As the coronavirus pandemic crippled markets and challenged businesses, one popular term that saw a great resurgence was “adaptive”. While this word has a variety of definitions and means different things to different people, its use in business and leadership development is much more distinct.

The four main principles of adaptive leadership are summarized using the handy acronym “CODE”. That stands for character, organizational justice, development, and emotional intelligence. These tenets are important in shaping the workplace culture and philosophy of successful, adaptive organizations. Western Governors University provides a great summary explanation of the adaptive leadership model and the four CODE principles.

Mike Corkery, President and CEO of software and information solutions company, Deltek, provided insight into how the adaptive model has helped fuel their company’s business growth and employee satisfaction, even throughout COVID.

In fact, Deltek reported one of its best years ever right in the middle of the global pandemic. He provided insight into how their company embraces the adaptive model and how it has contributed to their continued success.

Character

In the context of adaptive organizations, character refers to each individual leader’s behavior and ethics. Managers who are open, honest, and reliable make staff feel more comfortable addressing issues or problems they notice, improving overall efficiency and workplace satisfaction. Likewise, good leaders acknowledge their employees’ contributions, encourage their professional development, and celebrate their successes.

On the other hand, poor leadership will take credit for their staff’s work or hoard the best customer leads for themselves. Supervisors who rely heavily on an authoritarian approach to management or who regularly withhold information from their team are likely preventing innovation and contributing to an unwelcoming workplace environment. This has a direct impact on the business as employee retention decreases as employee dissatisfaction increases.

It is crucial that leadership throughout the organization understands the importance of building workplace culture and is committed to maintaining high levels of transparency and cohesion.

Organizational Justice

Organizational justice – or perhaps more accurately, organizational integrity – is vital for an adaptive business to be successful. A company may state on paper, for instance, that it has an open door policy. However, employees who feel that their concerns are regularly ignored, or worse, fear retaliation for voicing their complaints, are unlikely to utilize that policy.

Regular employee surveys with high engagement (response rates) can be one method for keeping the organization honest and consistent. It is imperative that staff feels that their feedback is taken seriously and that changes are implemented as a result. Otherwise, response rates will decline and the feedback loop necessary for continuous improvement will become meaningless.

Organizational justice can also refer to fairness in pay, the appropriate handling of staff complaints, and a meaningful dedication to diversity, equity, and inclusion.

Development

According to Mike Corkery, an important distinction that separates Deltek from some of its competitors and gives them an overall edge in the market, is that Deltek is recognized as a great place to work and reports high levels of employee engagement and satisfaction.

This starts, however, with convincing leaders and managers at all levels that a strong, positive workplace culture is central to company success.

Investing in employees and their development is critical. In fact, a recent study found as many as three-quarters of millennials and Gen Z employees are planning to leave their current job in 2023 because they feel they lack the skills or education to advance within their career.

Great leaders encourage questions, promote innovation, and instill their staff with confidence. This may also mean trying new strategies, embracing failure as a path toward growth, and providing employees with career guidance and professional development opportunities.

Emotional Intelligence

Emotional intelligence, or EQ, is an umbrella term for the set of communication and “soft skills” that make leaders and individuals healthier, happier, and more productive. Knowing how to effectively manage stress, set long-term goals, communicate with different audiences, and negotiate through conflict are all aspects of emotional intelligence.

Investing in the development of these skills, especially amongst management, benefits the organization or company in a number of ways. Leaders that communicate well and display high emotional intelligence become role models who promote a positive workplace culture. They also create a safe environment where staff feel comfortable voicing concerns and pursuing opportunities.

Conclusion

Employee retention is a growing concern for companies and organizations of all sizes. The adaptive leadership model addresses these issues by focusing on what matters most: people. The top 3 reasons why employees quit are inadequate compensation, lack of advancement opportunities, and feeling disrespected at work.

These areas are each addressed under the CODE tenets of the adaptive model. Companies like Deltek that have embraced and deployed these principles across their organization now proudly report higher levels of employee satisfaction, employee engagement, and increased revenue as a result of being a great place to work.