistency and connectedness˳ Although presented as two distinct meanings, when considered in an organisational context the two are very much related˳

Organisational Integrity embraces all aspects of the organisation successfully integrated to achieve the organisation’s purpose˳ Business reputation and trust is therefore built upon the successful cohesion and consistency of the organisation as a system˳

In contrast businesses that are fragmented and dysfunctional very quickly earn a reputation for failing to deliver acceptable levels of service or performance˳

While discussing service experiences recently it was apparent that a lack of organisational integrity is regrettably now commonplace in many organisations, representing a significant personal and organisational cost for customers, suppliers and employees˳ One of the most common themes that surfaced was conflicting messages received from organisations while attempting to do business˳

I have recent experience in this area having resorted to engaging the services of the Financial Ombudsmen to resolve a long running banking issue concerning a simple request for Internet Banking˳

One of the most frustrating aspects of the experience was that overall the staff that I spoke with (and there were many) were behaving in a polite, consistent and truthful way˳ However in spite of this the organisation as a whole consistently let me down often to the disappointment and frustration of those I was speaking with˳

The failure of the bank to get to the root cause of the problem and resolve my straight-forward request was at no point disputed by the bank and yet it took nine months and the support of the Ombudsmen to resolve the issue˳

I have not been surprised to learn this type of issue is commonplace and considered somewhat the norm˳ Many I have spoken with wrestled with the stress of complaining while empathising with the position of the individual within the organisation˳

This lack of internal cohesion results in employees suffering stress in terms of the conflict between the integrity of the business and their own personal integrity˳

In broader terms the effects can range from frustrated and disappointed customers or suppliers who choose to take their business elsewhere through to the collapse of the organisation˳

You can’t solve a problem with the same reasoning that created the problemAlbert Einstein

Whatever business we are in, conducting business depends on trust between all parties involved˳ Where such trust exists interactions are more reliable and can, where necessary be reduced to a simple and efficient transaction with the reasonable expectation that there will not be an issue˳ Where trust has been damaged there is an increased need to focus on the relationship, providing assurance and re-building trust˳

When exploring trust there are a number of trust formula available that are broadly similar˳ The following model was developed by Charles H Green

Trustworthiness = (Credibility + Reliability + Intimacy) / Self Orientation

Credibility refers to the words that one speaks or one’s knowledge of a particular subject or field of study˳

Reliability has to do with one’s actions, or one’s level of dependability˳

Intimacy refers to familiarity and the degree of access˳

Self-orientation has to do with the focus of the person in question˳

Unfortunately many organisations adopt a policy, where trust has been damaged, of just elevating the level of intimacy˳

This was very much apparent in my banking example with the appointment of a complaints representative and an increased dialogue˳ For the organisation it is often easier to increase the intimacy element than it is to understand and resolve the fundamental issues that underpin credibility and reliability˳ The likelihood therefore is that without intervention problems will recur˳

There are many factors that may contribute, to a greater or lesser extent, to the breakdown in organisational integrity˳ These include structural issues, processes and controls, partner organisations, employees and culture and values˳

What gets measured gets managed – even when it’s pointless to measure and manage it, and even if it harms the purpose of the organization to do so˳Peter Drucker

A clear strategy and practice of monitoring with a selection of appropriate measures implemented with the necessary tact and sensitivity reassures managers, drives the correct behaviour and provides staff with the confidence that managers understand their problems˳

A call centre for example may boast high productivity and low cost per call but that’s irrelevant if a sizeable amount of the activity is processing customer complaints about poor service˳ Such activity measures obscure managers from seeing that rather than pursuing cheaper calls it may be better to improve the service to reduce the need for a call centre with all its associated costs in the first place˳

What gets measured, matters˳ Measures drive incentives that in turn drive people’s behaviour˳



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