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We Need A New Model!

Doing It Wrong

Sometimes being right is disappointing. I just read an article from the latest edition of the Harvard Business Review by Jack Zenger and Joseph Folkman that concluded the same thing as I did in a blog post a few weeks back titled We Are Doing It Wrong.

The article talked about a study they did on almost 2000 participants in formal high potential programs. Usually participation in these programs is limited to what management defines as the top 5% of performers in their organization.

The study evaluated these individuals in leadership capabilities using a 360-degree assessment including their manager, several peers, direct reports and other colleagues. Their prior research had indicated that collecting data from this kind of cross sample could be statistically correlated to desired outcomes like employee engagement, lower turnover and higher unit productivity.

Here is the bad news; 12% of these HIPO participants were in the bottom quartile on leadership effectiveness and overall 42% were below the median. I would call that an epic fail.

The characteristics for selection may be part of the problem. Candidates were selected based primarily on four (4) criteria:

·         Professional and technical expertise

·         Taking initiative and delivering results

·         Honoring commitments

·         Fitting into the culture

That last characteristic is important because the research indicated that underperformers tended to emphasize (or overemphasize) a specific trait valued by their organization. This caused a kind of HALO effect or bias that caused their total profile to be overlooked.

Interestingly underperformers shared two primary deficiencies; strategic vision and the ability to motivate others. Good individual contributors don’t always translate into strong leaders.

I have been a practicing manager for over three decades. I remember the model I was originally exposed to as the fundamental skill sets of effective management- planning, directing, controlling, and budgeting.

We were still immersed in the precepts of Frederik Taylor’s scientific management model. Some were born to do, others born to manage or lead.

As a young human resources professional we were tasked with administrative activities and relieving managers of less valuable activities like setting expectations, providing feedback, coaching for optimal performance, and taking appropriate corrective action when performance didn’t meet expectations.

The models were still very much about compliance, if employees would be loyal (defined obedient) they would be rewarded with a degree of security upon retirement. Then we discovered outsourcing, down- sizing, and offshoring to optimize financial performance and the contract was broken.

According to a recent survey over fifty percent of people seeking additional managerial responsibilities do so to increase their earning potential.

Is it just me or do the results of this new study tend to reinforce that we haven’t entirely let go of this old thinking?

I happen to be a big fan of Paul Hersey’s definition of leadership – working through and with others to achieve organizational objectives.

We still have major issues with trust in leadership and capitalizing on the opportunities represented by true employee engagement, but to address them we need a different criterion for selecting and developing leaders.

Over the past three and a half decades my experience and research have led me to look for five (5) characteristics in selecting and developing leaders:

·         Technical competence (mastery of the knowledge, skills, and abilities to perform the job).

·         An understanding and mastery of all three levels of trust (Deterrence, Competence, and Identity)

·         Emotional Intelligence (this allows you to know which level of trust or leadership style to employ in a given situation)

·         Emotional Balance

·         Self-Awareness

For me personally the technical competence is kind of the threshold, you need it to gain admission, but it is the minimum standard not the measuring stick.

My experience has also led me to believe that in the absence of emotional balance and self-awareness you will never really master the third level of trust on a sustained basis, and these represent the Achilles Heel of most leaders.

My experience has been if you have these attributes we can teach you the skills associated with successful management and leadership, but if you are missing one or more you will never be a highly effective leader.

I also personally believe that automation will make these leadership skills more important not less important.

The ship has sailed on whether or not employee engagement is real and it can affect the performance of an organization. Organizations where employees consider themselves highly engaged outperform their competitors in every key performance indicator and engagement is a universal rather than a North American phenomenon.

We still don’t like to talk about soft skills and we aren’t very good about teaching them. I saw something recently that said that the concepts of emotional and social intelligence don’t really exist because we can’t scientifically validate them, we should rely on IQ.

I would submit the results of the study reported in the HBR article give you a good idea of how that model works out.

Perhaps because of my professional development as a human resources practitioner the idea that leadership is based on behavior not words and that at the end of the day it is a relationship rather than a position these things resonate with me.

 Thomas Jefferson described two camps relative to their view of people-

•             Those who fear and distrust the people, and wish to draw all power from them into the hands of higher classes (Frederick W. Taylor and Scientific management).

•             Those who identify themselves with the people, have confidence in them, cherish them and consider them as the most honest and safe.

I would submit that if the term human capital is part of your vernacular and you see culture and employee engagement as the province of your human resources department and you haven’t adapted a new leadership model you have picked your camp.

The choice is yours to make, but given the competitive environment for talent, the demographic shift to Millennials being the single biggest group in the workplace, and the economic and social bleed from lack of trust and engagement you may want to rethink your models.

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Understanding Real Legitimacy

Understanding Real Legitimacy

I just finished re-reading Malcolm Gladwell’s latest book, David and Goliath.

Like the books that preceded it I enjoyed it a great deal.

I see Gladwell as kind of a social facilitator and observer. He doesn’t try to present himself as a behavioral scientist with countless reams of data to support his conclusions, he makes comments and observations. The reader has the choice to accept or reject them.

Given the outcome and the divides both during and now following our election cycle I found some of his insights particularly worth revisiting.

While I enjoyed the entire book the part that most spoke to me was Gladwell’s discussion of legitimacy.

According to Gladwell legitimacy occurs when three elements are present-

·         Those who are governed have a voice in the process; their input is sought and heard.

·         There is a dimension of predictability and consistency in the application of the law or standards.

·         The application of the law or standard has to be administered fairly and objectively, you can’t have disparate treatment without a clear and compelling reason.

From what I have seen demonstrated to date our new President doesn’t share Gladwell’s description of legitimacy.

Specifically, his interest in viewpoints that don’t coincide with his own appears non- existent and his application of laws and standards don’t in my opinion pass the fair and objective test.

I personally believe that any meaningful change in our leadership philosophy and application is going to need to come from the private sector. The current administration is interested in a rigid application of the compliance model; people should do as he instructs them.

It will be interesting to see the repercussions of the DeVos nomination, never before with a majority in the Senate has the Vice President had to cast their vote to confirm a cabinet nominee.  

The President has never been in an environment previously where he is accountable to anyone and he seems to be struggling with that transition.

The reason I find this discussion about legitimacy so interesting is in its application to the work environment.

For the last three decades I have been promoting and teaching the merits of an employment relationship based on Commitment rather than compliance. When the employment environment is optimized in a commitment based model it results in employee engagement.

I also believe that to a large extent leadership as opposed to management is founded in legitimacy. Leadership is entirely relational versus hierarchical. As a manager you have the authority of your position and the benefit of what Stephen MR Covey calls deterrence, authority that comes from rules or position. We would like to believe that management also incorporates Covey’s second level competence, but I am not sure that is true.

 In many cases the competence we rely on in elevating someone to a management role is based on application of their technical skills, their competence is emotional and social intelligence are still considered “soft skills”.

The highest level of trust in Covey’s hierarchy is identity based trust which incorporates both your competency and you character as demonstrated by your applied values and behavior to create credibility.

In my over 30 years as a human resources professional, C level executive, and management consultant it has been interesting to see emerging and current “leaders” bridle at the idea that they have to earn trust. For many it is an expectation that trust is embedded in their role, they shouldn’t have to earn it.

It is very chic today to dismiss collective bargaining and unions as passé, but any student of the relationship between employer and employed realizes that up until the 1940’s the concept of employers need legitimacy through the input of their employees was considered ludicrous.

Unions fought very hard to legitimize their right to bargain with employers over hours, wages, and working conditions. I am not going to say that I believe collective bargaining is the preferred methodology or relationship structure between organizations and employees, but the concept of participating as equals didn’t come from management enlightenment. Many of our current models still have their roots in scientific management-managers manage and people do. If you see people as human capital, what is the likelihood that you are seeking the endorsement of those you “lead”?

Surveys come out every year that reinforce that the most important role played by human resources professionals is compliance by both operational executives and human resources professionals themselves.

Under the old social contract organizations provided a degree of social and economic security in return for loyalty (spelled compliance in my opinion). As the economy became more international we still wanted the loyalty, we just didn’t want to provide the security.

It is interesting in most jurisdictions outside of the U.S. the subjects of bargaining include the introduction of technology into a work setting. In our U.S. model we must negotiate the effects of the technology, but not its introduction.

In creating my own foundation for employee engagement I feel that there are critical elements you have to include.

The first is a foundation of trust. I would go so far as to say you have to have trust at all three levels to experience true engagement.

I also think you need to add the elements of respect, responsibility, information, equitable rewards, and mutual investment.

I don’t think you need to negotiate your culture with employees, but I do think they are entitled to clear expectations, constructive feedback, and fair treatment.

When you provide that kind of context you are allowing employees to join up with you. On that foundation when change is introduced you do it with rather than to people.

Gladwell’s examples of authority without legitimacy are pretty fascinating; the outcomes aren’t pretty.

There is a lot of discussion about the next generations. They are pretty intolerant of assumed legitimacy. They also represent both the future employee base and future leadership.

Perhaps taking a moment and asking ourselves if we are incorporating legitimacy and trust into our leadership models and recognizing and teaching the skills of leadership beyond technical competency is a worthwhile endeavor.

I hope it at least provides food for thought…..

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Moving Forward

Inclusion versus Exclusion

I admit it, I read a lot. I find myself very curious about many things not the least of which is the viewpoints of other people. Since I wrote my last post things have been pretty crazy.

I have been working with a client to help build a bridge between philanthropy and businesses as one part of a new model to address some of our issues around the management of health and the delivery of health care.

To many it may be just a matter of semantics; but I see philanthropy as different than charity. Philanthropy to me has a connotation of investing in a larger cause or purpose. I am not saying charity is bad, but I rather like the idea of making investments in societal infrastructure to achieve a better quality of life for everyone and more comfortable for me. I don’t really like codependency between adults in any form very much.

I also see the management of health and delivering health care as being related, but different. I think that managing health is a collaborative effort that involves patients/people, providers, payers, educators, etc. in investigating and creating solutions; hopefully on a proactive rather than reactive basis.

My clients organization is mission driven, they are a not for profit. We have had interesting discussions about how their role in delivering health care is really the how of what they do rather than the what. It is really a delivery mechanism rather than the goal itself. We have been discussing of late whether the role of his team is actually an important bridge to that larger mission because it allows people from the community to get involved in a lot of ways that is not direct care giving.

I saw a statistic recently that said over 75% of people are not feeling fulfilled in their jobs. I know from my work in employee engagement that less than 30% of American workers consider themselves highly engaged and in many cases they feel they don’t trust the senior management of their organization or the leadership of the country. I find that very sad, but also a significant opportunity. In fact a very recent study stated that this lack of engagement costs the U.S. economy alone $350 billion annually.

When we have those kinds of numbers we are losing enormous opportunity every day. The research says we lose trillions annually to turnover, health related expenses, poor productivity and a number of related areas because of that sense of disengagement. We have tried for the last nine or ten decades to replace engagement or alignment with a larger purpose with technology with pretty mediocre results, but still we persist. Technology won’t ever replace relationships and relationships are God forbid built on peopley stuff like trust and communications and mutual respect. Technology can’t replace that.

When I look at the impact of technology on communications on relationships; especially things like social media I wonder whether it has helped us or set us back a couple of hundred years. It has certainly removed some restrictions to the flow of information, but it has also provided an unrestricted platform for a lot of people to say really nasty, hateful, things to and about other people.

I remember when I was growing up my mother would often say “if you can’t say anything nice about someone, don’t say anything at all”.

As a leader and an aspiring manager I found that really doesn’t work. Sometimes you need to give people constructive feedback that may be difficult for them to hear. Withholding that feedback in my opinion does them a disservice and it may if taken too far be blatantly dishonest. That isn’t nice.

I have tried to modify my mother’s intent message slightly and focus on saying things that are productive and well intentioned. I like to think I get it right about 75% of the time, my goal is of course 100%, but I know I have a lot of work to do.

As a former executive and current coach and consultant I continue to be disappointed by how much of my role is encouraging people to listen to each other and seek common ground and how acceptable it has become to criticize someone else’s viewpoint or solution without feeling any obligation to present a solution of your own.

Our most recent election was won by a candidate who articulated that as part of his mandate; being elected to join others who shared his viewpoint to ensure that the viewpoints and solutions that don’t fit their worldview don’t move forward, or better yet don’t get heard. I am not sure which is more appalling-

·         That an educated person would embrace such a position

·         That others would vote for him or her

I don’t blame him entirely, as I have said before the other candidate failed the trust test miserably as well.

I find other viewpoints interesting and sometimes very instructional. I don’t always agree with them, but I certainly wouldn’t want to be in a society where you don’t within reason have a right to advance a viewpoint.

Before anyone gets too abhorred most people wouldn’t describe me as a liberal or do-gooder. I have strong opinions and convictions about many things, I just don’t feel a need to prevent others to have views that are not coincident with mine. Again I would encourage people on both sides of issues to consider that.

I think there are certain essential truths that aren’t negotiable, but they are much more limited that some would articulate.

 I think forcing another person to do something against their will or values is pretty consistently wrong. I think using superior physical, mental, or financial capability to force someone to do something against their will is wrong. Beyond that I think we should look at situations contextually and one at a time.

The current environment seems to becoming more and more polarized and excluding more and more people. I find most of the rhetoric from both sides of the aisle to be equally uninspiring.

Recent actions like Brexit, discussions about building a wall between countries, and excluding people from immigrating to or visiting the U.S. because of their country of origin are in my opinion moving in the wrong direction no matter how well intentioned.

I come partially from a family of immigrants. My maternal grandparents both emigrated here from Italy. Italy isn’t on the list currently, but things can change.

I understand a desire to keep America safe, but find it a bit ironic that there has never been a terrorist attack on American soil by a current or former citizen of the seven countries on the list.

On the other hand, countries who have harbored terrorists are excluded, but members of the current administration have business interests in those countries. I hate to be cynical, but I don’t think that is coincidental.

Our current President has strong viewpoints as do his supporters. Strong boundaries and discipline have merit sometimes, but I think that the people of Syria and others need compassion not discipline.

 To paraphrase the late novelist Morris L. West who used the Catholic Church extensively as a backdrop for his books, “People are crying out for bread and we are giving them stones”.

It would seem much of our leadership is driving in that direction.

I would say that is equally true for both sides of the aisle. We need leadership to bring people together, not widen the divide.

I guess I will continue to look for ways to include rather than exclude and find solutions that benefit many rather than few. I might only have limited success, but somehow it seems much more satisfying….

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Is It Just Me?

My colleague Laurie Ruettimann cracks me up some times. I don’t always agree with her posts, but they are always thought provoking, timely, and relevant.

In her latest post she was discussing the succession planning for the CEO for SHRM (The Society for Human Resources Management). For those of you not familiar with it, SHRM is the largest professional association for human resources professionals in the world.

Among other things SHRM provides a certification process to be acknowledged by your colleagues, has conferences and various and sundry other things like national associations do.

Laurie’s defining SHRM as the AARP of Human Resources was what cracked me up. She was imploring the search committee to recruit someone who isn’t an insider and who has a grasp on the issues that are relevant to organizations and employees today.

I guess her post hit both my relevance and amusement thresholds because of some other events I have experienced recently-

·         The Edelman Trust Barometer- which for the last 17 years has measured trust in the media, business leadership, elected officials, and non- government agencies recorded their lowest scores ever. Media and elected leaders were totally in the shitter and business leadership squeaked out a 52% confidence level.

·         The Presidential Election-  I am going to go out on a limb and say that there are a number of folks who have expressed their concerns about our newly elected president and some of his choices for Cabinet and other appointments. (Is that an alternative fact?) Um I don’t think so given a whole bunch them just participated in a big ass march a couple of days ago.

·         A Recent survey from Clutch reported-

- Thirty-two percent of Millennials are likely to leave their job within the next six months. Only 11-12 percent of older employees are likely to quit in that same timeframe.

- Forty percent of Millennials do not consider themselves fulfilled at work, which is nearly two times greater than Generation X employees and almost four times greater than Baby-Boomers.

- Forty-one percent of Millennials feel neutral to negative on their manager's ability to provide accurate and consistent feedback.

·         Employee Engagement- another survey reinforced the idea that if your approach to increasing employee engagement is to conduct and report on an annual survey you are hosed. Even though it decried the use of surveys as THE tool, it went on to discuss the monumental benefits of having and engaged workforce on retention and recruitment, productivity and quality, and even expenditures for employee health and wellness.

For those of you who have been asleep at the wheel, Millennials now make up the single biggest demographic in the workforce and time is on their side, it’s going to get bigger not smaller.

So as I understand it most employees don’t trust leadership, the population is in flux about the election (see my first point), Millennials are saying they want more meaningful feedback from their managers and are unfulfilled at work, and we haven’t made significant progress in addressing the root causes of employee disengagement and reaped the rewards of developing and implementing new models.

The part that draws it all together for me is that earlier this week I received an invitation to attend the local SHRM chapters monthly meeting and presentation. The topic – Creating a Transgender Friendly Workplace.

I want to be clear. I am not anti- transgender and I feel like every employee without regard to their gender, religious affiliation, age, national origin, race and any other non- relevant factor has an absolute entitlement to a work environment that is physically, psychologically, and emotionally safe. Period end of story.

That being said I think we have some significant issues to face as leaders and as a society and a great start would be remodeling our leadership training and selection models and we have a lot of work to do.

It is entirely possible that I am just insensitive, but I would be curious to hear other opinions……

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The Trust Crisis

The Trust Tax

When I had the opportunity to read Stephen MR Covey’s brilliant book, The Speed of Trust, a couple of years ago one particular quote really stood out to me-

Every organization earns a trust dividend or pays a trust tax

I thought the book in total, discussing the basis and levels of trust and the elements involved should be required reading in every business school and leadership program internationally, but that statement really stood out for me.

As an executive and management consultant for over 35 years I have been trying to instill that message in organizations where I was part of the management infrastructure and to my clients.

An article I had a chance to read from the Harvard Business Review shared some information that I found abhorrently fascinating- The Edelman Trust Barometer which has surveyed tens of thousands of people in over 28 countries reported that for the first time in its 17- year history the average trust level in all four of the institutions measured (Government Officials, Business/CEO’s, NGO’s and Media) was below 50%.

Government came in last, closely followed by media, but 48% of respondents did not trust business leaders to do the right thing.

A great quote from a book I read earlier this year, Barbarians to Bureaucrats, had a pretty compelling reason why this is such an issue.

-the decline in corporate culture precedes – and is the primary causal factor in the decline of a business, and that decline is the result of the behavior and spirit of its leaders.

In this day and age of consumerism and social media the accountability to earn and sustain trust rests with management at all levels and platitudes and generic mission and value statements isn’t going to get it done.

The advantages of employee and customer engagement are clear and compelling and two key points-

•             You will never have sustained customer engagement without employee engagement.

•             The foundation of engagement is trust. You have to do the work.

Angela Duckworth in her book Grit, talks about how cultures form-

Culture has the power to shape our identity. Over time and under the right circumstances, the norms and values of the group to which we belong become our own. We internalize them. We carry them with us. The way we do things around here and why become the way I do things and why!

Some of my favorite leadership authors including Patrick Lencioni, Simon Sinek, and others all talk about creating a healthy culture and its criticality to sustained organizational success. They also share that the foundation for every healthy culture is trust!

Research from Josh Bersin concluded that in descending order the most important things to Millennials are culture and values, career opportunities, and confidence in leadership!

Why is that important? Because Millennials are now the largest demographic in the workforce and that is only going to get larger over the next five to seven years!

The Edelman Trust Barometer just concluded we got an F in three out of four categories!

I haven’t talked to a lot of organizations lately that have declared victory in terms of organizational performance and employee engagement.

Well, you can’t build a tower with a faulty foundation and when employees don’t trust leadership that is faulty!

Jamie Dimon, CEO of Morgan Chase shared some tips on how he selects senior leaders for his organization-

The first are attributes, Capability, character, and how they treat people. The next are two simple, but compelling questions:

•             Would I let them run the business without me?

•             Would I let my children work for them?

How many of us ask those questions as part of our hiring process?

How many of us are building the concept that earning and sustaining identity based trust is a journey and an expectation for leadership candidates in our own organization?

 Trust isn’t an entitlement!

Leadership in this area is going to need to come from the business sector. Government came in dead last in the trust race and based on the last election and actions since then I wouldn’t count on our elected leaders for guidance or improvement.

How long can we pay this kind of tax?

 

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Let's Do This!

 

I had the opportunity yesterday to read a couple of things that I found quite validating and I will freely admit to being shallow enough to enjoy seeing things that agree with my perspective.

The first was an article about the Ritz Carlton’s secret recipe. It is pretty simple; your employees are the foundation of your brand.

·         Herbert’s rule number 1- employees that are not engaged with your brand and purpose will not engage your customers.

The second article talked about Mark Zuckerberg and Facebook and the fact that the principal organizational value is trust. It goes on to say that you must trust in order to be trusted.

I have told everyone I know and a bunch of strangers that I think that Stephen MR Covey’s The Speed of Trust is one of the all- time best business and leadership books I have ever read.

His three levels of trust are both simple and profound.

·         Herbert’s rule number 2- I don’t give a rat’s ass where you graduated from, what your title is, or your position on the organizational chart, identity based trust is personal and earned it doesn’t come with your degree, your title or your position.

I don’t think it is a coincidence that in Patrick Lencioni’ s book, The Advantage, his first step in building a healthy organization is creating a healthy organization is a cohesive management team and the foundation of a cohesive management team is trust. Interesting steps two through four are all about clarity which sounds remarkably like brand and purpose to me.

I suspect Simon Sinek would call it your Why.

Are we seeing a pattern here or is it just me?

Here is another interesting pattern.

A 2014 study reported that some 41 percent of respondents said the most important factor in their decision to apply to an organization was a company’s values. Nearly half of all candidates said their first relationship with a company was as a candidate — which means that’s the juncture when employers have to get it right. More recent studies have remained consistent with this premise, especially Millennials and the Generation following them.

If you are asking yourself why that is relevant to you the reason is that the Millennials now make up the largest sector of the workforce and your future candidate and leadership pool.

·         Herbert’s rule number 3- It is much easier to hire and promote people who share your values than to fix them after the fact. They probably don’t think they are broken.

This concept of people who share your values is called Congruency© and as described by Dr. Ron Willingham it has five elements-

·         My view of the activity

·         My belief in my ability

·         My willingness to do the work

·         My belief in the product/service/organization

·         The relationship to my values

A couple of things I have found very interesting about congruency-

1.       Very few organizations build it into their hiring and selection process.

2.       Almost every performance issue I have ever encountered had one or more levels of congruency as a root cause.

So here is what we have learned from some of the most successful organizations in the world.

·         Treating your people like stakeholders not human capital is critical to employee engagement and sustained organizational performance.

·         You can’t have employee engagement without trust and congruency, which I have also referred to as organizational alignment.

·         It starts with your leadership team, if they don’t display these attributes you are hosed.

What trust and congruency look like in every organization may be different, but those foundational elements are present in every high performing organization.

Given that

·         The emerging generations have told us that these concepts are critical to them

·         They will soon make up the majority of the workforce

·         Study after study has demonstrated that organizations that embed these values outperform their competitors on every KPI and in every sector of the economy

Why would we give up this kind of competitive advantage?

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What Did We Learn?

I am not a huge fan of New Year’s Resolutions. I find most of them have a shelf life of about thirty days max.

I am however a pretty big fan of reflection.

In honesty I found 2016 to be a disappointment. The year started with some promise, but then kind of petered out.

I think one of my biggest disappointments was that it seems like this leadership thing still seems to elude us. We still use expressions like human capital and continue to want to minimize the human interaction in our hiring and recruitment processes.

This year I became pretty much a raving fan of Simon Sinek. His advice about starting with Why, describing how leaders eat last, and some of the issues faced by Millennials in the workforce really captured my attention.

Patrick Lencioni’s The Advantage and Angela Duckworth’s Grit were also among some of the best stuff I read.

I also read things that while they resonated with me caused disappointment like a great blog that shared the dirty little secret that the vast majority of our graduate business programs don’t include anything about foundational concepts like trust and emotional intelligence and still secretly reinforce a lot of Frederick W. Taylor’s scientific management theories.

Which is where I think the idea of people as disposable assets got their roots in modern society. Prior to that we just called them serfs. I guess human capital is nicer.

I read things that said that employee engagement and emotional and social intelligence are all bullshit and hocus pocus because they can’t be properly measured. I disagree. The fact that you do a shitty job of executing on a concept doesn’t invalidate it, it just speaks to your leadership skills.

The ship has sailed on whether or not engagement is real and it can affect the performance of an organization. Organizations where employees consider themselves highly engaged outperform their competitors in every key performance indicator and engagement is a universal rather than a North American phenomenon.

I had the opportunity to work with a recently retired member of an elite military unit about his transition. We explored things like Covey’s trust model and Simon Sinek’s Start With Why and Leaders Eat Last.

His reaction is “duh”. These concepts have been embedded into the culture he spent his adult life to date in. The fact that these are an epiphany in the private sector stunned him a bit.

He shared with me that being a leader in these units is the easiest job in the world. Everyone is highly competent. Everybody is committed to the mission. The leader blocks and tackles.

Our elite military units have mastered something that in the private sector we call an employment brand.

My colleague Brad Federman very elegantly described an effective employment brand in a post a while back-

Don’t chase people. Be an example. Attract them.

Work hard and be yourself.

The people who belong in your life will come and stay.

Just do your thing.

I was pretty struck by the profound elegance of this statement both for individuals and for organizations. I wish I had of heard this before giving life and career advice to my millennial aged children.

I think organizations should have a leadership brand too, how we expect leaders to behave and what we hold them accountable to do.

Kind of like trust and respect your leadership brand should include legitimacy. I like the way Malcolm Gladwell described legitimacy in his book David and Goliath.

·         Those whom are governed have a voice in the process; their input is sought and heard.

·         There is a dimension of predictability and consistency in the application of the law or standards.

·         The application of the law or standard has to be administered fairly and objectively, you can’t   have disparate treatment without a clear and compelling reason.

When I read about what Millennials and the following generation is seeking them seem to want legitimacy from their leaders as well along with the purpose and identity based trust that Covey and Lencioni describe. I think they are right.

I enjoyed some success in 2016. We had a number of folks show up for the leadership training we do and more than a few folks read my ramblings on my blog and other posts so I guess there is some light at the end of the tunnel.

So I guess as we make the turn I will keep talking about managing whole people, relying on identity based trust as your foundational principle, and recognizing that your employment brand dictates your business brand and that your customers will never be more engaged than your employees.

We still have work to do on this leadership thing too…

See you next year.

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We Are Doing It Wrong!

A couple of things I have seen recently reinforced for me what we continue to do wrong in our efforts at leadership.

The first was a story about a teacher who almost took delight in grading the work of a child in her fourth grade class and giving him the failing grade that his unorganized, sloppy work deserved.

Because she was thorough she chose to read evaluations of his past work by his previous teachers and discovered that a very bright child was affected by his mother’s serious illness and eventual death and the absence of any meaningful attention from a grieving and distracted father.

The epiphany associated with that discovery caused her to make a fundamental shift in her approach to teaching. Instead of teaching subjects like reading, writing, and arithmetic; she began teaching children- a profound distinction.

The poor performing child went from a distracted student to a practicing physician and shared with her along that journey how compelling her intervention was in his achievements.

In another story teachers were exposed to the question – what I wish my teacher knew about me.

The students wished that their teachers had a little more of an appreciation in what was going on in their lives outside of school and the classroom.

I have been a practicing manager for over three decades. I remember the model I was originally exposed to as the fundamental skill sets of effective management- planning, directing, controlling, and budgeting.

We were still immersed in the precepts of Frederik Taylor’s scientific management model. Some were born to do, others born to manage or lead.

As a young human resources professional we were tasked with administrative activities and relieving managers of less valuable activities like setting expectations, providing feedback, coaching for optimal performance, and taking appropriate corrective action when performance didn’t meet expectations.

The Civil Rights Act and its amendments and additional legislation that followed that made discrimination on a number of issues illegal and introduced affirmative action to try to right wrongs gave human resources some leverage because the requirements weren’t well understood and proliferated.

The models were still very much about compliance, if employees would be loyal (defined obedient) they would be rewarded with a degree of security upon retirement. Then we discovered outsourcing, down- sizing, and offshoring to optimize financial performance and the contract was broken.

According to a recent survey over fifty percent of people seeking additional managerial responsibilities do so to increase their earning potential.

Executives acknowledge that highly capable manager with well- developed leadership skills cause their organizations to outperform their competition by a significant degree, yet less than half feel their organization does a good job of developing leaders.

A few years ago I got very enamored with the concept of what we are now calling employee engagement. Even before the data was available something told me that there was a better way. It inspired me to publish my first book, Managing Whole People, in 2008.

In the intervening years the data has become much more prevalent and compelling. We have made some progress in changing the model, but the dark years between 2008 and 2010 brought back a lot of the predatory practices of the past inspired by high unemployment and employees feeling trapped.

We have four generations in the workplace now and the latest two entrants look at work and the employee-employer relationship very differently.

They expect employers to provide them with a compelling purpose for the work that they do, to invest in them and their personal and professional development and to earn the trust and respect if they want to see it reciprocated.

I think they are right. Terms like human assets and human capital make me grind my teeth. Human resources practitioners who believe the most important role they play in their organization is compliance piss me off, and executives who still refer to managing people as a soft skill annoy me to distraction.

Like that teacher discovered we have been doing it wrong. We need to recruit, manage, and retain whole people. We need to provide alignment and purpose and manage people and talent not assets.

You don’t need to be a therapist or a social worker. You do need to build and reinforce identity based trust and there is not a degree or a training program that can do that for you. You have to do the work and you have to do it every day.

The benefits are clear and compelling, so is the downside of doing what we have always done.

If you think that emotional and social intelligence don’t exist, you are screwed. You live in a bubble of your own construction. If you think that trust and respect are perquisites that come with a position or title you are going to fail.

Let’s fix this….

 

 

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Time to Update Your Brand!

 

A few years ago a client of mine shared a conversation he had with another CEO of a high technology firm who was lamenting that a particular large Midwestern city had a significant shortage of qualified engineering talent. He asked his friend how he had come to that conclusion and his colleague indicated they had been recruiting for talent for almost eight weeks with limited results. My client responded, “There isn’t a shortage of talent, your company has a lousy employment brand. Do you think if Apple or Google were recruiting in this same location they would have any difficulty recruiting the talent they need?”

My client is exactly right. Certain companies and I would include organizations like Amazon, Google, Apple, and Zappo’s among them, don’t have any issues recruiting the talent they require. They have managed to achieve a certain cachet not only about their products, but about their company. They have a clearly defined employment brand.

People join cultures not organizations and they leave managers not companies. Your product or service brand will never be better than your employment brand.

Here is another reality check- The workplace is about to span five generations for the first time ever in history; Silents, Boomers, Gen X, Millennials, and Gen Z.

A 2014 study reported that some 41 percent of respondents said the most important factor in their decision to apply to an organization was a company’s values. Nearly half of all candidates said their first relationship with a company was as a candidate — which means that’s the juncture when employers have to get it right.

Another reality is that to a large extent leadership in developing new social models is going to have to come from the private sector.

In the business world we have a population of approaching twenty percent that are actively disengaged in their current employment environment. That means they come to work every day pissed and minimally productive. The costs of that have been well documented in terms of absenteeism, lost productivity, health care expenditures relating to mental health, obesity, and other factors.

Do we really think that meaningful leadership in addressing these issues is going to come from our elected officials? Especially considering that there is a large population that is refusing to acknowledge the outcome of the Presidential election. Added to that I would have to say that many of the selections the President elect has made for Cabinet appointments give me pause. These folks don’t seem to be interested in making the world a more collaborative place.

Our leadership models are in large part stuck in the past. We still focus very heavily on what my colleague Geoff Searle refers to as technical intelligence. Technical intelligence doesn’t build trust and trust is foundational to a solid employment brand.

Dustin McKissen, founder and CEO of McKissen and Company, talked about this in a blog post in Inc Magazine, The Rotten Core of Every MBA Program.

He specifically cites our ongoing infatuation with Frederick W. Taylor and his Scientific Management models-

While Taylor's theories are viewed as harsh and impractical today, his work was still cited in every class I attended that discussed the roots of modern management science. What's not often discussed is how little Taylor thought of the people who actually produced products in the factories he studied.

I mentioned that in a recent blog post. Traditional MBA programs train candidates to be what Lawrence Miller described as Bureaucrats and Administrators in a book he published almost 30 years ago. Given his observation and the fact that McKissen published his observations just a few months ago I am pretty bummed.

The competition for the best talent is on the upswing and my personal experience validates the conclusions of the 2014 study- the new employee is looking for a role where they feel challenged and congruent with the values of the organization.

The concept of human capital and maybe even human resources is dead. We hire whole people and rent their talent. They aren’t disposable assets and are going to require the same care and feeding as customers, maybe more and like customers their ability to cut through the bullshit are being honed and applied.

 

Step back and look at your approach to talent and people systemically or suffer the consequences…..

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History- Study or Repeat?

I had a chance over the holiday weekend to read a book a client shared with me, Barbarians to Bureaucrats, originally published in 1989. The book describes leadership styles and business life cycles and as I read it I was reminded of other great books that have tried to express the same message over the past three decades.

One of the great quotes from this particular book is “the decline in corporate culture precedes – and is the primary causal factor in the decline of a business, and that decline is the result of the behavior and spirit of its leaders.”

I have certainly found that to be true over my almost four decades as a human resources practitioner, executive, and management consultant. Culture eats strategy!

I have to say that as I read this I saw application not just to the “corporate” world, but society in general as I look at the vitriol and nastiness of our latest election for the Presidency. We have a national culture problem.

I have a passion for the concept of employee engagement, a concept that has been around for almost three decades in some form or another, but has not been universally embraced.

The ship has sailed on whether or not engagement is real and it can affect the performance of an organization. Organizations where employees consider themselves highly engaged outperform their competitors in every key performance indicator and engagement is a universal rather than a North American phenomenon.

The author also talks in his book about a couple of other concepts that explain our failure to launch.

He talks about the two sides of the coin as it relates to national involvement, public purpose and private interests.

I have embraced the thinking of people like Michael Porter and Nilofer Merchant that all profit isn’t equal. Social profit, profit that benefits society and total versus just a smaller shareholder group has more long term benefit. I prefer the stakeholder versus the shareholder mentality.

The other thing that he discusses is the myths of the perfect culture and the perfect management/leadership style. That simply isn’t the case.

How many times do we see organizations (and consultants) shlepping around a template[MH1]  of the perfect culture?

When Good to Great was published everybody ran out to copy it. It is interesting to me that although several of the organizations that Collins cited don’t exist anymore almost every executive I know has a copy on their bookshelf. Some of them have even read it.

I remember reading Situational Leadership back in the early nineties and incorporating it into my tool kit with the idea that you need to meet people where they live and flex your leadership style accordingly.

We still don’t like to talk about soft skills and we aren’t very good about teaching them. I saw something as recently as today that said that the concepts of emotional and social intelligence don’t really exist because we can’t scientifically validate them, we should rely on IQ.

Sorry professor you are wrong. Everything can’t be validated. We have this thing called religion, which is based on faith which although it can’t be validated seems to have caught on…

Perhaps because of my professional development as a human resources practitioner the idea that leadership is based on behavior not words and that at the end of the day it is a relationship rather than a position these things resonate with me.

I see corollaries to this book in Gladwell’s David and Goliath, where he discusses legitimacy as part of the leadership infrastructure and Stephen MR Covey’s The Speed of Trust, where he identifies the three levels of trust and how the achievement of identity based trust is critical to sustained organizational performance. Perhaps I am reaching, but I also see a relationship to Simon Sinek’s Golden Circle in terms of giving people something to believe in.

Scientific management created the foundation for what I believe this author describes as the Administrative and Bureaucratic stages of an organization, where processes become more important than people and definitely more important than the product.

The author talks about this being why we have lost a great amount of our manufacturing competitiveness to foreign locations, first Japan and Germany because of quality, and then to other outsourced markets because of cost. A situation that hasn’t improved drastically in the thirty years since the book was written.

He also talks about the importance of balancing financial, planning, and technical competence with creativity. I would add leadership competence, those soft skills like emotional and social intelligence and the ability to flex your leadership style to the situation and the constituent base.

I can’t say that there was a lot of new ideas in the book that I hadn’t been exposed to before, what is a little troubling is how little meaningful progress we have made in the almost three decades since it was published.

I am also watching to see with the outcome of our election whether we have chosen a Barbarian who can create change or more concerning a business aristocrat masquerading as a change agent.

Jefferson described two camps relative to their view of people-

·         Those who fear and distrust the people, and wish to draw all power from them into the hands of higher classes (Frederick W. Taylor and Scientific management).

·         Those who identify themselves with the people, have confidence in them, cherish them and consider them as the most honest and safe.

I would submit that if the term human capital is part of your vernacular and you see culture and employee engagement as the province of your human resources department you have declared your colors…

 

 

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An Opportunity to Lead

At long last one of the most acrimonious campaign and election cycles I can remember is over and at least fifty percent of the population is unhappy.

I am hoping that over the next few weeks some of the heat of the anger and disappointment dissipates and we can move on with addressing the challenges confronting us and the world.

What we are seeing isn’t new, it has just become nastier. When our current President was elected both times I heard a lot of choruses of he’s not my President. The reality is that he was and is.

We have an election process where at the end of the day everybody doesn’t get what they want. That doesn’t entitle us to take our toys and go home.

Have you ever met a business executive that has prevailed in every decision at every stage of their career? I haven’t.

One of the reasons that our President-elect prevailed was that he tapped into the incredible dissatisfaction of many people with the status quo. A lot of people feel that their interests haven’t been represented and they haven’t benefited from the economic upturn since the 2008 recession.

I give our elected leadership collectively a D- over the last eight or ten years collectively. Instead of attending to real issues they have descended into partisan bickering. The majority party staked out positions of denying President Obama a second term (they failed) and defeating his agenda (they prevailed).

Even before the election votes were in they staked out a position indicating that had the outcome of the election gone the other way they were fully prepared to reject any nominations by the President-elect for a full four- year term. That isn’t leadership.

In my last blog post I discussed Stephen MR Covey’s three levels of trust and how bluntly Secretary Clinton failed to fully recognize and overcome her deficit of identity based trust.

I have heard some people disappointed with the election outcome indicate that Secretary Clinton didn’t prevail because of her gender. I personally think that is bullshit. I think in large part she didn’t prevail because people just fundamentally don’t feel like they know and trust her as a person and as a leader.

In my consulting practice I often assist my clients in selecting and developing leaders. I always recommend that way beyond the typical knowledge, skills, and abilities to perform the tasks that there are critical attributes that leadership candidates should possess including: the capacity and commitment to develop others, emotional and social intelligence, and personal accountability among others.

The unfortunate truth is that President Elect Trump as a marketer and entertainer may have decoded the emotional intelligence threshold better than either major party, the media, or the experts.

My colleague Bruce Kasanoff discussed months ago the importance of meeting people where they live and again today in a post about what he calls a dangerous lack of empathy.

“This week's election results reminded me that you can't talk trade policy with a couple that is scared they won't be able to feed and clothe their kids.”

Being a policy wonk doesn’t reach people who are angry and scared.

I wrote a book a few years back about my opinion that one of the flaws in the Affordable Health Care Act is that it assumes a level of personal and professional competency about the very complicated health care process that the vast majority of Americans simply don’t have.

The costs of health care have risen significantly. I believe that in large part that is a function of demand and supply. People who had been denied access to care because of cost or pre-existing conditions suddenly had access.

The health care system in large part is also based on delivering health care rather than managing health and that model has been reinforced since WW2 with rich entitlement model systems provided by both the public and private sector. People didn’t and don’t accept personal responsibility for managing their own health through lifestyle and other choices.

In the business world we have a population of approaching twenty percent that are actively disengaged in their current employment environment. That means they come to work every day pissed and minimally productive. The costs of that have been well documented in terms of absenteeism, lost productivity, health care expenditures relating to mental health, obesity, and other factors.

The fact that I didn’t include turnover isn’t an accident. The studies say that the actively disengaged aren’t any more likely to leave than engaged employees! They are so angry and disenchanted they show up in your workplace and piss in the well every day. They lack the energy and drive to look elsewhere.

Why is that relevant? If people think their lives and jobs suck what kind of voter do you think they are?

Candidate Trump got that. He appealed to the anger and frustration. In truth his emotional intelligence may be higher than that of Secretary Clinton. Having high emotional intelligence doesn’t mean you are a nice person, it means you understand what motivates people.

I want to be clear that I am not endorsing Mr. Trump, neither did I find Secretary Clinton a truly compelling candidate. If I was managing the search neither of these candidates would have made it through the screen.

So where do we go from here?

I personally think that our political institutions are going to keep doing what they have been doing for the last decade- chasing their own asses about their own agendas. In other words, don’t look there for meaningful leadership.

I personally would like to see leadership emerge from the private sector. We need to redefine our leadership models and our leadership expectations

My friend and colleague Geoff Hudson Searle in his upcoming book, Meaningful Conversations, differentiates between technical intelligence; the ability to demonstrate competency at disciplines ranging from financial management to science and technology; and emotional intelligence, the ability to inspire trust and commitment by understanding the motivations and behaviors of others.

Unfortunately, most of our “leadership” development pipeline is based on the former rather than the latter. In fact, as I have shared before many candidates seeking “leadership” roles do so in order to continue to see career progression and increased earning potential. They are not drawn to leading people particularly at all.

Much of our leadership development and management modeling are based on Covey’s first two levels of trust, statutory based on power and position, and knowledge based with a foundation based in competency or what Geoff refers to as technical intelligence. The research shows competency is indeed a foundational element, but not enough to create or sustain alignment or engagement.

Emotional Intelligence, the ability to identify different emotions, to understand their effect, and to use that information to guide thinking and behavior, is critically important.

In fact, I recommend to my clients we do not hire or promote individuals into management unless they display a reasonable capability in this area.

The problem is two- fold.

First, it still isn’t necessarily well understood and applied; and second, it isn’t enough.

Justin Bariso, Founder of Insight, had a great post previously on the seven myths of emotional intelligence or EQ. He identified these –

1.            DENIAL- Emotional intelligence doesn't exist.

2.            Emotional intelligence is just common sense.

3.            You can control your feelings.

4.            More emotional people are naturally more emotionally intelligent

5.            Sharpening your EQ is easy

6.            Once you've got it, you've got it

7.            Those with high emotional intelligence always make the best leaders

As somebody who has spent over three decades as a C level executive, HR executive, and consultant I have heard these and more.

 

Emotional intelligence is indeed real. If it was common sense, we wouldn’t see better than 60% of the working population not engaged or actively disengaged costing our economy billions annually!

We would all like to think we can control our emotions, in fact that is what distinguishes us from the “lower” species, but the lizard brain is alive and well. Research has shown that when our rational mind finds itself in conflict with our emotional/feeling mind the emotional mind wins 85% of the time!

Being emotional and emotionally intelligent are two different things and increasing your EQ is both hard and continuous.

People with high emotional intelligence and no conscience are called high functioning sociopaths!

The fact that you are clued into the emotions and motivations of people is no guarantee they will only use their power for good rather than evil, or that they are benevolent or nice. Just ask anybody that worked for Steve Jobs, or for me for that matter!

I mentioned earlier that I thought perhaps Candidate Trump possessed higher emotional intelligence than Candidate Clinton.

I want to be abundantly clear that I am not endorsing what I have seen thus far as his leadership skills or leadership model.

Another critical concept I would add to the mix is what the guru of emotional intelligence, Daniel Goleman calls Emotional Balance, the ability to keep disruptive emotions in check, to maintain effectiveness under stressful conditions.

His research indicates that this leadership competency is critical because emotions spread from group leaders to group members.

Research done at the Yale School of Management shows when the group leader is in an upbeat mood, people in the group catch that mood and the team does better. Similarly, a leader’s negative mood causes team members to become negative and their performance to plummet.

Does it matter if a boss blows up at an employee? You bet it does. Research shows that employees remember most vividly negative encounters they've had with a boss. They remember it much better than the positive encounters. After that encounter, they felt demoralized and didn't want anything more to do with that boss.

It is this particular dimension of leadership that has many concerned about President Elect Trump. His perceived volatility and downright nastiness when he feels threatened or thwarted.

Goleman calls this the crucial competence-

We did research with over 1,000 executives from around the world, CEOs, Board members, top leaders, about the characteristics of the best leaders. The number one response is the ability to stay calm and collected. In a crisis, being able to manage your own emotions and stay calm, be able to create this island of security and not spread your tension around.”

The last concept I want to suggest is from Andrea Thompson, a retired military officer and now Director of the McChrystal Group, a management consultancy.

I’ve been asked by soldiers around the world, What’s the one thing I should know to be a better leader?” My answer remains the same: Know who you are, your strengths, and your weaknesses. Self-awareness will be that “extra something” that boosts you up the corporate ladder.

As we move up the ranks in our careers, our technical skills are usually the primary reason we get promoted. We closed the most deals or sold the most product. But as we develop as leaders, functional excellence is no longer the main component required to be high-performing and succeed as a senior leader.

Those leaders who soon recognize that their own behaviors and emotions have a domino effect on their team—and adapt accordingly—build stronger teams. Self-awareness is that “combat multiplier” that not only makes you a better leader, but those on your team better leaders, too.

Colonel Thompson spent almost 30 years as a serving officer on the United States Army including roles as the national security advisor to the House Committee on Homeland Security and executive officer and chief of staff to the Undersecretary of the Army so she has some street cred with me at least.

You could say that self-awareness is embedded in emotional intelligence or emotional balance, but I don’t think so.

I have seen leaders who are highly balanced and emotionally intelligent that just flat can’t see themselves in the mirror or worse can only be comfortable selecting and promoting people who are their mirror!

When we look at the issues Secretary Clinton faced throughout her candidacy you wonder if this is a personal weakness for her? Her inability to win and sustain a trust based relationship with a large part of the electorate?

So for me when I look at developing my leadership pipeline technical intelligence or competency is the base threshold for entry into management, as people develop into leadership roles and especially C level roles I want to see them move through the gates of emotional intelligence or EQ, self- awareness, and emotional balance.

The truth is we don’t really get the opportunity to “screen” candidates for elective office for these competencies. The “selection committee” is the electorate.

We can however build them into our models in the private sector which is why I would like to return to my premise that social leadership needs to emerge from the private sector as our Founding Father’s intended before the advent of professional politicians.

Most of these things can be to a large extent taught so no gender of ethnic group has the market cornered.

You can say that these represent high hurdles, but I leave you with this thought –

Leadership is an opportunity to serve. It is not a trumpet call to self-importance.

Donald Walter

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Trust, Leadership, and the Election

I think lot of folks I am over this election cycle. I have not participated in an election in my adult life where things were so polarized and nasty and from seat a lot of the issues people have with both major candidates is the issue that many employees have with their boss- an absence of trust.
As a recovering human resources and operating executive I candidly see this as the prevailing reason we are high centered on where we sit on the number of employees that see themselves as highly engaged in their relationship with their current employer.
They don’t believe that the organizational values that the organization talks about are the ones they practice or that they are personally aligned with those values.
We have seen a lot of cacophony about things like livable wages and access to health care that depending upon your vantage point you see progress or a creep towards socialism.
I hear from a lot of folks complaining that they have employee populations who are focused on the next fifty cents or dollar per hour rather than the “big picture” and what the organization is trying to achieve or the cost of an imposed wage standard on business expenses.
They are missing the point on two levels-
• Maslow’s Hierarchy, is as relevant today as it ever was. When you are in safety and survival mode you aren’t focusing on the big picture and how to become engaged. You are focused on basic issues like food and shelter. We saw an epic drama unfold on social media earlier this year with the young woman from Yelp writing an open letter to the CEO that she couldn’t survive in the Bay area on what she was making.
• Line of Sight, I tell my clients that line of sight may be the most important part of their compensation strategy. The importance of compensation strategy and performance management is to align efforts with outcomes. Employees need to see clearly how positive outcomes for the organization translate to positive outcomes for them and vice versa.
A colleague of mine, Bruce Kasanoff, wrote a post a while back that really captured my attention and spoke to this issue. He argued that the old adage of “teach people to fish, don’t give them a fish” doesn’t really work when people are hungry and scared and I think he is right.
Ron Willingham, author of Integrity Selling, as well as several other excellent books on sales and customer service explores this same theme in his Congruency model. He talks about how people typically operate on three levels; the intellectual, the emotional, and the visceral level. He points out that studies show when your emotions or visceral self is in conflict with your intellect logic loses the vast majority of the time.
Everything I have learned about compensation validates this as well. Once people feel essentially economically secure about their fundamental living expenses compensation is not a motivator for most people. What is very important is a sense of fairness and rationality. How does my employer make decisions about pay?
That is the fundamental issue that many women and other protected classes have with the pay gap between themselves and white males. In many cases it isn’t about survival, but rather equity.
The other issue I see mirrored daily in our society is our struggle with trust.
Stephen MR Covey in his brilliant book, The Speed of Trust, describes trust as operating at three levels; Deterrence or rule based, Knowledge or competency based, and finally and most importantly Identity- based.
I advise clients and colleagues that if you are only going to read one book on leadership read that one!
Our societal models are based on outdated thinking. Institutions have long wrapped themselves up in the virtual robes of being entitled to trust based on position. Monarchies were validated by the churches, who validated themselves as speaking with divine authority.
Frederick W. Taylor and his scientific management theory gave validation to the knowledge and competency leadership hierarchy. He argued most people were dumb, lazy, and fundamentally untrustworthy! They needed to be aggressively managed by white collar leaders.
You will look a long time to find competencies like emotional or social intelligence in Taylor’s model. The sad thing is that while we give lip service to soft skills if you look at most MBA curriculums they are still very knowledge or technically biased and many graduates feel entitled to a leadership role based exclusively on their academics.
As those of you who are familiar with me and my work know I am deeply committed to a few key concepts. Among them I include building your organization on a foundation of commitment rather than compliance and the concept of personal competency. This is validating and accepting that identity based trust is the real foundation of engaged employees.
There are a lot of other things that inherently embedded in those ideas, but they really represent the foundational pieces.
In the first is the idea that when people come together with a shared set of values and clarity about our purpose proactively and willingly the amount of energy they will bring to that effort increases exponentially.
The second is the idea that people are whole. They perform best when we give them both an opportunity and an expectation of being present.
You can’t create identity based trust without social and emotional intelligence, period!
Social gravity is the emerging concept of describing your value proposition in such a clear way and operating with such consistency that your stakeholders including customers, employees, shareholders, suppliers, and communities are drawn to you. There is a community of interests that is clear and compelling.
Social gravity doesn’t look the same in every organization. Since the dawn of the Industrial Revolution we have really developed an infatuation with best practices to the point we want to use them almost like recipes.
When I see surveys that conclude that most leadership failures occur because of organizational fit, interpersonal dynamics and related human factors I have to say I find the perplexity of failure of technology to guarantee sustained success ironically amusing. 
The answer is right there. It isn’t about processes it is about relationships. Processes can facilitate communications and tasks, but they can’t create relationships. That is a uniquely human dimension.
The two major candidates in this election are both caught up in the old model.
HRC is saying “trust me” I am really smart and well qualified. DJT is saying no trust me, I am a highly successful business man who is going to punish the establishment and take back what all those immigrants have taken from you. To an extent he especially is also playing the emotional and visceral card, fear and ignorance. She in turn points out his character flaws.
Both of them want us to base our decision on the first two levels of trust, legitimacy and competency. 
For me the issue is one of identity based trust, do I find either to have the personal and professional integrity to be my President?
In this day an age of consumerism and social media the accountability to earn and sustain trust rests with leadership at all levels and platitudes and generic mission and value statements isn’t going to get it done.
The advantages of employee and customer engagement are clear and compelling and two key points-
•    You will never have sustained customer engagement without employee engagement.
•    The foundation of engagement is trust. You have to do the work.
Be clear with management at every level it is their responsibility to earn and sustain trust and give them the tools to do that. They are entirely learnable and reinforcable.
Emotional and social intelligence like identity based trust are foundational to cohesive and sustained organizational performance and high functioning cultures. It is time to buckle down and do the work…..

 

 

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Leadership Comes With Responsibility

Thinking and Speaking

Words are like weapons; they can hurt you sometimes

Cher

My colleague Marty Lucas from ROCeteer published something recently that really struck me profoundly in light of a lot of events going on in our world right now.

His post – Opinion without the responsibility is an act of ignorance struck a chord with me. I started to ask the question of whether opinion without the responsibility is even more than just ignorance, maybe it is a disservice against society?

I have had a number of roles so far in my life where my opinion had the opportunity to have profound impact in either a positive or negative way.

I spent a number of years as a human resources practitioner and executive. I hold HR people to a very high standard. I have more than once referred to them as the conscience of the organization. The reason I do that is that one of the unfortunate decisions that gets made in organizations is who stays and who goes. Who gets hired and in the event of a “violation” or downsizing who leaves the organization on an involuntary basis?

Although decision is not made (or shouldn’t be made in a vacuum) management and leadership often looks to the human resources department to determine both whether or not the decision is correct or within the law, and more importantly is it right. To me the second part is more important than the first.

Rightness involves not just policy, precedent, and law, but the concept of fairness and application that is objective relative to things like a person’s age, gender, sexual orientation and a bunch of other factors.

I advise my clients to only hire managers and leaders who possess emotional intelligence and social intelligence as well as the typical IQ. I recommend they double down on this with their HR team. We don’t hire human capital, we hire and manage whole people. Leaders without empathy have no place in my organization no matter how smart.

I have evolved from my role as an HR practitioner and even a C level executive to practice giving my advice to clients as a management consultant and executive coach. In this role they are literally paying me for my opinion and I take that responsibility. I have tried to build two primary gates into any advice or opinion I give clients-

·         Do no harm. If my opinion or intervention has no potential positive outcome I simply withhold it.

·         Is it in this client’s best interest?  I am not a big fan of templates. There are some core ideas, beliefs and values that are embedded in the work I do, but I try to work with clients that share them rather than try to impose them on an organization. I also strive to create a unique solution for each client that works for them, not necessarily for me.

The last and perhaps most important role where I give my opinions is in my role as parent and mentor. I have participated in the development of two adult children and mentored a number of other people and have had to realize that my opinion matters a lot to these people. While it would never be my intent to impose my opinions on either group I undoubtedly help shape their opinions.

A number of years ago I ran for public office. It was twelve years ago and some social issues were more contested than what we see today.

A litmus test for candidates aspiring to the office I sought was their position on same sex marriage. My advisors suggested I follow the lead of the other candidates and not comment, but I was too stubborn to take their advice.

I told the interviewer that although I didn’t think my position on that issue was relevant to my candidacy I would answer it.

I told them as a former HR practitioner who wrote and enforced policies that prohibited discrimination about a whole number of things I couldn’t see my way clear to discriminating against someone because of who they love.

I also told them that I wasn’t smart enough to tell my children that same sex partners weren’t entitled to share their lives in the same way others are and that it wasn’t my right to say they care for their loved ones any less. I am not that smart.

As we know the Federal legislation that was passed demonstrates that the world hasn’t ended or other dire consequences we were concerned about haven’t emerged yet either.

I am not trying to impose my opinion on anyone else or suggest I am right and they are wrong if we choose to disagree, it is simply my opinion and I take responsibility for it.

A young woman I respect a great deal and I were chatting about the controversy surrounding one of our Presidential candidates and comments that were made and how members of their own party are distancing themselves and the passion and intensity of her response caught me off guard and frankly embarrassed me.

She essentially said “fuck them”. Her point that was when that candidate attacked people because of their ethnicity, beliefs, or sexuality the “party” looked the other way. The line wasn’t crossed until those comments could be perceived as repugnant to their daughters and wives.

It kind of reminded me of the famous quote attributed to the minister in Nazi Germany who pointed out that as “special” groups were systematically targeted no one said anything because they weren’t affected. And then no one was left to speak for us….

I want to be clear I am not condoning the behavior of one candidate over another or encouraging anyone else to do so.

I am just looking at the context of my friend Marty’s assertion that opinion without the responsibility is an act of ignorance applying it as my personal litmus test for leadership, both my own and those I support.

If you aspire to leadership, public or private you are responsible for your opinions, it comes with the territory. It has also been said that organizations, and I expand this to countries, get the leadership we deserve. Maybe this should be our wake up call…..

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What Trumpet Do You Hear?

The Pillars of Effective Leadership

Leadership is one of those interesting topics that everybody, me included, writes and talks and preaches about.

Whether great leaders are born or taught, whether women are inherently better leaders than men, and whether or not there is a meaningful difference between leadership and management.

My answers to those questions are yes, not necessarily, and yes.

On a more serious note I had a chance to read some excellent contributions from four different people that I greatly respect that kind of distilled leadership into some key elements for me so I thought I would figuratively take pen to paper and share my take away’s.

My first contributor is my friend and colleague Geoff Hudson Searle who in his upcoming book, Meaningful Conversations, He differentiates between technical intelligence, the ability to demonstrate competency at disciplines ranging from financial management to science and technology, and emotional intelligence, the ability to inspire trust and commitment by understanding the motivations and behaviors of others.

Unfortunately, most of our “leadership” development pipeline is based on the former rather than the latter. In fact, as I have shared before many candidates seeking “leadership” roles do so in order to continue to see career progression and increased earning potential. They are not drawn to leading people particularly at all.

Much of our leadership development and management modeling are based on Covey’s first two levels of trust, statutory based on power and position, and knowledge based with a foundation based in competency or what Geoff refers to as technical intelligence. The research shows competency is indeed a foundational element, but not enough to create or sustain alignment or engagement.

Emotional Intelligence, the ability to identify different emotions, to understand their effect, and to use that information to guide thinking and behavior, is critically important.

In fact, I recommend to my clients we do not hire or promote individuals into management unless they display a reasonable capability in this area.

The problem is two- fold. First, it still isn’t necessarily well understood and applied; and second, it isn’t enough.

Justin Bariso, Founder of Insight, had a great post today on the seven myths of emotional intelligence or EQ. He identified these –

1.       DENIAL- Emotional intelligence doesn't exist.

2.       Emotional intelligence is just common sense.

3.       You can control your feelings.

4.       More emotional people are naturally more emotionally intelligent

5.       Sharpening your EQ is easy

6.       Once you've got it, you've got it

7.       Those with high emotional intelligence always make the best leaders

As somebody who has spent over three decades as a C level executive, HR executive, and consultant I have heard these and more.

Emotional intelligence is indeed real. If it was common sense, we wouldn’t see better than 60% of the working population not engaged or actively disengaged costing our economy billions annually!

We would all like to think can control our emotions, in fact that is what distinguishes us from the “lower” species, but the lizard brain is alive and well. Research has shown that when our rational mind finds itself in conflict with our emotional/feeling mind the emotional mind wins 85% of the time!

That is why Simon Sinek tells that creating a safe environment is the leaders number one role.

Being emotional and emotionally intelligent are two different things and increasing your EQ is both hard and continuous.

People with high emotional intelligence and no conscience are called high functioning sociopaths!

The fact that you are clued into the emotions and motivations of people is no guarantee they will only use their power for good rather than evil, or that they are benevolent or nice. Just ask anybody that worked for Steve Jobs, or for me for that matter!

That is a great intro to the next pillar, what the guru of emotional intelligence, Daniel Goleman calls Emotional Balance, the ability to keep disruptive emotions in check, to maintain effectiveness under stressful conditions.

His research indicates that this leadership competency is critical because emotions spread from group leaders to group members.

 Research done at the Yale School of Management shows when the group leader is in an upbeat mood, people in the group catch that mood and the team does better. Similarly, a leader’s negative mood causes team members to become negative and their performance to plummet.

Does it matter if a boss blows up at an employee? You bet it does. Research shows that employees remember most vividly negative encounters they've had with a boss. They remember it much better than the positive encounters. After that encounter, they felt demoralized and didn't want anything more to do with that boss.

Is there anybody out there that has not experienced this phenomenon?

Steve Jobs and others are famous for being brilliant, but also for having these kinds of outbursts. In my own experience this Dr. Jekyll and Mr. Hyde syndrome shows up in a bunch of ways, none of them positive including-

·         High turnover, great talent won’t put up with it.

·         Difficulty recruiting. Your “brand” gets out and people don’t want to work with you.

·         Active or passive disengagement. Some quit and stay, others actually actively try to sabotage the organization.

Goleman calls this the crucial competence-

“We did research with over 1,000 executives from around the world, CEOs, Board members, top leaders, about the characteristics of the best leaders. The number one response is the ability to stay calm and collected. In a crisis, being able to manage your own emotions and stay calm, be able to create this island of security and not spread your tension around.”

Once again feeling like you don’t know whether Dr. Jekyll or Mr. Hyde is going to show up from day to day doesn’t contribute to Sinek’s circle of safety or Lencioni’s organizational health.

The last pillar I want to cover is from Andrea Thompson, a retired military officer and now Director of the McChrystal Group, a management consultancy.

I’ve been asked by soldiers around the world, What’s the one thing I should know to be a better leader?” My answer remains the same: Know who you are, your strengths, and your weaknesses. Self-awareness will be that “extra something” that boosts you up the corporate ladder.

As we move up the ranks in our careers, our technical skills are usually the primary reason we get promoted. We closed the most deals or sold the most product. But as we develop as leaders, functional excellence is no longer the main component required to be high-performing and succeed as a senior leader.

Those leaders who soon recognize that their own behaviors and emotions have a domino effect on their team—and adapt accordingly—build stronger teams. Self-awareness is that “combat multiplier” that not only makes you a better leader, but those on your team better leaders, too.

Colonel Thompson spent almost 30 years as a serving officer on the United States Army including roles as the national security advisor to the House Committee on Homeland Security and executive officer and chief of staff to the Undersecretary of the Army so she has some street cred with me at least.

You could say that self-awareness is embedded in emotional intelligence or emotional balance, but I don’t think so.

I have seen leaders who are highly balanced and emotionally intelligent that just flat can’t see themselves in the mirror or worse can only be comfortable selecting and promoting people who are their mirror!

So for me when I look at developing my leadership pipeline technical intelligence or competency is the base threshold for entry into management, as people develop into leadership roles and especially C level roles I want to see them move through the gates of emotional intelligence or EQ, self- awareness, and emotional balance.

Most of these things can be to a large extent taught so no gender of ethnic group has the market cornered.

You can say that these represent high hurdles, but I leave you with this thought –

Leadership is an opportunity to serve. It is not a trumpet call to self-importance.

Donald Walter

 

 

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A New Roadmap

The Road map

My colleague Brad Federman shared the following thought the other day-

Don’t chase people. Be an example. Attract them.

Work hard and be yourself.

The people who belong in your life will come and stay.

Just do your thing.

I was pretty struck by the profound elegance of this statement both for individuals and for organizations. I wish I had of heard this before giving life and career advice to my millennial aged children.

We hear a lot these days as to whether or not we should follow our passion, our purpose, or just the money.

For me after a lot of sleepless nights and mistakes along the way I have decided to accept purpose as my person lighthouse. I like the lighthouse metaphor because unlike GPS or a map it doesn’t show you the route, it just illustrates where the rocks are in your path.

I have a passion for the concept of employment brand which in my definition is how your culture translates into reality for your customers and employees.

Wells Fargo pretty much screwed the pooch the last few weeks with their brand. A group of employees stole a bunch of money from customers.

Management says it was a few bad apples. Former employees say it was and is an aggressive sales culture where you live and die by the numbers.

It makes me very nervous. This was the foundation of the Recession. I was in banking at the time. When you incentivize a bunch of people to write loans without meaningful consideration for whether or not they can ever be paid back you build a house of cards.

The CEO of Wells Fargo apologized. As Senator Elizabeth Warren said that isn’t enough. No senior manager was fired. No executive to date has been required to pay back the bonuses they were paid on those “earnings”, including that CEO. Their brand sucks.

Your organizations employment brand is the perception by current and future employees of what working in your organization is like.

Some organizations enjoy a very strong employment brand. I would include Google, Starbucks, Accenture, and Zappo’s in this arena. People have a pretty clear perspective about what these organizations value and the profile they seek.

In addition to an employment brand you have a leadership brand. I think Wells Fargo’s leadership brand sucks even more than their employment brand.

Leadership branding includes some concepts that Malcom Gladwell and Stephen MR Covey have discussed and I find intriguing.

In Gladwell’s latest book, David and Goliath, he discusses at some length the concept of legitimacy – which he defines like this:

• Those whom are governed have a voice in the process; their input is sought and heard.

• There is a dimension of predictability and consistency in the application of the law or standards.

• The application of the law or standard has to be administered fairly and objectively, you can’t   have disparate treatment without a clear and compelling reason.

Legitimacy is a concept you don’t hear much about in organizations or B schools, but then I especially like to tweak it a bit further by adding a discussion of Covey’s three levels of trust.

In his hierarchy the first level of trust is deterrence, trust that comes from authority or position. This was a broadly accepted concept for hundreds of years provided first to rulers or religious leaders and embedded in Calvinism that God only allowed “good” people to create wealth and prosper so they were endowed with that trust.

The next level of trust Covey calls competency based. In many cases there is an assumption that anyone who achieves a management role has that competence, but we all know better. In most cases their competency is limited to technical proficiency; their emotional intelligence capacity and social intelligence are rarely considered.

I have encountered literally hundreds of recent MBA graduates who are supremely confident in their ability to lead based on their shiny new diploma demonstrating “mastery” of the concepts. You can have mastery without practice.

I just finished reading The Toyota Kata, which talks about among other things why almost no other organizations than Toyota have ever mastered their model and achieved the productivity increases they enjoy.

Most organization employ the steps, but don’t understand the underlying philosophy that is deeply embedded in the culture. It is systemic, not just systematic.

The highest level of trust in Covey’s hierarchy is identity based trust which incorporates both your competency and you character as demonstrated by your applied values and behavior to create credibility.

I personally believe that to a large extent leadership as opposed to management is founded in legitimacy. Leadership is entirely relational versus hierarchical, it has to be earned rather than bestowed with a title or position.

I recently started working with a recently retired member of an elite military unit about his transition. We are exploring things like Covey’s trust model and Simon Sinek’s Start With Why and Leaders Eat Last.

His reaction is “duh”. These concepts have been embedded into the culture he spent his adult life to date in. The fact that these are an epiphany in the private sector stunned him a bit.

He shared with me that being a leader in these units is the easiest job in the world. Everyone is highly competent. Everybody is committed to the mission. The leader blocks and tackles.

Sounds like identity based trust and legitimacy.

It also sounds like the foundation of employee engagement. In addition to trust and legitimacy, personal competency is expected and reinforced.

It starts in the selection process. If you don’t buy into the values and you aren’t congruent you don’t get in the boat.

You read studies every day how attracting and retaining talent is a critical priority for both human resources and C level executives. I don’t thing automated applicant management systems and better compliance is going to build an organization like Brad described.

Don’t chase people. Be an example. Attract them.

That is simple, but not easy. It requires a different leadership model and organizational paradigm, but all you have to do is look at the statistics between engaged and unengaged and the “Return on Investment” is pretty clear.

I don’t know about you, but I think I am going to heed Brad’s advice and maybe keep trying to share it with others…….

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My Personal Litmus Test

Are You Providing Value?
I am a pretty big fan of James Altucher. If you haven’t read any of his stuff you might want to check him out on LinkedIn or Fortune Magazine or any of the other places that he publishes or his podcasts.
He is sometimes irreverent and always self- deprecating. He talks about his successes, but mostly about his failures.
He says things that a lot of people might find alarming like how owning “stuff” like houses and expensive cars is not advisable because ultimately it owns you.
His latest blog post, The Difference Between Making Millions and Failure I found especially interesting. He sums it up quite simply- add value.
You hear a lot these days how advising people to follow their passion, find their purpose, etc. is all bullshit. I don’t know that I agree with that in the entirety, but I think there is value in asking how what you do and how you do it is going to add value to others or the world in general.
My last blog post explored why I do what I do. I think most organizations, public and private do a pretty shitty job of bridging people, specifically employees, customers, and shareholder/stakeholders. We see them as inherently competing interests.
I have shared before that a significant survey on management and leadership concluded that the single biggest reason most people pursue leadership or management roles is because they want to make more money.
Not make the organization better or grow their people. That is not adding value.
I have occasion to come into contact with a number of not for profit organizations on a regular basis ranging from very large organizations like education and health care providers to local service providers with a much narrower focus.
I use the term not for profit as opposed to non- profit very deliberately. The point that I try to make with these organizations is that profit at its most basic is the amount of revenue that exceeds expenses and there is nothing fundamentally immoral or amoral about how that excess is distributed.
I find that the idea that an organization should goal for and achieve solvency on a regular basis doesn’t always make me very popular. The idea that the organization should be held accountable to have a clear and compelling reason that it exists and perform its services in an efficient manner is seen by many as an elitist or purely capitalistic viewpoint. I disagree.
I think my viewpoint is consistent with Altucher’ s proposition that the absence of that clear value proposition is a fail.
I am a social entrepreneur. I don’t think all profit is equal. I think profit that increases social equality and opportunity is better. The broader the stakeholder base you impact the more value you are creating.
Just so I am clear that I am not singling out not for profits I want to share that I find Seth Godin to be one of my favorite business authors. I don’t put him up on a pedestal or see everything that he writes as either brilliant or that I agree with, but he provided some simple points for would be entrepreneurs that I think have application for every organization-
• If you have never been paid for your product or service it is a hobby, not a business.
• If the only people who have ever utilized your product or service are friends and family it is a hobby, not a business.
I have encountered a number of not for profits who believe that their first and most compelling objective is to raise funds and invite donations to their cause.
On the other hand, I see organizations that do provide meaningful services and a clear and compelling value proposition who are severely criticized because they do things like a successful business-
• Create and execute a business strategy
• Create a strategy to attract and retain the talent necessary to drive the organization and pay that talent competitively.
Those NPO’s get Godin’s point, if nobody is buying your product, you failed the test.
On a simplistic level I have incorporated some of Altucher’ s advice into some of the things I teach.
A great example is feedback. I am a big fan of constructive feedback. People ask how they know their feedback is constructive and I use these guidelines-
•    Constructive feedback is based on observations and facts not reactions and speculation.
•    It focuses on performance not on a person.
•    It can be tied directly to the performance of the person or the team or both.
•    It is timely and specific.
•    Progress is both measurable and obtainable.
•    It is part of a process, not an event.
I believe that feedback that meets these criteria adds value, if it doesn’t meet these criteria it doesn’t and you should keep it to yourself.
I think this should be the litmus test for everyone we hire in our organizations. 
How will they add value and can they articulate that? Candidates that recite their resume and experience leave me bored. That is the minimum standard, the easy part.
I use a nautical analogy when I talk about the hiring and talent acquisition process for most of my clients. 
I tell them in terms of boats you are a canoe rather than a battleship. Every person on your boat needs to be a rower. The only other value add in a small boat like a canoe is being food, and I don’t think consuming people is good.
Our human resource models have been based for years on consumable/disposable employees. Frederik Taylor said people are stupid and lazy. Our employment models have been based on compliance and obedience for generations. We provided security in return for obedience.
And then we discovered outsourcing, downsizing, and automation.
I don’t let individuals off the hook either.
Businesses do not exist to provide jobs and security for their employees. That is hopefully one objective and part of their value proposition, but not that premise exclusively.
That is why I agree with those that say that employees are an equal shareholder (read responsible party) for employee engagement. They also need to add value.
So every day I come to work and ask myself if I am adding value to my clients and my community. That is my aspiration and I think I get it right the majority of days.
What would happen if everyone and every organization adopted that perspective? I wonder…….

 

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Why I Do It!

An excellent quote by Jeff Bezos in a recent blog post by Brian Wong took me back to my undergraduate days.

The quote “Focus on what won’t change” was a significant contributor to my decision to pursue a career in what was then called Personnel, much to the chagrin and disappointment of my academic advisor.

He told me, “You are really smart and focused, Personnel is kind of a dumping ground unless you are on the Labor Relations side”.

You have to remember that this was over three decades ago when organized labor was a powerful force and those employers who did not have a represented workforce were determined to stay that way.

My response to him was that in my brief career I had made two observations-

·         At the end of the day people (or talent or whatever you want to use to describe the collective talents, skills, attributes, and efforts of the people you employ) are important no matter what sector, industry, or field you want to work in

·         Most organizations don’t seem to “get” that and do it very well.

Even in the adolescence of my career it seemed that if you don’t want your employees to organize and have to negotiate with them collectively the best way to address that was to build relationships based on mutual trust and respect.

People smiled and patted me on the head about my naiveté, and wished me well.

My first job was at a place where we had pretty much done everything wrong. All of our employees were members of one of the eight unions and governed by one of the thirteen bargaining agreements in place and for good measure we had managed to get ourselves sued by the Federal government for systemic discrimination against two different minority groups so the government stepped in to give us “guidance” on the hiring of all our skilled crafts jobs.

My next job was with a more enlightened Fortune 100 whose philosophy was that we didn’t want any third party intervention between our employees and us. Third parties included unions, government agencies, special interest groups, and of course members of the legal profession. I thought that made much more sense.

I have to give that employer credit they were much more pro-employee and even when we went through the blood shed of the eighties with downsizing, rightsizing, and outsourcing we tried to maintain some sense of dignity on the part of the affected employees.

I also got a chance to be exposed to some “new” ideas like the total quality movement and a gainsharing experiment where we involved employees in redesigning processes and even took a radical step of involving them in discussions like rising health care and worker’s compensation related expenses and sharing the savings with employees both directly and indirectly.

My next gig was with a smaller medium tech employer who was interested in exploring socio-tech and self- directed work teams. My colleagues and I after serious resistance from senior management were able to put in place a model that demonstrated that when employees are committed rather than complying and aligned with organizational goals you can accomplish amazing things.

Then it was time for me to step into the abyss of self-employment and hang out my shingle as a management consultant trying to sell my services and ideas to employers regionally and nationally.

  I called my model Compliance to Commitment.

In his 1991 book, Why This Horse Won’t Drink, Ken Matejka describes commitment: “Commitment is the act of being physically, psychologically, and emotionally impelled. It means that employees gladly give up other options.”

 Employees choose you and your organization over any of their other available choices; you have become partners in your organizational mission!  This creates a powerful image.  If you are a CEO or a business owner, it almost sounds like a fantasy.

I like to think this was one of the early discussions and models of what we now refer to as employee engagement.

Roger Deprey created a model, the Human Resources Pyramid, a series of six questions that he believed every employee asks in a particular order.  Deprey further stated that less than 15% of organizations in the world have their employees reaching the top of the pyramid and asking the final question:  How can I help? 

Maybe I am reaching, but I see more than a few parallels between Deprey’s six questions-

•             What is my job?

•             How am I doing?

•             Does anyone really care?

•             What is our function/mission/goal?

•             How are we doing?

•             How can I help?

and the more recent models espoused by thought leaders like Simon Sinek (Start with Why) and Patrick Lencioni’s Organizational Health models.

In my experience, corporations and organizations spend an enormous amount of time and money talking to employees, shareholders, and other stakeholders about mission, vision, culture, and values as abstract principles.  Before employees can embrace your vision or mission, they need to understand where they personally fit in the organization and how you, as an executive, see them and their contributions. 

There are five distinct elements to my model, and I believe each to be essential and directly correlated to Deprey’s questions.  These are the elements:

• Respect

• Responsibility

• Information

• Rewards

• Loyalty

I am not going to go into defining these in detail because I have done that ad naseum in other posts and publications.

 Here are my recommended actions to drive compliance (little “c”) to Commitment (big “C”):

• Treat your employees with respect by providing clear expectations, meaningful feedback, and an opportunity to collaborate with you in achieving your goals and theirs.

• Treat them as intelligent adults by holding them accountable for performing their tasks independently and competently given clear direction and guidance.  Provide clear boundaries of acceptable and unacceptable behaviors and performance, and enforce them consistently.

• Provide them with the big picture and context of how their jobs, skills, and activities fit into the larger purpose of the organization- answer their question “What is my job?”

• Provide a clear “line of sight” between their performance and their compensation and rewards. If it takes you longer than 20 minutes to explain the basic structure of how you make decisions about employee compensation, it is too complicated.  If you are afraid to explain the targets you use and how you make decisions, it is similarly flawed.  Remember that human nature is to distrust what we do not understand.

• Do not expect more “loyalty” than you are willing to provide. I define loyalty as a mutual agreement that, while someone is my employee, they commit themselves to being engaged 100% and fulfill their responsibilities with our mutual respect.  If they need additional clarity or information, they make me aware of that, and if they have an issue, they allow me to address it. Envision loyalty as an agreement between adults: we will continue in our relationship as long as it is mutually beneficial to both parties.

So you might ask what is in it for me as a leader?

• 84% of highly engaged employees feel that they can positively impact the quality of the organizations product or service versus 31% of disengaged employees.

• 72% of highly engaged employees feel they contribute directly to improved customer service versus 27% of disengaged employees

•68% of highly engaged employees feel they can directly impact costs versus 19% of their disengaged counterparts.

• An average total shareholder returns of 24% with organizations with a population of 60% or more of employees describing themselves as highly engaged. Where high engagement is between 40 to 60% of the population the TSR drops to 9.1% and when it drops below 25% the average TSR is negative.

• At Best Buy they were able to correlate a .1 percent increase in engagement on a five-point scale to a $100,000 annual profit increase per store.

• JC Penney found that stores in the top 25% engagement scores produced 36% higher per store operating revenues and 10% higher sales per square foot than their counterparts in the bottom 25%.

The bad news is that this is old news, we have known this for close to ten years yet many organizations have yet to embrace these models, in fact the number of disengaged employees has been increasing at a faster rate than engaged employees.

I didn’t have this data back in 1993, but the fact that we are still leaving this much opportunity on the cutting room floor is why I do it.

I still believe that having the right people, focused on the right things, who are committed rather than complying is the most important competitive advantage any organization has and that will never change!

So where do you go from here?

 As you might suspect I have several suggestions:

Define your culture. As leaders creating the culture and ensuring clarity is your key role.

Hire hard- manage easy. My colleague Joseph Skursky uses this motto to describe his technique of investing the time to hire the right people, don’t try to “train” them to be right.

Hire for congruency. The more alignment you have between the employee’s values and the elements described in Dr. Willingham’s model the more likely you will have alignment and engagement.

Ensure managers have the “tool kit” and that they reinforce your values. Leadership and management are different skills, but there are an essential set of management competencies that all managers must have and be able to demonstrate. I would submit the closer to the frontline the more critical those skills become.

Give employees a chance to commit rather than comply. The numbers speak for themselves. The model works.

Be flexible about process and ruthless about principle. People who cannot or will not embrace your values will never be engaged. You owe it to them and yourself to “free up” their future.

If you are unfamiliar with some of the concepts I mention in this post just hit my blog or Google and do a key word search…..

People really are our most important asset ….

 

 

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Finding Your Purpose

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Finding Your Purpose

Sometimes a picture really is worth a thousand words and I think the one shared above (thanks to Kathleen Schaefer and A.W. Tozer) may be worth millions, at least to me.
I spend a good deal of my consulting practice, and indeed my career, in coaching people and organizations towards what we call employee engagement. I know that engagement has its detractors, but I think that the data on organizations that are aligned relative to values, purpose, and goals makes a pretty compelling case for why it works.
In my experience where engagement has failed it is a function of definition and implementation. In my experience effective engagement is about culture and alignment. It isn’t a survey, a program, or a brochure. You have to do the work.
One of my favorite thought leaders, Simon Sinek, talks about starting with why on an organizational level is one the critical steps to achieving true leadership.
Patrick Lencioni captures much of the same conceptual framework in his book, The Advantage. When I look at his model I see a lot of time being spent on finding the why first as a leadership team and then building that into the fabric of your culture.
Culture, like engagement is one of those concepts that makes a lot of executives roll their eyes. I think that is because they either don’t understand it or they are too lazy to do the work.
I personally agree with Chatman and Cha-
“One thing is guaranteed: a culture will form in an organization, a department, and a work group. The question is whether the culture helps or hinders the organization’s ability to execute its strategic objectives.”
When it is done properly, like the way Angela Duckworth describes it in her bestselling book, Grit, the power of passion and perseverance, you get this-
“…Culture has the power to shape our identity. Over time and under the right circumstances, the norms and values of the group to which we belong become our own. We internalize them. We carry them with us. The way we do things around here and why become the way I do things and why!”
I read an article recently that said that the worst advice that we can give our children and the emerging generations is to follow their passion. While I am not sure I entirely agree with that statement, I do believe that maybe figuring out your purpose is a better roadmap.
A recent conversation with a colleague about some concepts I wrote about years ago have some application here.
When the Founding Fathers wrote the original constitution, there were two primary ideas that formed the core of our new union. The first was the idea of personal property; the idea you have the right to acquire property and pass it along to your heirs. This is the heart of the capitalist system. 
The second principle that we hear much less about is the principle of personal competency. This is the idea that each of us has the right and the responsibility to craft our own future, to be what we want, and to reinvent ourselves without regard to our heritage or beginnings. 
When industrialism began to emerge we saw the personal competency principle begin to erode. We ran out of new territories to colonize and pioneer. The industrial age required labor to staff its factories and production. We offered security in return for compliance. 
Give up your personal competency and we will provide security in the form of employment, retirement, and health care benefits. I’m not going to say the great industrialists did this willingly or altruistically, but we can agree that by the 1950s, it was commonplace for employers to provide “fringe benefits” including paid time off, pensions, and employer-paid health care as part of the inducement to recruit and retain the labor we required. That was the “social contact” under which our parents and grandparents were employed. Then we broke the contract.
Maybe I am reaching, but what the Founding Fathers described sounds a lot like purpose to me.
So how do we build this into the current reality?
My roadmap would say that we begin by embracing Sinek’s premise that as organizations we start with Why? What is our organizational purpose?
Next engage your employees. Engaged employees see themselves as being in partnership with you. They care about your organization, your customers and your goals. They are committed not compliant.  One of the “ancillary” benefits of engagement and partnering is that employers with high engagement scores outperform their competitors in key metrics like productivity, profitability, and retention. They do things with people not to people. Engagement is consistently underrated by most organizations.  It requires trust, respect, responsibility, information, rewards, and mutual loyalty.
To assure that you will have engagement build congruency into your hiring processes.
There are multiple levels of congruency; 
• My view of the activity, 
• My view of my ability to do the activity, 
• My willingness to do the work to be proficient, 
• My belief in the product or service we offer, 
• Whether or not the activity is aligned with my personal values.
I would submit that if you hire people who are congruent with your organization on all five of these levels chances are you are also aligned at the purpose level. They get and share the why!
Hire and train good supervisors. I have been a human resource professional for thirty years; here’s an unavoidable truth: people join companies and leave managers. Poor supervisors and managers cost businesses millions of dollars every year in turnover and lost productivity. Make sure that when you hire or promote someone, they have the right skill set. This doesn’t have to be horribly expensive. You can hire these skills or in many cases there is excellent supervisory training available through your local Chamber of Commerce or community college. Executive coaching is great, but most of your employees don’t work for an “executive”. Poor frontline supervision is relatively cheap to fix.
Purpose plays a role here as well. 
Studies done by Development Dimensions International and the Workplace Institute respectively indicated that 60% of supervisory/leadership respondents indicated they pursued leadership roles for primarily economic motivations and that fifty percent of middle managers surveyed rejected responsibility for context, alignment, and attending to morale issues as being core competencies or responsibilities of their role!
See my comments on congruency!
There are workplaces out there were individual and organizational values and purpose are aligned. You can recognize them because they are kicking their competitor’s ass on every key performance indicator you choose to measure!
The nice thing about this model is that it is collaborative. Employees have a role just as important and accountable as the other stakeholders. There is no free ride just a model based on shared respect, clarity, and mutual accountability.
So as leaders let’s ask ourselves two key questions?
•    What’s our purpose?
•    What’s my purpose?
If we can’t answer them, we have work to do…….

 

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Why Engagement and Culture Are Failing!

After almost four decades as a human resources professional, c level executive, and management consultant I remain convinced that changing the way we attract, retain, and align people remains the most significant competitive advantage we have available to us, and we continue to squander that opportunity.

Employee Engagement isn’t a new concept anymore and although there are many detractors that say it is merely another “program” there is a lot of evidence to the contrary that suggest the problem isn’t the concept, it is about execution.

The percentage of engaged or highly engaged employees has pegged at about 30% with the number of actively engaged employees actually creeping up from 17% a few years back to over 20%. The costs of that lack of engagement are in the billions annually.

In my experience engagement must be approached as a culture rather than a program and there are some very bright people out there who agree with me.

One of those people is Josh Bersin, principal and CEO of Bersin by Deloitte who shared his research from 6000 companies and over 2 million employees that concluded that the most important element in high performing employment brands is culture and values, followed by career opportunities and confidence and leadership.

Their research concluded that in terms of a positive employment brand these factors were 4.9, 4.5, and 4 times more important than compensation and benefits. Interestingly the “work-life” balance we hear about so much was rated as less than half as important.

Millennials rate career opportunities in the first position, but other than that their responses are the same as preceding generations.

For those of you not familiar with the concept of employment brand, your employment brand is how both current and potential employees perceive you as a career choice. Organizations with strong employment brand have a huge competitive advantage in the war for talent because people seek them out.  Think organizations like Google, Amazon, Starbucks, and Zappo’s.

So how do we keep shooting ourselves in the foot? Well some recent data from the Workplace Institute gives us a clue, (thanks to Michael Stewart of WorkEffects for sharing).

They conducted a survey of a little over 1800 people broken down as a third human resources professionals, a third line managers and a third employees on who “owns” culture and to me the results were a little scary.

·         Over 30% of the HR respondents felt the HR leadership is responsible, however 90% of managers and 97% of employees surveyed disagreed.

·         26% of managers surveyed felt that it is the executive team, but 89% of HR professionals and 91% of employees disagreed with that assumption.

·         29% of employees surveyed say employees drive culture (and 40% of Millennial’s) with 91% of HR practitioners and 87% of line managers disagreeing.

It gets better, there was no overlap between what employees and either managers or HR considered the three most important drivers of culture either!

The three groups also disagreed on what either kills or impedes culture as well with employees citing employees felt that “not having enough staff to support goals,” “unhappy/disengaged workers who poison the well,” and “poor employee/manager relationships” were the major obstacles to maintaining a positive workplace culture.

So what does this tell us?

As Dustin McKissen pointed out Fred Taylor’s adage of telling employees what they need is still alive and well!

Here are a couple of other problems-

A multi-year study by international consulting firm Development Dimensions International yielded some interesting information (at least to me)-

• The highest quality leaders are 13 times more likely to outperform the competition

• Only 38% of those surveyed (12,000 line executives and 1900 HR executives) rated their leadership of leadership development as high or very high.

• 60% of those who applied for leadership roles indicated their primary motivation was economic- they wanted to make more money!

Our leadership models are based on compliance, not commitment or engagement!

Here are some other issues-

·         If you ask most HR executives what the most important contribution they make to the organization they support 7 out of 10 will tell you compliance with state and Federal regulations. That doesn’t sound like culture!

·         The art and science of recruiting has been dumbed down. I happen to believe that highly effective recruiters whether they are on your staff or hired specialists have enormous value in helping you identify the attributes and skills of top performers in both current employees and applicants. The new systems in many cases believe, I have an app for that! We just load a formula into the computer and it does that pesky work of screening. Therefore, the role of recruiting can be delegated to more junior people who manage the process.

·         Recruitment and selection has become much more impersonal. I have a client who is seriously walking away from an organization she feels could be a great fit and who has demonstrated an interest in her because a glitch in their system continues to demand she complete a supplemental questionnaire she has already completed…twice. You can’t pick up a publication without reading about an applicant’s experience with a hiring organization where they applied, were interviewed or both and never heard from the organization again. Current applicants are often potential future hires, customers, or know a great hire, but we turn them off.

As you might suspect this isn’t good for your employment brand!

As to the fact that employees are the only group that identified unhappy/disengaged employees and less than competent management as being major impediments to creating or sustaining culture as a change agent I don’t know whether to weep or cheer!

Employees get it, why don’t we?

So what do I propose?

• Be proactive in developing, implementing, and reinforcing your culture.

• Recognize that the foundation of your organization and success are based on understanding and embracing the three levels of trust, not just deterrence and competency.

• Ensure that you understand the implications of congruency and you either build it in or retrofit your organizational models to embrace it and reinforce it.

• Only hire and promote leadership candidates with both the appropriate attributes and the right skills.

I also see a clear meaningful role for the Human Resources function and I can assure you it isn’t owning culture!

When I look at the opportunity costs represented by more effective recruitment and retention, re-designing health care to include health management and address issues like social literacy and individual responsibility and the creating of meaningful employee engagement strategies on our society I have to admit I am puzzled about why more organizations don’t “get it”.

I understand that it is hard work. I understand that in some cases the ability and necessity to do things like create trust based relationships, establish clear performance expectations, provide meaningful feedback, and take appropriate corrective actions necessary to align performance with organizational goals is still in many organizations considered a soft skill, but the data is becoming more and more available and compelling.

I don’t believe that becoming certified as a HR professional, or gaining your black belt, or Six Sigma will necessarily make you a better leader or manager.

I believe the role fits into three distinct buckets.

•     Technical skills -The proliferation of rules and regulations has indeed made the profession more complex as has the application of technology, phenomenon like social media, outsourcing and global workforces, and related challenges. We need to be technically proficient, not only in our craft, but to understand the businesses and organizations we serve.

•     Project Management- Similar to the Total Quality Management movement I believe human resource competency in core areas needs to be deployed broadly and deeply rather than be seen as a departmental competency. It is fundamental to the management/leadership role.

•     Facilitation - We need to help our client organizations recognize that by building relationships with individuals as people first and resources second we can create enormous gains in sustainability, productivity, and profitability through alignment of organizational and individual goals.

Some of the more recent studies on employee engagement criticize many organizations approach because they look at employees as a passive participant rather than an active stakeholder.

The good news is that employees are telling us in growing numbers (especially the group that makes up 25% of the workforce) that they see themselves as participants in defining organizational culture which is the foundation for engagement.

We have everything to gain here with nothing to lose except an artificial sense of control that we don’t have in the real world.

Let’s fix this!

 

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