Corporate Lexicon (#155)
Large organizations or companies are usually bureaucracies, or a complex organization with multilayered systems and processes designed to maintain uniformity and control within an organization. Bureaucracies typically trade speed for consistency and uniform processes. Sometimes bureaucracies can be viewed negatively, but in this instance, no matter whatever the size of your company, it is worth implementing a process to ensure everyone has a common understanding of the words your group uses on a daily basis.
From my experience, one system or process that the US Army does better than corporations is compiling its lexicon so everyone understands the definition of words used throughout the force. The latest US Army “dictionary” is known as FM 1-02.1, Operational Terms. As stated in the introduction, the manual “compiles all Army terms and definitions approved for use in the US Army… When communicating instructions to subordinate units, commanders and staffs from company (editor note — 100 people) through corps (50,000 people) echelons should use this publication as a dictionary of operational terms and military symbols.” This 160 page book, as well as the Army Dictionary Online, are the Army’s tools to keep the 1.25 million soldiers and civilians communicating with a common lexicon and common understanding.
Seize vs. Secure
Prior to 3rd Battalion, 187 Infantry’s deployment to Afghanistan, senior leaders had a long discussion on whether the appropriate task for a company (100 people) was to seize or secure a certain area. The definition of seize is “a tactical mission task that involves taking possession of a designated area using overwhelming force.” The definition of secure is “a tactical mission task that involves preventing a unit, facility, or geographical location from being damaged or destroyed as a result of enemy action.”
Words matter, especially when you want to make sure everyone has a common understanding of what needs to be done. After a great professional development conversation, the unit was given the task to secure the area. It was worth it to spend the extra time to ensure everyone had a common understanding of what they were being asked to do and what needed to be done on the ground.
Corporate Lexicon
In my four years working with companies, I have seen many leaders and their teams lack a common understanding of the words that are used by the group on a regular basis. I wrote earlier about making sure everyone had an understanding of the difference between strategy and tactics (Post #79) and in comprehending the difference in a purpose, mission, and vision statement (Post #53). This lack of understanding can result in miscommunications, wasted time, and lost revenue.
I recently listened to a podcast interview of Chip Wilson, the founder of the sportswear company Lululemon. He was CEO of the company from 1998-2005 and remained on the board of directors until 2013. During this period the company went public and was values at $327 Million. In 2019 Lululemon had $4 Billion in revenue. Chip Wilson is a complex person — a billionaire, a philanthropist, but also a candid and, at times, controversial figure. However, Wilson believes that the rapid growth of Lululemon was due to their common lexicon. He also advocates that other companies develop a common lexicon, as well.
Word definitions will evolve over time as your company grows and changes. Each year Lululemon defined their 30 key words and phrases as part of their annual strategy. As part of the annual review of your company’s values (see Post #107 for a technique to use) it is worth defining or redefining your company’s lexicon.
Part of Lululemon’s Dictionary from Chip Wilson’s Tenure as CEO:
Vision: a declaration of who we are and what we bring to the world.
Values: the framework for all decision making.
Mission: the functional application of our vision.
B.A.T.N.A: Best Alternative to a Negotiated Agreement. We go into every negotiation knowing our BATNA, as well as the BATNA of the other party. Strong alternatives ensure that we are never negotiating from a place of desperation and that any agreement that we enter into will be great.
Differentiator: The ‘thing’ that sets us apart from the competition.
D.A.I: We expedite the decision-making process by first identifying the Decision Maker, the Advice Giver and the Informed Stakeholders in any major decision.
More definitions can be found on Chip Wilson’s website here.
Conclusion
Like the US Army and Lululemon, go on the offense in 2021 and spend time defining your company’s lexicon to decrease miscommunications and increase understanding, speed, and revenue.