Centering People and Culture in OpEx Deployments
Rethink PEOPLE and CULTURE Before You Begin Your Next Initiative
Operational Excellence efforts are typically lofty endeavors designed to improve the performance of an organization and deliver exceptional results. Once a company decides to embark on such an endeavor, it’s very tempting for OpEx professionals such as ourselves to dive right in. We build out a strategy and create a (very!) detailed program and project plan. We immediately start working on things like collecting and prioritizing a list of projects for the portfolio, training and certifying project leads, setting up a methodology to measure results, and so on ad infinitum. And ‘just like that,’ we’ve launched our OpEx program.
Absolutely, it can be done. We have done it! And done it at both a departmental level as well as at the organizational level, for small businesses and large global companies. Some of you have likely done it, too. But as we look back upon many of our efforts, we are struck with the realization that the OpEx program we tried to instill simply wasn’t sustainable. It didn’t stick. It didn’t last. And even if it’s still around, it’s often a mere shadow of the original intent.
Why do these OpEx programs implode, collapse, lose steam, or head off in unintended directions with unpredictable consequences? And why does this happen despite the best, herculean efforts of the OpEx professional to keep the organization marching in the right direction?
We can point the finger to a key ingredient in the OpEx mix: when an organization’s PEOPLE and CULTURE are not aligned with the organization’s strategy, direction, and pursuits, then success, if achieved, will occur purely by CHANCE. And that approach is simply not good enough.
A New Model for Operational Excellence
We are introducing a new OpEx model that is based on our many years of combined experience both as employees and private consultants. Note that at the epicenter of the model are THE PEOPLE. This means ALL employees, from Grade Zero to ‘Grade Zenith.’
We believe that an effective Operational Excellence approach requires THE PEOPLE to consistently and predictably exhibit the following four characteristics:
- The people are aligned with the organization’s mission, vision and values.
- The people are biased toward action and achievement.
- The people are engaged and dedicated to the success of the organization.
- The people have mastered the courage to connect.
The illustration of the OpEx People model below provides additional detail for each of the four critical characteristics.
While these four characteristics appear reasonable, we must ask the question: what would actually motivate an employee to demonstrate such behavior?
It turns out that the motivation for each of the four characteristics is primarily INTRINSIC; that is, the motivation to align with the mission / vision / values, have a bias toward action and achievement, be engaged and dedicated to success, and master the courage to connect, must primarily come from WITHIN. Employees must wake up every day and practice living these behaviors until they become as natural as breathing. Obviously, EXTRINSIC motivation from monetary rewards and recognition can have some impact, but if the employee does not personally desire to demonstrate these behaviors, it is very unlikely that the organization will fully achieve the goals and objectives of the OpEx effort.
More on Extrinsic vs. Intrinsic Motivation
Extrinsic Motivation is defined as behavior that is driven by external rewards such as money, praise, or grades. This type of motivation arises from outside the individual. Extrinsic-oriented motivation theories include:
- Herzberg's Two-Factor Theory: Hygiene factors such as salary, company policies, and supervision are extrinsic motivators. Employees work to receive paychecks or to avoid negative feedback.
- Expectancy Theory: People are motivated by the expected outcomes of their actions. For instance, employees might work harder if they believe their efforts will result in a promotion or bonus.
- Equity Theory: This theory focuses on fairness. An employee might be motivated to work harder if they see that their peers are being rewarded more for the same work, aiming to restore equity.
Extrinsic motivation may also be negative in nature. Rather than a reward, it is the fear of punishment or loss that is thought to motivate behavior. Traditional ‘carrot vs. stick’ motivational theories fall into the ‘extrinsic’ motivation category.
Intrinsic Motivation refers to behavior driven by internal rewards. This type of motivation comes from within the individual because it is naturally satisfying.If we are intrinsically motivated, the reward is the sheer challenge and enjoyment of the task and the satisfaction of seeing it through. Intrinsic-oriented motivation theories include:
- Self-Determination Theory: This theory emphasizes the importance of autonomy, competence, and relatedness. Employees are motivated because they enjoy the work itself, feel competent, and have a sense of belonging.
- Drive Theory: According to author Daniel Pink, autonomy, mastery, and purpose are key intrinsic motivators. Employees are driven by the desire to control their work, improve their skills, and find meaning in what they do.
Note how the OpEx People model integrates the effects of both extrinsic and intrinsic motivators on behavior.
From the Model | Intrinsic | Extrinsic |
---|---|---|
Aligned with Mission, Vision and Values | Employees seeking a cause greater than themselves are inspired by the company’s mission to make a positive impact on the world and create a legacy. | |
Biased Toward Action and Achievement | Employees are delegated authority and granted autonomy to plan and to take action sooner rather than later (there is no perfection requirement!). | Managers make their employees feel safe, encourage risk-taking, and understand that risks do not always pan out. |
Engaged and Dedicated to Success | Individuals are committed to their professional growth and strive to achieve mastery in areas that drive organizational success. | Teams and employees are visibly recognized when they achieve key objectives tied to the organization’s mission. |
Mastered the Courage to Connect | Curiosity and open communication build trust and transparency, which are essential for strong connections. |
Maslow’s Hierarchy of Needs
This very well-known theory suggests that people are motivated by a hierarchy of needs, starting with basic physiological needs (food, water, shelter) and moving up to safety, love and belonging, esteem, and self-actualization. At the highest levels, such as esteem and self-actualization, individuals are motivated by personal growth, fulfillment, and the desire to achieve their potential.
Intrinsic and Extrinsic Motivators Applied to Maslow’s Needs Hierarchy
It is interesting to step back and look at Maslow’s Hierarchy of Needs from the viewpoint of BOTH Intrinsic vs. Extrinsic motivation. The illustration below shows that the Physiological, Safety and Social needs are driven primarily by Extrinsic Motivators. The organization, including managers and fellow employees, its rules and regulations, and its structure, provides nearly all the extrinsic motivators in the workplace. Esteem Needs are both Extrinsic (promotions, recognition, rewards) and Intrinsic (autonomy, confidence, respect, feeling valued). Finally, Self-Actualization comes entirely from WITHIN (purpose, growth and achieving one’s full potential). It is also important to recognize that Self-Actualization can differ significantly from one employee to another.
There are intrinsic aspects that deliver a level of satisfaction at the lower levels of Maslow’s hierarchy such as a sense of accomplishment in obtaining a position that is commensurate with one’s education and experience. However, the illustration highlights that the significant intrinsic drivers are operating at esteem and self-actualization levels.
Understanding the balance between Intrinsic and Extrinsic motivations can help organizations design more effective work environments and incentive systems that cater to both types of motivations.
Embracing the Concept of Intrinsic Motivation
There are very recent examples of companies who are embracing the concept of Intrinsic Motivational approaches for their People:
- Bayer: The European pharmaceutical giant continues to face very challenging financial headwinds resulting from multiple litigations as well as the future loss of patents on important medicines. However, their leadership team also recognized the organization faced huge hurdles due to their own internal bureaucracy, 12 levels of hierarchy, command-and-control organizational structure and unnecessary ‘distance’ between their teams, customers and products. Bayer recognized they had a highly skilled and educated workforce and elected to put 95% of the decision making in the hands of people doing the work. They replaced hierarchical annual budgets with 90-day sprints by self-directed work teams who can immediately recognize the value of their achievements.
- InfoQ: This New Zealand version of Ebay has fully embraced the Daniel Pink Drive theory in a number of unique ways. For example, they realized that their employees had very little autonomy over the team members with whom they worked. To address this, InfoQ conducted the world’s largest self-selection process, letting everyone choose for themselves who they worked with and, in turn, what they worked on. Other techniques include allowing agile teams to choose which elements of ‘Agile’ they wanted to employ. For instance, a team may choose not to use stand-up meetings but is required to find alternative ways to communicate and co-ordinate their mutual work efforts.
In both the Bayer and InfoQ examples, the companies recognized that each of their employees brought with them a distinct set of backgrounds and experiences, and together these define what motivates them today. Note that as individuals grow and change within the organization, their motivations will flux and evolve as well.
The Employee’s Stage of Life and How it Affects Motivation
An employee with generational wealth and higher levels of education may not be motivated by salaries, bonuses, or other health and retirement benefits. This individual may be more likely to be attracted by intrinsic factors such as organizational goals and objectives that provide the opportunity for skills mastery and autonomy.
On the other hand, an employee raised in a working-class family carrying debt from student loans, a mortgage, car payments, and other liabilities, and who is focused on saving for their children’s future (not to mention their own retirement) may be more motivated by extrinsic factors such as paychecks, 401k matches, and bonus money.
Researchers have also noted that motivations may shift along the spectrum from extrinsic to intrinsic as individuals ‘age into’ a phase in life focused on seeking purpose and meaning. As mid-life approaches, perhaps after having raised children and becoming empty nesters, many find themselves reflecting on their decades-long career and contemplating their legacy. Current trends indicate older adults, driven by intrinsic factors, are more likely to search for meaning and satisfaction from their contributions to their company, to their family and to the world.
While we’ve described some simple examples above for explanatory purposes, let’s make sure we don’t make the mistake of assuming we always know what motivates someone. Don’t forget there are those who come from very little and are quite comfortable living the ‘underconsumption’ lifestyle and may eventually (and possibly quickly) learn that the extrinsic motivators don’t inspire them for long.
Start With Understanding Employee Motivations
To create a productive and engaged workforce that is optimized to perform at the individual, team and organizational level, it is critical to understand what drives them. By focusing on the needs, motivations, and aspirations of employees, organizations can foster a culture of engagement and continuous improvement. The challenge is that people (as well as what motivates them) change at the pace of life. So, it’s important to have more than one approach:
Listen and observe.
Direct communication is the fundamental way to understanding employee needs. Regular one-on-one and small group discussions between leaders and team members provide an opportunity for open-ended conversations, allowing employees to express their aspirations, voice concerns, or delve deeper into specific issues or ideas. These qualitative insights offer a window into employee motivation and may also identify common themes and areas for improvement. Observing and paying attention to individual employee behavior can also identify early signs of motivation (e.g., cheerful outlook or proactive engagement) or demotivation (e.g. negative attitude or apathy). Picking up on these valuable clues about motivation levels enables early interventions. When employees believe they have been seen and their voices have been heard, this responsiveness builds trust and fosters a sense of community and shared purpose.
Ask and analyze.
Regularly conducted employee surveys can reveal important information about job satisfaction, workplace environment, and motivation at departmental or organizational levels. These surveys should be designed to encourage honest and constructive feedback utilizing engagement platforms and data analytics tools that allow organizations to track and analyze engagement in real-time. Analyzing performance data and engagement metrics (e.g., attendance, productivity, performance) across the organization can identify trends and pinpoint areas of motivation or demotivation. These technologies can identify patterns in employee behavior, enabling managers to refine motivation strategies effectively.
Consider and adjust.
While these are both excellent methods for gaining comprehensive insights into employee motivation from within the organization, it’s also possible to enhance organizational practices by considering external benchmarks. Incorporating industry best practices to fine-tune initiatives increases the organization’s chances of creating a program that resonates with the workforce while meeting the organization’s continuous improvement commitments.
Although these strategies can provide valuable insights, it's important to recognize that the results of one-on-one conversations, focus groups, and surveys may not always align perfectly. Individuals may not be self-aware enough to know what motivates them or they may be unable to articulate what motivates them. They may not have experienced 'flow' or 'deep work' states and therefore cannot express a desire for such work. Some employees may lack the confidence to seek the level of autonomy that would allow them to choose projects or teammates. The key to successful operational excellence planning and deployment is regular and continual feedback. As self-awareness increases and individual motivations shift, methods and programs must be adjusted accordingly. This dynamic approach ensures that organizations remain responsive to the evolving needs of their employees and fosters a supportive and motivating work environment.
Centering People in Operational Excellence
Our extensive experience has taught us that even the best designed OpEx initiatives and deployments can’t survive when the people and the culture are not aligned with the organization’s strategy, direction and pursuits. This is why our OpEx model starts with people, their motivations, and the culture that their words and actions create.
Centering people in operational excellence planning and deployment is not just a strategy; it's a commitment to fostering a work environment where every employee feels valued, motivated, and aligned with the organization's goals. By understanding and addressing the intrinsic and extrinsic motivations of employees, organizations can create a culture of continuous improvement and engagement from the individual level out to the organizational level.
By prioritizing the needs and motivations of employees, organizations can build a supportive and motivating work environment. This not only enhances individual and team performance but also drives the organization towards achieving its long-term objectives. In essence, when people are at the heart of operational excellence, everyone thrives, and the organization can achieve remarkable results. In such an environment, even the most ambitious OpEx initiatives and programs have a far greater likelihood for success and sustainability.
Interested in diving deeper into people-focused operational excellence? The COE Summit 2025 will feature leading researchers and industry experts who know that strong processes start with strong teams. The authors of this blog, Carol Christobek and Chhevi Sharma, will lead a workshop exploring their OpEx model on the morning of Tuesday, April 8.
The Ohio State University Center for Operational Excellence Summit, now in its 12th year, is a 3-day event dedicated focused on the latest best practices in leadership and problem-solving. With 4 engaging keynotes, 20 breakout sessions, and exclusive opportunities for networking and hands-on learning, the COE Summit is a high-value opportunity to equip your team with the tools and tactics to connect, collaborate, and reach their full potential.