Let's Do This!

What Really Matters

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

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

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

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

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

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

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

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

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

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

So why aren’t we moving the needle?

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

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

Can I get an amen!

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

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

·         Technical competence

·         Understanding trust and congruency

·         Emotional and social intelligence

·         Emotional awareness

·         Emotional balance

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

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

Trust occurs on three levels:

·         Deterrence (Power or authority)

·         Knowledge Based (Education and “qualifications”)

·         Identity (shared experiences and mutual investment)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

In short you are hiring and managing whole people.

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

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

In Search of ....Loyalty

The Illusive Nature of Loyalty

As anyone who has ever read anything I have written or had to sit through one of my trainings or presentations knows I am an advocate of employee engagement or commitment over compliance.

The concept of loyalty is one of my personal pillars of an engaged relationship, but I think I might just define it differently from the traditional sense.

Under the old compliance model; the relationship between employer and employed had elements of what many would call loyalty.

We used to see employees work for a single employer for years, perhaps even decades. The idea was that if an employee did a good job they could expect a degree of job security that would take them through retirement.

Maybe it is just me, but that good seemed to include a healthy dose of obedience. It was also amusing or perhaps more ironic that most employers who did not have unionized workforces saw employment at will as almost a sacred principle. When I say ironic it is because while employers valued this construct they struggled with the idea that the concept of employment at will is entirely based on equal balance.

Yes, the employer can terminate any employee for any legal reason without notice or reason, but the employee retains the right to terminate the relationship without notice or punishment as well.

Over my multiple decades as an HR practitioner I spent countless hours explaining and arguing with employers that they couldn’t preserve their at will rights and then punish employees who correctly interpreted the concept and acted on it.

As we globalized the concept of mutual loyalty got significantly diluted. In the sixties, seventies, and eighties you saw right-sizing, outsourcing, and a number of other approaches to reduce costs by decreasing the workforce. I personally believe this is when the concept of human capital really took root. We de-personalized people and started looking at them as an item on the balance sheet.

The Millennial and Gen X generations grew up during this period. That is part why they view the employment relationship with such cynicism.

I grew up essentially in the Southwest, so I saw a different construct of loyalty. The Southwest is the birthplace of the cowboy. Being a cowboy was just a job, it was a philosophy. It was not uncommon for cowboys to travel from ranch to ranch offering their services as required.

We have an expression called riding for the brand. Very loosely interpreted it meant that while I lived in your bunkhouse, ate your food and rode your horses you had my loyalty and could reasonably expect me to give you my best efforts. It was a temporary and transitional relationship that had a degree of independence for both parties. There was mutual trust and respect on the part of both parties.

I smile when I hear employers lament the loss of loyalty. These are often the same organizations that during the recent recession adjusted wages, reduced workforces and told remaining employees they should expect or request salary increases, but rather should be grateful to be employed.

And then the economy began improving….

The most current discussion of loyalty is with our current President. It seems he expects, or rather demands personal loyalty above all else. We heard that when his tumultuous relationship with Director Comey was disclosed and even more recently with his chief of staff.

It seems Mr. Trump doesn’t define loyalty in the traditional sense, but rather more in the old definition of absolute personal fealty.

It is also interesting to me that he is as transactional in his own personal loyalty as the CEO’s I hear complain about disloyal employees.

I have personally chosen to define loyalty more in line with my cowboy roots…

First, loyalty is based on the mutual trust explained by Stephen MR Covey in his book, The Speed of Trust, at that illusive third level; identity based trust based on shared values and experiences. That is the kind of trust that you hear described by members of a military unit that has served together or even an athletic team. It is earned and it is reciprocated.

Second, that reciprocity is foundational. Both parties see inherent value. We don’t measure loyalty in terms of tenure, we measure it in terms of contribution.

Just because someone has been with my organization for a long time doesn’t mean they are loyal. Recent studies indicated that close to twenty percent of the U.S. workforce is actively disengaged, that means they come to work every day and do as little as possible and in fact actively disrupt or sabotage the workplace. The scary thing is these employees or no more likely to leave than employees who are neutral. They quit and stay.

Third, loyalty can be transitional. You never arrive. Like engagement it is something you actively work at every day and you never take it for granted.

So, I would suggest that before we require or expect loyalty we do the work of earning our stakeholders trust and respect and that we cultivate and nurture it.

I think that Mr. Trump like many CEOs I have known is living in a fantasy world. You don’t demand loyalty or respect you earn them and part of that process is that it is reciprocal and based on shared values.

We also gave up the monarchy in the 18th century, loyalty should be to the values and principle embodied in the Constitution not to a person, but rather to the office.

Maybe I am too literal, but it works for me…

We Can Do Better!

Hiring, Employee Engagement, and Other Epic Failures

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

I propose a new role for HR-

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

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

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

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

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

 • Project Management Skills- Similar to the Total Quality Management movement I believe human   resource competency in core areas needs to be deployed broadly and deeply rather than be seen as a departmental competency. It is fundamental to the management/leadership role, not just human resources departments!

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

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

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

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

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

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

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

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

How do you do that?

• Hire the right people

• Incorporate the elements of commitment rather than compliance.

• Be flexible about process and ruthless about principle.

• Build on a foundation of trust.

• Remember it is all about relationships.

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

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

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…….

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.

We Need A New Model!

Doing It Wrong

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

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

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

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

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

·         Professional and technical expertise

·         Taking initiative and delivering results

·         Honoring commitments

·         Fitting into the culture

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

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

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

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

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

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

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

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

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

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

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

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

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

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

·         Emotional Balance

·         Self-Awareness

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

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

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

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

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

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

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

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

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

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

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

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

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

Feedback Requested

Is It Just Me?

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

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

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

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

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

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

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

·         A Recent survey from Clutch reported-

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

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

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

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

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

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

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

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

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

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

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?

What Did We Learn?

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

I am however a pretty big fan of reflection.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Work hard and be yourself.

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

Just do your thing.

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

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

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

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

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

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

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

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

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

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

See you next year.

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….

History- Study or Repeat?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Jefferson described two camps relative to their view of people-

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

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

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

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 [MH1]

Trust, Leadership, and the Election

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

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