Do Try This At Home!

I know for years we have encouraged people to think global and act local, but I want to explore a different paradigm with you.

As you know I am extremely passionate about the concept of creating engaged environments and strong employment brands. Often what I hear from people is " that's great Mark, but I am a small business with a small work force and small budget". The other thing I hear is "how"?

I came across a couple of pieces earlier this week that I thought were nothing short of brilliant in explaining both why and how this is relevant to small business.

Paul Mitchell, the brilliant Australian social scientist www.thehumanenterprise.com.au, shared some things that both resonated with me and were immediately applicable to businesses without regard to their size.

• The first thing that Mitchell did was describe leadership in a simple, but very compelling way. A leader excites their followers to exceptional performance. This definition is especially relevant because performance and effort are what engagement is ultimately about. Not happiness, not "satisfaction", but performance. Those others factors maybe contributors, but at the end of the day we need results.

The next thing that Mitchell talked about were the four key elements that every business should build into their "value proposition":

• Great leaders focus on followers. Mitchell and I share the belief that relationships are the "glue" in organizations. Truly effective leaders do things with people, not to people. With their employees, with their customers, with their suppliers, with their community.
• Build a sense of community. Following that same theme leaders understand they are part of a community and they invest in it. They build and nurture relationships on a foundation of trust and respect. They exchange value and values not transactions.
• Be yourself, but with more skill. Mitchell calls this authenticity. Everyone has allowable weaknesses, his point is to focus on your strengths and core competencies. Seek out other relationships internally and externally that complement your skill sets and offering.
• Focus on what matters. Mitchell suggests that we look for significance in ourselves and others. Find what you and others do right and celebrate it whether they are an employee, a customer, a neighbor, or a stranger. Connect them to the larger community and the larger context. We are a village, not an island.
• Build the excitement. There is an old amusing expression "if you are excited, you might want to let your face know". This speaks precisely to Mitchell's earlier definition of leadership. Be excited and share excitement. If you are not excited and don't believe in "you", how can you expect others to?

Added to this wisdom from over the "pond" I had a chance to see some results from the national survey and initiative on engagement from the U.K. that showed similar things. The country wide study found that there are four elements that build and sustain the engaged environment:

• Listening
• Treatment
• Coaching
• Role and role modeling

Once again it comes down to relationship. Listening and treatment speaks to my guiding principle of respect. Coaching and role speak to the principle of the big picture and autonomy. Role modeling speaks to authenticity and values. The British study also found that when leadership commits to these behaviors they become "viral", they spread through the organization both formally and informally.

By the way they did examine compensation as well and what they found was again consistent. Money may initially attract, but the most important qualities of compensation are perceived equity and fairness. So the short story is if you do compensation well it is a break even, it won't detract from engagement. If you do it badly it will destroy your foundation. Once again we see the tie back to relationship that once we get past survival mode it is about fairness and equity, not dollars.

So when you think about building and reinforcing your brand, be sure you include these elements. The interesting thing is you don't need a big budget or large staff and yes, you can do this at home......

Doing "What Matters"

I had the opportunity to attend another brilliant presentation this last week by a man I admire a great deal, president emeritus of the University of Oregon, Dave Frohnmayer. Although President Frohnmayer may be best known for the 15 years he spent as university president he can also list Dean of the U of O school of law, Oregon Attorney General, state legislator, and Rhodes scholar. A true renaissance man.

He was speaking to a combined group of community leaders and "aspiring" leaders in the form of students from a local private university. Much of what he said resonated with me, but there were particular aspects of his presentation that really struck me.

One of the most interesting themes he discussed was our evolution as people, especially those of us who aspire to lead or manage others. He said that as we are young and we begin our careers we start with the question-
What do I want to do with my career?
We hear this question and discussion a lot from young people; how do I best manage my "career"?

The next evolution he describes is the place where we ask the question-
What do I find fulfilling or meaningful?
I know I have certainly spent some time pondering that question and I rather suspect that I am not alone.

The last question or stage was the challenge he put to those who lead-
What matters?
The point of this question is that we move beyond the "I" and begin to examine our contributions in the larger context of society and the world. It is an interesting point. Should we have people in leadership roles that haven't evolved to that place?

The other part of what he discussed particularly resonated with me; he encouraged everyone, but especially leaders to see themselves and others in terms of their whole personhood. Some of you know this is a familiar place for me.

He referred to people as diverse as Jung and Machiavelli as recognizing that we all carry a "shadow side" and that the most effective leaders recognize this in themselves and others. They don't try to deny it, they incorporate it in their leadership style and acknowledge it in others. They have people around them whom they trust and have the courage to point out to them when this "shadow" becomes a detriment rather than an asset or neutral. He also talked about how the recognition and "mastery" of your shadow elements is evolutionary and occurs over time.

When I first entered the work force like President Frohnmayer suggested I spent much of my time focusing on my "career". Now that I have had three or four "careers" I recognize that a career is a journey you to a certain extent look back on rather than plan.

I have found for me personally that the second and third questions have intertwined. I believe passionately that a different way of people relating to each other in organizational settings is better for the individual, the organization, and society in general. In my case that model is what we now call engagement or employment branding.

Those of you familiar with me also know about my fascination with "Whole People", my belief that this idea of partitioning people off in the "work self" and personal self is ineffective and kind of silly.

The last JFHF3HCJD6FE few years have been an interesting part of my personal journey so I found it somewhat validating to hear from someone I respect that perhaps I am not doing it "wrong" after all.

So what I would leave you with are two questions-

• Have you determined what matters to you?
• If you answer yes are you pursuing it, and if no do you have a plan to change that?

Look forward to hearing from you.....

What Happened to Us?

Almost 250 years ago the United States was founded in large part on the basis of two principles:
· The right of personal property; the ability through your own efforts and sweat to own property and build your own future.
· The right of personal competency; the right and responsibility for each person to develop their skill sets and to plan and execute their own future.
These concepts were radical in view of the feudalism that had ruled most of even the “civilized” world. Your destiny was defined not on who and where you were born, but rather what you chose to do with it.
In my white paper, A Social Contract for the New Millennium, I talked about how I feel that concepts like scientific management, pure capitalism, a move from an agrarian to an industrial society and other factors contributed to the degradation of these principles, but what I see lately troubles me even more.
In the 1940’s people like Deming talked about new approaches to total quality management, which interestingly enough began being referred to as Japanese management techniques. Immediately following World War Two the United States was the undisputed industrial power in the world. I will even go further and say that it was our industrial capacity that played a huge role in the defeat of the Axis as well as our military successes. We were the place that everyone came to study business and the home on entrepreneurialism. The productivity of American workers was some of the highest in the world.
I have heard the arguments that it was the unions and government socialism starting with FDR and followed up with other Democratic administrations that gutted it, but I don’t buy it.
Let’s look at some pretty unpleasant realities facing us right now:
· A study in the Journal of Business Strategy estimated employee turnover costs the U.S. economy $5 trillion annually.
· Another study by the American Health association says we lose $200 billion to “presenteeism, a phenomenon where people “show up”, but contribute at a marginal level because of their own or family health care issues, economic insecurity, or just plain dissatisfaction with their job.
· A 2008 Gallup Consulting study estimates the U.S economy as operating at a 30% rate of efficiency because of lack of employee “engagement”.
· A Conference Board study on employee satisfaction released last week reflects that 55% of Americans are dissatisfied at work and if you look at the under 25 demographic it grows to 64%!
· We have a second class health care delivery system.
I realize that the stock market is moving back up and that Wall Street is about to announce record bonuses, but these numbers scare the hell out of me. We are talking about things like a “jobless recovery” and while Wall Street has profited they aren’t sharing the wealth. What happened to the ingenuity and tenacity that put us at the top of the world’s economies?
There are a number of factors that contribute to where we are including:
· Globalization, if you haven’t gotten the email it is here to stay.
· A lack of solid leadership. Leadership is still defined in most organizations as a “nice to have” or an HR initiative rather than a strategic focus. In my opinion what is being taught in our top graduate schools is management, not leadership. They are related, but they are different.
· A lack of alignment. We are not aligning people’s contributions with business goals and objectives. That’s why we are at a 30% efficiency rate.
· Lack of a cogent customer service model. Most organizations have old fashioned customer service models; they aren’t engaging their customers anymore than they are engaging their employees. Anybody who experienced air travel recently can give me an amen to that.
· Changing expectations. In this regard I mean customers, employees, communities, etc.
The interesting thing is that if you look at the factors I have posited is how many of them come down to relationships and trust. A survey by Punk Rock HR gives a brief summary for the biggest reasons for the “newer generations” dissatisfaction:
· We read about 8 figure bonuses for executives and you want us to accept 3% salary increases as “market”.
· You told us (and our parents) that you would provide us with employer sponsored quality health care.
· You changed our retirement plans and tied them to the stock market so we could do “better”.
· You told us that moving the manufacturing base to Southeast Asia, China, and India was good for “business” and that we would create a “knowledge based” economy.
· Your response to the recession and 10% unemployment is that those of us who remain employed should be “grateful”.
I don’t know about you, but I can kind of see their point.
Maybe I am being overly simplistic, but doesn’t it seem like much of these issues are directly correlated to the relationship between employer and employed? I have thought so for thirty years! That is why I developed my model Moving from Compliance to Commitment. I have spent years refining and testing it. My premise is that when you give employees a chance to “join up” with you they will contribute at a higher level.
Turns out I was right. A Gallup Consulting study from 2008 showed that among other positive results companies with high engagement demonstrate:
· A turnover rate 51% lower than peer groups
· 27% lower absenteeism
· A per capita productivity rate 18% higher and
· 12% higher profitability
A different study from Rhoads and Whitlark and BlessingWhite drew the same conclusions. In fact they showed shareholder returns 13% higher and the productivity and profitability impacts of increasing engagement in environments like retail is nothing short of astounding.
Global research organization ISR’s research director, Patrick Kulesa, put it even more clearly-
“Our research continues to show that a well substantiated relationship exists between employee engagement- the extent to which employees are committed, believe in the value of the company, feel pride in working for their employer, and are motivated to go the extra mile- and business results”.
Now let me tell you what really bothers me. Less than 30% of U.S. businesses have any kind of a strategy for addressing these issues. To the best of my knowledge there is not a single government led initiative exploring it either. I read about a government initiative recently- in the U.K.!
It kind of reminds me of the early days of the total quality movement. Even though it was pioneered in the U.S. we largely ignored it because we didn’t find the need compelling. It was only when our products like automobiles, electronics, and others began to suffer did we look at root causes. We just gave big banking a trillion dollars and the average American isn’t seeing much benefit. Are we seeing a trend here?
The other issue for me is that this is not a “technical issue”. While I have a lot of respect for my colleagues who have black belts in Six Sigma issues like trust and respect are not going to be solved by “process improvements”. For those of us who see ourselves in leadership and management and the fields of organizational development and human resources management this represents a crisis and an opportunity to provide real leadership.
So let’s do a quick review. We have 10% unemployment, historically high employee dissatisfaction, and an underfunded second class health care system. We lose $5 trillion to turnover and another $200 billion to “presenteeism”. Maybe I am just confused, but am I the only person seeing some opportunities here? So what is it exactly we are waiting for…?

Are You Building Your Lighthouse?

In my mind a lighthouse is a guide or a reference point that allows people to find their direction while reducing their "danger". It is not a map, or a set of instructions, it is a guide. So I ask the question are you building a lighthouse for those you care about to guide their way?

I look at it from several levels. I recently posted a question on LinkedIn on where are we are teaching the important skills people need to live and work in our complicated society. Interpersonal and communication skills, teamwork and "playing well" with others, leadership, and followership. In many cases people told those skills need to be developed in the home or on the playground, that waiting till someone enters the workforce is too late.

I also heard from graduates and employers that we are not teaching skills like giving feedback, setting expectations, taking corrective action, and similar skills in our top management skills with any consistency. And what about coaching, which is different from these others skills?
I asked another question about whether or not these skills are "universal" as applicable in all cultures as in the West. Most agreed that these along with a series of "attributes" that we call leadership are desirable even if in some cultures they would be more aspirational than immediately transferable. How about building and giving trust, where do we teach that?

I don't know about others who have had the opportunity to hire and train employees and "emerging" managers, but I have encountered a few who didn't come to the job with this "toolkit" in hand.
A colleague recently said in discussion that he found the Gen Xer's and Millenials to be unreceptive to mentoring. I mused that maybe they had never experienced it and didn't know how to accept it or ask for it rather than rejected it.

I am pondering a theory that we need a three level approach to "Coaching":

• The most currently applied model is "executive coaching", which as it implies is working with someone at a senior level to prepare them or "rehabilitate" them and increase their effectiveness in a management or leadership role. This is generally one on one, expensive, and limited to a select population. Enlightened entrepreneurs are embracing this technique as well as they move from "founder/owner" to CEO.
• Some organizations have "leadership" academies or programs for mid level managers who have been identified for potential advancement. I have participated in developing and implementing these programs with a degree of success, especially when you combine "training" with ongoing reinforcement from their immediate supervisor and management chain of command.
• The last level is aspirational. It is what I call a true coaching culture. The skills sets of front line management: setting expectations, giving and receiving feedback constructively, taking appropriate corrective action, recognizing positive results, and generally "blocking and tackling" for your team are foundation skills for everyone in the organization. Additionally, senior managers including the C level are spending time coaching and interacting with "emerging" leaders as mentors and coaches. It is embedded in the culture.

I think if you create this culture you have created the essential foundation for engagement. It doesn't remove the need for vision, strategy and leadership; but it provides one Hell of a foundation to build on.

I like to think I began building my "lighthouse" with my children years ago and I have built a few others I hope, only time will tell.

If you are ready to build your lighthouse, we would like to assist you. The Business Case for Engagement says it all, commitment is simply better than compliance.