Does Your Staff Have Your Back?

This goes a little extreme . . . but there are some good takeaways from this article on getting employee buy-in.

Does Your Staff Have Your Back?
Tara Weiss, from Forbes.com

In a time when employers complain about high staff turnover, here is the story of extreme devotion to the boss: Tamera Luzzatto, Sen. Hillary Clinton's chief of staff for more than seven years, recently learned she had a brain tumor and needed surgery. Luzzatto scheduled the operation for Wednesday, the day after the last presidential primary, so her absence would be less disruptive than if she did it during campaign season.

Talk about employee loyalty.

A call and e-mail for comment went unanswered by the senator's office. Politico.com reports that Luzzatto's surgery was successful.

Luzzatto's story shows Clinton knows how to inspire dedication among her staffers. Employers should take a cue from her playbook--in coming years, staff loyalty will be more important than ever. While job growth is currently slow, it will likely expand in coming years as baby boomers retire. Their retirement will create significant gaps in the workforce because they are more numerous than younger generations. If an employee isn't happy, switching companies won't be hard.

The first step for employers is making employees feel like their individual role is directly connected to the company's goals. Employees want to feel like they have a sense of purpose.

At the household products manufacturer Procter & Gamble, customer researchers live with consumers for several days to see exactly how their daily life works. They return to P&G with videos and a chronological map of what the consumers did throughout the day. The purpose: to show P&G employees what consumers need to make their lives easier and how their existing products are already doing that.

"It's bringing the customer experience into the organization," says Mark Royal, a senior consultant at Hay Group Insight, a global management consultancy firm.

Not every company can send employees to live with clients. Another way to achieve that goal is to create a personal impact map that illustrates how employees' roles directly influence the organization's bottom line.

Royal illustrates this with the greeter role at a retail store. Customer service is an important part of sales growth and contributing factors include customer wait time, employee accessibility and customer acknowledgment. If the customer can't find anyone to answer a question, chances are he'll leave the store without making a purchase.

But if a salesperson greets the customer when he gets within about five feet of him, the likelihood that he'll purchase something increases. "Mapping out that relationship shows employees that greeting customers isn't just something a manager randomly makes them do," says Royal. "Instead, it's something important to do and it connects with the broader goals of the organization."

From there, bosses should show their staff they care about them as individuals. Take into account their personalities and interests and use those things to figure out how to properly manage them. "Bosses shouldn't engage in the one-size-fits-all type of management," says Karyl Innis, founder and owner of the Innis Co., a career management firm based in Dallas .

When Allison Durant went into labor with her first child, she refused to put aside the project she was working on. Durant, a corporate recruiter with Intercontinental Hotels Group in Atlanta, found an ideal candidate for a corporate communications position and didn't want to lose her to a competitor; she knew the candidate was interviewing with other companies.

So when her husband tried to take her to the hospital, she begged him to bring her briefcase along. He was skeptical but ultimately brought it. After the baby arrived on a Saturday morning, Durant convinced her husband to hand-deliver the details of the offer letter to a colleague to finish up the deal.

Some people might wonder why Durant was so concerned with work during the birth of her first child. Her reply: She wants to do right by the company that has been so good to her. "Work-life balance is taken seriously here," says Durant, who has been with Intercontinental Hotel Groups for more than 10 years. "Management treats employees like people instead of numbers."

Another factor: Foster communication from the highest levels of the organization to all employees, says Alexandra Levit, author of Success for Hire: Simple Strategies to Find and Keep Outstanding Employees, which will be out in August. That's exactly what John Bliss, CEO of Bliss PR in Manhattan, does. Even though his company is privately held, the firm's financials are open to all employees. He discusses the finances publicly at an annual company meeting--the only thing not public are employees' salaries.

"It gives the staff members a better idea of how they have helped the company," says Bliss. "If the financials of the company are not a mystery, they'll have more trust."

He also uses a merit-based reward system instead of basing salary and bonuses on longevity with the firm. "Giving them a stake in the game breeds loyalty," he says. Additionally, employees who don't perform well are fired. "If you don't [fire them], the people who do perform will develop a sense of resentment."

The same goes for clients. If a client mistreats an employee, Bliss doesn't hesitate to give him the boot, which he has done twice.

The final element is offering employees training and opportunities for growth. Some firms offer rotations that enable people to try different departments and positions for several months. And when jobs open, current employees should be given the first opportunity to apply for them.

After implementing all of this, don't expect anyone to rearrange his emergency surgery, but you'll likely get better work out of your staff

Joke of the weekend X

Since went whale watching, my oldest came up with a joke.
Why did the whale cross the road?
To get to the other tide!

okay, I told him I would post it . . . here it go . . .

For thirty years, Johnson had arrived at work at 9A.M. on the dot. He had never missed a day and was never late.

Consequently, when on one particular day 9 A.M. passed without Johnson’s arrival, it caused a sensation. All work ceased, and the boss himself, looking at his watch and muttering, came out into the corridor.

Finally, precisely at ten, Johnson showed up, clothes dusty and torn, his face scratched and bruised, his glasses bent. He limped painfully to the time clock, punched in, and said, aware that all eyes were upon him, “I tripped and rolled down two flights of stairs in the subway. Nearly killed myself.”

And the boss said, “And to roll down two flights of stairs took you a whole hour?”

Standing up for what is Right

Over my career, I have had to stand up to "pressure" from above to make a particular decision that senior management wanted . . . yes, I did not play politics. It would have been easy, just do what you are asked and then senior management will like you. Well, I guess I chose the path of least resistance. In some cases, you can disagree but senior management still ends up making the decision for you.

One example that I had was that someone made a mistake, and I was told to fire that person immediately. Of oourse, not all the facts were out yet, but still I was told fire that person . . . (by the way, mistakes will be made by everyone especially if you are a growth unit because innovation means sometimes making mistakes, remember Thomas Edison inventing the light bulb, he did not get it on the first attempt). I stood up for the person in a heated argument, going so far that I was "on the plank" as well. However, you should always go by what is right, no matter what the consequences, how do you look at anyone else in the eye if you just follow what senior management wants? Where is the respect you earn? It is easy to earn respect for making decisions that are popular and what everyone agrees. It is real respect when as a leader you do what you feel and think is the right thing to do even when faced with being in the minority.

Leadership is not a popularity contest, but instead focused on what is right for the business in the long run.

As a leader, Sometimes you have to put yourself on the line when the right decision is in the minority.

When Results go Bad!

When Results go Bad!

It is interesting to watch different leaders and their reactions when the financial results don’t go as they had planned. Those with financial backgrounds usually have a knee jerk reaction and start a severe cost management process. The old adage that you can manage cost but not manage revenue is key to their leadership talent (i.e., you have control over expenses and not revenue).

In some cases, this might be appropriate because there is a fundamental change to the revenue stream and the expenses need to be in line with the projected revenue. However, many times, the “baby gets thrown out with the bath water” because these cost management controls are also applied to areas of the business that has more revenue opportunity (it’s a growing business). To obtain those revenue opportunities, this business needs to be fueled with investments, either people or other resources. Consequently, the leader(s) are causing their own demise because they are not fueling future revenue growth where opportunity exists. Instead, all business units are treated the same way . . . Watch Expenses!

With a public firm, the focus seems to be on the monthly results, or more importantly the quarterly results . . . this short term focus is frustrating to many because it does not always align with doing what is best for the long term interest of the firm nor what is best interest of the clients.

It is those leaders that can balance those short term needs with a longer term vision that are most successful. Short term cost management is not a long term vision (you will never be successful in just managing expenses). Therefore, as a leader with no thoughts on future vision, you are left with all of you know, which is try to manage costs in a time period where results are not what you planned. Consequently, only one thing will happen, that leader will no longer be in their position as it is a question of just when? However, in the meantime, shareholder value is destroyed and opportunities are lost.

Be a Leader with a long term vision!

Passion or Perfection

A colleague that I have worked with for almost 15 years sent me an article that I thought was worth posting. I believe we both believe that being passionate about the impact of our work is much important that what we are actually doing . . . are you passionate about what you are doing? or trying to do what you are doing perfectly?

Forget Perfect: Is the Quest for Perfection Ruining Your Business?
by Lisa Earle McLeod
http://www.huffingtonpost.com/lisa-earle-mcleod/forget-perfect-is-the-que_b_109023.html

As a CEO, manager or business owner it's tempting to think that it's your job to make things run perfectly. After all, isn't setting standards of excellence one of the hallmarks of success?

Well, sort of.

The traditional thinking goes like this: A leader's job is to set high expectations, hold their team accountable and make sure they have the tools they need to get the job done. It's a pretty simple formula, and after 20 years as a business consultant I can promise you that it works.

But after being inside hundreds of organizations, I've noticed something more. There's a subtle yet distinct emotional difference between good organizations and great ones. And it goes much deeper than clearly-written performance expectations or perfect project management.

In good organizations people know WHAT to do; in great organizations they're excited about WHY.

You can lock your management team in a hotel for an entire weekend plowing through flow charts, spreadsheets and data. But, until people understand the direct impact that their job has on other real live human beings, you'll never get anything more than "meets expectations."

Here's why:

The WHAT of management is about aligning people against measurable business outcomes. And much like a home where mom monitors the kids' chore chart on the fridge, if it's done consistently, you'll get pretty good results.

Sure, it's better than working for a psycho jerk. But at the end of the day, how many times can you make the toilet sparkle or turn out a zero-defect product before you start to feel like you're just going through the motions?

However, great leaders -- the kind people are willing to follow to the ends of the earth -- go beyond the WHAT and help people understand the WHY. They tap into the deep desire that we all have to be part of something bigger than ourselves.

Make no mistake, excellent leaders expect the best and they put systems in place to ensure that they get it. But flawless execution is the means; it's not the end.

Rather than simply telling their team what perfect performance should look like, they go further, and they paint a picture of how their work impacts others.

It's about igniting the feelings behind the facts and it's a concept that applies to any business, no matter the size or structure.

For example, my husband owns a mid-size manufacturing company that makes signs -- neon signs, pole signs, movie theater signs, stadium signs, car dealer signs and the channel letters you see in strip malls.

Two key measurements in the sign business are zero defects and quick turnaround time. After months of improving the company's systems and streamlining its operation, they were finally beating industry averages. Yet it was a struggle to maintain. It was like mom with the chore chart all over again; if he didn't constantly remind and reinforce, the performance dipped.

But then we heard the story about the spa ladies and it changed everything.

It was a Christmas gathering of businesswomen and two ladies stood up to announce that their long-anticipated dream of owning a day spa was finally coming true. Choking back tears they described their big moment. "We stood there as the crane lifted our sign into place, and we just looked at each other and cried. After five years, we had actually done it!" Their dream had become a reality, and nothing symbolized it more than their sign.

Well, you can probably guess what happened next. My husband no longer runs a "sign company"; he runs an organization that "helps make people's dreams come true."

Yes, it seemed hokey at first, and telling the blue-collar, ball-cap-wearing, snuff-carrying sign guys that they were a dream factory was a bit intimidating. But when a production crew gets misty-eyed as their boss describes the Rita's Frozen Custard installation -- complete with her cheering family on the lawn -- you know you've tapped into something much bigger than meeting your quota.

Performance expectations and production measurements may be the WHAT; but the personal impact your work has on others is the WHY and true leadership is about connecting the WHAT with the WHY.

Increased sales, improved turn-around times and lower costs are perfectly lovely performance measurements. But they become positively inspiring when you know what a difference they make in other people's lives.

Every business has its touch points. Trust me, if we found them in the sign business they exist in yours; and it's the job of the leader to call them out.

It doesn't matter what you're trying to accomplish, be it billions of dollars in profits or simply a clean house, trying to make people adhere to your version of perfection never works over the long haul. They may go along -- especially if you're the one signing their paycheck or doling out their allowance -- but, unless they possess some unique internal drive, they're not going to do much beyond checking off the tasks you've assigned.

But if you can serve up performance expectations in the context of how they positively impact others, you'll be amazed at how hard people are willing to work.

Real leadership isn't about trying to make people do things perfectly. It's about helping your team have personal impact on others.

So forget perfect, make it personal, and watch your people

Are you an Innovator?

Innovation is key to the success of an organization. Here is an article by the Clayton Christensen, the writer of the Innovator's Dilemna. The summary takeaway for me on the article is that allocating resources (time) is important, things just dont happen just because you would like to innovate, you must place dedicated resources on innovating.


Are You An Innovator?
Clayton Christensen

Innovation has once again become a hot topic in the executive suite. That's because of a growing recognition that operational effectiveness alone can't deliver the results today's shareholders demand. A 2005 survey by the Boston Consulting Group, for example, found that 90% of executives believed that their company's growth and success requires true innovation.

Unfortunately, my research suggests that is easier said than done.

The problem isn't bad management, as I explained in The Innovator's Dilemma. In fact, many companies get into trouble precisely because they follow the principles of good management. They listen to their best customers, innovate to meet those customers' needs, charge higher prices, report record profits and miss a transformational change innocently incubating at the fringes of their respective markets.

My subsequent research, summarized in The Innovator's Solution and Seeing What's Next, and field work with my consulting company, Innosight, has convinced me that companies can address key elements of this dilemma.

The first step to recovery is almost always admitting that there might be a problem. Therefore, I suggest that any executive who is seeking to assess their company's innovation capabilities ask the following three questions:

1. Do I have a balanced portfolio with different types of growth strategies?

Most investors know the value of balancing their financial portfolios across different classes of assets, like stocks and bonds. But it is amazing how many companies forget this principle when building their "innovation portfolios."

When many companies actually sift through such portfolios, they discover that the overwhelming majority of their efforts focus on what we call "sustaining" improvements. These are better products that a company hopes to sell for higher prices to current customers. Think about Procter & Gamble (nyse: PG - news - people ) creating a version of its Tide laundry detergent with a new scent.

If existing products or services are not yet good enough, sustaining approaches typically promise attractive returns. Sustaining strategies are the bread and butter of most established firms. A balanced portfolio, however, augments those strategies with different approaches to branch away from the core business.

My research suggests the best way to succeed in these new markets is to take a "disruptive" approach. Proctor and Gamble, for example, has created the "clean small spills" market with its Swiffer brand, and the home-based teeth whitening market with WhiteStrips. Generally, disruptive innovations are simple, convenient, affordable solutions that make it easy for individuals to "do it themselves."

Remember, the goal is to create a portfolio that balances core-sustaining investments with those intended to create new growth businesses.

2. Have I allocated resources to achieve a balanced innovation portfolio?

Just saying you have a balanced portfolio isn't sufficient. You need to allocate resources appropriately to create different types of innovation. Executives often think it's strategy that determines how they should allocate resources. But it's the other way around: It's how a company allocates resources that should determine strategy.

To innovate, a company must master the resource allocation process. Doing that requires investment in multiple strategies. Companies that simply pour all their resources into a single pot often find that they are investing in the status quo. While close-to-the-core, sustaining initiatives are less risky, they also provide lower returns. What's worse, such initiatives may actually crowd out the development of truly innovative products and services that could provide greater returns in the long run.

There's good news for cost-conscious companies just starting their innovation journey. Early on, the biggest investment that companies need to make is time, not dollars. Don't spend too much on a new venture too soon, otherwise you risk locking into a failed strategy before you really know the right approach. The best advice is to "invest a little to learn a lot."

3. Do I have a distinct screening and shaping process for different types of opportunities?

Processes, by their very nature, are designed to be inflexible. A process that is good at doing one thing is almost always bad at doing something else. Many companies have adopted stage-gate processes that impose rigorous discipline on their innovation efforts. New proposals must meet certain financial metrics--such as net present value or return on investment--before they're given the green light. This effectively streamlines the development and commercialization of sustaining innovations.

Financial metrics are ill-suited, however, for disruptive projects that charter unknown territory. Instead, companies should develop a checklist of qualitative measures to which a new product should conform.

Start by looking at previous innovation efforts and assess what worked and what failed. Successful disruptive solutions, for example, might be simpler, do-it-at-home versions of a previously complex product. Often they have low overhead costs and high asset utilization, which allows companies to offer low prices or serve small markets. And in many cases, the pattern you identify can point the way to high-potential opportunities more reliably than financial metrics.

By asking these three questions above, executives can begin to get a sense as to whether or not their organizations are properly positioned for growth. Taking action against identified weaknesses can help companies create capabilities that make the pursuit of growth more predicable and repeatable.

Vacation

I am on vacation this week. We are spending time in Boston, MA (USA) and on the Maine coast (Acadia National Park).

Some will ask I am still blogging while on vacation . . . well, it is a habit/hobby of mine. I get to put some thoughts that are on my mind and place them down on "paper" (then I dont have to think about them for awhile).

Which brings to the point of leadership and vacation. (this will actually be like the pot calling the kettle black, because in the past I was not a good example). I want to talk about balance. It is important that the leader have a good balance between work and life. One way to do that is make sure you take time away from work by taking a non-work vacation. Everyone needs a break, especially to recharge the batteries. You cannot continue to go 24/7 otherwise you will be burnt out and then you are no good to anyone.

So, leaders, take a well-deserved vacation and really take time away. One other element is that others will look at the leaders and see "well, if they work during vacation, guess that means we have to as well". This is not setting a good example.

Have a break today (or whenever you go on vacation). Happy Holidays!