Awareness precedes choice and choice precedes results. - Robin Sharma
When Paul O'Neill arrived as CEO at Alcoa, he didn't hold his troops to criteria that CEOs commonly use, such as profit margins, sales growth rates, or share appreciation. His singular standard: time lost to employee injuries. By focusing on just one highly impactful habit, O’Neill managed to create change at different levels of awareness within the organization, the company's annual net income went up by five times and its market capitalization rose by $27 billion.
The Awareness Framework can help us understand the deeper and wide ranging implications of the focus on safety:
1. Task Awareness: Empowered employees began to offer suggestions and accidents were immediately brought to the attention of executives. As a result, the accident rate declined — ultimately to about 5% of the national average.
2. Situational Awareness: Workers realizing that the management was keen to examine and improve every inefficient and dangerous manufacturing process, increased communication among employees. Line workers offered suggestions to improve efficiency, and the company underwent a renaissance.
3. Emergent Awareness: Employees started recommending business improvements that otherwise would have remained out of sight. One day, a low-level employee made a suggestion that quickly worked its way to the general manager. Within a year, profits on the product doubled. By creating patterns of better communication, a chain reaction started that lifted profits.
4. Self Awareness: ''Paul came in and got us to do things we never thought we could do,'' says L. Richard Milner, head of Alcoa's automotive unit. The safety habit influenced every part of the employees’ lives - how they worked, ate, played, lived, spent, and communicated. Employees’ thoughts, feelings and beliefs and their attitudes and reactions to changes in the environment improved. Their attitudes to people around having a different point of view also took a turn for the better. Hard-core, ladder-climbing, capitalist executives turned into soft, feel-good samaritans, adept at identifying, co-opting, and shaping behavior patterns to increase profits.
By creating awareness around safety, O'Neill unleashed a pattern with the power to start a chain reaction. A reaction that improved a host of processes in the organization, created a employee-friendly environment, aligned people to the company’s goals and increased profits.
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