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Submitted URL: https://d2mg9w04.na1.hubspotlinks.com/Ctc/2O+113/d2Mg9W04/VW2Bxy2P9dRrN1s8j6wRkMMcW4PtzZh522qPDN6pj1Wb5nXHsW5BWr2F6lZ3m1V-Bw1J37dTNxVc...
Effective URL: https://arbinger.com/blog/the-cost-of-being-inward-how-a-mindset-shift-can-impact-your-bottom-line/?utm_campaign=news...
Submission: On August 11 via manual from TW — Scanned from DE
Effective URL: https://arbinger.com/blog/the-cost-of-being-inward-how-a-mindset-shift-can-impact-your-bottom-line/?utm_campaign=news...
Submission: On August 11 via manual from TW — Scanned from DE
Form analysis 2 forms found in the DOM
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THE COST OF BEING INWARD: HOW A MINDSET SHIFT CAN IMPACT YOUR BOTTOM LINE
The Arbinger Institute
LeadershipOrganizational Culture
Any successful organization knows that lasting change requires, at the very
least, the ability to transition. Imitating previous successes and old playbooks
is simply not a viable option. Yet surprisingly, when it comes to the challenges
of team performance, employee engagement, and leadership development, too many
organizations seem content to settle for business as usual when what they really
need is a mindset shift.
A failure to innovate on this front means that, despite any shiny new
communication app or scheduling software, company results continue to be hobbled
by siloing, conflict, disengagement, and lack of accountability. We are long
overdue for a different approach, one that actually makes an impact. At Arbinger
we’re convinced that every successful effort to make lasting positive change
within an organization depends on a foundational mindset shift. Mindset—the way
we view ourselves and others—predicates the behaviors that impact results.
THE INWARD DEFAULT
While performance issues like siloing, disengagement, lack of accountability,
and unproductive conflict are often considered as separate concerns, they
usually go hand-in-hand. These and other team performance challenges are not
disconnected problems; they are symptoms of a deeper affliction we call an
inward mindset. An inward mindset refers to the ingrained human tendency to
ignore or diminish the needs and objectives of others, to view other people as
vehicles that can help us get what we desire, obstacles that provoke our
frustration, or irrelevancies to be disregarded. From within the confines of an
inward mindset, we see our own wants as paramount; our interest in the inner
realities of others extends only so far as it serves our own self-interests.
This mindset is far more widespread and subtly manifested than mere selfishness.
For the most part, an inward mindset remains invisible to us, masked by
justification and the misguided assumption that our perception perfectly aligns
with reality. But as we objectify others—even in ways that may seem minor or
disguised by an external “nice-ness”—we inevitably invite resistance and
dysfunction, and so an inward mindset sparks and perpetuates conflicts,
undermines collaboration, and exhausts effective communication. It is hardly a
recipe for a thriving company culture, and the damage caused by the inward
mindset is always manifest in painfully tangible ways.
THE COST OF BEING INWARD
The inward mindset is a hallmark of dysfunctional workplace culture, and the
financial implications are staggering. According to the Gallup State of Global
Workforce, there is an annual loss of $550 billion due to disengaged employees.
The same report describes $8 billion in lost revenue in workplaces lacking
psychological safety. By some estimates, quiet quieting and turnover from the
great resignation have cost American businesses $1 trillion.
Of course, business leaders are all-too-acquainted with the lost productivity
and revenue stemming from these types of issues. But harder to quantify are the
costs of missed collaboration and untapped creative synergies. How could the
value of sincere good-will and collegiality within a workforce be accurately
represented in dollar amounts? The absence of these factors makes itself keenly
felt, however. It’s been reported that 40% of employees feel isolated at work,
and that managers spend up to 40% of their time on conflict resolution. When
factoring in how poorly handled conflict results in mistakes, employee
attrition, and a lower return on labor invested, a single conflict can easily
cost a company well over $250,000. In one Arbinger engagement with a client, the
organization’s leadership identified the staggering cost of a single entrenched
conflict at over $12 billon.
Truly effective leaders know that the bottom-line is only one factor in
measuring company success—a factor that is immensely influenced by other factors
like employee retention and engagement. But, just like the employees they seek
to motivate and persuade, leaders themselves are subject to the undermining
effects of an inward mindset. They may view employees as a means to an end,
relying on punitive policies to try and force productivity or on calculated
rewards to bribe desired behavior. Either approach can, at least temporarily,
change external behaviors. But neither inspires an authentically dedicated
workforce rallied around a shared cause and eager to offer their best.
To accomplish truly great endeavors, leaders need to inspire their team, not
dictate their actions. Yet all too often, attempts to cultivate desirable
qualities in employees, like loyalty, initiative, commitment, and so on, fall
short because they focus on changing behaviors alone, instead of supporting a
mindset shift from an inward mindset to an outward mindset.
THE ADVANTAGES OF BEING OUTWARD
More is being demanded of businesses today than ever before. Where in the past,
profit alone was king, modern consumers and employees are rightly concerned
about ethical business practices, from environmental sustainability to workplace
conditions. Forward-thinking organizations understand the imperative need to
create people-centric workplaces, workplaces where an outward mindset is
understood and cultivated.
An outward mindset encourages employee accountability, engagement,
collaboration, and innovation. It is distinguished by curiosity regarding the
needs, objectives, and concerns of others, including managers, reports, peers,
and clients. With an outward mindset, employees focus on achieving mutual
results, rather than individual concerns. It involves a fundamental
reorientation towards other people based on a recognition of our inherent
interconnectedness.
An outward mindset shift isn’t just an abstract ideal, it can have concrete,
scalable, and repeatable impact. It opened the way for executives at Raytheon to
cooperatively cut $100 million in expenses during a challenging merger without
laying off a single employee. An outward mindset transformed the Kansas City
Police Department, essentially eliminating SWAT team complaints that had been
costing hundreds of thousands of dollars to litigate and which, most
importantly, were eroding critical community trust. And the mindset shift from
inward to outward helped CenturyLink’s largest division boost employee
satisfaction by 20% and grow revenue by 17%, all during a massive reorganization
initiative. Arbinger’s work with thousands of clients across widely diverse
industries confirms that an outward mindset empowers leaders and employees to
adapt and thrive together.
Check out CenturyLink’s story here:
SEEING CLEARLY CHANGES EVERYTHING
The mindset shift we advocate is not a prescriptive solution. It does not
replace the need for technical acumen or eliminate human judgement. It can,
however, unlock the powerful potential contained within each strained
relationship and siloed business effort. When an outward mindset becomes
ingrained into an organization’s culture, people understand the reality of how
their behaviors and attitudes impact others, and in turn become more helpful.
Employees transform from a disparate collection of self-concerned individuals to
a real team. There are few spectacles more awe-inspiring than a group of people
mutually committed to each other in pursuit of the same goals.
Of course, leaders need to be aware of the bottom line. But this concern, too,
is powerfully shaped by the underlying mindset. In fact, our latest research
report revealed that organizations with successful cultures are 5x more likely
to see significant revenue increases.
Executives can care about profit from an inward mindset—wanting to ensure their
own material comfort or status or influence—and this focus may not be inherently
problematic. But there is immense power in caring about the bottom line from an
outward mindset, viewing it as an indicator of the value you provide to
customers, as the means by which you provide stability for employees and their
families, as a signal of your contribution to the community you serve. From an
outward mindset, caring for the bottom line becomes synonymous with caring for
people—inviting the investment of every member of the organization. And, at the
end of the day, this employee investment is one of the best guarantees of
success.
Organizations that meet the needs of their employees in a genuine and effective
way create a culture that is a catalyst for improvement and growth. Read more in
our latest report.
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