Author: Patrick Lencioni
Reading time: 24 minutes
Synopsis
In Der Vorteil (2013), the author explains how to build a strong company culture. He also shows why this is important. In a healthy company, everyone understands each other and works together. These summaries show the steps you need: a leadership team that works well together, clear company values and plans, and meetings that are used effectively.
What you will learn: The key to a great company culture.
What is wrong with your company? Why do people leave work exactly at six o’clock? Why are there so many misunderstandings, frustration, and bad moods? Why do many employees only do the minimum, work quietly by themselves, or leave without a clear reason? Is it possible your company is simply sick?
In Der Vorteil, Patrick Lencioni explains how to make a sick company healthy again. He leads a consulting company that helps with this. He knows the problems and what solutions work. These summaries will teach you that a strong company culture is key for a healthy company. Then everyone works together, enjoys their work, and is effective. You will also learn why you need a leadership team that works well together. They must also show the company’s values through their actions.
These summaries will also tell you:
- that employees having a say leads to better work,
- when letting an employee go is necessary, and
- how to make meetings useful, not boring.
Blink 1 – A healthy company naturally acts smarter.
What makes a company successful? What are its heart and mind? The answer: Intelligence and health are the two main things that make any company successful.
Intelligence is key for strategy, marketing, money, and technology. A smart company makes sensible and well-thought-out decisions. But health is important where many employees need to work together. A healthy company has few internal fights and unclear situations. Few employees leave, people are happy, and work gets done well.
Both intelligence and health are vital for success. But health comes first. This is because a healthy company will become smart over time. But a smart company does not always become healthy.
Leaders in healthy companies learn from each other. This makes the company smarter. In sick companies, managers do not admit their mistakes. They do not learn. It is like a family: Children from healthy families do better at school. This is true no matter how smart they are. Children from troubled homes often struggle more. Intelligence can only grow freely in a healthy place.
Even smart people can make bad decisions. This often happens in an unhealthy environment. Many companies have managers who are brilliant and earn high salaries. But they often make wrong decisions. This is because the work atmosphere is bad and there are many internal conflicts. In a healthy company, even average employees are more likely to make good decisions. This is because everyone follows the same goals and has good information.
Blink 2 – Ambition, lack of time, and focus on numbers stop managers from important tasks.
Company health is very important for long-term success. But managers ignore it for three reasons: ambition, lack of time, and focusing too much on numbers.
- Leaders want to prove themselves. They think big improvements need complex actions. But creating a strong company culture is quite simple. It only needs discipline, courage, and common sense. Managers are doubtful. They think: ‘Why did we study for years and work our way up if it’s so simple now?’ Their ambition blocks change.
- Also, managers are very busy with daily tasks and urgent problems. This ‘hamster wheel’ gives them little time to think about company health. It is important, but never urgent. Because of their lack of time, this topic is left aside. But it is very important for long-term growth.
- Also, it’s hard to put a price tag on the benefits of a healthy company culture. What does a bad mood cost? How much money does good team spirit save? Leaders are often judged by savings and profits. So they focus on tasks whose results are easy to measure. Their focus on numbers makes them forget that some things are valuable even if you cannot measure them.
Also, people usually like to choose tasks that are clear and familiar to them. Company health, however, is a new topic. It seems ‘soft’ and hard to grasp. So, many people don’t see how urgent this problem is. They also don’t see the benefits of a healthy company.
Blink 3 – A leadership team that works together is the start of a good company culture.
The first step to a healthy company culture is to form a leadership team that works well together. This team will make sure that relations between managers and departments are good. Only then can a company reach its full potential.
A real team needs three things: It has few people. All of them chase the same goal. They share responsibility. It is like a basketball team: Everyone plays at the same time, talks to each other, and depends on each other. They can only win as a team.
The best teams have between three and twelve members. Small teams are better because it is easier to ask questions directly. It is also easier to share ideas and opinions. Everyone knows this: In a meeting with more than ten people, attendees are less likely to ask questions or speak up. But in a small group, everyone gets to speak.
A real team shares responsibility. This means team members are also together responsible if a goal is not met. But if the team works well together, everyone should share in the success. For example, all team members can get the same bonus payments. New laptops or a team trip can also be good rewards.
A real team has common goals. Like a sports team, they all want to win. Everyone works towards the same goal. They represent this goal both inside and outside the company.
Blink 4 – The leadership team must build trust, solve conflicts, strengthen responsibility, reward commitment, and define goals.
For a leadership team to be successful, it should follow five rules. These rules are about trust, handling conflicts, commitment, responsibility, and results.
A successful leadership team is built on trust. Team members must know they can trust colleagues. They must know that others will not use their weaknesses or mistakes against them. Only when this feeling is there can they say, ‘I need help,’ ‘Your idea is better than mine,’ or ‘I am sorry.’ This is important for the team to grow.
Conflicts are normal and natural. In a successful leadership team, no one should avoid them. Instead, everyone should want to find a quick and clear solution for conflicts. Different opinions must be spoken about and discussed. This stops bad feelings from being hidden. Hiding feelings only leads to more unhappiness and frustration.
Managers should ask their team members to be committed. They must make it clear that everyone shares responsibility for the team’s decisions. No one should say, ‘I was against it anyway,’ to avoid responsibility. To help with this, all employees should be part of making decisions. This way, they will feel more connected to the results. Also, feeling involved leads to more personal commitment. Shared responsibility is the key to more teamwork.
You measure a team’s success by whether it reaches its goals. The results it wants to achieve must be clearly defined. All members should have the same priorities for these goals. Of course, goals that should lead to a good outcome must be seen in context. For example, three goals are not a good goal for a football team. What if the other team scores four?
Blink 5 – The leadership team should be clear about company strategies and values.
For a team to work well, all members must share the same strategies and values. The easiest way to do this is for all team members to answer six key questions together and clearly. The questions start broad and then get more detailed.
Thinking about the other questions only makes sense after the first and most important question is answered: ‘Why do we exist?’ Every team must first know its reason for being. This also helps individual employees understand the big goal behind the team’s daily tasks.
The second question is: ‘How do we act?’ This question is about general behaviors and ways of interacting. The company’s character and values are very important here. When employees know what behavior is expected of them, it leads to more efficiency and better moods.
The third and fourth questions are closely linked: ‘What do we do?’ and ‘How will we succeed?’ Once these two questions are answered, the team can then decide how to do tasks in detail. To answer these questions, the team must be clear about its goals.
The fifth and sixth questions are: ‘What is most important right now?’ and ‘Who needs to do exactly what?’ Here, you get into detail. Priorities are set, and tasks are given out. Dividing work starts at the top. Even in the leadership team, it must be clear who is responsible for what. It must also be sure that all important areas are covered.
Blink 6 – The leadership team must ensure all employees follow company values.
Once the leadership team has agreed on the answers to the six questions, it is time to tell employees. Everyone in the company must also regularly hear about the main values, strategies, and priorities.
Good leaders see themselves as reminders. Their main job is to set the company’s direction. They must regularly remind employees about it. The more employees hear these principles, the more they will believe in them. Employees judge their managers by what they say and if they mean it. If a manager consistently shows the same core values, strategies, and priorities, and lives by them, employees will believe them. They will act on them too.
Most leaders feel awkward repeating the same message many times. They think a good employee only needs to hear something once. But everyone knows the speech from the boss at the company party. He describes the company’s great values in beautiful words. But the next morning, it is forgotten and put aside for the rest of the year. The trick is to keep bringing up the most important points again and again.
But the leadership team should not only talk to employees about the company’s core values. The team itself must keep talking about these values. This ensures everyone always knows the company’s direction.
Only if the leadership team fully agrees on values, strategies, and decisions can it share them consistently with employees.
Blink 7 – Company values can only be put into practice if they are clear.
The employee structure must be set up so that everyone knows the answers to the six key questions. The leadership team should be able to share this information simply and directly.
But managers cannot say one thing and do another. If teamwork and learning are core company values, they must be lived out. A Christmas party and a yearly PowerPoint training are not enough to claim these values.
Most importantly, every new employee must deeply learn what the company is about from day one. After the first week, they should be able to recite the company’s values, mission, and strategy like a poem. And it should stay that way. If a new team member knows that learning is not just allowed but encouraged, they will actively seek to improve their skills. This could be learning a programming language or improving presentation skills.
If an employee shows such initiative, they should expect recognition. If they live the company values, they should be praised. In the medium term, they should also get a promotion or a bonus.
But it is important that employees truly understand what is expected of them. Praise and criticism only make sense when leaders clearly communicate the desired direction.
If an employee shares company values but performs poorly, they should always have a chance to improve. However, if they do not share the values at all, then letting them go may be the only way. This can keep the team together and improve morale.
Blink 8 – Meetings without a clear focus only cause confusion.
Meetings are often seen as a waste of time. But in reality, they are the best sign of how strong and lively a company is.
Every meeting is a chance. Bad meetings spread bad moods. Good ones build teamwork. Values are set, discussed, and lived in them. Decisions are made.
To get the most from meetings, they should happen at the right time and with the right focus. Everyone should clearly understand the decisions made. Tasks should be clearly assigned.
Why do meetings often seem unproductive and frustrating? The answer is simple: they are overloaded. Imagine a cook who throws all ingredients from the fridge into one big pot. Then they wonder why it doesn’t taste good. Sometimes less is more.
For example, many companies have a weekly employee meeting. In these meetings, ‘all important current things’ are discussed. Anyone can suggest topics. The result is that everything and nothing gets discussed. This leads to no results, just endless frustration and misunderstandings.
Instead, you should focus on a few points. Give enough time for each. The human mind cannot process too many things in one meeting. Meetings need more clarity and focus. All attendees must leave with the same clear message. This message answers: What decisions were made and why? It is important to take five minutes at the end of a meeting to define this message clearly. Otherwise, there will quickly be mixed messages, confusion, and unhappy employees.
Blink 9 – Effective meetings have different formats based on their goal.
The right type of meeting can save a lot of time and stress. There are four different types, each with a different goal.
The workday starts with the daily check-in meeting. You should make it a habit to talk with your team for five to ten minutes each morning about daily tasks. Who is working on what? What problems are there? When everyone is in one room, questions can often be answered in 30 seconds. Otherwise, they might take days of emails. To keep this meeting short, it should happen while standing.
The weekly employee meeting helps to build team spirit and a healthy company culture. It should last 45 to 90 minutes and not have a set agenda. Instead, every employee should get a chance to share their most important points. The group decides which topics to discuss in detail.
The monthly Critical Points Meeting lets employees talk about complex and difficult issues. Anything important but too ‘big’ for employee meetings belongs here. For example, this could be new changes from competitors or problems with your own products. It is important to take enough time to discuss everything. Two to four hours is a realistic time for this.
The quarterly Strategy Meeting for the leadership team should happen outside the office. This gives a fresh view. This meeting covers strategic goals, the performance of key employees, and the competitive situation. The team should take one to two days for this.
Except for the daily check-in meeting, every meeting should end with a summary. Attendees must summarize what they agreed on. They must also say what they will tell their teams.
Blink 10 – The leader of the leadership team leads the way in building a healthy company culture.
The leader of the leadership team is the most important person. They build a strong and lively company. They also create a healthy company culture.
Leaders often think they are not responsible for company culture. This is wrong. The leader of the leadership team should always show this and lead by example. They must be the first to handle the hardest and most uncomfortable tasks: showing weakness, addressing conflicts, or criticizing people for bad behavior. They must also get others to think about the six basic questions.
The leadership team must take two important steps to create a healthy company culture. First, it should take two days to bring the team together. They must create clarity about the basic questions. After that, a document should be made. It should summarize the answers to the six questions. It should also state how the team will work together.
This, in turn, takes a lot of time. It may take at least one, but up to six months, to see results. This depends on how much energy and effort the team puts in.
After this, it is important to create clarity about core values throughout the entire company. To do this, the leadership team should not only talk to employees often. They should also design a system where desired behaviors are built into every process and work step.
The leader of the leadership team must start all this. They also play a key role in making it happen.
Building a healthy company is like a marriage: You must work on it constantly. But you are often rewarded in the end. Keeping a healthy company culture needs constant attention and commitment. Still, this is a rewarding task. You can see the very positive results every day.
Summary
A company can only reach its full potential if all employees work together. To do this, it needs a strong and lively company culture. The most important steps are: a leadership team that works together, clear company values and strategies, and effective meetings.
Source: https://www.blinkist.com/https://www.blinkist.com/de/books/der-vorteil-de