Principle-Centered Leadership
by Stephen R. Covey
Think Win-Win for Quality
When do we compete, and when do we cooperate?
To create independence, think win-win.
We once worked with a worldwide organization of several hundred thousand
employees. Appointment to their prestigious headquarters training school
as a faculty member was considered a major career plum.
After the very finest teachers from the organization were selected, they
were organized into teaching teams to tap their creative synergy. A key
objective was to ensure maximum benefit to the students from the cross-fertilization
of ideas.
The faculty, however, was unmotivated and demoralized, only partial benefits
from team teaching were being realized, and student achievement was lagging.
In conducting assessment interviews, it was not difficult to discover a
key systemic root cause for the difficulties. The teachers were responsible
for creative cooperation in their team structure. Yet in their annual performance
reviews, they were force-ranked against each other for substantial bonus
pay and career advancement.
Quality within a two-person teaching team or a multinational corporate giant
requires synergistic interdependence. The whole is greater than the sum
of its parts. We have asked numerous chief executive officers and division
heads the same question: "Which system do you want to optimize?"
The answer is always the same, but this key insight is so frequently lost:
The most important system to optimize is the ecosystem of the entire organization.
The root of interdependent, synergistic creativity and innovation for individuals
and organizations is the fourth of the Seven Habits: Think win-win. We may
not be able to achieve mutually beneficial outcomes in all interactions.
But within organizations, long-term, sustainable quality effectiveness requires
the attitude of seeking mutual benefits in all interactions.
When we are interdependent, anything other than long-term win-win degenerates
to lose-lose-and commensurate waste in direct cost, opportunity cost, time,
effort and other resources. Even independent competitors have many occasions
and needs to cooperate interdependently. And, ultimately, a "no-deal"
relationship is better than committing to interdependence based on win-lose
or lose-win.
Competition has its significant benefits. In a free-market economy, independent
organizations competing against each other for market share are motivated
to deliver value, to innovate and to be cost-efficient. Through competition,
individuals are frequently motivated to perform to their highest potential.
But competition can also drain creative energy, incite politics and turf
battles, and destroy trust. The quality question is: When do we compete,
and when do we cooperate?
The fundamental answer: When they are truly independent from each other,
competition within rules and boundaries can be healthy and effective. When
individuals and organizations are interdependent with each other, competition
can be deadly. The essential principle to create effective interdependence
is synergistic cooperation: Think win-win.
Actually achieving win-win, mutual benefit will depend upon the quality
of four critical dimensions among the parties:
Win-win character-Especially their maturity,
integrity and abundance mentality. True maturity requires courage balanced
with consideration. Integrity means living true to one's values and convictions.
An abundance mentality reflects whether people see the world as a pie of
finite size or as a pie that can be enlarged by their mutual efforts.
Relationships of trust-The status of the "emotional
bank account," the metaphor representing the measure of the trust and
esteem in the relationship. Win-win will be easier to achieve when trust
is high and communication is open.
Win-win agreements-Mutual understanding, agreement
and commitment around five key areas: desired results, guidelines, resources
necessary, accountability processes and consequences of success or failure.
Win-win agreements incorporate synergistic, third-alternative solutions-not
just your way or my way, but a third, better way that we create together.
Win-win systems-Aligned systems and organizational
structure that support win-win relationships and cooperative synergy. Win-win
people frequently must rise above the win-lose systems they work in-and
then program the systems.
Is win-win always achievable? Perhaps not. But in continuing our quality
journey, we should never be deterred from making constant serious effort.
About the author . . .
Stephen R. Covey is chairman of The Covey Leadership Center and author
of Principle-Centered Leadership and the 7 Habits of Highly Effective People.
Keith A. Gulledge is vice president and a senior consultant with Covey Leadership
Center's Professional Resource Group.
© 1995 Covey Leadership Center. For more information, telephone (800)
553-8889.