For most small and medium-sized enterprises (SMEs), governance is something far away. In other words, measures of good governance are not yet part of daily practice. Particularly explosive growth and/or external demands, for example from an external financier, have changed this to date. Especially to make the likelihood and impact of risks manageable. Oddly enough, because fundamentally every entrepreneur wants to be successful and certainly not fail. Thus, corporate governance aimed at SMEs is actually relevant for every entrepreneur: it is about having control over realizing entrepreneurial ambition. And there's quite a lot involved. Therefore, we will be paying ample attention to this unexplored area in the world of the entrepreneur in the coming period.
Today, Route ICR shares the thirteenth article from the series 'How to practically implement SME governance'.
Vulnerable Employee Attitude Creates Safe Culture
Amsterdam, January 24, 2022 - Business is simple. However, the hardest part is to keep it simple. But why is that? Let's talk about this in the coming period and also explore how to solve this issue. Today, Route ICR shares the thirteenth article in the series 'How to practically implement SME governance'.
For some time, there has been significant attention to inappropriate behavior within organizations. Unfortunately, it often takes an incident to prompt action. Let's examine how to lay a solid foundation for a transparent and safe work environment. Only then will employees feel comfortable being vulnerable, contributing to a safe culture. It's crucial to understand that being vulnerable is different from vulnerability. “Showing vulnerability is powerful because it establishes a basis for connection. It's fundamentally different from being vulnerable, which makes you an easy target for those with bad intentions.” [Paul Joore, 2022]
Culture Doesn’t Just Appear Out of Thin Air
A transparent and safe work environment requires a culture where employees feel secure. Vulnerability should be a norm in this culture. It's about how we do things in our organization, especially from the perspective of mission and vision, core values, norms, and the expectations critical to the company's functioning. The ultimate goal is to ensure optimal customer experience. If you, as a business owner, neglect this aspect, you unwittingly create a culture that only by chance provides a foundation for a transparent and safe work environment. In most cases, this isn’t the safe culture we aim for.
Learn from Mistakes and Report Improvements
Furthermore, the DNA of every company should inherently be imbued with the desire for continuous improvement. Learning from mistakes is crucial for this, so employees must have the freedom to report errors and suggestions for improvement. Holding each other accountable for behavior and responsibilities should be commonplace. Everyone should feel free to approach any colleague within the organization. Importantly, incidents must always be followed up seriously. Employees should never feel hesitant to report matters that make them uncomfortable.
Encourage Vulnerable Employee Attitudes
A vital question for entrepreneurs is whether you encourage a vulnerable attitude among your employees. A safe culture is created by employees who are willing to be vulnerable. They only dare to do so if you, as a business owner, lead by example. By rewarding vulnerability, you foster a safe environment. Together with a clear mission and the right core values, you establish the foundation for desired behavior in your organization, creating a safe culture for improvement. This is another benefit of implementing SMB Governance.