Next to physical survival, the greatest need of a human being is psychological survival—to be understood, to be validated,
to be appreciated.
William Covey, 7 Habits of Highly Effective People
The deepest principle of human nature is a craving
to be appreciated.
William James, American Psychologist and Philosopher
The new year has started and private company owners are ramping up business plans for 2020. Their focus is on specific key targets—adding customers, building new lines of business, developing more efficient ways to produce their products or deliver their services and cutting costs without hurting quality. These business plans are driven by financial concerns with the ultimate goal of making the business more profitable in the year ahead.
While profitability is a critical measure of business success, as we launch into this new year, we want to challenge our audience of private company entrepreneurs, investors, officers, directors, managers, and advisors to rethink their approach to achieving profits. Consider the potential outcome from elevating the appreciation felt by all company stakeholders, which goes beyond elevating the company’s balance sheet. The important role of appreciation in business is described in a blog post titled, The Value of Gratitude as a Business Strategy:
“Gratitude is something that we don’t normally think of as a business fundamental. With lean operations and the focus on the bottom line, most organizations don’t take the time to weave gratitude and appreciation into their business strategies. But without gratitude, teams begin to break down, clients stop returning, morale takes a turn for the worse, and your business partners will start to lean away.” (Read)
How Should Appreciation Be Defined
As a starting point, appreciation in the business context is defined as the increase in the value of assets over time. Appreciation can also be viewed, however, as critical component of a powerful company culture. In the workplace, appreciation is a powerful motivator:
“. . . evidence suggests that gratitude and appreciation contribute to the kind of workplace environments where employees actually want to come to work and don’t feel like cogs in a machine.” (Read)
“Feeling genuinely appreciated lifts people up. At the most basic level, it makes us feel safe, which is what frees us to do our best work. It’s also energizing. When our value feels at risk, as it so often does, that worry becomes preoccupying, which drains and diverts our energy from creating value.” (Read)
Focusing on the role of appreciation in business is not a concept that should struggle to find a place in modern company culture. In her article in Forbes in 2018, Kelly Siegel points to research showing that “focusing on gratitude is said to lower blood pressure, improve your sleep, reduce depressions and anxiety and help prevent substance abuse.” Turning to the business world, she stated:
“A culture of gratitude in the workplace is just as critical in personal practice. It can drive productivity, employee retention, wellness and engagement. Instituting gratitude at work is something anyone can do, from front-line team members to the CEO. Gratitude is viral, once people see appreciation catching, they are likely to jump in an keep it going.” (Read)
What would a “culture of gratitude” look like in practice, and how would it be created and maintained? A number of companies and commentators are showing the way. Let’s take a look at some of the important lessons that have been learned to date about how appreciation can be such a positive and powerful force in a company’s culture.