HR And The "Dao" Factor

In the words of Sun Tzu, “To assess the outcome of a war, we need to examine the involved parties and compare them in terms of five fundamentals.”  The very first of them he lists is Dao – (The Way). By this he means the moral influence or that which causes people to think in line with their leadership, so that they will follow them through every challenge, to live or die, without any fear of mortal peril.

From a business perspective, this implies the ability of each member of an organization to align him\herself to the leadership’s vision, even if that means feeling the pain associated with actions that move them out of their comfort zone. It is a moral issue, a buying into the values and beliefs that drive the behavior that is consistent with the chosen path or strategy of the leadership, that has been created with a view to ensure success over the competition.

By institutionalizing the appropriate culture (behaviors) across the firm, the leadership seeks to set itself apart from the competition, and in this process creates a differential advantage that is difficult to emulate. The extent, to which the members of the firm are willing to commit themselves to the leadership’s strategy and implement it, represents Dao or – The Way. It addresses the mindset, the attitude of the people, and their trust in the leadership, which will give them success.

Building a winning culture is the responsibility of the leadership as a whole, but in particular the CEO working in tandem with the head of Human Resources (HR)function in the organization.  It is critical that HR plays its role in identifying the shortcomings of senior executives and helps them find an appropriate coach. This will become the critical difference between them and the competition. It will ensure that their colleagues have the self esteem and the confidence to make the changes in their behaviors and take actions that will align them to the Way  (Dao) of the leadership and bring them the desired outcomes. More importantly, it will integrate the HR function with the overall strategy of the firm and help play a crucial role in its implementation.