How Trust Drives Results

What do high-performing organizations focus on as opposed from low-performing organizations, and what differentiates how they do it?

Businesses are under pressure, there is no doubt about that – but what are businesses focusing on and why in these difficult times?  A recent report from Interaction Associates (Building Trust in 2012) found the top 3 priorities for business to be:

  1. Top line/revenue growth
  2. Profit growth
  3. Improvements to Productivity and Efficiency

No surprise here – but what is interesting is the way in which high performing organizations (those whose net profit grew more than 5% over the last year) and low-performing organizations (those under 5% over the last year or shrank) approached this.

High performing organizations focused on achieving this by focusing on the people aspects of the business, these include:

  • Customer loyalty and retention
  • Attraction, deployment, and development of talent
  • Business agility (speed, flexibility, adaptability to change)

Low-performing organizations focused on:

  • Improvements to productivity & efficiency
  • Cost reduction/becoming more efficient
  • Business agility (speed, flexibility, adaptability to change)

The focus here is more on the systems and processes to drive results and create agility, rather than having the right customers and right people to drive both revenue and profit growth (as with high performers).

So what does this mean?  Greater growth and profitability is driven by people. Systems, process improvements, and cost reductions can contribute towards growth – the only problem is that there is only so many times that you can cut the lawn before it starts to die off.  Conversely, focusing your attention on business and resources on the right customers and talent, rather than squandering it in a shotgun approach, enables you to grow the business with no limit on the upside.  For this, you need to inspire trust.

The key question then is this: are you trustworthy?  More to the point do your customers and staff think you are trustworthy?  What do you think you are – honestly?  And how would you assess how trustworthy you are? Share your thoughts here.

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Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

How to Bait Your Hook

What do good anglers know which we can use in driving stronger business growth and results?

Fishing is one of the most popular leisure time pursuits in the world.  There is something about going out there, rod in hand, to capture that ever elusive fish.  This takes time, patience, skill and – let’s be honest – a bit of luck.

One thing that experienced anglers do is that they don’t waste time in an unproductive location.  You can try a few casts, change the bait, but if the fish are not biting then it is time to move on to a new spot.

We need to be like good anglers – if the fish do not bite quickly, then be prepared to move on and try elsewhere.  You might try for the same fish in another location, or using different bait or lures, or even go after another type of fish.  You want to be in a market where you will get a positive reaction as early as possible.

Doing this will save you time, money and embarrassment – it will also allow you to learn from the experience, and to apply it in future fishing spots.  What we do or how good we think something is not important.  There is only one judge out there and that is the market, and the market only cares if what you’ve done meets its needs.

The lesson here is that business is not about us, it is about our customers.  The question I like to ask to illustrate is this: “Why do people buy a quarter-inch drill?

I get a lot of answers – to hang a picture, for home improvements, to replace my old hand-drill etcetera.  They are all wrong.

The answer is simple: “To drill a quarter-inch hole!”

Customers are not interested in the features of the drill – such as its colour, whether it is turbo-charged, the special safety grip it has etcetera – they are only interested in the outcome from using it.

So if your product or service is not getting traction or garnering the sales you want then you need to do three things:

  1. Check that your product or service provides the outcomes that the customers/market need (have your hook properly baited);
  2. Be prepared to change fishing holes if the fish aren’t biting
  3. Continually learn from your experience so that you can:
  • produce a product/service that better meets the needs of the market (don’t confuse this with a better product which has more features but still fails to address the needs) and;
  • find and locate better fishing holes more quickly.

What do you do to find the right fishing holes?  How long do you wait before you move to a different location?  Are you really focused on delivering the outcomes a customer needs or delivering the product or service itself?

Share your ideas, insights and experience!  Share the knowledge, share the wealth!

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Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Creating KPIs that drive engagement & performance

How to create KPIs that drive engagement and performance

Setting KPIs

“If you can’t measure it, you can’t manage it”. 

Although this is true many companies don’t know what to measure or, if they do, they don’t know how to establish KPIs.

Why is this so important?

KPIs drive behaviour – if you know you are being evaluated against certain metrics then you will adapt how you work and how you perform.  This sounds good, but it can also be highly counter-productive, especially if you don’t know what to measure or measure the wrong thin. The result: bad management, mixed messages, confusion and employees focusing on the wrong thing.

You need to establish and develop your KPIs with care. Have too few and you may have an unbalanced “portfolio” of KPIs, have too many and it becomes a case of “everything is a priority, nothing is a priority”.

KPIs vary for different areas and different roles – but they are all underpinned by one factor: the company’s strategy and operations.  As such your KPIs are the indicator of where the company is headed. But it is also the one area that many companies mismanage as they are not thinking about how a KPI is helping the company to meet its targets.

Goals are not KPIs

A common mistake is to confuse KPIs with goals. The two are not the same.

For example, a company wants to achieve a $100 million of sales – this is often assumed to be the KPI when it is not.  In this example the KPIs there should be about the sales process. The KPIs might be about how many new customers, how many customers visited gave a repeat visitation, how many of those visits ended up in a presentation and how many of those were closed as deals. The KPI has to measure the process. You want the KPI linked to the corporate goal but it is not the goal itself.

When looking at the process you are measuring make sure that the KPIs relate to the corporate goals.  For example, having a KPI of sales reports in time does not drive sales – it only supports the process.  Furthermore every industry has formal KPIs (often found in the job description) and informal KPIs that are not written down. Like incongruent KPIs pulling in different directions, they can leave employees confused and disenchanted.

KPI is about Performance, Not People

KPIs are not about measuring people, they are about the process.  The KPIs are there to measure the performance of the organisation and KPIs are tools that people can use so that they can work not just in the business but also on the business, in other words improve the way the business works and improve its performance. They track the strategically important goals and objectives of the business.

Developing KPIs

It is absolutely critical for managers to develop the KPIs in consultation with the employee.  Developing them in isolation and imposing them on high creates, at best, a lack of buy-in and at worst total disengagement.  People want to succeed, and they want to be involved in how they succeed.

When discussing this you need to talk about three things:

  • What the person is employed for, and
  • What is going to give them satisfaction that will ensure they stay loyal and motivated; and
  • How this relates to the company’s main goals

Once there is a shared and common understanding you need to discuss the KPIs that are most effective and relevant to the processes that affect how they work and perform.  This is not to say that each individual has their own unique set of KPIs, rather that there is an agreed and understood portfolio of KPIs that complement and reinforce each other, whilst aligning the individual and team(s).

Monitoring KPIs

KPIs need constant monitoring to have relevance.  If they are measured, for example, only on a quarterly basis then it becomes like an exam.  It is viewed as being extraneous their job, rather than intrinsic. This creates a feeling of irrelevance, a lack of commitment to the KPIs and people having to be forced to comply – creating ineffective KPIs and reduced performance.

So what have you done and what are you going to do with your KPIs?  Talk to your people. Be clear on your goals, understand the key processes to be measured, and make the KPIs relevant, meaningful, measurable and review.

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Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Engaging & Retaining Staff – Part 4

 

12 Ways to Engage & Retain Staff, Image (c) People Insight

In the first blog in this series we looked at why employee engagement is so important and provided an overview of Gallup’s findings from its extensive research.  This was summarised in the following 12 ways to engage employees.

In the second blog we examined the first 3 elements in further detail.  This included:

  1. I know what is expected of me at work.
  2. I have the right materials and equipment I need to do my work right.
  3. At work, I have the opportunity to do what I do best every day.

In the third blog we continued looking at the second triad of elements including:

4. In the last seven days, I have received recognition or praise for doing good work.

5. My supervisor, or someone at work, seems to care about me as a person.

6. There is someone at work who encourages my development.

In this blog we look at the next 3 elements:

7. At work, my opinions seem to count.
8. The mission or purpose of my company makes me feel my job is important.
9. My associates or fellow employees are committed to doing quality work.

Seventh Element – My Opinion Seems to CountWhat does it mean?

Great managers are receptive to hearing ideas and opinions from their direct reports.  There is the need to understand the dynamics of a diverse group of people who are working together to avoid turf wars etc.  Managers and staff need to know and respect each others’ roles.

What is the evidence?

About 50% of employees who say their company is receptive to hearing their opinions report they are able to deliver very creative ideas while on the job.  Gallup studies reveal when employee-generated ideas are accepted and implemented, the commitment level to executing these ideas from employees is higher than normal.

What should we do?

  1. Be genuine and authentic with people, make them feel important and that they count
  2. Every system depends on the motivation of the people who run it; as such motivation requires people to strongly agree that “At my work, my opinions seem to count”.
  3. Make people feel that their opinions count,  this helps them to bring out more creative ideas and a higher level of engagement. As such it has a substantial impact on customer experience, productivity, employee retention and safety which collectively improve profitability.
  4. Incorporating employees’ ideas has 2 benefits: firstly, often the ideas are good; and secondly, it makes it more likely that the employees will be committed to its execution.

Approaches for developing this include:

  • Regular meetings with ground rules including one speaker at a time, no blaming, speak in headlines, give constructive feedback and “to directly address the issue.
  • Role plays – especially between positions where there are difficulties or tensions, with people playing the others roles.
  • Developing plans around how to work together, and what specifically you are going to do in terms of combined roles, communication and expectations.

Eighth Element – A Connection with the Mission of the Company

What does it mean?

Great managers are able to connect their direct reports to the mission of the company resulting in employees feeling their job is important.

This is about having an emotional connection with the company.  People need to have meaning and purpose, they want to understand how they fit into and contribute to the grand scheme of things.  This gives them a sense of purpose and belonging.

For example, Kodak positioned itself not as a seller of film, but a capturer of memories.  This focuses on the emotional outcomes of what they do, rather than the rational tasks of their work.

The more people agree with this statement is predictive of its performance on a wide array of measures

What is the evidence?

Project teams that are mission-driven report 15-to-30% lower turnover rates. According to Gallup research, trust-level in the decisions of upper-manager increases, less on-the-job conflict happens, and greater commitments to getting the job done occurs when employees feel a direct connection exists between their job and the mission of the company.

What should we do?

There are 3 “lenses” through which an individual can filter the world and define for himself or herself whether the work contributes to the quality of their life or not.  It is not the work that defines the individual.  The 3 “lenses” or categories include:

  • Work is a job; a necessary inconvenience and way of earning money with which they can achieve personal goals and enjoy themselves outside of work. They are the least engaged.
  • Work as a career; they enjoy the increased pay, prestige and status that comes as they work their way up the corporate ladder;
  • Work as a calling; usually associated with the belief that the work contributes to the greater good and makes the world a better place.

We need to be clear on the emotional purpose of the company, and how each individual’s work contributes.  We need to highlight what the values of the company are, and how what they do reinforces those values and contributes to the outcomes.  Having an on-going dialogue about this and making it relevant to what they do helps to strengthen this.

Ninth Element – Coworkers Committed to Doing Quality Work

What does it mean?

Great managers develop engaged staff who are committed and motivated to doing a great job

What is the evidence?

Research shows that 67% of employees fail to strongly agree that their co-workers are committed to doing quality work. As such, if people do “not pull their weight” it can have a negative impact on morale and productivity. For example:

One man pulls at 100%.  If two men are pulling the average man will exert himself at 93%, with four men it is at 75% each.  By the time the eighth man is added, each man is pulling only on average only half what he could.  In fact, 8 men on the rope pull no harder than seven, as the other seven relax enough to subtract whatever the eighth man adds.

So work groups can be 2+2=5, but they also have the capability of 2+2=3!

This can mean that teams with a poor work ethic and poor sense of responsibility, can become a place to hide laziness, push work to other people and to create a culture of blame.

What should we do?

We need to distinguish whether the lack of performance is about a lack of aptitude (i.e. they lack the relevant skills) or a lack of attitude (they lack the right behaviours).  You can only train people for aptitude; you can never do this for attitude.  Your three options are to Terminate, Transfer or Train.

Which of these 3 elements have you used and to what effect?  If you were to rank them which would you use first?  Would you use them with everyone, some of them or with no-one?

Share your ideas, and share the wealth.

In the next and final blog we look at the final three elements including:

10. I have a best friend at work.
11. In the last six months, someone has talked to me about my progress.
12. This last year, I have had opportunities at work to learn and grow.

Until then share your thoughts and ideas here, and feel free to share this blog and articles with any colleagues, clients or friends you feel may find this of value.

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Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Engaging & Retaining Staff – Part 3

12 Ways to Engage & Retain Staff, Image (c) People Insight

In the first blog in this series we looked at why employee engagement is so important and provided an overview of Gallup’s findings from its extensive research.  This was summarised in the 12 ways to engage employees.

In the second blog we examined the first 3 elements in further detail.  This included:

  1. I know what is expected of me at work.
  2. I have the right materials and equipment I need to do my work right.
  3. At work, I have the opportunity to do what I do best every day.

In this blog we continue with the next 3 elements provided by Gallup:

4. In the last seven days, I have received recognition or praise for doing good work.

5. My supervisor, or someone at work, seems to care about me as a person.

6. There is someone at work who encourages my development.

So let’s look at each of these in turn.

Fourth Element – Recognition & Praise

What does it mean?

Great managers consistently give their direct reports prompt feedback and positive recognition, not just at the annual review when the feedback is often too little, too late and lacks context.  Recognition is not just about financial benefits, but includes on-going recognition and constructive feedback.

What is the evidence?

Employees are twice as likely to say they will leave their current company in the next year if they do not receive adequate recognition. Additionally, employees who report not receiving adequate recognition/feedback are more likely to feel as though they are underpaid.  Gallup research indicates companies are able to increase productivity and revenue when employees report receiving prompt feedback and positive recognition.

What should we do?

  1. Provide regular, appropriate and constructive feedback to your reports.  Make sure it is timely so that is relevant and applicable to the context of the situation for which the feedback is being provided.  Remember the effect of praise is short-lived – so look to provide it properly and appropriately every week.
  2. Don’t assume that your reports know that you appreciate their work – they can’t read your mind, so tell them!
  3. Remember people gravitate towards positive reinforcement and positive words.  You attract positive people and encourage them to be positive in turn creating a positive spiral effect.  This is especially true as, in the perception of employees generally, praise is painfully absent from most companies and the workgroups within them.
  4. Positive changes also happen to people who give the praise
  5. Provide objective examples with praise; make it clear why and for what it is being given to both the recipient and others.
  6. Find the forms of feedback that mean the most to each of your employees and use them – it makes the recognition and its positive effects more powerful.

Fifth Element – Someone at Work Cares About Me as a Person

What does it mean?

Great managers take an authentic and personal interest in the employees they manage, and their employees recognise it as such.

What is the evidence?

Companies can experience 22-to-37% higher turnover rates when employees believe their manager treats them as just a number.  Gallup research has continually showed a direct correlation between employees feeling as though they are not cared about and employee resignations.

When our emotions kick in the connection is personal, so people will treat each other differently when there is a personal connection. If people feel there is a lack of a personal connection, then the employer is seen as unfair and uncaring.  Staff are more motivated by the emotional need to support their colleagues, than the cognitive appeal of financial rewards.

What should we do?

  1. Limit giving orders and using authority as they have limits as to how well they works (this is especially true of new managers – see this article for more);
  2. Help your employees to engage with both you and their peers.
  3. Provide emotional support.  The greater this is, the greater the team work – with higher levels of trust, robust personal networks, vibrant communities, shared understandings and a sense of equitable participation.  This supports collaboration, communication, commitment, ready access to knowledge and talents, and coherent organisational behaviour – drawing individuals into a group.

Sixth Element – Someone at Work Encourages My Development

What does it mean?

It’s all about serving people well and respecting people for who they are. Great managers actively encourage the development of their direct reports, they look to help employees improve and grow beyond their existing roles and them as their manager.

What is the evidence?

Nearly 40% of employees – that is 2 in every 5 people! – believe that no-one in their company is encouraging their professional development. Plus, statistics indicate employees have an unwritten workplace expectation of having a mentor to help them in their development.  Gallup research indicates employee on-the-job engagement is higher when employees have someone in the company actively encouraging their development.

What should we do?

  1. Use mentors and coaches (internal or external) to help people develop the skills they need to maintain them in new roles, to help them develop the skills they need to get to the next level, whilst helping them achieve traction in their work and associated results.  NB: frequently managers need coaching support most, often they are promoted into a managerial role based on their technical capabilities which will not sustain them in their new role.  Rather, they need to develop the necessary managerial, business and leadership skills to enable them to perform – this, ironically, also helps to retain key managers who are often the ‘engine room’ of the business.
  2. Provide practical, relevant and timely guidance through personal interaction.
  3. Provide the necessary role models help people to see and discover how accomplishments are within reach.

Which of these 3 elements have you used and to what effect?  If you were to rank them which would you use first?  Would you use them with everyone, some of them or with no-one?

Share your ideas, and share the wealth.

In the next blog we look at the next three elements including:

7. At work, my opinions seem to count.
8. The mission or purpose of my company makes me feel my job is important.
9. My associates or fellow employees are committed to doing quality work.

Until then share your thoughts and ideas here, and feel free to share this blog and articles with any colleagues, clients or friends you feel may find this of value.

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Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Engaging & Retaining Staff – Part 2


12 Ways to Engage & Retain Staff

In our previous blog, we looked at why employee engagement is so important and provided an overview of Gallup’s findings from its extensive research.  This was summarised in the following 12 ways to engage employees.  In this blog we look in further detail at the first three ways.

  1. I know what is expected of me at work.
  2. I have the right materials and equipment I need to do my work right.
  3. At work, I have the opportunity to do what I do best every day.

Remember when you first started your current job.  The initial excitement, interest and challenges create a honeymoon period when you are highly engaged.  Like any relationship you cannot maintain the intensity of this, and after six months you begin to become disengaged.  How this happens varies for each of the 12 elements of engagement.  The Gallup Organisation found in Australia that after six months in a new job engagement drops by an average of 62%.  This makes our ability to retain and engage people a key concern, and our need to understand the 12 elements a priority.

In looking at each of these elements we look at three parts:

  1. What does each element mean?
  2. What is the evidence for this?
  3. What should we do to maintain high engagement for each element?

This helps us to identify where we may be weak, identify the priorities, and what actions to utilise from an a la carte menu of actions.

First Element – Knowing What is Expected at Work

What does it mean?

This is about establishing job clarity for your reports. To be a great manager you need to be able to effectively define and communicate what is expected of your direct reports.

What is the evidence?

At best, 50% of employees strongly agree they know exactly what is expected of them on the job – that means the other 50% do not.  The Gallup research indicated that when employees know what is expected of them, their productivity increases anywhere from 5-to-10% and there is a 10-to-20% reduction in on-the-job accidents occurs.

What should we do?

  1. Vision – make sure your employees know where you are going – be crystal clear and consistent in communicating what your vision for the business is.  This provides clarity of purpose for employees in what they do, and makes it easier for them to follow you. You don’t want “I’d like to follow you, but I don’t know where you are going”.
  2. Establish job clarity to combine individual efforts for the greatest cumulative result. This is more than a job description it includes for each employee:
  • Knowing what is expected;
  • Detailed understanding of their role and
  • How it fits in with what everyone else does

3. Focus on outcome-based rewards to ensure they are focused on achievement rather than ‘doing’.  Make sure that staff are not being incentivized to do routine things.

4. A good question to ask is: “I’d like you to introduce yourself, tell us your job, and how doing your job well increases the profits of your company?”. In doing this look at individual and group results, and understand how they drive the achievement of outcomes.

5. Communicate – wrap your conversations with employees around the key aspects of the business’ mission, this gives them insight into how what they do contributes to the bigger picture.

Second Element – Materials & Equipment                  

What does it mean?

A good manager ensures that their reports have the tools and resources they need to get the job done in expert fashion.

What is the evidence?

Only 33% of employees strongly agree they have been given the tools and resources to expertly get their job done – that means 67% have not.  Gallup research indicates employees are more productive and more engaged at work when they have the tools and resources to perform.

The importance of this is best illustrated by when employees do not have the materials and equipment they need to do their work, this increases their frustration and creates anger with the company for placing them in this situation.  In Australia, 71% of employers providing tools and resources such as career management programs say it has improved their ability to attract and retain employees.

What should we do?

  1. Ensure you not only have the right equipment and materials, but that you make regular small improvements in them, as well as modest changes to the process.  These have a multiplicative effect over time.
  2. Giving employees the right materials, equipment and process helps to reduce stress.  People want to do their jobs well, and to be productive – so help them be so.

Improvements in materials and equipment also include higher customer engagement and higher productivity.  The opportunity for effective and efficient feedback from staff on what can be done to improve things also helps to address this area and engage staff.

Third Element – The Opportunity to Do What I Do Best

What does it mean?

You need to be able to match the right person to the right job, or the right job to the right person.  Key questions to consider include:

  • Who would excel in this assignment?
  • What makes someone succeed where others fail?
  • Is it innate, is it learnt, or is it through effort?
  • Can excellence in a certain role be learned?
  • How fast and much can people change?
  • Can people be moulded to fit the needs of the role or not?

What is the evidence?

67% of employees failed to strongly agree they have been given the opportunity to perform their jobs to the best of their ability.  Gallup research indicates when businesses provide employees the opportunities to maximize their natural talents, employee engagement at work increases 33% resulting in significant gains in a company’s productivity.

What should we do?

  1. Don’t believe the notion about human potential that an employee can do anything if he puts his mind to it, can envision it, and tries hard enough or cares enough.  Not true.  (I may want to be a basketball player, but at 5’7″ “you can’t coach height”). Where there may be meaningful differences then remember these are not just opportunities to advance business interests, but also to improve staff’s careers.
  2. Talk with your employees in a positive, passionate way:
  • “So what are your gifts?”
  • “Where are you most happy?”
  • “Where do you think you could be utilised where your skills could be used best? Why?”

3. Establish where your people are in the “flow” – where the employee enjoys the work itself rather than enduring the work just to earn the pay, or to gain an opportunity to be promoted to a better, more fulfilling job.

4. Look at how you can mould the job for each employee around the way they work most naturally and to maximise the optimal experiences that provide “flow” and drive individual and team outcomes.

5. Managers of the best workgroups spend a disproportionate amount of time with their high producers, matching talents to tasks and emphasize individual strengths over seniority in making personnel decisions.

6. Regular staff reviews (every two to three months) on an one-to-one basis, these should include questions such as:

  • What do you do best?
  • What do you like about your job?
  • Where do you think you have greatest impact? etcetera

7. Creating an effective team is about taking the team’s collective abilities and utilizing them to achieve the results and outcomes, not how well individuals perform.

Which of these 3 elements have you used and to what effect?  If you were to rank them which would you use first?  Would you use them with everyone, some of them or with no-one?

Share your ideas, and share the wealth.

In the next blog we look at the next three elements including:

4. In the last seven days, I have received recognition or praise for doing good work.

5. My supervisor, or someone at work, seems to care about me as a person.

6. There is someone at work who encourages my development.

Until then share your thoughts and ideas here, and feel free to share this blog and articles with any colleagues, clients or friends you feel may find this of value.

Share the knowledge, share the wealth!

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How to Recruit the Right People First Time

Cheerful Diverse Business People Standing in RowIn 2015 SouthWest Airlines received a job application every two seconds, but it was very selective. It received over 287,000 resumes from which it interviewed 102,112 candidates, and hired only 6,582 people. Why has SouthWest Airlines gone to such an extreme to recruit so few people, less than 2% of all applicants?

The key to the hiring process is to hire the people whose values mirror yours, and who will be engaged from day one. SouthWest Airlines don’t hire for skills, but for three attributes:

  • A warrior spirit – a desire to excel, act with courage, persevere and innovate
  • A servant’s heart – the ability to put others first, treat everyone with respect and proactively serve customers
  • A fun-loving attitude – passion, joy and an aversion to taking yourself too seriously.

And when they are hiring for these key attributes they are interviewing them using behavioral questions to determine whether the candidates already have and are living them. You do need skills, but it is the attributes that people have that will differentiate them. The on-going need for these attributes is reflected in SouthWest Airlines’ development and promotion practices, and especially for those who aspire to a leadership role.

This is good for the company, but how good is this for the employees? In a 2014 employee survey, when SouthWest Airlines staff were asked whether they felt like their job was “just a job,” “a stepping stone,” or “a calling,” nearly 75% selected, “a calling,” and 86% said they were proud to work for Southwest. So hiring for values seems to be working for both the company and the employees.

How are you hiring in your business? And what attributes are you looking for? Will you be as selective in your process? Do you want your employees to feel that what they do is not just a job, but “a calling”?

To view or download a PDF version of this blog click here

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

5 Steps for Effectively Delegating & Managing Work

A 5-step process by which to effectively delegate and manage delegated work.

DelegateDelegating effectively allows managers and leaders to free up time; ensure the work is down to the right person at the right level and on-time; helps to develop people and their capabilities, and allows the managers and leaders to focus on what is important – not just what is urgent.

Creating the Conditions & Capabilities for Delegation

For effective delegation you need to have:

  1. A culture which supports and allows delegation to occur
  2. The desire and the ability to delegate
  3. People with the necessary abilities and attitudes that you can delegate to.

If you lack any one of these it makes delegation difficult.  As such be clear as to where you are on these factors and what you need to do to address them if necessary.  Yet even if these conditions are in place many managers and leaders find it difficult to delegate.  Common reasons for this include:

  • Short-term thinking – it would be quicker to do it myself
  • Perfectionist thinking – I can do it better myself
  • Requires an investment in training/mentoring of others – I don’t have anyone I can trust to delegate it to
  • I don’t know how to delegate

The key to enabling others to delegate is to understand what delegation entails.   I define delegation as:

A task, for which a nominated individual(s) is given specific responsibility, to complete in part or full, by a given time to produce an expected outcome or result, and for which you will receive feedback on.

The 5 Step Delegation Process

  1. Identify the Task – be clear on what the actual task is that you are asking someone to complete.  In doing this put a clear frame around it – what does it include and what does it exclude.  Providing a clear description and understanding of this is critical.
  2. Nominate the Individual(s) – Identify the person(s) who will be involved in the completion of the task.  Be clear as to why you want them to do it (is it for personal development reasons, part of what they need to be able to do to gain promotion etcetera?), and make sure they understand this.

    Delegation Process
    The 5-Step Delegation Process
  3. Define the Responsibility – when discussing it with the nominee(s) ask them to summarize what they have understood that you want them to do – this will quickly highlight any discrepancies or misunderstandings before they can become problematic.  Check that they are prepared for this responsibility and are committed to completing it within the scope and timeframes that you have determined.  You also need them to be clear on your expectations as regards their completing this task and the associated results and outcomes.
  4. Completion – do you want them to complete the task in full, or only in part, before they report back to you on progress made.  If it is an area in which they have little experience, or you have a low level of trust in their ability to do so, then get them to complete the first part before reporting back to you.  This gives you a checkpoint to ascertain how they are progressing, what further guidance is necessary, and if they can be left to their own devices to complete the task.
  5. Review – establish regular times for reviewing their progress.  If you are uncertain of their capabilities then you may have multiple review points during the work on the task, or you may ask them to report back once it has been completed if you have high confidence in them.  Reviews should be short and you must ensure that the responsibility for the work stays with the nominee(s), otherwise you will find the work delegated back to you!

By breaking the delegation process into these 5 simple steps it makes it easier for you to delegate, for those delegated to understand what they need to do and what is expected of them, and for the work to be done in a controlled manner which allows people to grow and develop without being micro-managed.  Use this with your people and see how much time and effort you free up for yourself, and how your people work more effectively.

We look further at delegation in the following article, How To Manage Those Delegated To.

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Do You REALLY have a Leadership Team?

The differences and the impacts of leadership by a team and by committees.

Teams or Committees?

Many CEOs and senior leaders in companies with which I have worked with often believe, in all sincerity, that they have a leadership team or executive team which works together to help focus and drives the business.

This, in my experience, is rarely the case. More often than it is not a leadership or executive team, but a committee.  This is true for all levels of the business but becomes increasingly more frequent the further you go up the hierarchy.

It is important to understand whether you have a leadership team or a leadership committee?  The impact of each is considerable and quite different.  Many problems that you may be experiencing with your leadership team have, at their root, the fact that the leadership team is actually a leadership committee.

Let me explain by looking at teams and committees in turn:

Teams

For the purpose of this article, I define a team as a group of individuals who are working together, towards a common goal or goals, in which they will either succeed or fail to do so together.  There is a strong common purpose, common understanding and real alignment to which all members of the team are committed.

A team that is well-aligned and works well together only does so because there is a high level of trust.  As such the team sets its own goals, and all the members share resources, information, and insights. There is open and frank communication between the members, with members, prepared to challenge each other in order to resolve issues and achieve the desired outcomes. Honesty and candor underpin the team allowing alternatives to be discussed and decisions are taken only after healthy and robust debate.

Committees

Here a group of people come together because of their title or role or function (and in a role as a representative of a given area or function) and agree to work together as long as it is individually beneficial, but at any time they can withhold information, resources, or not comply; also they can be rewarded differentially i.e. I win, you lose.  The individuals participate rather than promising an outcome or a result.

There is a lack of trust and there is no common purpose or any alignment, or it is very weak if there is any.  The focus of the committee tends not to be on achieving the outcomes, but on tasks and following process. Political battles and turf wars break out as committee members jockey for position.  They can withhold resources and information from others in doing so, and people will work or collaborate with others only so far as doing so helps their individual interests.  In a committee, people can win at the expense of the others. This means decisions are made on a sub-optimal basis and, although they can advance one area’s interests, may do so even though it causes damage to the business itself.

Which Do You Have – Teams or Committees?

So how do you know which you have?  Chance is that you probably already have a pretty good idea, but sometimes the group may be in a “gray area”.  In these instances, I suggest you apply the five criteria:

Andrew Cooke’s Five Golden Keys for Evaluating Groups

Look at the questions in the following areas.  If the answers tend to favor the group over the individual you have a team, if it is the individual over the group then you have a committee.

  1. Individual and Group Intention – how would you describe the individual intentions for each group member and the group overall?  Are they prepared to put the interest of others ahead of their own in advancing the group’s interests?  Are the group’s interests shared or do they vary from each individual?
  2. Effectiveness – is the group and the members focused on doing the right things?  Are there a clearly shared and understood set of priorities and outcomes? Is the group delivering progress towards the defined outcomes, or is progress being achieved in a multiple and conflicting directions against outcomes which may or may not be those which were defined initially? Are members participating or working to deliver outcomes.
  3. Communication –what kind of discussions and debate is there between group members?  Do they focus on the issue at hand or the personalities involved?  How well do they share with others what they are doing and why?  Do they have a shared and common understanding which they can consistently and clearly articulate?
  4. Relationships  – are they cooperative and collaborative, or is it a case of acting in the individual’s self-interest?  Is the nature of the relationship long-term, strategic and aligned; or are the relationships short-term and transactional in their focus?
  5. Power – is power perceived by the group and its members to be vested in the group itself, and thus all members are subordinate to the group; or is it perceived to be vested in certain individuals for who the group’s interests are subordinate to theirs?

Do you have a leadership team or a leadership committee?  Think carefully before you answer.  If your team is exhibiting signs of dysfunction then it is likely that you have a group that is a committee or has strong leanings to some of the characteristics of a committee than a team.

Consider one of the dysfunctional teams you either have been on or are a part of now.  Is your team a committee in disguise as a team?  If so, can you apply this distinction to diagnose the problem and get your team on track?

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Peter Drucker on Marketing

Peter DruckerLong ago Peter Drucker, the father of business consulting, made a very profound observation that has been lost in the sands of time:

Because the purpose of business is to create a customer, the business enterprise has two – and only two – basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”

Today, when top management is surveyed, their priorities in order are finance, sales, production, management, legal and people. Missing from the list: marketing and innovation. When one considers the trouble that many of our icons have run into in recent years, it is not easy to surmise that Drucker’s advice would have perhaps helped management to avoid the problems they face today.

Ironically, David Packard of Hewlett-Packard fame once observed that “marketing is too important to be left to the marketing people.” But as the years rolled on, rather than learn about marketing and innovation, executives started to search for role models instead of marketing models.

Tom Peters probably gave this trend a giant boost with the very successful book he co-authored, In Search of Excellence. Excellence, as defined in that book, didn’t equal longevity, however, as many of the role models offered there have since foundered. In retrospect, a better title for the book might have been In Search of Strategy.

A popular method-by-example book has been Built to Last by James Collins and Jerry Porras. In it, they write glowingly about “Big Hairy Audacious Goals” that turned the likes of Boeing, Wal-Mart Stores, General Electric, IBM and others into the successful giants they have become.

The companies that the authors of Built to Last suggest for emulation were founded from 1812 (Citicorp) to 1945 (Wal-Mart). These firms didn’t have to deal with the intense competition in today’s global economy. While there is much you can learn from their success, they had the luxury of growing up when business life was a lot simpler. As a result, these role models are not very useful for companies today.

There is a growing legion of competitors coming at new businesses from every corner of the globe. Technologies are ever changing. The pace of change is faster. It is increasingly difficult for CEOs to digest the flood of information out there and make the right choices.

But a CEO can have a future.

The trick to surviving out there is not to stare at the balance sheet but simply to know where you must go to find success in a market. That’s because no one can follow you (the board, your managers, your employees) if you don’t know where you’re headed.

How do you find the proper direction? To become a great strategist, you have to put your mind in the mud of the marketplace. You have to find your inspiration down at the front, in the ebb and flow of the great marketing battles taking place in the mind of the prospect. Here is a four-step process to pursue:

Step 1: Make Sense in the Context

Arguments are never made in a vacuum. There are always surrounding competitors trying to make arguments of their own. Your message has to make sense in the context of the category. It has to start with what the marketplace has heard and registered from your competition.

What you really want to get is a quick snapshot of the perceptions that exist in the mind, not deep thoughts.

What you’re after are the perceptual strengths and weaknesses of you and your competitors as they exist in the minds of the target group of customers.

Step 2: Find the Differentiating Idea

To be different is to be not the same. To be unique is to be one of its kinds.

So you’re looking for something that separates you from your competitors. The secret to this understands that your difference does not have to be product related.

Consider a horse. Yes, horses are quickly differentiated by their type. There are racehorses, jumpers, ranch horses, wild horses and on and on. But racehorses can be differentiated by breeding, by performance, by stable, by the trainer and so forth.

Step 3: Have the Credentials

There are many ways to set your company or product apart. Let’s just say the trick is to find that difference and then use it to set up a benefit for your customer.

To build a logical argument for your difference, you must have the credentials to support your differentiating idea, to make it real and believable.

If you have a product difference, then you should be able to demonstrate that difference. The demonstration, in turn, becomes your credentials. If you have a leak-proof valve, then you should be able to have a direct comparison with valves that can leak.

Claims of difference without proof are really just claims. For example, a “wide-track” Pontiac must be wider than other cars. British Airways as the “world’s favorite airline” should fly more people than any other airline. Coca-Cola as the “real thing” has to have invented colas.

You can’t differentiate with smoke and mirrors. Consumers are skeptical. They’re thinking, “Oh yeah, Mr. Advertiser? Prove it!” You must be able to support your argument.

It’s not exactly like being in a court of law. It’s more like being in the court of public opinion, especially with the rise of social media.

Step 4: Communicate Your Difference

Just as you can’t keep your light under a basket, you can’t keep your difference under wraps.

If you build a differentiated product, the world will not automatically beat a path to your door. Better products don’t win. Better perceptions tend to be the winners. The truth will not win out unless it has some help along the way.

Every aspect of your communications should reflect your difference. Your advertising. Your brochures. Your web site. Your sales presentations.

The folks who work for or with you don’t need mystical answers on “How do I unlock my true potential?” The question they need answering is, “What makes this company different?”

That answer gives them something to latch onto, and run with.

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Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

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Click here to find out more about Andrew Cooke and Growth & Profit Solutions.