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Let's Do This!

What Really Matters

So now that the eclipse is over we can focus again. Just kidding, the eclipse was very cool and generated a lot of attention and interest.

There has been a convergence of events lately that have really caused me to be even more pensive that usual.

·         The Charlottesville attacks. This disturbed me on many levels. I know there are angry people out there, but I have always thought of Charlottesville as part of the “new” South. It is especially disturbing that people used Robert E. Lee as kind of a flashpoint. He was a noble man. Yes, he fought for the Confederacy, but he did that because of his commitment to the state of Virginia, not some passionate commitment to the institution of slavery.

He recommended against any monuments to any of the symbols of the Confederacy, calling divisive and slowing the healing process.

·         The response to Charlottesville. This was an opportunity to demonstrate real leadership and the response from our President was an epic fail. His refusal to accept that, step back and own that failure demonstrates deep character flaws in his leadership ability and capacity to understand viewpoints different from his own and build trust.

·         A recent publication from Gallup that indicates that for yet another year we have been unable to move the needle on engagement beyond the 30% level.

As I can only do so much on the first two, I have decided to get back on my pulpit about the last one.

I have had an opportunity to read the results of a recent study in the UK that concluded that age 35 is the point where employees begin to feel disappointed and potentially disengaged from their work. They gave a number of reasons such as the competing stresses of work and personal life, unfulfilled expectations, perceived shrinking career opportunities and other reasons. Misguidance?

That date makes me sad on many levels. The first is that the average person at 35 can expect to spend double the time in the workplace that they have to date. Dragging that bag of pooh for another 30 years is pretty daunting. For employers, these are your “seasoned” workers. At this stage people have likely hit their productive stride and mastered their jobs. Not a good combination.

Since all these people are not likely to be able to find refuge in some entrepreneurial endeavor. They will remain in the workplace. The statistics of what disengagement costs the economy every year are both daunting and irrefutable. Think trillions, not millions or billions.

So why aren’t we moving the needle?

A recent article from Gallup concludes that in large part we are measuring and trying to address the wrong things and points to one critical area, the quality of leadership.

They suggest that employee engagement efforts would be better served to focus on recruitment and selection of those we promote into management and then follow up with appropriate management education and development.

Can I get an amen!

As I have published before multiple studies and surveys have concluded that better than 60% of people seeking leadership roles are primarily interested in making more money, period. No surprise they don’t make great leaders.

I recommend to my client organizations that we recruit and place only leadership candidates that possess the following capabilities:

·         Technical competence

·         Understanding trust and congruency

·         Emotional and social intelligence

·         Emotional awareness

·         Emotional balance

Apart from “technical competence” I defy you to find these skills or attributes being taught in MBA programs!

Discussing things like trust and congruency are still considered pretty woo woo in most organizations.

Trust occurs on three levels:

·         Deterrence (Power or authority)

·         Knowledge Based (Education and “qualifications”)

·         Identity (shared experiences and mutual investment)

For close to a thousand years we loved the deterrence model. The divine right of kings or religious institutions. Calvinism and scientific management have this concept embedded in their foundations.

We have become very enamored of late with knowledge based trust. You can’t swing a dead cat without hitting an organization offering credentialing in something. Add that to chasing education and other pseudo solutions that build over confidence in the holder and you understand some of where we are.

Identity based trust is what Simon Sinek and Patrick Lencioni write about. I have also heard it described as thick versus thin relationships.

A thick relationship is where we share values and purpose and a common “why”. Thin relationships are where we refer to employees as human capital look at the employment relationship as transactional. Employment at Will is a thin relationship; “either party can terminate the employment relationship with or without notice for any legal reason”. Doesn’t exactly reek of mutual trust and investment, does it?

Congruency is about alignment between the organization and the individual. It occurs at multiple levels:

·         My view of the activity. (positive or negative)

·         My view of my ability to perform the activity. (perceived ability or competence)

·         The alignment between my personal values and the values of the organization.

·         My commitment to do the work. (perform and improve my capabilities)

·         My belief in the product, service, or mission.

A few things I have learned in my three decades plus as an HR executive, C level executive, and consultant.

·         I can fix some of these things with training and reinforcement, but trying to change someone’s values isn’t just hard, it is wrong.

·         People who aren’t congruent on all five of these levels aren’t engaged.

·         Less than ten percent of the organizations out there are even having conversations about congruency and trust.

In a perfect world, I tell my clients we should recruit for congruency in every position we hire for at any level. At a minimum, I tell them that in addition to the five skill sets and attributes I mentioned above you better damn sure have congruency in your leadership cohort.

My experience is that when you embrace this model you are building a foundation for engagement. Your employees aren’t likely to become disengaged at 35 because you are recruiting and reinforcing thick rather than transactional relationships.

In short you are hiring and managing whole people.

With the savings, we can recapture from employee disengagement we can fund universal health care, better education systems, and increase organizational productivity and profitability, or we can just keep doing it the same way.

If you can’t embrace congruency as a foundational screen for all your employees, then at least embed it in the hiring, selection, and development of your leadership team. Your organization is only as strong as your weakest leader…….

 

 

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A Better Model

 

Would You Stand Under the Arch?

The ancient Romans had a tradition: Whenever one of their engineers constructed an arch, as the capstone was hoisted into place, the engineer assumed accountability for his work in the most profound way possible: He stood under the arch.”

Michael Armstrong

When I used to teach a unit on leadership for our local Chamber of Commerce I would challenge those emerging leaders to “come to work every day willing to be fired for doing the right thing”.

 I used to tell the people on my HR teams the same thing.

Over the last few weeks that has been a lot out there in the blogosphere that talks about what I might call legitimacy.

I believe that to a large extent leadership, as opposed to management, is founded in legitimacy.

Leadership is entirely relational versus hierarchical.

A transitioning special operator from the US army described it to me this way-

On our teams we have a shared leadership model. It was only when our new officers recognized and embraced that they really needed to earn our trust that we would truly follow them. We could learn from them, but they could also learn from us.”

I would submit that these special operators, the elite of our military which include groups like the Navy Seals and Green Berets epitomize high performing teams and engagement.

 As a manager you have the authority of your position and the benefit of what 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.

At least not competence at the right things.

 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 in emotional and social intelligence are still considered “soft skills”.

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.

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 that employers needed legitimacy through the input of their employees was considered ludicrous.

I suspect our new President isn’t big on the legitimacy model….

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”?

Michelle Berg wrote a great post a few weeks back telling us about a conversation she had with a group of marketing professionals about why she “hates” HR. If you read the article what Michelle is really describing is a leadership fail- we ask HR to make up for what she calls shitty leadership.

I agree with her, I have seen a lot of this in my three decades plus career, and the reality is that this really is a leadership fail, not an HR fail.

I remember many years ago when our CEO couldn’t figure out what key metrics to assign me as the Human Resources manager for my management incentive plan, (That’s a topic for a whole separate post).

He proposed that my entire incentive be based on executing a meaningful improvement (ten percent or more), on our employee climate survey.

I would be the only manager who had this goal….

I countered with the idea that I would put the same percentage of my incentive on the line for that single metric as he was…

As you might suspect he wasn’t amused. He also declined to accept my challenge. He wouldn’t stand under the arch.

I think one of the fundamental differences between management and leadership is that commitment to personal accountability and being willing and able to create alignment with the vision.

There are some excellent models out there to accomplish this kind of alignment. Three of my favorites are offered by Stephen MR Covey, Patrick Lencioni, and Malcolm Gladwell.

Covey talks about the three levels of trust and the trust tax that the majority of organizations are paying.

Lencioni lays out a roadmap for what he calls the journey to organizational health, with the two most critical factors being building a cohesive leadership team and creating and reinforcing clarity.

Gladwell talks about 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.

There are interesting connect points between these three (at least to me).

Covey describes his three levels of trust and how it is the third level, identity based trust, that is the most critical.

He uses scary words like intimacy, transparency, and shared experiences. It gets even scarier when he describes the idea that credibility is a function of both competence and behavior.

You have to do both.

Lencioni describes trust as the critical foundational element of a cohesive leadership team and organizational health. I am pretty sure he means identity based trust versus deterrence or just knowledge.

I see these elements in Gladwell’s description of legitimacy. Words meet actions, consistently.

There is and has been a lot of discussion about employee engagement these days. There are detractors who say it is all bullshit and then supporters like me who think if you aren’t seeing results it’s because you are doing it wrong.

Lencioni describes three biases that can get in the way of meaningful cultural change and I see them in the way many organizations approach engagement-

·         Sophistication- it is just too simple. I hear from organizations a lot when we introduce fundamental skills training for emerging leaders that there is no “rocket science” to things like setting expectations, giving feedback, taking corrective action, and coaching.

I agree the concepts aren’t rocket science you just have to do them consistently and hold people accountable if they aren’t doing them!

·         Adrenaline- creating organizational health and identity based trust doesn’t happen over a long weekend or a management retreat. It doesn’t happen by conducting an engagement survey either. Engagement is a culture, not a program. It doesn’t belong to HR.

·         Quantification- although we have gotten a lot better at being able to quantify the benefits of engagement it is still a little bit nebulous. I here from people “we did a survey and engagement and/or productivity didn’t improve.”  I ask them if they addressed the issues from the survey and I get the thousand- yard stare. Or they tell me that “gave it to HR to fix”.

Changing a culture is hard and the work never stops. It is also a systemic process. You can’t just approach one part like hiring or compensation and expect to see widespread results.

For the last three decades I have been promoting and teaching the merits of an employment relationship based on Commitment rather than compliance.

My particular model is based on five elements-

·         Respect- everyone has an absolute entitlement to be treated with respect for their personhood.

·         Responsibility- I am a big fan of what our Founding Fathers called personal competency. People should be treated like adults and expected given clear expectations and feedback to meet those expectations.

·         Information- I am a huge believer in context and a link to the big picture. Simon Sinek calls this the Why.

·         Equitable compensation- people perform better when they believe they are being paid fairly for their effort and they understand how those decisions are made. Paying someone fairly is a threshold, not a breakthrough.

·         Mutual Loyalty- when I hear employers lament the lack of loyalty I want to laugh. Employees didn’t invent the term human capital or come up with strategies like outsourcing or offshoring to increase profitability. Loyalty should be measured by contribution, not tenure.

 

These elements are anchored on 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.

When the employment environment is optimized in a commitment based model it results in employee engagement.

Surveys still come out every year that reinforce that the most important role played by human resources professionals is compliance. This is consistent from both operational executives and human resources professionals themselves. This is what Michelle was referring to when she called it shitty leadership!

Alternatively, a recent survey of all four generations in the workforce identified the following on employee’s wish list-

• Open and transparent communication

• Respect for them and other employees

• A supervisor/boss that coaches and supports their growth and advancement

• A supervisor/boss that recognizes them and their performance

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.

Engagement and legitimacy don’t “belong” to HR, they belong to leadership at every level.

At the individual manager level, I would encourage you to consider the following

·         Ask your internal and external customers how you can help them and make them more successful. If you don’t think you have any internal customers give me a call. We have work to do.

·         Ask your staff what obstacles you can remove to make their job more efficient or easier.

·         Ask the people on the front line how your products and services can be enhanced or modified to make them easier to address their needs.

·         Ask your peers how they think you and your group are doing. You are an internal service provider.

·          Ask your boss how you can help them. This may seem a little obvious, but you will be surprised from how you communicate to taking a task off their list can make a difference.

 At the organizational level, I think we need to address these things with a level of urgency.

While the number of employees who rate themselves as highly engaged had remained constant for a few years (around 30%), those numbers are starting to decline and disengagement and voluntary attrition in an already competitive market are on the rise.

For those of you unfamiliar with disengagement, it is the phenomenon where employees are extremely unhappy, but they stay and “poison the well” rather than look for other opportunities. What is truly scary is they are no more likely to leave on their own power than employees who are neutral.

The data is in and it is conclusive - there is a direct correlation between employee engagement and customer engagement. In fact, the data shows a direct relationship between disengagement and presenteeism and turnover to the tune of $5 trillion annually.

We can’t run away from it anymore….

 

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Which Bus Are You Riding?

Umm, The Bus is Moving!

I am going to go out on a limb and state that if you ask most people to name the ten best books on leadership that every emerging and current leader should read, Jim Collin’s Good to Great is going to be on that list.

One of the great lines that everybody can quote from that book is “getting the right people on the bus”.

Great thought, my issue with it is the bus is moving, not parked!

As I have mentioned previously both CEO’s and human resources executives have indicated that attracting, retaining, and optimizing the deployment of talent is a key priority for them.

There is a lot of discussion on hiring and selection these days as there should be.

Here is a news flash, really cool computerized recruiting platforms, employee engagement surveys, and compliance isn’t going to address these issues.

Neither are six sigma, lean, or any of the other process oriented systems that we want to believe are a panacea.

We still largely hire and recruit based on technical competencies, especially at the managerial levels. It isn’t working.

Hiring people who not only possess the knowledge, skills, and abilities to perform tasks; but also whose values and goals are congruent with those of your organization is one of the most important things you can do to ensure success.

But it doesn’t stop there. If you hire great people and manage them poorly you waste the energy you spent in hiring and selection!

A great article I read a few years back pointed out some things that have really stuck with me about three critical factors that you have to consider when you are hiring and managing those right people; the team, the time, and the game.

The author made this point about the “team - the play of individual players is affected significantly by the team they are playing on. They can play up or down based on the synergy of the team.

I like to think of this as “fit” If they don’t fit their ability to excel is compromised or affected negatively. Conversely you see people’s contributions increase substantially when the fit is there. We see this in professional sports all the time and we see it in organizations if we are being truthful.

The “time” is also critical. He used the historical analogy of Winston Churchill during WWII. Churchill both prior to and after the war didn’t represent the right fit. Organizations evolve as well and the skills and how we deploy them need to evolve with what is happening in a particular time.

Last, but not least examining the game is also critical. We have a love affair especially in this country with the concept of “best practices”. We don’t always look at the applicability of best practices from one industry to another. In fact, we have well respected firms who enjoy a very lucrative business installing their “templates” in organizations across the world. If it doesn’t work, you aren’t doing it right.

My analogy for this is creating organizational culture. There is no one right culture; there is a right culture for a particular organization.

Most of our employment models are and have been based on an acquisition model. We create sets of rules or protocols for everyone; applicants, hiring managers, and human resources to follow. The model isn’t an invitation to join up, it is a transaction.

I think most corporate employers look at Employment at Will the same way Charlton Heston looked at the right to bear arms; you will pry it out of my cold dead fingers.

I think sometimes that makes us sloppy and indifferent. Sloppy and indifferent to the tune of $5 trillion dollars in turnover costs annually in the U.S. alone. Add in another $200 billion for “presenteeism” and you are talking about real money, aren’t you?

When I discuss poor practices and the costs and efforts associated with poor hiring I get the typical “Shit happens, people come and go. If someone doesn’t work out, we can always terminate them or lay them off.”

What if you couldn’t? What if you were “stuck” with the employees you have, what would you do then?

I think one of the things you would do is to have a way better process. You would be much more careful about who you hired and who was involved in the process. You might ask questions about things like “fit”, “potential”, alignment with “values”. I’ll bet the people involved with the process would be more senior and better trained. You wouldn’t rely on your “gut” or a computer program to make the decisions for you. Because these people will be with you forever, and forever is a very long time isn’t it?

What I suggest you do differently:

Hire Differently

There is simply no substitute for hiring appropriately.

Technology will not overcome bad hiring and frankly neither will training. If you start with an inferior “resource” either by poor selection techniques or poor orientation you will never end up with a superior result. The $5 trillion we lose to turnover annually isn’t an anomaly, it is a consequence.

I had an opportunity to complete a two- part radio interview a while back on a related topic. One of the panelists, a former C level executive asked me a series of questions on this very topic –

“What do you do if you have the wrong people who refuse to change?

My reply will probably make a lot of folks unhappy. I said two things:

• First, you need to fire your HR and/or staffing team for being incapable or unwilling to identify and fix the process that is allowing you to continue to make bad hires.

• Second, you need to fire the management team that doesn’t address the issue.

I sincerely believe that most employees at least start their jobs with the intention of doing a great job every day. When I say most I am talking in the high 90th percentile. When they don’t do what we want or excel it is typically a case of where we hired or placed the wrong person or we are doing a poor job of managing them!

• Choose carefully at the start. I call this Hire Hard- Manage Easy. If this is a relationship not a “date” you should think it through.

I am also a fan of profiling.

• I think you should recruit and hire people who share your values as an organization.

• I think you should talk about your values and build your brand in rather than bolt it on.

• I am a big fan of concepts like congruency, where employee’s view of key activities and practices is consistent with that of the organization; not only what we say, but what we actually do.

I think you can have organizational congruency and not illegally discriminate against anyone because of their color, national origin, sexual orientation or other protected arenas. I think when we commit rather than comply we perform better because we see our role as partners rather than master and servant.

Manage Differently

A recent study by HR consulting firm Ranstad reports that 8 out of 10 respondents indicating that having a good working relationship with their boss is very important to them. As a corollary the single most frequent reason cited by employees leaving organizations is a poor relationship with their supervisor.

When you see trouble, intervene early. Don’t watch someone struggle or fail to address an issue because you didn’t want to hurt someone’s feelings.

• Stop waiting for them to quit. Studies show that actively disengaged employees are no more likely to quit than employees who are neutral or passively disengaged. They “quit” all right, they qui contributing!

 Worse yet, they stick around and poison the well!

• Right person, wrong fit? Is it the employee or did we put them in the wrong job? How many times have we taken a good “technician” and turned them into an awful manager?  

• Are they being managed properly? My experience has taught me a lot of “performance” issues stem from mismanagement. You can’t manage everybody the same way. Poor skills or application of skills at the front line manager level is one of the biggest contributors to turnover, litigation, unionization, etc. It doesn’t matter if you are a “servant leader” if your front line supervisors are tyrants.

If you have a poor performer who is still in your organization six months after you identify the problem the issue isn’t with them, the union, or HR, it is a management problem.

My experience is that most unions don’t protect poor performers; they just keep us honest and make us apply a consistent process.

I don’t believe that management is a genetically programmed capability. You can in fact train people to be competent at management. They might never be charismatic leaders, but charismatic leadership isn’t necessary in every managerial role.

Choose Leaders Carefully

There are some things that are essential-

• The ability and willingness to earn and give trust

• The ability to set clear expectations

• The ability to give and receive constructive feedback in a timely way

• The ability to diagnose performance issues and apply appropriate corrective action

If you have members of your management cadre who can’t or won’t deploy those skills you need to either train them, move to a different job, or make them available to your competition.

I have written, spoken, and even publically pleaded with organizations about the importance of employment branding and its direct and indirect connections to employee engagement, so I am not going to focus on it a great deal here, but instead discuss leadership brand.

Develop A Leadership Brand

A great post I read talked about a father’s conversation with his son who had just completed a summer internship. When his Dad asked him about the experience he replied that he enjoyed the work and his colleagues, but the “big boss” was a real jerk. The father was somewhat surprised that his son had an opportunity to meet the most senior executive of a large corporation as an intern, turns out he hadn’t.

The son’s perspective was framed entirely from correspondence and the perspectives shared with him by colleagues and coworkers. I think we can say this leader has a leadership brand issue…

I also read a series of books written about the evolution of King Arthur and Camelot. I found it more interesting than most series because it actually started two generations before Arthur was conceived and outlined a leadership development strategy and succession planning that modern organization could take a page from.

Leadership as described in the Camulod context included some concepts that Malcom Gladwell and Stephen MR Covey have discussed and I find intriguing.

They covered concepts, like trust, legitimacy, and engagement that given that engagement remains at around 30% and trust hovers at 50% says they are still very relevant today.

There are a zillion different leadership styles in the literature, I happen to be a big fan of Blanchard’s Situational Leadership® model which recognizes one size doesn’t fit all either with people or organizations.

I read the articles and posts that have taken the position that women are inherently more dispositioned to be leaders and genetically coded to have higher emotional and social intelligence and my reaction is bullshit.

Our issues aren’t gender based, but I believe more a matter of aptitude and training. Our leadership models were based on competency and deterrence for generations and ignored identity so we practiced a flawed model.

So my recommendations in cultivating your leadership brand include-

• Build on a base of identity based trust. You have to master the first two levels to achieve that.

• Ensure that your actions incorporate legitimacy both implicitly and explicitly

• Manage people, not human capital. People are individuals, respect that and treat them accordingly.

So in conclusion I leave you with the following thoughts:

• Hire hard, manage easy!

• Hire for attribute, train for skill!

• Hire smart people. You can teach smart people to do almost anything, but you can’t teach people to be smart!

• Hire whole people whose values are congruent with those of your organization and don’t rely exclusively on interviewing to test that congruence!

At the end of the day the team with the best players playing together wins! Just like my colleague said- the team, the time, and the game.

Because remember- the bus is always moving!

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We Can Do Better!

Hiring, Employee Engagement, and Other Epic Failures

Some days you just wonder. I will soon be “celebrating” almost my fourth decade as a human resources practitioner, executive and management consultant and when I watch what is happening I continue to be a bit frustrated and disappointed.

Employers still whine about candidates and employees. The current target seems to be the Millennial generation. They are selfish, lazy, demanding, blah, blah, blah.

Truth is I haven’t found that to be any truer of them than any other generation.

 They are more distrusting based on what they observed and are more willing to be explicit about their expectations, but I find that when their purpose is aligned with your purpose they will work their asses off.

Edward Deming back in the Forties as part of the Total Quality Movement suggested treating employees more like partners and less like human capital (we just called them labor back then) and we are still at a place where around 30% of the workforce rates themselves as highly engaged. It has been 70 years!

I know that there are those who say employee engagement isn’t real, but those are the people who approach it as a program or event rather than as a culture. I remember when quality was treated the same way- we inspected it in at the end of the process rather than building it in.

When I look at a lot of hiring and selection processes I give us a D-. We have lots of automated tracking systems and other technologies that have dumbed down our candidate sourcing process, but we still focus very much on two dimensional hiring. Look at the average job description.

In 1935 Congress passed the Wagner Act, better known as the National Labor Relations Act, legalizing employees right to join a union and collectively bargain with their employer because employees and employers don’t trust each other or perceive they share a common purpose and interests.

A very recent survey concluded that almost 50% of employees across the board generationally don’t trust leadership, their supervisor, or their team mates.

The NLRA and Civil Rights Act of 1964 were the most important things to happen to human resources professionals in the history of employer-employee relations because they imposed laws and sanctions for not doing it right. They also made HR relevant to management for the first time.

If you ask human resources practitioners today what the most important role they play in their organization, a significant majority will tell you it is ensuring compliance with State and Federal laws and regulations.

The others spend their time addressing what Michelle Berg refers to as “shitty leadership”.

No surprise there. Sixty percent of leadership candidates seek those roles to make more money, not better the organization or help develop staff.

Just as disappointing is when I hear that the attributes that make someone a good leader like emotional intelligence, emotional balance, and self- awareness are inherently feminine, that women are genetically programmed to be better leaders.

I find that as offensive as suggesting that African Americans genetically have more rhythm than white people or people of Latin-Hispanic descent are genetically more volatile and emotional.

I have not given up hope, there are just some things we need to do differently.

·         We need to acknowledge that trust is the foundation of every solid relationship.

·         We need to acknowledge that Commitment is far superior to compliance. People want to buy into your purpose.

·         We need better leaders and we need to recognize technical competence is the minimum not the standard and that effective leadership can be taught and must be reinforced.

·         We need to recognize that the best way to create highly engaged organizations is to build it in rather than try to bolt it on. That true engagement is about alignment. It is a culture not a program.

There is a great opportunity for Human Resources professionals to lead this charge. Compliance is a baseline.

I propose a new role for HR-

• HR helps the organization answer the Why question posed in Simon Sinek’s Golden Circle.

• HR helps identify the values and attributes that are fundamental to and congruent with the Why. As I have said before creating alignment for people who already share your values is much easier than trying to “fix” people.

• HR helps identify and deploy the competencies that reinforce the performance that we desire and ensures that those are practiced consistently across the organization. Those include setting expectations, giving feedback, course correcting, and coaching among others. Those competencies belong to managers, not HR.

I would like to see human resources professional demonstrate the following:

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. I needed to be technically proficient, not only in our craft, but to understand the businesses and organizations I served.

 • Project Management Skills- 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, not just human resources departments!

   • Facilitation Skills-  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.

Based on my experience I would also challenge leaders to take some additional steps:

• Ask your internal and external customers how you can help them and make them more successful. If you don’t think you have any internal customers give me a call. We have work to do.

• Ask your staff what obstacles you can remove to make their job more efficient or easier.

• Ask the people on the front line how your products and services can be enhanced or modified to make them easier to address their needs.

• Ask your peers how they think you and your group are doing. You are an internal service provider.

• Ask your boss how you can help them. This may seem a little obvious, but you will be surprised from how you communicate to taking a task off their list can make a difference.

I would also challenge you to become a champion of commitment over compliance and helping create an environment that encourages true engagement.

How do you do that?

• Hire the right people

• Incorporate the elements of commitment rather than compliance.

• Be flexible about process and ruthless about principle.

• Build on a foundation of trust.

• Remember it is all about relationships.

My experience has taught me that overcoming inertia is one of the most difficult things to overcome in creating meaningful change in an organization is inertia or complacency. If you go back and look at some of the opportunity costs I identified there really is a role to play for human resources to become a catalyst and change agent.

Most HR practitioners want respect and opportunity. This is the path I followed from HR to the C suite and to a role as a successful management consulting career. I am not a rocket scientist. If I could manage it, you can as well.

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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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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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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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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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Dunbar's Number, Bad Process and Results

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Dunbar's Number, Bad Process and Results

Dunbar’s Number, Surveys and Engagement

Bad processes yield bad results.

I make that statement as I look at the shouts across the blogosphere that performance appraisal has failed, employee engagement is bullshit, and a number of other sweeping generalizations.

When I examine those things I come up with a pretty consistent conclusion; if your process is designed and executed poorly you are likely to yield poor results.

Let’s look at hiring and selection. It is generally a mess. Most organizations still rely heavily on the interview as their primary selection tool, even though results have said that unstructured interviews by themselves are basically a crap shoot.

Then we add technology to it through automated systems to sift applications and determine the most qualified candidates. That way we can dumb the process down and turn recruitment into an entry level role in HR, because the system does the work. That is typically an epic fail.

If your performance management system consists of an annual trip to the woodshed between manager and employee to communicate why you won’t be getting the raise you anticipated, it is an epic fail.

Employees representing every generation have been clear from the start of the Industrial Revolution that they desire clear performance expectations, appropriate and constructive feedback, and equitable compensation. And for the most part we still suck at it. That doesn't mean we should abandon it, it means we need to do it better!

Most compensation delivery and performance management systems are designed by HR people for HR people. We want to streamline and increase efficiency and consistency. Those are code words for routinizing it. Creating alignment (the appropriate goal of engagement) is not routine, it is personal. It takes work and commitment and it lives at the front line where employees live and work.

A recent Gallup study indicates that employees are much less engaged than senior management thinks they are as a rule. No surprise. How often do senior managers interact with line employees?

Dunbar’s number is the concept  that most of us mere mortals can’t maintain meaningful connected relationships with more than 150 people. As organizations get larger those relationships get strained.

We live in a fantasy world today where people have thousands of Facebook friends and LinkedIn connections. Do you really want to go out on a limb and say those are meaningful relationships? I can’t and I will admit to being in four figures for LinkedIn connections.

Stephen MR Covey tells us that the most important level of trust is identity based, which is based on shared values and experiences and the recent literature indicates every generation, especially the Millennials see this as a baseline element of healthy relationships with their employer.

That requires investment and personalization, you know that soft skill stuff.

Today I read a post that says doing surveys is dumb because good companies already know how their people feel about key issues and how aligned they are with their work and the company.

Really? So is the definition of a good company one that is led by one of those prodigies that can maintain those identity based relationships with hundreds of employees rather than those of us who can only maintain 150?

I will concede that if the only way you are creating and maintaining alignment is with an annual or semiannual survey you are likely falling short of your objective. It’s a tool not a solution.

If you are only having performance management and feedback conversations annually you are failing epically.

If your hiring process consists of hitting the panic button and pushing a bunch of people though an interview process without looking at the totality of the role and multiple tough points like congruency and fit you probably have both hiring and retention issues, not to mention shitty engagement.

I saw a great quote the other day that said if a plant isn’t growing properly you change its environment, not the plant. If your processes aren't working then refine them, don’t throw them out.

Get rid of language like human capital and hire whole people.

Don’t promote anyone into a management or leadership position that doesn’t have decent emotional and social intelligence skills and who has demonstrated competencies in things including: setting clear expectations, giving and receiving constructive feedback, taking corrective action, and coaching. I consider these a baseline.

If you have to retrofit your leadership team through training and/or reassignment, then bite the bullet and do it. Hold everyone accountable to walk the talk.

Remember that your leadership culture is defined by the worst behavior you are willing to tolerate from either management or employees!

It is okay to manage performance, communicate your compensation delivery strategy and align it to organizational goals and performance.

It is also okay to occasionally survey your employees and ask them how we are doing as an organization since you might not have an intimate, identity based relationship with all of them. If you do that listen to what they tell you and act on that feedback.

If you need the survey to identify your poorest performers and most disgruntled employees, you have severe weaknesses in your management infrastructure. Identify those and fix them.

The tough news is you have to all of this not just some of it because half assed solutions or incomplete systems don’t yield complete outcomes ever……

 

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Who Is Rowing Your Canoe?

I just had a chance to read a post on LinkedIn mentioning that Executive Search firms have lengthened the time they are willing to commit to in identifying candidates and that gasp, the search process in general is taking longer.

My reaction is Thank you God, maybe we will get better at it!

Continue Reading...

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Where Have All The Flowers Gone....

I am probably dating myself a bit by borrowing that line from the classic Peter Seeger tune, but I find myself asking that question over and over again, and what I read almost daily from top executives about their search for talent the metaphor seems appropriate.


The they I am referring to are the leaders and managers who still don’t seem to get it. As most anyone who has read any of my stuff knows I have committed my career to building and reinforcing new models of how organizations and people work together.


You can call it an employment relationship, a social contract, or whatever you choose; but what I am referring to is the relationship between employers and employed.
Employee engagement, the level of alignment between individual employee efforts and goals and organizational goals and objectives remains without question one of the most powerful and significant opportunities to improve organizational performance across every key performance indicator.
I am not speaking speculatively; the correlation between those things has been well established by the Society for Human Resources Management, the Gallup organization, and numerous other academic research organizations and professional consulting firms. We still do it as a society fairly poorly, with the number of employees describing themselves as highly engaged ranging around thirty percent in the U.S.
Organizations in large part took a hiatus from focusing on improving employee engagement during the recentrecession because with relatively high unemployment they didn’t feel they needed to attend to it to attract or keep the talent they sought. Now that the economy is starting to pick up you hear employers whining again about the difficulty of finding and keeping the talent they seek.


Here is a tip – highly engaged organizations don’t have that issue. That is one of the myriad of reasons they outperform their competition.
I had a chance to re-read Joel Peterson’s blog posts with two installments on building a high trust culture and it still really resonated with me. Step two for Joel is investing in respect.
Joel is the Board Chair of JetBlue Airlines, a graduate of Harvard B school and a guest instructor at the Stanford B School so he has some street cred…
As he describes it - Respect is, in some sense, the currency of trust – the way it’s exchanged and circulated among people.


That idea particularly resonates with me.
A number of years ago I created my own model of creating and sustaining employee engagement; I call it moving from compliance to Commitment, or little c to Big C.


My model has five elements: Respect, Responsibility, Information, Rewards, and Loyalty
 
Somewhat self servingly you can see why Joel’s pillars speak to me. Respect is the most foundational of the elements to me. Without respect all of the others fail.


Every person that we interact with has an absolute entitlement for our respect for their personhood. It doesn’t mean we have to accept at face value their talents, abilities, or authority; but we owe them respect for their personhood.
I often tell both employees and new managers that you need to respect each person and in hierarchical organizations you need to at least initially respect the position or office.
In this way this is similar to the first level of trust, deterrence, the trust that comes with formal authority.

The second level of trust or respect is knowledge based, this is the trust we receive (or more importantly earn) based on things like education, qualifications, perceived competency.
The third and in my opinion highest level of trust is identity based. This trust comes from intimacy, credibility, and mutual investment. This trust and respect is highly personal and can only be earned and given. It doesn’t come from credentials or position.
We don’t talk much about trust and respect in this kind of language. I have met many managers and leaders who inappropriately assume an entitlement to the highest level of trust based on the first two.


I differentiate leaders because again in my opinion an organization can appoint you a manager, but leadership comes from others who voluntarily accept your guidance and agree to follow your direction.
I also believe passionately in the concept of personal competence as it relates to respect. Personal competence means that we each own the responsibility to engage, to provide our best efforts, and to contribute fully to the best of our ability.
In return our employers and colleagues have a responsibility to set clear expectations, give constructive feedback, and a clear line of sight between our own objectives and goals and that of the organization.


With respect comes personal accountability and responsibility. If you are given the right tools, the right direction, and the right feedback it is incumbent upon you to do the work.
If someone can’t or won’t do the work and meet expectations I find it disrespectful to continue to leave them in a role they are not performing.
The reason I ask whether we will ever learn is that the majority of human resource professionals and their internal clients would tell you that the most important role they perform is compliance.


That sounds a lot like deterrence to me. It is about the rules. It is about systems and procedures and policies, not about relationships and character and credibility and trust.
As a former human resources executive I remain a proponent of the concept of employment at will, which at its most simplistic form is the legal standard that says that either party to the employment relationship can choose to end it without jumping through a number of hoops.
I temper that with a sense of fairness, that says it is important to me that we balance that transactional concept with the relational guidelines of respect, fairness, clear expectations, constructive feedback, and corrective action.


If you read almost anything about leadership or organizational relationships you are very likely to encounter discussion about loyalty. Employers especially like to talk about their expectation of loyalty from their employees. To me loyalty is relational and mutual, not transactional.
Rigidly embracing the concept of employment at will is not a relational employment model, it is purely transactional. Not a basis for engagement.


I am a much bigger fan of an employment relationship based on Congruency which looks for alignment between employees and organizations on these levels:
•    View of the activity
•    View of my ability to do the activity
•    The relationship between values and the activity
•    Commitment to do the “work”
•    Belief in the product or service
When you build things into your model you have a relationship, not a series of transactions.
I write this at this particular time because two very fine young people I know and care about both ended their relationship with their employers.


Those beginnings and endings happen, but both were handled so poorly that it was a reminder of how far we have to go.


So I leave you with this:
•    Listen to Joel- respect really is the currency of trust.
•    Goal for identity based trust. Yes it is more work, but 30+ years of experience assures me you will never have true engagement without it.
•    Commitment is always better than compliance, period.
•    Add congruency to your must haves when you hire, it is much easier to build it in than bolt it on.
•    Never ever forget that respect for a person’s identity is an absolute entitlement. You may have to terminate the performance; you don’t have to take their dignity.

Hope you enjoy the clip
https://www.youtube.com/watch?v=0LZ2R2zW2Yc

 

 

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