Integrity is an Indicator of Performance!

By Douglas Ross

The word integrity has its roots in French and Latin words meaning intact, integrate, integral and entirety. This infers that the concept of integrity is talking about the whole system in its entirety. This includes the dynamic and changing nature of organizational systems and how they perform over time.

Integrity is about organizational efficiency and effectiveness. It is about firing on all cylinders.

When everything is working as it should, the result is performance

Integrity is defined as wholeness, consistency and objectivity. In simple words, do the right thing, do things the right way and do the next right thing.

 
Integrity has four component parts in organizations:

Personal Integrity is the optimization of the individual mindsets and behaviors that integrate and align the internal person with the changing external world in which they live and work. Optimization of the individual in organizations occurs through engagement and involvement.

Systems Integrity is the soundness of organizational design that optimizes the organizational value stream flow. The unimpaired flow of the organizational value stream is where wealth is created. The organizational design manifests the unification of structures and systems required to support wealth creation.

Process Integrity is reliability and validity of the organizational relationships and organizational learning.  Organizational relationships are the interpersonal connections between people in teams as well as between structures and systems that interact. Organizational learning occurs through the following processes: individual capability building and team development, problem solving and continuous improvement processes, decision making and employee involvement, as well as the personal and organizational communications processes.

Structural integrity is the state of being whole and undivided in leadership and performance. Leadership consists of the mindsets and behaviors that govern all organizational system pattern and behaviors.  Performance is all the metrics that are guide leadership in achieving, and sustaining current system results.

Can Integrity be Measured?

By definition, anything that is not whole, consistent or objective is lacking in integrity. Let us look at the four component parts of integrity with this in mind.

If individuals within an organization are not making value added contributions or are not aligned and integrated with the systems, processes and structures of an organization, then it follows that the personal integrity of the talent creation, involvement and engagement systems is low.

This can be determined either by surveys or interviews and can be validated by observation of the behaviors of organizational personnel.

If organizational systems, especially the wealth creation system are full of irregularity, variations or contradictions, then one could say that the degree of systems integrity is low.

This could be assessed by examining organizational performance metrics and history that examine the whole system and its component parts. The analysis of the degree of irregularity, variation and contradiction then would result in an overall assessment of system integrity.  

If decision making and problem solving are not open, transparent, rational and in compliance with proven scientific procedures, then the degree of process integrity within an organization is low.   This can be assessed by observing and analyzing problem solving and decision making process and their results and outcomes.   

If departments are separate and distinct with little or no understanding of the inter woven fabric of the actions, results and outcomes both within their departments and , throughout the organization, then one could say that the degree of structural integrity is low.

Integrity and Performance.

First, an integrity measurement indicates the overall state of performance in the organization. If internal parts of the system are not firing on all cylinders, the organization will not have the horsepower to perform. An assessment of the internal integrity will reveal breakdowns or the systemic issues impacting performance.

Until this is done, the adage “Every organization is perfectly aligned to get the results it currently gets” applies because the systemic issues are never addressed.

Second, an integrity measurement identifies the degree of alignment between organizational intent with the organizational outcomes with customers and key stakeholders, such as shareholders and employees.

Organizational misalignment between intent and outcomes is a systemic issue. When the systemic issues are not addressed, people in the organization hold themselves or others responsible. This causes internal stress and division within an organization.

Not only does it create the phenomenon of “A house divided will not stand” but it also creates highly political cultures as individual and departments naturally rationalize the situation by deflecting the blame and justifying their actions. 

Third, an integrity measurement indicates the effectiveness of the degree of integration and alignment of the value stream and organizational design in achieving the desired outcome. Any misalignment or lack of integration will result in an impaired flow or activities which will be manifested in recurring problems.

This is a phenomenon called “ground hog day” when people will say that it is a different day but the problems are the same.

Fourth, integrity measurements assesses individual and organizational learning processes by assessing the self regulating nature of organizations which unifies and balance goals, targets, strategies and accountabilities in achieving results. Conflicting initiatives drive organizational imbalances that disrupt the natural feedback mechanisms.

This causes departmental breakdowns and the proliferation of waste. Many organizations respond by introducing new strategies labeled “the flavor of the month” being driven down through the organization. This further exacerbates the problem and introduces even more waste into the system.  

 Finally, an integrity assessment will assess the degree of optimization by assessing individual department work systems and the interrelationship of work flow in achieving organizational performance.When work systems are broken or impaired, thereby creating waste, people seek to optimize the individual element at the expense of the whole.

This is a phenomenon called “sub-optimization.” Sub-optimization occurs when individual department’s performance is optimized at the expense of the whole system performance.

 

Do you want to learn more, contact Douglas Ross or visit Principle Dynamics to learn more