Workplace Culture and Leadership - Not doing Business with Mates

The other day one of my team members informed me that we had lost out on winning a major account. She believed that one of the major reasons for our replacement was due to the winning provider having a friendship with one of the Directors of this company. My team had been through a rigorous process to win the account, tailoring solutions to meet the client’s specific needs. Upon deciding we didn’t want to play games anymore, we withdrew and the account was lost. My team and I agreed that the relationship did not present a values alignment and after some short lived disappointment I spent some time contemplating a question I haven’t for a long time. ‘Are there still organisations winning business through boys clubs and ‘old school and society connections’? I am so naive! Of course there are.

iHR Asia/Australia is now 11 years old. We are experts in building leaders, workplace relations and specialist outsourced HR services across Australasia. I look at the iHR client list; great organisations that are leaders in technology, the petrochemical industry, government bodies, media and advertising, retail and wholesale, emergency services, health services, education, telecommunications, not–for-profit, manufacturing and personal services. Most interestingly, each of these organisations seem to have chosen iHR on its merits. No previous relationships, no major networking efforts and no boozy lunches. However, all of them have had one thing in common: a resounding commitment to workplace culture.

Is this a whinge? No, it’s a fact. I think I am proud of it! But the truth is I could never have started iHR on the basis of connections because I didn’t know that many people who were connected or wanted a friendship based on sharing connections. I have a close network of friends from very diverse backgrounds. Musicians, story tellers, doctors, unemployed nurses, directors, academics, gardeners, lawyers, judges, sales people, masseuses, CEO’s and teachers. If I had ever asked them if they could please suggest a good business contact they would have probably looked at me in disgust and never asked me for dinner again. Of course so many people legitimately start businesses on the back of long corporate lives, but I never really kept in touch with those from my past professional endeavours.

Actually, I think I am a lousy networker. Good friend but a lousy networker.

One thing I can say is that the iHR culture is one that ‘values good clients’. It has created a culture which still exists today; a culture where good professional relationships are valued. Nothing is taken for granted. We cherish every good relationship but are also welcome to let go of poisonous relationships because there are no personal feelings at risk. My people are not second guessing whether or not the Managing Director will be furious because they have conveyed a difficult point (in a nice way of course) to his best friend.

iHR also drives a culture that values honest achievement. A culture where a piece of work is won on the basis of a great training program or demonstration, a strong recommendation, a fine speech or some great advice over the telephone. This means that when we market we do it on the basis of performance which in our game is everything.

Some weeks ago iHR Asia won an account to work with a major US petro chemical firm based in Bangkok. I didn’t have much time to meet with them because I was required back in Sydney for a meeting. I offered to have a working lunch with them. Professionally and in the kindest of ways it was refused. Why? The organisations’ policy is not to engage external companies in ‘indulgent relationships’ that have the potential to compromise quality and professionalism. It was a breath of fresh air. A moment to cherish! A moment to say maybe those years of working hard to prove that we are so very competent will hold us in good stead for the future. What ever the case, I am sure we have lost plenty of work along the way given the MD’s lousy networking record.

Please feel comfortable sharing your comments regarding the importance of business networking as a means of winning the golden prize in 2009. We love reading your responses.