Many organizations believe they have a dynamic relationship between managerial staff and lower-ranking employees, but in reality few actually do. However, there is good news, such a situation can be changed. High-quality communication between leaders and followers can serve the business, or organization, in many ways. Communication allows for valuable exchanges of information, which can, in turn, result in mutual trust, respect, commitment and retention (Northouse, 2019, p. 147 & Butler & Waldroop, 1999, p. 152). Understanding the leader-member exchange (LMX) theory is beneficial to all who are involved. Alec Clark and Tarl Robinson, president and chief executive officer (CEO) of Plexus Worldwide, practice this well; regardless of whether or not they know the LMX theory by name. Clark and Robinson work closely with those who work well with them and contribute the most value to the company, and through this, they model the leadership and communication expectations of the organization so that it is applied at all levels to create the result of a tight-knit community and retain their personnel.
Let me unpack this a little by providing some context, and then I will delve into the LMX theory itself. Plexus Worldwide is a network marketing, health and wellness company, which often goes by the motto “If you’re blessed, be a blessing” (Plexus Worldwide, 2021). Clark and Robinson founded the company together in 2007 (Plexus Worldwide, 2021). Speaking from experience here, despite their different levels of authority, the two work closely together and with others on most happenings in the corporate side of things, as well as the business aspect. This leads right into one of the first facets of LMX theory, dyadic relationships. Dyadic relationships occur when two people are dependent on each other in terms of completing their goals (Northouse, 2019, p. 139). In other words, it is viewing leadership as an interaction between leader and follower, rather than as a tyrannic relationship.
Clark and Robinson work closely with leaders in the corporate and business sectors. The names of these individuals can be found online (Plexus Worldwide, 2021). By doing this they are practicing dyadic relationships, and each one is unique (Northouse, 2019, p. 141). These individuals are the “in-group” by Northouse’s (2019) terms, and the subordinates below them [the corporate and business leaders] (p.141). Followers in the “in-group” receive more attention, concern, and so on and they are more involved with their leaders (Northouse, 2019, p. 140). These close-knit relationships promote trust and honest communication, and in doing so Clark and Robinson can be made aware of areas that need attention, improvement, or recognition (Northouse, 2019, p. 140). In fact, it is because of these more intimate relationships that the leaders are more communicative (Northouse, 2019, p. 140). As a result of this communication, those involved become more committed, stay with the company longer, have better attitudes, progress within their careers faster and become increasingly more involved (Northouse, 2019, p. 141). All of these traits are highly sought after in any workplace. In my opinion, it makes the work environment much more enjoyable and pleasurable to be around as well.
Another benefit of working with the “in-group” is that it is exposed to effective leadership mannerisms. Northouse (2019) discusses something similar to this later on in the chapter, and he terms it “leadership making” (p. 143). I propose an idea similar to, but different from this. Rather than a leader attempting to develop relationships with everyone in his or her organization, which would be very impractical on a large scale, (s)he could cultivate very high-quality relationships of those who are part of the “in-group” and model that behavior for them. Within this relationship (s)he would set the expectations that each individual in his/her “in-group” do this with their own respective “in-group”. Now, this would not mean that everyone was treated the same or was intimately involved, but it would involve the highest caliber people. The domino-effect result would be the same across the board, but at a higher quantity than if it were not passed down. To reiterate, the impact would be more involved and committed employees, faster career progress, improved attitudes and greater retention (Northouse, 2019, p. 141).
Doing things in the manner described above skips the phases of leadership making (Northouse, 2019, p. 144). Normally these phases involve progressing from stranger to partner over time (Northouse, 2019, p. 144). It is suggested that the leader do this with every follower to promote feelings of involvement and equality for all followers (Northouse, 2019, p. 144). Skipping the phases of this process increases efficiency since the responsibility of cultivating relationships is distributed evenly throughout the organization. Since the responsibility is evenly distributed and does not lie heavily on any single person’s shoulders, a close-knit community is the result. Trust and open communication are commonplace in this scenario because the individuals know they can depend on each other (Northouse, 2019, p. 144). Again, this would result in each level of leadership being well informed of the needs, praises, and such of those below them.
An example of this in the context of Plexus Worldwide is Clark and Robinson’s frequent meetings with diamond ambassadors. Diamond ambassadors are those who have reached the top rank in the company (Plexus Worldwide, 2021). I am friends with a few of them, and they have shared with me that they meet with other diamonds, as well as with Clark and Robinson, several times a month. In these meetings, they bring their own input and answer any questions Clark and Robinson have as a means to provide insight and provide open communication. In some circumstances, highly qualified diamonds are asked to serve on the advisory board of Plexus Worldwide (Plexus Worldwide, 2021). Both of these groups are different examples of “in-groups”.
Clark and Robinson work closely with those who work well with them and contribute the most value to the company; and through this, they model the leadership and communication expectations of the organization so that it is applied at all levels to create a tight-knit community that retains their personnel. Regardless of the scale, process or phases, when leaders develop high-quality relationships with their followers, good things happen. It is beneficial for leaders to do this because it decreases employee turnover, increases commitment and involvement, results in a better attitude and faster progress and it is all a result of the mutual trust and open communication that comes from such a standard of relationships.
So I’ll leave you with this question: when was the last time you felt heard in your position at work?
References
Butler, T. & Waldroop, J. (1999). Job sculpting: The art of retaining your best people. Harvard Business Review, 77(5), 144-152.
Plexus Worldwide. (n.d.). Advisory board. Enjoy the journey. https://recognition.plexusworldwide.com/spotlights/advisory-board
Pleuxs Worldwide (2021). Ambassador compensation plan. Plexus help center. Retrieved September 27, 2021, from https://helpcenter.plexusworldwide.com/hc/en-us/articles/360018731252-Ambassador-Compensation-Plan
Plexus Worldwide (n.d.). Meet our founder and president. https://shop.plexusworldwide.com/alec-clark