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Updating the Social Contract

Updating the Social Contract

Feed a person once, it elicits appreciation.

Feed him twice, it creates anticipation.

Feed him three times, it creates expectation.

Feed him four times, it becomes an entitlement.

Feed him five times, it produces dependency.

Robert D. Lupton Charity Detox

I read this book over the weekend. Although it primarily deals with the failure of our current “charity” models in the United States and around the world, I found application for it elsewhere.

Lupton talk about social entrepreneurs in the book, people who believe that while profitable enterprise is necessary, profit that elevates the community is much more valuable than profit that only benefits a few stakeholders.

I consider myself a social entrepreneur. I remember coming across the concept a few years back reading articles published by thinkers like Michael Porter, Nilofer Merchant and others.

I find Lupton writing especially poignant and current because of the situation in my hometown. We have a serious issue with codependency.

For decades, the economy was largely based on the extraction industries, timber and aggregates. A combination of technology, reduced demand, and environmental restrictions reduced that footprint significantly and in many ways the local economy has never really recovered from it.

During the Clinton Administration, the Rural Schools and Community Self Determination Act was passed providing what was intended to be temporary relief, kind of like spousal maintenance in a divorce, a subsidy while the economy transitioned to other industries.

 It was initially planned for six (6) years, but has been extended several times. We didn’t get the message and really haven’t done a good job of transitioning.

All though we have a great location, and a world class university, the biggest employers in our community are governmental agencies and not for profits. Not a good long-term model.

Lupton argues, and I agree, that only a strong for profit based economy fuels stable healthy communities. He argues for what he calls holistic community development. That model measures return on investment not only in financial return to shareholders. You ask questions like:

·         Is the community coming together?

·         Is healthy leadership emerging?

·         Is self-sufficiency increasing?

I don’t blame progressive political leadership for all of where we are, in fact corporate leaders introduced the concept of codependency many years back.

 Over two hundred years ago that some of our founding fathers were struggling with two related concepts as we tried to distinguish ourselves from the feudal system, a system that distinguished between a ruling or ownership class and serving class determined at birth, that we had left behind. One of those concepts we have held onto with a passion, declaring it to be one of the cornerstones of the American experiment- the concept of personal property ownership; the idea that through your own achievement you should have the ability to accumulate and own property without regard to your prior economic or social status. This is the cornerstone of the capitalist system. We hear this principle invoked every day, especially when we feel that the government is inserting itself where it doesn’t belong.

The other principle that we don’t hear nearly as much about is the right of personal competency. The rights to build your skills, express yourself, and sell your products and services as you saw fit. The interesting thing is that there was not only an implied right, but a responsibility.

The Industrial Revolution impacted this model in a couple of ways. We shifted from an agrarian society to industrial which created a new kind of feudalism, a new dynamic which moved from the fields to the factories, but kept its own version of master and serf; and we ran out of territory to open.

Prior to the legislation passed in the late thirties and early forties we created a kind of industrial serfdom- collective bargaining was formally or informally outlawed- we restricted the rights of personal competency.

It also seems in a way that over the next sixty years we gradually embraced a semi-feudal model. Large corporations in many ways replaced the feudal monarchs and nobility- we created a sort of corporate co-dependency, especially under the models of Theory X and Frederick W. Taylor and scientific management; which states simplistically that we should break things down to repetitive tasks that common people could perform over and over without much thought.

People couldn’t be trusted or expected to make good decisions. We needed to dumb things down. This was the advent of white collar- those who think, and blue collar- those who do.

They would do what they were told and in return the nobility or management would take care of them, and we did. We promised lifetime employment, we provided for their healthcare, and for their retirement. I’m not going to say we did it willingly; organized labor played a huge role in providing these things as well as industrial safety, limitations on work hours, and others. It does seem though in a way we lost the equality factor, we began to “take care of them”, and they began to expect it.

Management wasn’t willing to or couldn’t hold up their end of the bargain for the long term.

We saw parents and grandparents who had been promised “lifetime employment” lose their jobs. Capitalism or personal property remained, but often at the expense of the American worker as we outsourced, downsized, and off shored to protect profit margins. People became a “cost” rather than an investment, this was the birth of the concept of human capital, an expression I still despise.

That is why we continue to lose billions annually due to the costs of dis-engagement and the ancillary costs of unhappy, unfulfilled employees.

Upton says in his book that creating a codependent relationship with someone is the most disrespectful action you can take in a relationship. I couldn’t agree more.

He goes on to make two other statements that resonate with me-

·         You can’t serve people out of poverty, you create codependency instead.

·         Education alone will not solve poverty issues.

The problem with education alone is that often it creates social mobility, the best and brightest leave their communities rather than reinvest or return.

Upton describes a different model that he refers to as the Three R’s of Community Development-

·         Re-neighboring, under this model we create mixed income communities. Instead of outsiders providing charity or services you have neighbors/residents who are invested in upgrading the community because they live there!

·         Reconciliation, when we create economic and racial/ethnic diversity you create neighbors who are invested in the infrastructure and success of their community.

·         Redistribution, is based on exchange. The idea that everyone in the community has something to offer and bring to the table. He mentions that interestingly sharing resources is much more common in less affluent neighborhoods.

Some of this might sound like a pipe dream, but I agree with Lupton that there is no such thing as a non-profit on a sustainable basis. You may have entities that re-invest their surpluses in their mission, but organizations that can’t sustain themselves are destined to fail.

He recommends a model of economic missionaries, people who invest their expertise and vision not just write checks. He calls it results based charity.

In our community, we have a homeless issue, but many of our solutions are based on continuing a pattern of codependency and entitlement rather than building capacity. In fact, we have created an environment where new businesses don’t care to relocate here and existing businesses struggle because of a toxic environment.

I am not promoting purely trickle- down economics, but I am promoting more social entrepreneurialism. I would rather see us invest in vocational training and community development efforts that additional entitlement programs.

Everyone is capable of and should be respected enough to contribute to their community. Those who are unwilling need to move on, not be subsidized.

We aren’t going to build a stronger community with not for profits and government agencies as our economic engine.

I am an advocate for personal competency which I don’t think of see as someone taking care of someone else.

I hear a lot from people that the new Generations are much different than previous generations. They aren’t loyal. They want more freedom and definition of their work and involvement.

·         They expect to be treated with respect and want to respect their employer

·         They expect clear expectations

·         They define loyalty as a mutual investment

·         They focus on identity based trust rather than trust invested in certifications or titles

 I hear a trust based relationship between equals. Maybe these “new” generations are taking us back to the beginning. From compliance to commitment, a relationship based on respect, responsibility, information, rewards, and earned loyalty not the fealty of corporate codependency, where “obedience” is rewarded with job security and retirement benefits.

Our Founding Fathers believe that with the principles of personal property and personal competency were the values of the balance between individual rights and societal rights. I don’t have the right to pursue my goals to the obvious and callous detriment of others. Madison in the famous debates between Brutus and Publius talked about a central government to deal with issues of the great and aggregate.

Let’s build better models. Let’s build them with respect for individual capacity and capabilities as a foundation and develop more social entrepreneurs with a focus on building stronger communities.

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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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That Leadership Thing...

Another Wake Up Call

As everybody knows I am really invested in this whole leadership thing. I don’t personally believe that leaders are born rather than taught. Some may have attributes that lend themselves to becoming effective leaders, but I think that real leadership is taught, practiced, and reinforced.

It is interesting for all the money we spend annually how much we still miss the mark.

I read a blog post this week that indicated that a survey of new MBA graduates indicated they felt the most important attribute they had to offer their current or potential employer is their leadership capabilities. My immediate thought was WTF. Luckily it turned out I wasn’t deluded those same current and potential employers said umm no to these shiny new MBA’s. First you must learn to do, then maybe you can learn to lead.

 A classic leadership fail plastered all over the internet this week was the behavior (antics) of the Uber CEO. That was a great demonstration of what happens when you have poor leadership and don’t take time to create and reinforce the culture you desire. He wasn’t alone, looks like Jared’s, Kay Jewelers, and some others have some work to do as well.

I had a chance to read a couple of blog posts as well about one of my other pet rants- the ineffectiveness of HR in most organizations. Both were incredibly well written by women I respect. Maybe the fact that today is International Women’s Day is a cosmic intervention.

The first was why the author, Michelle Berg, “hates” HR. To cut to the chase it is because in her opinion in most organizations HR is the attempt to put a band aid on a hemorrhage, to create handbooks and policies to make up for what she poetically calls shitty leadership.

The other post from Laurie Ruettimann, talks about the messes at Uber, Tesla, Google, and others and asks where HR was in the organization. Especially given that people indicated they went to HR and discussed their concerns and got ignored. I love her quote “But if you work in HR and someone complains to you about a legitimate problem, it’s your job to be the Jordan Horowitz of your organization and fix what’s wrong”.

I agree with both of them. Culture and leadership belong to the C suite, not just HR, but I used to tell aspiring leaders and HR professionals that if they weren’t willing to come to work every day prepared to be fired for doing the right thing they should do something different.

Our leadership models are broken. In many cases our high talent selection processes use the wrong criteria for admission and as I pointed out in a previous blog the results show it with almost 50% of “graduates” of those programs being rated in the bottom 50% of leadership by a 360 review of their capabilities by peers, subordinates, and direct reports.

60% of candidates seeking leadership roles do so to increase earning potential, they don’t give a rat’s ass about developing people of bettering the organization. I think we have a congruence and alignment problem!

Although particularly today it might be an unpopular viewpoint I also grind my teeth when I see articles on some version of the feminine mystique that says that women are genetically better leaders than men. My experience has indicated that is as much bullshit as the genetically programed leader.

I really like this quote from Facebook COO Sheryl Sandberg-

“In the future, there will be no female leaders. There will be just leaders.”

What a great thought. Maybe we can even expand it to include no special comments about race, national origin, sexual orientation, and a bunch of other factors that aren’t relevant.

Don’t mistake me. I have had the privilege of working with some incredibly capable women leaders and aspiring leaders. I have also had that same opportunity to work with people of color and other cultures who made that same commitment to excel.

So I am going to bore you with my recipe for what I look for in potential leadership candidates-

·         The KSA’s or technical competence to do the work

·         Understanding and committing to mastering all three levels of trust

·         Emotional intelligence

·         Emotional balance

·         Self-Awareness

The trust issue is huge. We have an international trust crisis in leadership in all our major institutions and we need to own it and fix it.

The data is in and it is ugly with representatives of all four generations recording that 50% of them don’t trust leadership. Until we address that the shitty leadership phenomenon that Michelle Berg describes is here to stay and HR isn’t going to fix it.

A recent survey of HR and training professionals indicated the biggest barriers to effective training and development were budget and employees taking the time to participate.

Please. The biggest issues with training are relevance and reinforcement.

Training doesn’t fix trust issues or create alignment and engagement. It is a tactic.

So if you are a current or aspiring leader here is what I recommend you do-

·         Get 360 feedback on where you are in your journey.

·         Pick the most important behaviors to work on and change.

·         Ask your colleagues for feedback and suggestions on how to keep improving.

·         Listen and embrace the changes that provide the most impact.

·         Follow up, measure, and repeat.

Shitty leadership is epidemic, stand out from the crowd…….

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Got Trust?

First Things First

As I enter almost my fourth decade of hiring, managing, and deploying talent I like to look back at what I have learned; and perhaps more importantly what I haven’t.

I have long been an advocate for what we now call employee engagement, when I look at the data that is available about the difference between organizations that are highly engaged as opposed to their less engaged competitors I remain astounded about the opportunity we leave on the table every year not just in North America, but worldwide.

Although engagement is something that we have been hearing and talking about for the last 15 years we still aren’t moving the needle much in terms of concerting employees and organizations from neutral to engaged. The latest studies still show that around 30% of employees surveyed rate themselves as highly engaged.

So it makes me curious as to what the issue is, and why we haven’t made more progress of late I have encountered quite a bit of literature that validates my thinking and makes me frankly sad.

We have a trust crisis.

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

Every organization earns a trust dividend or pays a trust tax

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

It turns out that Covey’s assertion applies not just to individual organizations, but to whole societies.

The Edelman Trust Barometer which has surveyed tens of thousands of people in over 28 countries reported that for the first time in its 17- year history the average trust level in all four of the institutions measured (Government Officials, Business/CEO’s, NGO’s and Media) was below 50%.

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

So let’s take a look at business specifically.

A recent survey on trust by Ernst and Young involving 10,000 adults and another 3000 Gen Z’rs reported that less than 50% of those surveyed trusted their employer, their immediate supervisor, or their team in descending order.

The survey included representation from four (4) generations in the workforce; Boomers, Gen X, Millennials, and Gen Z and the results were remarkably consistent. Although the younger generations were less trusting it wasn’t a significant generational delta.

Also remarkably consistent were the environmental factors that lead to distrust-

·         Perceived unfair compensation

·         Unequal opportunities for pay and career advancement

·         Poor leadership

·         High turnover

·         Lack of collaboration

Similarly, all four generations cited four characteristics they seek in a boss and organization they trust-

·         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

Another recent post I read identified three (3) fundamental characteristics that create and sustain high trust environments. Leaders who-

·         Listen

·         Demonstrate self- awareness and self- control

·         Demonstrate humility

Let’s juxtapose that with the way most organizations identify high talent potential leaders in their organization. The selection criteria are typically –

•                     Professional and technical expertise

•                     Taking initiative and delivering results

•                     Honoring commitments

•                     Fitting into the culture

If we are really honest with ourselves we can agree that the first and last criteria are the two biggest factors. When we add the fact that 60% of leadership candidates seek those opportunities to increase their earning potential and upward career trajectory are we surprised by where we are?

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

Identity based trust, Covey’s highest and most critical level of trust, is nowhere to be seen in our leadership develop models or development initiatives.

As an alternative I like to recommend that business leaders remember three things-

•                     Maslow’s Hierarchy, is as relevant today as it ever was. When you are in safety and survival mode you aren’t focusing on the big picture and how to become engaged. You are focused on basic issues like food and shelter.

•                     Line of Sight, I tell my clients that line of sight may be the most important part of their compensation/performance management strategy. The critical function of compensation strategy and performance management is to align efforts with outcomes. Employees need to see clearly how positive outcomes for the organization translate to positive outcomes for them and vice versa.

•                     Be clear with management at every level it is their responsibility to earn and sustain trust and give them the tools to do that. They are entirely learnable and reinenforcable. People rarely trust what they don’t understand.

So I would like to leave you with two thoughts-

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

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

 

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The Trust Crisis

The Trust Tax

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

Every organization earns a trust dividend or pays a trust tax

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

•             Would I let them run the business without me?

•             Would I let my children work for them?

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

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

 Trust isn’t an entitlement!

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

How long can we pay this kind of tax?

 

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Let's Do This!

 

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

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

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

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

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

His three levels of trust are both simple and profound.

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

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

I suspect Simon Sinek would call it your Why.

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

Here is another interesting pattern.

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

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

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

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

·         My view of the activity

·         My belief in my ability

·         My willingness to do the work

·         My belief in the product/service/organization

·         The relationship to my values

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

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

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

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

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

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

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

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

Given that

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

·         They will soon make up the majority of the workforce

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

Why would we give up this kind of competitive advantage?

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We Are Doing It Wrong!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Let’s fix this….

 

 

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Time to Update Your Brand!

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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An Opportunity to Lead

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

So where do we go from here?

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

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

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

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

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

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

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

The problem is two- fold.

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

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

1.            DENIAL- Emotional intelligence doesn't exist.

2.            Emotional intelligence is just common sense.

3.            You can control your feelings.

4.            More emotional people are naturally more emotionally intelligent

5.            Sharpening your EQ is easy

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

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

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

 

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

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

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

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

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

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

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

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

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

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

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

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

Goleman calls this the crucial competence-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Donald Walter

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What Trumpet Do You Hear?

The Pillars of Effective Leadership

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

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

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

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

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

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

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

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

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

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

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

1.       DENIAL- Emotional intelligence doesn't exist.

2.       Emotional intelligence is just common sense.

3.       You can control your feelings.

4.       More emotional people are naturally more emotionally intelligent

5.       Sharpening your EQ is easy

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Goleman calls this the crucial competence-

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

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

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

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

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

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

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

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

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

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

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

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

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

Donald Walter

 

 

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A New Roadmap

The Road map

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

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

Work hard and be yourself.

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

Just do your thing.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sounds like identity based trust and legitimacy.

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

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

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

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

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

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

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My Personal Litmus Test

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

 

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Finding Your Purpose

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Finding Your Purpose

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

 

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In Search of Leadership

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In Search of Leadership

People that know me know that:

·         I am passionately committed to helping organizations create new models of working together.

·         That I have spent the last three plus decades reading the models of others as well as synthesizing and testing my own models to do things better.

Today I experienced an interesting juxtaposition of a couple of things that spoke to me.

The first is this quote from Aurelius Augustinus, who most of us know better as Augustine, the Bishop of Hippo and perhaps one of the most profound influences on the Catholic Church.

The concepts of employee engagement and employment branding are getting a certain amount of press these days with both supporters and detractors. I am firmly in the supporter camp based on both my research and my personal experience.

Much of the discussion around engagement is who owns it and how does the care and feeding of an engaged environment take place. I find that Augustine’s direction from 1700 years ago was pretty accurate then and now.

More recently I had occasion to read Ken Matejka’ s Why This Horse Won’t Drink, and I discovered an “updated” version of what Augustine was expressing-

Commitment is the act of being physically, psychologically, and emotionally impelled. It means that employees gladly give up other options.”

When I am conducting leadership sessions with senior executives I often pose the question to then “Can you imagine a time in your organization where employees arrive every day physically, psychologically, and emotionally impelled to fulfill the goals and objectives of the organization?”

Most of them are honest enough to admit that would be a stretch, but they then wistfully remark how that would be pretty awesome.

In my mind an engaged environment is when that occurs. It is about alignment, clarity, and trust; not about morale, happiness, or cool perks.

The problem is we are doing it wrong.

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

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

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

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

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

Dustin McKissen, founder and CEO of McKissen and Company, talks about this in his recent blog post in Inc Magazine, http://on.inc.com/29U7O4r, 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.

 While there are people who say that Taylor isn’t relevant anymore when I hear academicians and business leaders refer to people as human capital I am not sure I am buying it.

When I watched what happened during the recession where many organizations retreated into their old behavior and told employees, don’t complain about your compensation, you are lucky to be employed, and downsizing once again became the primary management strategy to improve productivity I still feel Fred’s presence.

It is amusing to hear those same executives now complaining that they can’t recruit and retain the talent they need to run their business- go figure…

When 60% of the applicant pool for leadership roles cite more money as why they want to be leaders I am pretty sure creating an environment where people are impelled is not top of mind.

So what do we do?

My recommendation is we build a new model with the following elements:

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

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

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

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

As I have written at length on these areas previously I will save you from my rambling today. If the subject interests you check out my website at www.newparadigmsllc.com.

We are leaving billions on the cutting room floor every year, by hanging on to the old models.

We need change and if not now when and if not us than whom?

 

 

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The Criticality of Feedback

The “Gift” of Constructive Criticism

A couple of recent articles reminded me of something that I both learned painfully and continue to struggle with after several decades in the workplace- “Constructive criticism aka feedback is a gift and should be recognized as such”.

No one really likes to get feedback that is not positive, at least initially, but a couple of articles recently talked about the connection between emotional intelligence and the ability to mine that feedback for value by keeping a few things in mind.

Diane Gottsman in her article How to Accept and Give Criticism with Grace, provides some great ground rules that while not earth shattering or rocket science can be very helpful.

·        Be aware of your body language

·        Be prepared mentally and emotionally

·        Remain calm and don’t respond with angry excuses

·        Rethink the word/concept of criticism. I personally try to avoid that language and use constructive feedback in its place.

·        Be appreciative- of the effort if not the content.

From my own experience I have learned a couple of other suggestions I would add:

·        Focus on the feedback not the person. It is easy to reject the right feedback from the wrong person.

·        Recognize that everyone is not equally skilled in their language or their technique. Listen for the message carefully. This is especially true when there is an unequal power relationship like subordinate to boss or provider to customer.

·        Try to adopt the standard of most positive interpretation, this means giving the person the benefit of positive intent even if their delivery is less than perfect.

Most people would rather get a sharp poke in the eye rather than give feedback whether it is to a colleague, a subordinate, and especially a superior, but constructive feedback is both critical to teamwork and improved performance it is a fundamental expectation of the Millennial generation. Their intraprenurial mindset looks at careers and opportunities to increase their skills and value. They expect timely, balanced, and meaningful feedback as a fundamental right.

Even with all the hoo hah about blowing up traditional performance evaluation the root cause there is that the process is typically done so poorly, not that recipients don’t want feedback. The typical annual review system is an epic fail. It isn’t timely, it isn’t balanced, and many find it marginally meaningful.

As a recovering HR executive I find that many performance evaluation systems are designed by HR professionals to impress other HR professionals and to deliver limited pay increases. They aren’t user friendly to the actual manager and recipient.

Gottsman also mentions some guidelines for giving feedback to make it more meaningful and useful.

·        Be private. No one wants a critique in public

·        Focus on issues or behaviors not on people. People own their behavior they aren’t their behavior.

·        Be specific, especially about the impact on the work, work group, etc.

·        Provide suggestions.

·        Be available and follow up. It is a process not an event.

In my perspective if you can’t tie your feedback to the work and work performance and provide a suggestion as to how to improve it isn’t feedback. It is just petty criticism.

Justin Bariso in his article How Emotionally Intelligent People Handle Criticism, adds some additional great suggestions, ask yourself these two questions:

·        Putting my personal feelings aside, what can I learn from this alternate perspective?

·        Instead of focusing on the delivery, how can I use this feedback to help me or my team improve?

He uses the illustration of a scathing review a top chef received from a New York Times food critic as a great example of how to own the issue and use it as a vehicle to improve future performance.

I firmly believe that the ability to constructively provide and receive feedback is essential to building trust and trust is the foundation for high functioning relationships both personal and professional.

You will never make the transition from manager to leader if you don’t master this skill.

Covey’s third and highest level of trust, identity based trust, simply can’t be achieved without honest dialogue and mutual investment.

Employee engagement worldwide still remains at what I believe to be unacceptably low levels and it is things like trust, congruency, and alignment that are going to address the causes of low engagement and get us the performance we want, not technology, six sigma or other process interventions and feedback is an essential building block….

 

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Wrong Solution

Sigh, I Don’t Think He Got This One Right
I just read where the President has signed a bill proposing that all companies with more than 100 employees will be required as part of their equal employment opportunity filing to report compensation by gender, ethnicity, and other factors.
My concern is that while this may lead to “transparency” it will not necessarily lead to pay equity.
I am old enough to remember when affirmative action planning actually had teeth to it. The idea was to identify inequities in employment and address them. Not surprisingly white men tended to have much higher representation in the higher level ranks than women or people of color. I will take heat for saying this, but some of it was deliberate some of it was a function of unintended consequences of less than optimal practices.
Promotion to higher level positions in part is a function of experience and training and hiring and selection. Most of us have heard of the “halo effect”, this is our tendency to hire and promote people we are comfortable with, i.e. people like us. Although we have been aware of it for over fifty years I still see it happen frequently. Most organizations quite bluntly do a generally poor job of hiring across the board.
What we found with EEO reporting that in many cases women and minorities weren’t “qualified” for senior roles because they didn’t have the experience necessary to move up. That is where the Affirmative Action part comes in. Every level has “feeder” groups from which the next generation candidates come from. The idea is by changing the composition of the feeder group you can change the candidate pool. Although this playing the long game several organizations I worked with embraced it recognizing that the demographics of the workforce was changing and it was not just a legal requirement it is good business. These days we refer to it as encouraging diversity. While we are certainly in no position to declare victory I think that organizations who sincerely embrace this process see much better representation of the workforce.
I also call it good business. Succession planning at every level is a fundamental component of good business planning. Scrambling to find talent when someone dies, retires or quits is a sucker bet. High performing organizations don’t operate that way.
So now let’s talk about how this applies to pay.
Properly executed good compensation planning takes into account the qualifications, experience, and performance of employees including the context of market conditions. Compensation planning is art as much as science.
Looking at job titles and compensation by themselves without consideration for factors like experience, qualifications, training and performance leaves out some critical data.
While I recognize that some people might be surprised by this I consider myself almost a feminist and a huge advocate of equal opportunity. When experience, qualifications, and performance are equal there should be no disparity in compensation.
As I said before however, compensation is not an exact science. I have shared the lament of many an executive who paid a premium for an outside superstar based on market conditions and performance somewhere else who feels disappointed with what they got. Just look at the musical chairs being played at the C level in organizations every day.
I a perfect world we pay for performance and I am going to go out on a limb and say that government at every level rarely provides a great example of that concept.
Mandating equity rarely works.
I am probably one of the few people I know who doesn’t think Obamacare is an abject failure. It is flawed as I pointed out in my eBook Plan B- An Alternative to Obamacare, (I will even be smug and point out I published it before it became law.
Access to care is appropriate and necessary for the long term. The problem is that the model is strictly compliance based and doesn’t address some of the underlying issues like the lack of personal responsibility and education to encourage individuals to participate in managing their own health. It also doesn’t provide navigation through a very complex health care delivery system that is byzantine to the average person.
Compensation inequity purely based on gender, national origin, or other factors unrelated to performance and market isn’t just wrong it’s dumb!
Less than 30% of the American workforce consider themselves to be engaged or highly engaged at work. As many as 17% are actively disengaged.
We don’t just have a pay equity issue, our whole approach to managing people is screwed up.
There are ways to fix it. Comprehensive and systemic approaches that look at whole people and integrated solutions, not patches.
So Mr. President while I applaud and support your intent this one isn’t a solution I can get behind…
As always I would be very interested in hearing opposing viewpoints…

 

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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!

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When Technology Becomes A Barrier!

We love our technology. I will freely admit that my dependence on things like my smartphone, email, etc. only increase on a daily basis. They make capturing and disseminating information so much faster and more efficient. They inform, entertain and frankly sometimes just annoy me.

When does technology go wrong, when it gets in the way of having a meaningful interaction with people!

I am an HR dinosaur. Who am I bullshitting I am beyond that, when I started in the profession they called it Personnel. For those of you that don’t remember that meant we treated people even more impersonally than now when we call them human capital.

Then we evolved to employee relations, which was HR speak for union avoidance. In the eighties we began hearing about human resources, but I am not sure the attitude significantly changed; Frederick W Taylor’s theories about scientific management were alive and well.

 In fact the accountants got in the act in the eighties when it was discovered that activities like outsourcing and right sizing were discovered to be good for the corporate bottom line once you got past walking back all the promises about employment security and the concept of human capital was born.

In the nineties a few companies caught on that really good talent isn’t human capital and that identifying, attracting, and retaining top performers was really good for business. We just struggled and continue to struggle with how to identify these people and get them in the door and so applicant tracking systems came into being.

Applicant tracking systems are not without value, especially as there has evolved more and more regulation about how we hire, reward, and promote. There have been some downsides however:

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

 

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

 

Social media has added some interesting complexities to the employment relationship as well. Not the least of which is who is accountable for and controls your employment brand? I won’t go on one of my usual lengthy explanations about what your employment brand is and how you manage it, but I will make some key points:

·         Every organization has an employment brand. It is how employee/customers perceive you as a place to work and form a relationship with you.

 

·         Really smart employers are deliberate about their employment brand and manage it proactively. It is why some employers have lines out the door at job fairs or get swamped by applicants and your recruiters are treated like they have an infectious disease and your ads don’t yield qualified applicants. They have a great employment brand and yours sucks!

 

·         You can Facebook, Twitter, Instagram, and blog your ass off and if you have a lousy employment brand it doesn’t matter, applicants will find out and avoid you. If you have never heard of Glassdoor or similar sites replace your HR department, now.

 

·         Your employment brand doesn’t live in HR or Marketing it is owned and distributed by your employees and customers. Can you manage it yes, but you have to do the work. Great share from David Zinger today on Linked In https://www.linkedin.com/pulse/employee-engagement-david-zinger?trk=hp-feed-article-title-share.  His point is you have to do the work not pretend to do the work.

 

Technology has also aided and supported the hopelessly outdated idea that our leadership are ok, they aren’t they still suck.

I read posts everyday about how to manage Millennials, how women are genetically better leaders than men and lately how men have conquered the market on incompetent leaders who have been promoted. I personally think they are mostly bullshit.

Our current leadership models are largely based on entitlement emerging from either deterrence (I have power and authority) or competency (knowledge based, I am certified, bona -fied, or whatever). Every profession is running about garnering certifications of what type or another.

Real leadership requires we evolve to identity based trust (shared experiences and shared ideas) and there is no certification or technology which creates that. You have to do the work

In HR what has become increasingly alarming is that the profession seems increasingly invested in compliance rather than engagement and scrambling to increase their credibility through certification programs that validate competency rather than identity.

I want to go all the way back to my original point and that is technology is not a bad thing. What is a bad thing is in our culture technology has usually been used or perceived to be used against people rather than with them. I don’t think I have ever been involved with a major technology initiative where the CFO didn’t lean over and ask “what efficiencies will we garner” which is code for how many positions can we reduce.

Technology offers us great opportunities to gather, analyze, and disseminate information to support our broader intentions and goals.  Let’s just take a page from Rosabeth Moss Kantor’s observation about change,   “Change is an opportunity when done with me, and a threat when done to me”, and look at how technology can facilitate trust….

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Why I Manage Whole People!

A recent conversation with one of my associates reminded me again why I encourage leaders to hire and manage whole people and how far we have to go.

She had just finished a fairly massive training roll out for a client that wasn’t experience the engagement and productivity they were hoping for after rolling out self -directed teams a while back. As she shared the comments from her various cohorts some personal truths came back to me.

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