Heart of Management

Category: Leadership

  • Summary and the Path to Uniting Forces

    Post 6 of 6 in the series “My Stakeholders”:

    Throughout this series, we’ve explored a wide range of stakeholders – from your direct manager to employees, peers, regulators, suppliers, customers, competitors, labor unions, shareholders, and more. Each one has a significant impact on how you perform your role and how you can succeed in it.

    How Do All the Stakeholders Connect?

    It may seem complex when looking at each stakeholder individually, but ultimately, the key lies in balance. As a manager, you need to understand the needs of each stakeholder and navigate between competing interests. This balance often requires negotiation, open communication, and a deep understanding of what each party wants and needs.

    Your Manager Is Your Most Important Stakeholder

    When it comes to stakeholders, it’s essential to remember that your direct manager is one of the most critical. Your success in the role largely depends on understanding your manager’s needs and objectives. As discussed in the first post of this series, helping your manager achieve their goals is not just a way to maintain a good relationship, but also a key to your personal success. The more you can provide your manager with what they need, the more trust and freedom you’ll gain.

    The Importance of Flexibility and Open Communication

    To successfully manage all your stakeholders, flexibility and conflict-resolution skills are crucial. There’s no one-size-fits-all formula; each situation requires a different approach. However, when you build your relationships on mutual respect and clear communication, you increase the likelihood that everyone feels like a winner.

    Real-Life Example: Uniting Forces for a Common Goal

    In one of my roles, I faced a situation where multiple stakeholders had conflicting positions – each wanted something different. After numerous discussions, listening sessions, and understanding what truly mattered to each party, we managed to find a shared solution. The goal was to create a scenario where every stakeholder felt their priorities were addressed, and everyone worked together toward a positive outcome.

    In Summary – Where Do We Go From Here?

    Managing your stakeholders is an ongoing challenge, and your manager is undoubtedly one of the most central. Understanding what each stakeholder wants and needs is a vital part of our work as managers. Balancing these interests is not only essential for success but also for fostering stronger relationships and achieving shared goals.

  • Regulators and External Bodies – The Rules That Define Reality

    Post 4 of 6 in the Series About My Stakeholders:

    After discussing your manager, employees, and colleagues, it’s time to move on to especially important external stakeholders – regulators. These are the bodies that dictate the rules and laws within which you manage your organization. Regulators are not a direct part of the organization, but their influence is evident in every decision and process. Of course, not every managerial role has significant regulators as stakeholders; it depends on the field and industry in which you operate.

    Why are regulators so important?

    When we talk about regulation, we mean government or professional bodies that ensure your activity complies with required regulations and standards. As businesses and managers, we are obligated to follow these rules, and sometimes this can be a significant challenge. Therefore, it’s crucial to build good relationships with regulators to ensure your business operates legally and smartly, and that you maintain good relations with them.

    How to manage relationships with regulators?

    The right way to deal with regulators is to create an open dialogue and understand their needs. Although we are required to operate within the rules they dictate, through proper collaboration, we can find ways to streamline the process and ensure that regulators are satisfied with how you manage the business.

    A Field Example: How I Solved a Complex Regulatory Problem

    In the past, I had a project where I was required to meet very strict regulatory conditions. Initially, the relationship with the regulator was tense because it wasn’t clear how to implement their guidelines. After several open meetings and discussions about the needs of both sides, we managed to solve the problem and reach mutual understanding. It was a process that allowed for smooth continuation of work without further delays.

    In the next post, we’ll deal with additional stakeholders: suppliers, customers, competitors, unions, and professional bodies that also influence your performance as a manager.​​​​​​​​​​​​​​​​

  • Your Employees and Colleagues – The Force That Drives You

    Post 3 of 6 in the Series About My Stakeholders:

    The next stakeholders are the people you work with daily – your employees and colleagues. They may not be your direct managers, but they can greatly influence your success as a manager. Often, these are the people you depend on most to execute your plans.

    Why are my employees and colleagues so important?

    Think about it: Your employees are the ones who carry out the most important tasks. How they feel about their role, the instructions they receive, and the treatment they get from you – all of these directly impact their performance, and ultimately, your performance as a manager. Your colleagues, on the other hand, are those working alongside you who can either be partners in your success or make things difficult for you.

    How to build a good relationship with employees and colleagues?

    A good relationship with employees and colleagues is based on listening, support, and collaboration. If you take the time to understand what motivates each of them, you can create an environment where they feel involved and committed to success. This doesn’t mean compromising on requirements or expectations – but you need to know how to communicate them in a way that keeps everyone focused on shared goals.

    A Field Example: How One Conversation Can Change an Employee’s Behavior

    I once had an employee whose problem wasn’t motivation, but behavior – there was a gap between what I expected and how he actually performed. After an open conversation where I explained what I expected and where he wasn’t meeting those expectations, he completely changed his ways. It was amazing to see how improving communication could change the entire team dynamics.

    In the next post, we’ll deal with external stakeholders – regulatory bodies, suppliers, and customers, who also influence the way you work day to day.

  • Your Manager – The Central Figure Who Dictates What You Do

    Post 2 of 6 in the Series About My Stakeholders:

    After understanding who our stakeholders are, it’s time to dive deeper. Let’s start with the central figure who probably influences every decision or action you make as a manager – your direct manager. Whether your manager is a source of inspiration or a challenge for you, they influence your professional direction, decision-making, and your career in general.

    Why is my manager so important?

    Your manager can influence a variety of areas: the goals you need to achieve, your working conditions, career development, and even the balance between work and personal life. Therefore, it’s crucial to understand the relationship with your manager thoroughly – are they acting as a mentor who guides and accompanies you? Or do they prefer to dictate instructions without allowing room for dialogue? Every manager is different, and this has a direct impact on how you work together.

    So how can you improve the relationship with your manager?

    The way to improve this relationship is to understand what your manager truly wants to achieve, and how you can help them with that. Yes, even if you don’t always agree with every decision or approach, identifying your manager’s interests and goals will give you an advantage. A good relationship can open opportunities for you, help you advance, and influence your success in the role.

    A Story from the Field: How I Understood the Difference Between Types of Managers

    In the past, I had an interesting experience with two different managers. One was my partner in every decision, gave space to raise ideas and think together, while the other preferred to dictate instructions and leave me only to execute. This required me to learn to adapt, recognize each of their working styles, and find ways to bridge the gaps. Over time, the manager who was used to giving precise instructions began to trust me more and more, and stopped dictating instructions when he recognized that I knew how to lead independently. Once trust developed, our relationship became a true partnership.

    In the next post, we’ll talk about additional important stakeholders – your employees and colleagues, the people you work alongside daily, who influence your success no less.

  • Who Are Our True Stakeholders?

    Post 1 of 6 in the Series About My Stakeholders:

    Recently, I received some interesting comments.

    People told me: “You write a lot about management, but ultimately, who really influences our actions as managers is our manager.” And this made me think… Right! Our manager is one of a group of people and factors that influence us daily, and each of them has their own interests. Maybe our manager is the most influential, but there are others.

    So I decided to write a series of posts about all those stakeholders who influence us as managers, and one of the most important among them is truly your manager.

    So who are these stakeholders?

    A stakeholder is anyone who can be affected by your decisions and actions. This might sound a bit complex at first, but it’s simpler than it seems. Think about it: this includes your manager, your employees, customers, suppliers, competitors, and even regulatory bodies. Each of them has their own goals, and each can impact your success. Correctly identifying all these stakeholders will help you understand what each of them wants or needs, and thus you can manage more intelligently.

    So why is this so important?

    Because as managers, we don’t operate alone. Every action of ours touches many people around us, and if we don’t understand what each person wants from us, we might miss the point. When we correctly identify stakeholders, we can improve communication, collaborate more effectively, and achieve better results – for ourselves and for them.

    In the next post, we’ll talk about your manager – the central stakeholder who influences you and how you can build a good relationship that will help you succeed in your role.

  • Post 5 out of 5: The Impact of Organizational Culture on Ff Performance – How to Build a Culture That Leads to Success?

    After discussing all the advantages and potential dangers of organizational culture, it’s time to ask the most important question – how do we ensure we have an organizational culture that leads to success? A culture that builds strong teams, drives good performance, and improves quality of work life?

    1. Clear Definition of Organizational Values

    One of the first and most important steps is defining the values that guide the organization. Note – this isn’t about writing nice sentences “because we have to,” but about values that will be expressed in daily life. Let’s take HubSpot as an example – the company defines its values as “HEART” (Humility, Empathy, Adaptability, Remarkability, Transparency) and emphasizes them at every stage of employee life.

    2. Transparency and Open Communication

    An organizational culture that promotes transparency and openness allows employees to feel they have a voice in the organization. It’s important to keep employees updated about what’s happening and be honest even about difficult decisions or challenging situations. A Harvard Business Review study showed that organizations where employees feel they’re updated with relevant information are more successful in dealing with changes and increasing team engagement.

    3. Aligning Processes with Values

    Once organizational values are defined, they need to be reflected in work processes. If one of the values is “flexibility,” then ensure that organizational processes are indeed flexible and not rigid. For example, Zappos – the online shoe company, leads its industry by allowing employees to make decisions independently, thus expressing the value of autonomy.

    4. Building a Culture of Learning and Development

    A learning culture is central to building strong teams. This doesn’t just mean sending employees to courses – it also means encouraging knowledge sharing within the organization, giving feedback, and creating an atmosphere that promotes growth. A LinkedIn study found that employees who feel their organization invests in their personal development tend to be more satisfied and engaged in their work.

    5. Eye-Level Leadership

    Managers in the organization are role models. When managers themselves implement organizational values, all other employees will act similarly. The “eye-level leadership” approach encourages managers to be accessible, human, and connected to their teams – and this radiates throughout the organization.

    One Step Forward – Not Just Talk, But Action

    Building a good organizational culture isn’t a one-and-done deal. It’s an ongoing process that requires attention, commitment, and flexibility to changes. Organizational values need to be integrated into daily actions and be present in every decision and process.

    Summary

    Organizational culture isn’t something you can define and leave behind – it’s living, breathing, and affects every aspect of the organization. Investing in it is an investment in people, performance, and long-term success.

  • Post 4 out of 5: The Impact of Organizational Culture on Performance – When Does Organizational Culture Actually Harm?

    In previous posts, we discussed how strong organizational culture can lead to success. However, there are cases where culture can actually hinder the organization and even damage it.

    What does a “negative” organizational culture look like?

    1. Poor Communication and Information Hiding

    Communication is key to a healthy culture. But when there’s a lack of transparency, or when things go through organizational politics “filters” – that’s a bad sign. A McKinsey study showed that poor communication hurts the ability to handle changes and improve performance.

    2. Culture of Blame and Fear of Failure

    In places where failure is seen as “dangerous,” there’s less room for creativity and experimentation. A “blame-finding” culture stifles initiatives. An example of this is Kodak, which was a market leader but feared the transition to digital – something that led to its collapse.

    3. Work Overload and Poor Balance

    An “always working” culture leads to burnout. A WHO study showed that long working hours are harmful to employee health. Organizations that foster healthy balance gain more satisfied and productive employees.

    4. Lack of Transparency and Absence of Engagement

    When employees feel they have no idea what’s happening in the organization, alienation develops.

    5. Inflexibility and Resistance to Change

    A culture that’s not open to changes leads to a stagnant organization. When managers make change difficult, the organization might fall behind and fail to progress.

    6. Over-involvement in Decision Making

    Team involvement in decision-making sounds good on paper, but sometimes it leads to slowness and delays. When every team member needs to voice their opinion on every decision, processes can take too long and the organization loses its ability to respond quickly. The key is finding balance – knowing when to involve others, and when to make decisions and act fast.

    Summary

    Not every good intention creates a good outcome. In the next post, we’ll discuss how to build a healthy organizational culture that leads to real success.

  • Post 3 out of 5: The Impact of Organizational Culture on Performance – Strong Culture = High Performance? How Does It Really Work?

    In previous posts, we discussed what organizational culture is and the hidden factors that shape it. Now, let’s dive a bit deeper – how can a strong and healthy organizational culture improve your organization’s actual performance?

    1. Employee Motivation and Engagement

    A positive organizational culture not only makes employees feel good at work, but it also increases their motivation. Why? When employees feel part of something bigger, when their work has real meaning – they give their maximum. A Gallup study shows that highly engaged employees tend to be more productive, and their engagement improves their sense of belonging and commitment to the organization. This means they’re also less likely to look for another job.

    2. Collaboration and Strengthening Community Feeling

    When there’s a culture that promotes collaboration, employees feel there’s room for real dialogue. In such organizations, there’s more openness to ask questions, share ideas, and receive feedback – leading to better performance. A good example is Spotify – one of the most successful companies in the digital music world. Their culture is based on “squads” – small teams composed of diverse individuals who support each other to achieve quick successes.

    3. Creativity and Innovation

    In an organization with a culture that values creativity and openness, employees feel comfortable raising innovative and unconventional ideas. This culture creates a space where new things can be tried, even if they don’t always succeed. Steve Jobs often said that Apple’s success stems from employees’ ability to feel free to initiate, think outside the box, and be creative.

    4. Ability to Cope with Changes and Challenges

    A strong organizational culture contributes to the organization’s ability to deal with challenges and changes. When there are clear values and good communication, it’s easier to mobilize teams to work together to handle unexpected situations. Especially in an era like ours, where changes happen faster than ever, such a culture can be the organization’s competitive advantage.

    5. Increasing Employee Loyalty

    A healthy organizational culture encourages loyalty and satisfaction. The more employees feel valued, understand the organization’s goals, and belong to a strong community – the more likely they are to stay with the company long-term. And it pays off: according to a LinkedIn study, companies with a strong organizational culture experience lower employee turnover, leading to significant savings in recruitment and training costs for new employees.

    Examples from the World

    An excellent example is HubSpot. This company emphasizes values like “being change makers” and “collaboration”. The result? Employees are more engaged, satisfied, and loyal, and the company enjoys excellent performance and amazing business results.

    In the next post, we’ll talk about the less positive side of organizational culture – when organizational culture can actually be harmful, and how to identify the early signs of this.

    Sources:

    1. Gallup’s State of the Global Workplace report – https://www.gallup.com/workplace/349484/state-of-the-global-workplace-2021-report.aspx

    2. HubSpot Culture Code – https://www.hubspot.com/culture

  • Post 2 of 5: The Impact of Organizational Culture on Performance – The Hidden Factors that Shape Organizational Culture

    In the previous post, we discussed what organizational culture is and why it’s so important. But wait, have you ever stopped to think about what really influences organizational culture? Sometimes there are hidden factors, ones that we might not consciously notice, that significantly shape the culture in an organization.

    What are the hidden factors in organizational culture?

    There are several factors that we sometimes forget about, but they are an integral part of how our organization operates:

    1. Management’s perceptions and beliefs

    The way senior managers view the organization directly affects the culture. If managers believe in promoting innovation and giving freedom to employees, it’s likely that employees will feel more comfortable coming up with new ideas and acting independently. On the other hand, if management focuses only on results and the bottom line – this will affect the pressure and cause employees to work in a more tense manner.

    2. Communication patterns

    How do people talk to each other in the organization? Is communication open and flowing or does it go through many “filters” and bureaucratic processes? Research from the Journal of Business Communication shows that open and directed communication allows employees to be more involved, and ultimately improves organizational performance.

    3. Daily behavior

    It can be easy to miss the impact of daily actions on organizational culture, but they are an integral part of it. From how we deal with failure to how we praise successes – all of these affect employees’ feelings and values. An interesting example is Amazon, which maintains a culture of constant striving for improvement, bringing employees to always think about how processes can be improved.

    4. Hidden assumptions

    Hidden assumptions are those ideas and perceptions that have become so deeply ingrained that they’ve become almost invisible. This can be anything from a perception of “how a good employee should behave” to certain ideas about “what success is”. Once these assumptions are understood, it’s possible to start implementing changes that affect the entire culture.

    Why does it matter?

    Understanding these hidden factors is critical. Since organizational culture is more than just nice words or slogans, these are the factors that actually shape it and influence how everything operates in the organization – and ultimately business performance as well.

    In the next post, we’ll delve deeper into how a positive organizational culture can improve performance, and how you can identify and influence these hidden factors in your organization.

    Sources:

    1. Journal of Business Communication – Articles on the impact of communication on employee engagement.

    2. Amazon Leadership Principles – Amazon’s organizational culture and values: Amazon’s Leadership Principles

  • Post 1 of 5: The Impact of Organizational Culture on Performance – What is Organizational Culture and Why is it So Important?

    So what’s the deal with organizational culture? It’s a topic that’s talked about a lot, but how does it really affect your organization? Organizational culture isn’t just nice phrases on office walls or on the company website. It’s about what happens day-to-day – how we communicate with each other, how decisions are made, and how we generally conduct ourselves.

    So what exactly is organizational culture?

    In simple terms, organizational culture is all the values, behaviors, and norms that guide our organization. It sets the tone of the organization, from how we welcome new employees to the way we handle challenges.

    Edgar Schein, one of the leading researchers in organizational culture, says that organizational culture consists of three layers:

    1. Visible level – This is the part we can see, like office design, dress code, and symbols.

    2. Hidden level – Social norms and behaviors that we don’t always see, but we all feel.

    3. Basic underlying assumptions – Our deepest perceptions, which are quite difficult to pinpoint, but dictate much of our conduct.

    Why is it so important?

    When we have a healthy and supportive organizational culture, employees feel they belong and are more connected to their work. They feel they have a place to come up with ideas and express themselves without fear. In fact, a Gallup study found that employees who feel connected to their organizational culture show higher engagement at work, and such engagement increases productivity by about 17%! So yes, it’s quite important.

    Examples from the field

    Many companies have succeeded thanks to a strong organizational culture. One of them is Netflix, known for its work culture that allows freedom and personal responsibility. Netflix manages to create an atmosphere that leads to excellent results because employees feel they have autonomy and influence.

    In the next post in the series, we’ll talk about the hidden factors that shape organizational culture – and how they affect organizational performance.

    Sources:

    1. Gallup’s State of the Global Workplace report – https://www.gallup.com/workplace/349484/state-of-the-global-workplace-2021-report.aspx

    2. Netflix Culture Deck – https://jobs.netflix.com/culture