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Uncategorized
Last week, I co-facilitated a leadership retreat at Pala Mesa Resort in Fallbrook, California. Part of the agenda was set aside to review the results of the company’s 2015 employee engagement survey. Each manager took 20 minutes to share the highest and the lowest scores from their departments. They made commitments for how they would improve results in 2016, and suggestions for company-wide improvement efforts.
On the morning of Day 2, we asked, “What was your biggest takeaway from yesterday’s session?” The President of the company responded, “What struck me the most was the comment by our Controller – that ‘we need to make our inside as good as our outside.’”
Bingo. Experienced executives can find ways to make financial results sing. Strategic planning can uncover new markets, expanded channels, and opportunities to innovate. Savvy marketing experts can keep brands fresh and top of mind. It’s tempting to get caught up in efforts to boost profit, innovation, and brand recognition – things that make us look good on the outside – and ignore what’s happening on the inside.
Yet, Gallup research reports that 2015 employee engagement levels hang at a paltry 30%. Low employee engagement levels have been associated with employee turnover, low productivity, and absenteeism – all of which directly impact the bottom line. Leaders who remain manically focused on the outside may discover too late that they have a crumbling infrastructure – one that will not support their growth strategy.
As Forbes contributor Mark Crowley notes, “To defeat [low engagement], we must have the courage to reject many of our archaic methods, and to adopt ones known to have the greatest impact on inspiring human performance in the workplace.” So, what has the greatest impact on employee engagement? In a recent interview with Jim Harter, Gallup’s ‘engagement Jedi,’ Crowley found that, “the best companies Gallup works with consistently see a 7-to-9 percent improvement in a given year, and it’s because they intentionally align their performance management so that everything they do is on the same path.”
The kind of alignment that Gallup has found works best is the kind practiced by San Diego based WD-40 under the leadership of CEO Garry Ridge. Consider the results from WD-40’s 2014 Employee Engagement survey. With an average 93.7% engagement index, WD-40 has achieved best-in-class alignment by focusing on these 8 simple questions:
- I understand how my job contributes to achieving WD-40’s goals.
Result: 99.7% of employees agreed.
- I know what results are expected of me.
Result: 98.6% of employees agreed.
- I love to tell people that I work for WD-40 Company.
Result: 97.6% of employees agreed.
- I am clear on the company’s goals.
Result: 97.1% of employees agreed.
- I respect my supervisor.
Result: 97.1% of employees agreed.
- I feel my opinions and values are a good fit with the WD-40 Company culture.
Result: 96.8% of employees agreed.
- WD-40 encourages employees to continuously improve in their job, to “make it better.”
Result: 96.3% of employees agreed.
- I am excited about WD-40 Company’s future direction.
Result: 95.6% of employees agreed.
Leaders like WD-40’s CEO Garry Ridge understand the impact that employee engagement has on the bottom line. They lead the charge to continually invest in their employees who, in turn, focus on exceeding stakeholder expectations and deliver sustainable profit.
Question: Do you use employee engagement surveys in your organization? If so, are they clearly aligned with your company’s performance management system?
Join me and Dr. Tony Baron April 27th in San Diego for The Re:Imagine Leadership Summit. Discover how to create a culture that can respond swiftly, communicate freely, encourage experimentation, and organize as a network of people motivated by a shared purpose to meet the demand of the 21st century business enviornment. To learn more or register, go to:
executiveexcellence.com/reimagine
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People, Uncategorized
Culture. What does that word actually mean? Though many have tried, no one has ever landed on a fixed, universal definition for organizational culture. The subject has been vigorously debated from the pages of the Harvard Business Review to the halls of MIT Sloan. What is not debated is that culture is part of the DNA of every organization. Whether your organizational culture is empowering or toxic depends greatly on two factors: shared experience and modeled leadership.
Consider this. When new employees join your organization, they step in on Day 1 with a set of preconceived beliefs based on past experience. They may believe that markets are finite and there is only so much business to go around. They may believe that success happens only when we beat our competitors. That in order to for us to win business, others must lose. Some have been taught that ethics and morals can be bent. Others have relied on the strict dictates of policies and procedures. That makes up the experience half of the equation.
The other half comes directly from modeled leadership. If the leaders of the organization are fixated on business development, channel expansion, and market domination, they are not likely spending any time intentionally trying to shape the culture. Unintentionally, however, they are sending very clear signals about what is important to them. They are the cultural architects of your organization and contribute these three very important things to the culture equation:
1. What is measured. Let’s face it. Culture can be hard to measure. Senior executives tend to shy away from anything with a fuzzy ROI. Yet, whether you measure it or not, your culture is showing up in your bottom line. Skilfully managed cultures can be a performance multiplier. Recent research by the Great Place to Work© Institute found that companies that actively invest in workplace culture yield nearly 2x the return over their competitors. They also typically report 65% less voluntary turnover, saving an average of $3,500 per employee in recruiting and training costs. If culture isn’t part of your KPI mix, you’re sending the signal that it’s unimportant.
2. What is rewarded. A recent study by O.C. Tanner found that employees report being recognized for their work as their most important motivator, over 20 times more than salary. Employees study what behaviors and achievements get rewarded, and naturally modify their work accordingly. Leaders who understand this connection create recognition programs that go beyond passing out paychecks. WD-40 CEO Garry Ridge proudly hosts the company’s annual People Choice Awards. Each year, heartfelt speeches are given by winners of coveted awards like “Best Mentor Coach” and “Best Team Player.” Leaders like Ridge know that coin-operated employees have no passion.
3. What is ignored. Leaders are bombarded with data, hold back-to-back meetings, and field urgent requests on a daily basis. When we need to respond to fast-moving competitive situations, it is tempting to tap only our direct reports for feedback. In his Harvard Business Review article “The Focused Leader,” New York Times bestselling author Daniel Goleman warns that this temptation is dangerous. He recommends that leaders practice expanding their focus of awareness. “A failure to focus on others leaves you clueless, and a failure to focus outward may leave you blindsided,” Goleman writes. What’s worse, leaders who ignore input from those outside their immediate circle are signaling to the rest of the organization that their input is irrelevant.
Leaders are the cultural architects of your organization. The key metrics they pay attention to, the contributions they reward, and range of their awareness directly impact both your organizational culture and your bottom line.
Question: What do you measure, reward and ignore? How is that impacting your organizational culture?
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Uncategorized
There’s a certain randomness to social media traffic. It’s hard to predict how popular a blog post will be. When we look back at the year’s most-read posts, we found something interesting. The most popular posts swung widely between messages that helped readers connect to the best of humanity (“3 Simple Ways Leaders Give Thanks”) to those that were part of the flurry of media zeitgeist (“A Leadership Lesson a la Donald Trump”).
Regardless of the sensational nature of each post, we tried to find a lesson or two that you could take away in 750 words or less. Something you could apply at the office that day, or that might slightly shift your paradigm.
Here are the 10 posts that we hope served that purpose:
January 19, 2015
Simply having authority doesn’t grant one the ability to influence monumental change. Martin Luther King Jr. experienced this firsthand when he tapped into the human desire to dream, to grow, and to belong. He used his formidable influence not to serve himself, but to share a vision and help others achieve their potential. Read how Martin Luther King Jr. used the power of servant leadership to drive change.
[Read More]
..
May 13, 2015
Many people struggle connecting who they are with what they do. According to Gallup, only 30% of the nation’s working population today admits to being fully engaged at work. “Should I quit my job?” is a question on the minds of many of today’s workers in the midst of stress, unhappiness and often disengagement. This posts suggests three very important questions you should be asking yourself before refreshing that resume.
[Read More]
July 7, 2015
Within every employee is a person who wants to be part of something bigger than themselves, yet the big picture often gets clouded by layers of bureaucracy. High performing companies systematically ensure the tangible and intangible qualities of their culture roll below the top of the org chart.
This post explains one of the simplest ways an organization shapes the culture through storytelling-connecting employees with the big picture.
[Read more]
July 22, 2015
In this day and age, our resources are limited, short-term thinking is unsustainable, and people all over the world share a desire to be treated with dignity and respect. Today’s savvy leaders understand that their companies do not exist to create value strictly for their shareholders. They also exist to create value for their employees, their customers, and ultimately for society.
This post explains 5 ways in which businesses with a strong commitment to CSR have a competitive advantage.
[Read More]
August 11, 2015
The wildly confident Donald Trump has taught us so much during the 2016 presidential debate and caused many leaders to pause and reflect on this paradox: How do I balance confidence with humility? Your organization needs a confident leader. Yet, overconfidence can lead to arrogance.
Learn from these three questions you should ask yourself regularly to keep your confidence in check.
[Read More]
September 8, 2015
It’s easy to get caught up in the sexy complexities of organizational change.
So easy, in fact, that we can forget to connect with what our employees are doing each day to keep the engines running. Learn about these 4 small changes
that you can start today to show employees that they are valued
members of your team.
[Read More]
October 6, 2015
In today’s information economy, the tension between organizations optimized for predictability and the unpredictable world they inhabit has reached a breaking point. The collapse of time and space boundaries requires organizations to follow by collapsing their organizational structures along with their hierarchical notions of power. Learn why the command-and-control leadership style is no longer sufficient.
[Read More]
October 13, 2015
This past fall we learned about Volkswagen’s deceptive emission practices resulting in resignations, stock prices plummeting, and an onslaught of legal trouble. This wasn’t just any failure; it was a failure of leadership. Learn about three important lessons that have emerged from this scandal.
[Read More]
October 20, 2015
21st century America is heading toward a tipping point. The answer to the question of why organizations exist can no longer be simply to make a profit. Creating meaningful impact beyond financial performance isn’t a nice-to-have—it’s a business imperative. Learn why the case for defining and living your organizational purpose has never been more compelling than it is today.
[Read More]
November 17, 2015
One of the greatest truths about mastering gratitude as a leader-you can’t fake it. Leaders who genuinely care about their team members will invest the time to help each one feel valued. Have you thought about ways to express meaningful gratitude to your team? Learn about three skills that will
yield the highest return.
[Read More]
It’s been an honor to share our thoughts with you this year. We truly appreciate your comments, your likes, and your shares. We look forward to continuing the conversation in 2016.
Question: What bloggers did you follow most in 2015? Did you learn anything that helped you become a better leader?
CEE News is designed to help you with the challenges you face every day by sharing infographics, white papers, best practices, and spotlighting businesses that are getting it right. I hope you’ll subscribe to CEE News and it becomes a resource that continually adds value to your walk as a leader.
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Uncategorized
We’ve all come across them. Those leaders who people naturally gravitate toward. Though it seems counterintuitive, the magnetic effect these leaders have on people is not because of how people feel about the leader. It’s because of how the leader makes people feel about themselves.
These leaders have mastered two basic facts about people.
Fact 1: Every person matters.
Fact 2: Every person wants to feel valued.
As Thanksgiving approaches, this is an excellent time to review the skills necessary to express meaningful gratitude to your team.
Here are three skills that will yield the highest return:
1. Write a Note. Do not. I repeat. Do not mistake a thank you email for the real thing. Handwritten thank you notes are about relationships. Emails are about transactions. When you take a little extra time to write a personal message to team members to acknowledge your gratitude, you are also acknowledging that they are more than just tools. They are human beings who matter and are valued. If your note writing skills are rusty, here’s a quick primer to get you started.
2. Make It a Habit. When it comes to business, we fall into the trap of not seeing people when we work with them. This is especially true of the people who come in, get the job done, and don’t require constant attention. We take these employees for granted and just assume they don’t need a show of gratitude. To turn your attention to those who don’t ask for it, take a few minutes each morning to make a list of three team members you appreciate and why. Over time, you’ll begin to cultivate of habit of putting yourself in a gratitude mindset.
3. Give People Sincere Appreciation. People who don’t feel appreciated are often the first to burn out or jump ship. It only takes a minute to recognize a team member for making a positive contribution. But, doing it right requires more than the occasional “Attagirl!” Give timely and specific praise to show your team members how you value their contribution. Here’s a quick demo to show you how.
One final secret to mastering leadership gratitude – you can’t fake it. Leaders who genuinely care about their team members will invest the time to help each one feel valued. Make it a habit to sincerely recognize their efforts. Every day is an opportunity to help people see the best in themselves and feel like a valued contributor to the team.
Question: Have you had a leader who gave you a handwritten note of thanks? What did you learn from that experience? Please leave your comment below.
Join me on November 18th from 9-10 am PT for my FREE leadership webcast. I will talk more about what it means to be a transformative leader in the 21st century, one that makes their teams better, stronger, and more agile in the face of change.
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Uncategorized
For the past few weeks, everything around us has been changing. Temperatures are falling and the sun is setting earlier. Leaves are changing color to vibrant reds and deep yellows. There’s no denying that fall is here and winter is just around the corner. As humans, we are hard wired to accept the inevitability of seasonal changes. If we can manage the extreme weather changes of four seasons a year, why are we so resistant to organizational changes?
If you’re engaged in the effort to set a new direction, orchestrate innovation, or mold a culture, here are six universal truths that can guide you along the way.
1. People don’t resist change. They resist being changed. As management guru Peter Senge suggests, resistance is greatest when change is inflicted on people. If you can give people a chance to offer their input, change is more likely to be met with enthusiasm and commitment.
2. A journey of a thousand miles starts with a single step. Big goals can seem overwhelming and cause us to freeze. This simple truth, attributed to Chinese philosopher Lao Tzu, is a reminder to get moving. Take the first step, however small it may seem, and the journey is underway.
3. If you don’t know where you’re going, any road will get you there. Many change efforts fall short because of confusion over the end goal. In the Lewis Carroll classic, Alice’s Adventures in Wonderland, Alice asks the Cheshire cat which road she should take. The cat’s response reminds us to focus on the destination first, then choose the best path.
4. Change is a process, not a decision. It happens all too often. Senior executives make pronouncements about change, and then launch programs that lose steam. Lasting change requires an ongoing commitment to the process reinforced by constant communication, tools, and rewards.
5. Do not declare victory prematurely. In his book, The Heart of Change Field Guide, author Dan Cohen suggests that short-term wins do not necessarily equal long-term success. Cohen writes, “keep urgency up and a feeling of false pride down.”
6. Be the change you wish to see in the world. These famous words attributed to Gandhi reminds us all — executives with associates, political leaders with followers, or parents with children — that one of our most important tasks is to exemplify the best of what the change is all about.
Any form of change requires an adjustment period, and some are easier than others. While seasonal changes are predictable and tend to go over smoothly, organizational changes cause more chaos. Leaders trying to implement changes in the workplace can take heart in these truisms, settle in and enjoy the journey.
Question: Chances are, you’re going through a change effort now. Which of these truths can you apply today to help achieve success?
Need help to create a culture of leadership that can navigate change and adapt to the challenges of the 21st century workplace? Read about our results-driven Leadership Development program and contact our team if you’re interested in next steps!
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Uncategorized
In today’s information economy, predictability has gone the way of the VHS and fax machine. Organizations are struggling to keep up with fluctuating customer demands. Workers are becoming disillusioned and disengaged.
The tension between organizations optimised for predictability and the unpredictable world they inhabit has reached a breaking point. Those led by traditional, transactional, command-and-control practices will not survive.
The pyramid of power
When we picture an organizational structure, typically a pyramid comes to mind. Under the pyramid model, power and privilege are concentrated at the top. It then trickles down through lesser and lesser ranks, leaving those at the bottom with the heaviest workload and the least privilege.
For centuries, the pyramid structure kept monarchies stable, dictated the rank-and-file system of the military, and yielded highly reproducible goods from assembly lines. The model served America’s manufacturing economy well, helping it surge for most of the 20th century.
The leadership style under the pyramid was transactional. The relationship between leader and employee was strictly quid pro quo where work was traded for wages. Companies needed “hired hands” to produce goods in a highly repeatable, efficient process. Greater efficiency meant higher profit for the company. It also meant devaluing the dignity of the employees.
The 21st century information economy is marked by global connectivity and destabilization. Information and telecommunications technologies have created a new economy of information that collapses the traditional boundaries of space and time.
Information is the new raw material. As that material is applied to organizations, everything changes. The collapse of time and space boundaries requires organizations to follow by collapsing their organizational structures along with their hierarchical notions of power. The command-and-control leadership style is no longer sufficient.
Ditching the Pyramid
To be successful in the information economy, leaders must be willing to remove themselves from the power paradigm. They must be willing to be transformed – to learn and grow from those they lead.
Under transformative leadership, the flow of information and influence is bi-directional. Leaders and followers collaborate to advance to a higher level of understanding, transforming both in the process. Together, they turn the raw material of information into knowledge, and that knowledge into service.
I suggest that the best test of transformative leadership is to ask, “Do I grow as a person as a result of my leadership of others?”
I’m thrilled to be one of the featured speakers at the upcoming Future of Work Conference in Boston where we will unpack this topic in greater detail. If you’re interested in learning more about the Future of Work Conference in Boston December 7-8, 2015, and other featured speakers, please click here.
This blog was adapted from the CEE Vantage© White Paper released October 1st. Click here to receive a free copy of this white paper or subscribe to our monthly CEE Newsletter to get free resources delivered to your inbox.
