In any business, leadership and workplace culture are closely related. On today’s episode of The Small Business Show, we’re diving into the “Last 8% Culture System” with guest Dr. JP Pawliw-Fry. He is an NYT Best-Selling Author, speaker, podcast host, president, and Co-founder of IHHP.
Key Takeaways
1. Dr. JP Pawliw-Fry introduced the concept of the “Last 8% Culture”, which refers to the final portion of challenging tasks or risks that individuals and teams often avoid or mishandle. This concept is crucial for understanding workplace communication and decision-making, particularly in high-stakes or conflict-ridden situations. Essentially, the idea is that the Last 8% of a conversation or decision often contains the most difficult part, leading to unresolved issues and reduced effectiveness.
2. Dr. Pawliw-Fry emphasizes that taking risks is essential for teams and individuals to perform at their highest level. He stresses that creating a safe environment where people can take risks is crucial for organizational growth and maintaining a competitive edge. His research, which involved surveys of tens of thousands of individuals, indicates that risk-taking is directly linked to high performance in various settings, including sports, military, and corporate environments.
3. To handle the challenges that come with the “Last 8%,” organizations must create a supportive environment that encourages individuals to undertake risks without fear of negative consequences. This involves developing internal mechanisms and tools that enable people to effectively navigate the pressures and complexities of their roles.
4. The interview reveals that high team performance is underpinned by two critical elements: connection and courage. Dr. Pawliw-Fry explains that a sense of belonging and psychological safety (connection) is essential for individuals to exhibit bravery and take necessary risks (courage). This framework suggests that organizations should prioritize establishing strong interpersonal relationships and a supportive culture to facilitate high performance and innovation.
5. Applying the “Last 8% Culture” in business settings involves aligning it with strategic business goals, such as talent attraction and retention. For example, a healthcare insurance company seeking to become an employer of choice can adopt this approach to achieve significant organizational benefits, including improved performance and return on investment. This approach has been validated through before-and-after studies, demonstrating tangible improvements in companies adopting the “Last 8%” principles.
"Understanding how you create an environment where people can take risks is actually the most important thing." – Dr. JP Pawliw-Fry
