The Eight Practices of Exceptional Companies
By David J. Lewis

"A lot of the things that prevent teamwork are not in people's attitudes. They are in the design of the organization and management practices." -- Rosabeth Moss Kanter, professor, Harvard Business School

Following the popularity of the term "BHAG" (Big, Hairy, Audacious Goal) coined by James Collins and Jerry Porras in their landmark HBR article and in their book "Built to Last", a new classification of organizational behavior has been identified.

In his book "Eight Practices of Exceptional Companies", author Jac Fitz-Enz examined how great organizations make the most of their human assets in order to become "Best Human Asset Management" companies, or BHAMs.

Based on his research of more than 1,000 companies, Fitz-Enz identified BHAMs as those organizations that exhibit the following eight driving forces that make up the context from which the best human asset management systems and processes are derived:

Value: There is a constant focus on adding value to everything rather than on simply doing something. In addition, there is a conscious, ongoing attempt to balance human and financial values. This is not just good intention; it is the common practice.

Commitment: Management is dedicated to a long-term core strategy. It seeks to build an enduring institution. It is more than open to change; in fact, it seeks it. Conversely, in these BHAMs there is a noticeable avoidance of the temptation to chase after every
management fad that comes along.

Culture: One of the more distinguishing features of the BHAMs is their proactive application of the corporate culture. Management is aware of how culture and systems can be linked together for consistency and efficiency. That interface is consciously and
actively managed.

Communication: There is an extraordinary concern for communicating with all stakeholders. Within these organizations, constant and extensive two-way communication is the rule. They use all available media and share all types of vital information with employees and other stakeholders.

Partnering With Stakeholders: New market conditions and customer requirements demand new forms of operation. Partnering is the most prominent new form. The BHAMs involve partners both within and outside the company in many decisions. This includes the design for implementation of new programs.

Collaboration: There is a high level of collaboration among, and involvement of, all sections within functions. The BHAMs study, redesign, launch and follow up new programs in a collective manner. This includes collective support across sections, enhancing cohesiveness and providing a solid front against attacks from outside.

Innovation and Risk: Radical change is not frightening here. There is a willingness to shake up the organization to the extent of shutting down the old structure and rebuilding it in a totally different form. Risk and innovation are recognized as necessities in a volatile marketplace.

Competitive Passion: The BHAMs are never satisfied. They constantly search for improvements. They set up systems and processes to actively seek out and incorporate ideas from all sources. In every case their motto is, "Wait until you see what we do next".

Fitz-Enz's research clearly showed that companies exhibiting these eight traits typically stood in the top percentiles of their industry for financial performance.

He astutely pointed out, and it is a point worth remembering, that none of the eight practices operate independently. They are very interactive in almost a blended sense throughout a successful organization.

In the 35 years I've spent as a human resources professional I have implemented most of the best practices at one time or another and have witnessed many organizations exhibiting one or some of these key traits. But it is still the exception rather than the norm to find an organization that integrates all eight practices to achieve the status as a Best Human Asset management company.

If you're accountable for the effective management and leadership of the human assets within your organization, you may find it interesting to take a look inside your own company using the eight practices as a mini-assessment as to how well these principles are utilized in your organization.

These principles have guided many BHAMs to superior results and can serve as a roadmap for your own organization's success.

David J. Lewis is a Calgary-based executive and performance coach with 35 years of experience in "unleashing human potential".
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