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purpose

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Got Trust?

First Things First

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

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

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

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

We have a trust crisis.

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

Every organization earns a trust dividend or pays a trust tax

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

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

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

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

So let’s take a look at business specifically.

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

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

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

·         Perceived unfair compensation

·         Unequal opportunities for pay and career advancement

·         Poor leadership

·         High turnover

·         Lack of collaboration

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

·         Open and transparent communication

·         Respect for them and other employees

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

·         A supervisor/boss that recognizes them and their performance

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

·         Listen

·         Demonstrate self- awareness and self- control

·         Demonstrate humility

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

•                     Professional and technical expertise

•                     Taking initiative and delivering results

•                     Honoring commitments

•                     Fitting into the culture

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

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

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

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

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

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

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

So I would like to leave you with two thoughts-

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

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

 

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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.

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An Opportunity to Lead

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

So where do we go from here?

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

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

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

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

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

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

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

The problem is two- fold.

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

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

1.            DENIAL- Emotional intelligence doesn't exist.

2.            Emotional intelligence is just common sense.

3.            You can control your feelings.

4.            More emotional people are naturally more emotionally intelligent

5.            Sharpening your EQ is easy

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

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

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

 

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

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

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

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

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

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

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

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

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

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

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

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

Goleman calls this the crucial competence-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Donald Walter

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Finding Your Purpose

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Finding Your Purpose

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

 

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