strategy+business is published by PwC Strategy& Inc.
 
or, sign in with:
strategy and business
Published: May 28, 2013
 / Summer 2013 / Issue 71

 
 

Turning the Tables on Success

Interdependent work also means that employees will be evaluated and promoted not only on the basis of their individual results, but also in terms of their contributions to others. This reduces the incentives for takers to exploit givers, encouraging them to focus instead on advancing the group’s goals. As a result, takers engage in fewer manipulative acts—which reduces the risks to givers—yet they still contribute less than givers. This allows givers to gain a reputation for being more generous and group-oriented. And a rich body of evidence has shown that these qualities are the basis for sound leadership.

In fact, when givers become leaders, their groups are better off. Research led by Rotterdam School of Management professor Daan van Knippenberg has shown that employees work harder and more effectively for leaders who put others’ interests first. This, again, is a matching response: As van Knippenberg and Claremont Graduate University professor Michael Hogg found, “going the extra mile for the group, making personal sacrifices or taking personal risks on behalf of the group” motivates group members to give back to the leader and contribute to the group’s interests. And a thorough analysis led by Nathan Podsakoff, a professor at the University of Arizona, of more than 3,600 business units across numerous industries showed that the more frequently employees give help and share knowledge, the higher their units’ profits, productivity, customer satisfaction, and employee retention rates.

By contributing to groups, givers are also able to signal their skills. In a study led by researcher Shimul Melwani of UNC’s Kenan-Flagler Business School, members of five dozen teams working on strategic analysis projects rated one another on a range of characteristics and behaviors. At the end of the project, team members reported which of their colleagues had emerged as leaders. The single strongest predictor of leadership was the amount of compassion that members expressed toward others in need. Interestingly, compassionate people were not only viewed as caring; they were also judged as more knowledgeable and intelligent. By expressing concern for others, they sent a message that they had the resources and capabilities to help others.

Today, these signals are ever more visible: Givers are aided by the fact that the anonymity of professional life is vanishing. In the past, when we encountered a job applicant, a potential business partner, or a prospective service provider, we had to rely on references selected by that candidate. When takers burned bridges with one contact, they could eliminate that person from their reference list. But now, online social networks offer a much richer database of references. Odds are that through a quick search of our LinkedIn or Facebook networks, we can find a common connection with knowledge of that person’s reputation. By reaching out to the mutual contact to obtain an independent reference on the candidate’s past behavior, decision makers can screen out takers and favor givers. Of the billion Facebook users around the world, 92 percent are within four degrees of separation—and in most countries, the majority of people are just three degrees apart.

Such tools have made it tough for a taker to hide in the shadows. At Groupon, for example, Howard Lee was heading the South China office, and received a slew of applications for sales jobs. He searched his LinkedIn network for common connections, and located quite a number of them. When he discovered that certain candidates had a history of self-serving behavior, he quickly moved on, focusing his time and energy on candidates with track records as givers.

Taken together, these trends are changing the characteristics that we value in people. Two of the defining qualities of great leaders are the ability to make others better and the willingness to put the group’s interests first. Because givers today add increasing value in leadership roles and interdependent work, hiring processes can be modified to assess which candidates are inclined to contribute more than they receive. For development, promotion, and retention, leaders and managers should focus less on individual skills and talents, and more on the extent to which employees use their skills and talents to lift others up—rather than cutting them down. The employees with the greatest potential to excel and rise will be those whose success reverberates to benefit those around them.

 
 
 
 
Close
Sign up to receive s+b newsletters and get a FREE Strategy eBook

You will initially receive up to two newsletters/week. You can unsubscribe from any newsletter by using the link found in each newsletter.

Close