A Better Model

Would You Stand Under the Arch?

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

Michael Armstrong

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

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

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

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

Leadership is entirely relational versus hierarchical.

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

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

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

 As a manager you have the authority of your position and the benefit of what Covey calls deterrence, authority that comes from rules or position. We would like to believe that management also incorporates Covey’s second level competence, but I am not sure that is true.

At least not competence at the right things.

 In many cases the competence we rely on in elevating someone to a management role is based on application of their technical skills, their competence in emotional and social intelligence are still considered “soft skills”.

In my over 30 years as a human resources professional, C level executive, and management consultant it has been interesting to see emerging and current “leaders” bridle at the idea that they have to earn trust.

For many it is an expectation that trust is embedded in their role.

It is very chic today to dismiss collective bargaining and unions as passé, but any student of the relationship between employer and employed realizes that up until the 1940’s the concept that employers needed legitimacy through the input of their employees was considered ludicrous.

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

Many of our current models still have their roots in scientific management-managers manage and people do. If you see people as human capital, what is the likelihood that you are seeking the endorsement of those you “lead”?

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

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

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

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

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

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

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

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

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

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

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

Gladwell talks about legitimacy.

According to Gladwell legitimacy occurs when three elements are present-

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

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

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

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

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

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

You have to do both.

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

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

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

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

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

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

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

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

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

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

My particular model is based on five elements-

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

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

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

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

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

These elements are anchored on a foundation of trust. I would go so far as to say you have to have trust at all three levels to experience true engagement.

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

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

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

• Open and transparent communication

• Respect for them and other employees

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

• A supervisor/boss that recognizes them and their performance

I don’t think you need to negotiate your culture with employees, but I do think they are entitled to clear expectations, constructive feedback, and fair treatment.

When you provide that kind of context you are allowing employees to join up with you.

On that foundation when change is introduced you do it with rather than to people.

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

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

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

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

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

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

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

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

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

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

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

We can’t run away from it anymore….

Play To Win!

Getting the Performance You Want!

At the end of the day I believe this is the objective that every manager in every organization is most interested in meeting and exceeding.

It is also one that even after a couple hundred years in the continuing dynamics between employer and employed we still do badly.

If you choose to disagree with me just take a look at the latest numbers on employee engagement and turnover.

You can’t pick up a business journal without encountering something on this topic. The latest thinking is that traditional performance assessment is useless and should be thrown out.

I don’t disagree, but it leaves us with a gap-

·         How do we continue to improve the capacity of our talent?

·         How do we appropriately distribute compensation since most of our talent won’t work for free?

I believe that the first step in building a great organization is selecting your talent pool, but that is a topic for another day so I want to focus on managing the performance of the talent you have.

I have a strong personal bias that says that effective managers and leaders have to be at least minimally competent at several key skill sets. They are in priority order-

·         Setting clear performance expectations

·         Giving and receiving constructive feedback

·         Taking appropriate corrective action

·         Delegating appropriately and effectively

·         Utilizing positive reinforcement to motivate future performance

·         Coaching to optimize performance

I also happen to believe that hiring or selecting leadership candidates with the following attributes increases success:

• 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 – how do you show up every day? How do you react under stress?

• Self-Awareness- do you see yourself even close to the way others see you?

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.

The bad news is that these skills sets are neither inherent, nor are they taught in most business schools or degree programs.

We don’t do much better internally either.

A recent study of participants in formal high talent development programs drew some rather unfortunate conclusions.

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 more 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 good news is that these skills are eminently teachable and most manager/leader candidates can master them to at least some degree of competency.

The literature is replete these days with the benefits of engaged employees as opposed to marginally or unengaged employees.

Much of that engagement is accomplished in your hiring and selection, but continuing to see engagement is best accomplished when employees feel that they are playing to their strengths and their highest skills.

A recent survey of 13,000 employees, including representation from all four (4) generations currently represented in the workplace, cited four characteristics they seek in a boss and organization they trust.

If you don’t understand how trust plays into it, you have wasted the time you spent reading to this point!

• 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

The interesting thing about that as it relates to how we evaluate performance is how poorly we do it.

In most cases we try to evaluate skills. It turns out our personal biases effect those ratings significantly.

A study quoted in HBR showed that in evaluating the ratings of almost 4500 managers including their direct reports, peers, and subordinates varied substantially, and that over 60% of the variance could be attributed to the rater’s bias- only 20% was actual performance variance.

The point is that performance information we gather is not horribly valuable because it is so potentially biased.

Deloitte decided to tackle this issue with what I think is a fascinating experimental approach to managing performance.

They found as the Gallup organizations research has demonstrated previously, that teams and individuals that are allowed to play to their strengths consistently outperform others.

 In their own internal research, they found that the variance between high performing teams and lower performing teams could be accounted for by team members responded to three items-

·         My coworkers are committed to do quality work

·         The mission of the company inspires me

·         I have the chance to use my strengths every day

The first two items speak clearly to the concept of an employment brand. The third is the critical link of clear expectations and focusing employee efforts on playing to their strengths in support of the organizational mission.

I like to think the ties to the critical skill sets I outlined above become pretty clear at this point!

Deloitte decided that their objectives for performance management are in three key areas:

·         Recognizing performance and appropriately rewarding it

·         Capturing meaningful and accurate performance data efficiently

·         To fuel appropriate future performance

To accomplish their objectives, they created a snap shot approach that asks team leaders to communicate their future actions about each employee and the end of every project; or at minimum each quarter for long term projects.

Their research found that four items provided the basis of that snapshot:

• Given what I know of this person’s performance, and if it were my money I would award this person the highest possible pay increase and bonus. This measures overall performance and unique contribution to the organization.

• Given what I know of this person’s performance, I would always want him or her on my team. This measures the employee’s ability to “play well with others”

• This person is at risk for low performance. This identifies areas for intervention ranging from coaching to other more drastic action and minimizes risk long term.

• This person is ready for promotion today. This measures perceived potential.

Each of these items is rated on a five -point scale ranging from strongly agree to strongly disagree.

Any rating of less than 5 on questions 1, 2, and 4 are a platform for discussion and mutual investment by the employee and the organization.

By focusing on these snapshots you have a roadmap for both discussion and managerial action

In addition to these quarterly snapshots each team leader is expected to check in with each team member weekly. The purpose of these “check ins” is to clarify expectations, monitor short term progress, and provide course correction, coaching, or other valuable input.

The interesting thing at Deloitte is they don’t consider these “check ins” ancillary or in addition to the team leader’s role, they consider them to be inherent to it. The other interesting dynamic is that responsibility for scheduling the check ins is with the individual team member!

As you might suspect, I am a fan of this new approach.

 If we are really honest the point of performance assessment is to encourage desirable performance and discourage performance that is not contributing to the organizational mission.

The purpose of employee engagement is alignment with organizational objectives.

We can’t make employees happy! Anyone that has ever been in a relationship knows that is not a project you want to take on.

Happiness is deeply personal and means something different to each of us. Studies have also shown that things that have nothing to do with organizational performance may drive “happiness” and that happy doesn’t mean better performance.

Increased morale is great, if it contributes to increased performance and reduced turnover. It is not an organizational goal on its own.

To go full circle, I think you can see the critical correlation between the skills I mentioned previously and the ability to execute on this kind of a model.

If managers are not skilled at setting expectations, giving constructive feedback, coaching and developing employee’s strengths then you only have a two dimensional model that doesn’t address the three objectives that Deloitte identified.

In the final assessment the team with the best players who play well together are going to win the most consistently.

This model won’t make up for poor hiring and selection or manager/team leaders who don’t have the skills to diagnose and coach performance issues, but it is far superior to what most of us are using today taking a huge step towards “managing whole people”.

So tell me; are you playing to win or are you just playing?

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.