Thursday, June 17, 2010

Getting Ready for the Future

Winston Churchill once said, “To improve is to change. To be perfect is to change often.” But we all know change isn’t easy. People react differently to change. Some of us are excited about the changes; others of us feel a little out of our “comfort zone” when contemplating change.

Scientists tell us that change has considerable psychological impact on the human mind. The way you look at the situation—how you mentally frame it, and the conclusions you reach—determines how you react to organizational change. Your thoughts can cause you to resist, or they can help you to embrace and support the new moves and ultimately benefit from the changes that are taking place.

As the saying goes, there are only three certainties in life: death, taxes … and change. Change is inevitable. Embracing change makes our lives more interesting and fulfilling when we take advantage of the opportunities that change provides.

The trouble with change is that it usually arrives before we’re ready for it. But when we are prepared, we are empowered with a new confidence that inspires and challenges us.

Preparing employees for change requires effective, transparent communication that tells them were the company is today, where it needs to be tomorrow, and what steps are required to get it there. And most importantly, employees need to know and understand their role in the change process and how they will ultimately benefit.

The better prepared employees are to embrace change, the more they will be able to take advantage of it and work together to build a more successful company.

Wednesday, April 7, 2010

Improving Business Performance by Connecting Employees

In an increasingly competitive environment, leaders everywhere are looking for better ways to create a competitive advantage. Most understand that performance can be improved through better management of their employees. But what actions do they need to take to move the performance needle? Connecting employees to the organization might be the answer.

One person who was a master at “connecting” employees was Jack Welch, former CEO of General Electric. He was the consummate communicator, whether he was talking to employees about Six Sigma (a quality measure and improvement program developed by Motorola) or explaining to outsiders why GE was selected by Fortune Magazine as one of the most admired companies in America.

He says, “The only way to be more competitive is to engage every mind in the organization. You can’t have anybody on the sidelines.”

If a company is going to be the best at what it does; if it is going to improve its Return on Investment (ROI); then it needs to “engage every mind in the organization.” It needs to link people and what they to the business strategy. Employees need to know where the company is headed, why it is headed in that direction, and what they can do when they come to work tomorrow morning to help it get there. We want to get people off the sidelines and onto the playing field.

Based on data from the Gallup Organization, connected employees are 50% more likely to have lower turnover and absenteeism; are 56% more likely to have higher customer loyalty; and have 46% fewer accidents. A study by Towers Watson, a global consulting firm focused on human capital and financial management, concluded, “Higher employee engagement is directly linked to higher shareholder value.”

So how do we make the connection? Here are what I call the “Rules of Engagement”—four actions that can directly impact employee engagement:

1. Give employees a line-of-site to the big picture. Frequently communicate the vision, mission, values and strategies of the organization; and encourage managers to show employees how their work group fits into the overall organization.

2. Involve employees in running the business. Provide information to help employees understand the competitive and economic environment of the business. Review internal and external customer requirements with employees. Allow employees to help set performance goals and encourage suggestions from them.

3. Keep employees well informed. Provide information about where the company has been, where it is today and where it’s headed. Provide key performance indicators relevant to individual work areas; and give weekly updates of actual performance-to-goal.

4. Reward and recognize employees for a job well done. Ensure that a reward and recognition program is available for each work group in the organization. Include recognition for work environments that managers create, such as their ability to foster open communication; and recognize employees through formal communication channels.

By following these “Rules of Engagement,” you’ll get higher performance levels from your employees that translate into greater profitability and growth for your company.

Tuesday, January 12, 2010

If We Had More Engaged Employees, Maybe Healthcare Wouldn’t Be Such a Big Deal

In 2007, the last year for which fairly precise estimates are available, the U.S. spent $2.26 trillion on healthcare, or $7,439 per person; and that amount is expected to grow 6.7% annually through 2017, much faster than wages and corporate profits. Since companies foot the bill for about 60 percent of Americans’ healthcare costs, they have ended up chronically hamstrung with lower growth and employment than they would have if costs were lower.

But there is a speck of light at the end of this economic tunnel. Research by the Gallup Organization suggests that one way to curb these spiraling costs is to focus on employee “engagement.” By definition, employees feel engaged when they find personal meaning and motivation in their work, receive positive interpersonal support, and operate in an efficient work environment.

A survey by Gallup asked employees how they think their daily work experience affects their physical and psychological health negatively, positively, or not at all. There were 43% who said their work life affects their physical health positively; 29% said work affects them negatively; and 27% said work does not affect their health at all. These results were consistent when looking across all job categories such as service workers, skilled tradesmen, semi-skilled workers, and laborers.

The alarming news from this survey is that almost 3 in 10 say their jobs are harming them physically. But here is an important fact: Among engaged employees, a clear majority - 62% - feel their work life positively affects their physical health. That number drops significantly to 39% among those who are not engaged, and 22% among those actively disengaged.

So one key to improving employee health and consequently reducing healthcare costs appears to be employee engagement. But how do we increase our number of engaged employees? Based on research by the Gallup Organization, the Corporate Leadership Council, Watson-Wyatt, and others, employee engagement comes from:

1. Giving employees a clear line-of-sight between what they do every day and the company’s mission. Everyone’s job relates to the company’s mission in one way or another. Employees just need to connect the dots.

2. Involving employees in helping run the business. Making sure they feel their input is valued, and giving them more control over their jobs.

3. Providing employees with information they need to do their job. Is their work unit getting ahead or behind? Are they on target with their projections?

4. Recognizing employees for outstanding work. Celebrating a job well done.

By creating an environment that fosters employee engagement, we’ll have a healthier workforce … which leads to lower healthcare costs … which leads to greater profitability … which benefits us all.

Tuesday, November 17, 2009

The Five Questions Everyone is Asking

Fred Smith, founder and CEO of Federal Express, leads a $30 billion company with over 250,000 people located in 220 countries. As a college student he was planning on going to law school. “But that became no longer an option when I had to go to Vietnam,” he explained. “I spent 13 months as a rifle-platoon leader and a company commander. The marines taught me more about the way people think and what they are looking for than I could have possibly learned in any academic setting. My leadership philosophy is a synthesis of the principles taught by the marines and every organization for the past 200 years,” he said.

So what is his leadership philosophy? “Getting discretionary effort out of people,” he says. “I don’t want my employees thinking about the minimum amount of effort they have to put in to keep from getting fired. I want them thinking about the best possible job they could do if everybody was giving 100% of their effort.”

Smith says the key to getting that effort is communication and feedback. He says that at Federal Express they feel it is important to answer five questions that, at one time or another, every employee will ask:

1. What is expected of me?
What am I supposed to be doing? On what basis will you measure me?

2. How am I doing?
Am I doing what you asked me to do? Are the results what you wanted?

3. How can I get ahead?
How can I be promoted? How can I grow?

4. Where do I get justice?
Where do I go if I am not treated properly, or when I think something has been done unfairly?

5. Is what I am doing important?
Workers need to understand that what they’re doing means something, that they are doing something significant.

All workers ask those five questions, and the answers are vital to how they function on the job. You and I have asked all five of those questions, too¾sometimes several at the same time.

When supervisors answer these five questions for their employees, good things happen. Research shows that employees become more committed and engaged in their jobs. And the results have a significant impact on the company’s bottom line.

The Corporate Leadership Council, a global research organization, found that organizations that improve workforce commitment will see improvement in the level of discretionary effort of their workers, as well as a corresponding change in performance. Specifically, they say, employees who move from “strongly uncommitted” to “strongly committed demonstrate a 57% improvement in the level of discretionary effort exerted on the job. Consequently, this improvement in discretionary effort translates into a 20% improvement in performance levels, and those employees are 87% less likely to leave.

Providing answers to these questions that most employees are asking should not be difficult. But it does take a concerted effort on the part of supervisors to make sure we don’t get caught up in the “tyranny of the urgent” and neglect the important issues that matter most to our employees.

Wednesday, July 1, 2009

The Secret to a Successful Work Life is “One Thing.”

Wisdom often comes from unexpected places. Many of you may recall the movie “City Slickers” starring Billy Crystal and Jack Palance. Crystal’s character, “Mitch,” was going through a mid-life crisis. He and his buddies decide to spend two weeks at a dude ranch to sort out life and get some rest and relaxation. Palance’s character, “Curly,” seemed to have it all together. As Mitch began to pity the cowboy’s simple life of herding, Curly speaks amazing wisdom in response to Mitch. The dialogue went like this ...

Curly: “Yeah. You all come out here about the same age. Same problems. Spend fifty weeks a year getting knots in your rope, then you think two weeks up here will untie them for you. None of you get it. (pause) Do you know what the secret of life is?”
Mitch: “No, what?”
Curly: “This,” holding up his index finger.
Mitch: “Your finger?”
Curly: “One thing. Just one thing. You stick to that and everything else don’t matter.”
Mitch: “That’s great, but what’s the one thing?”
Curly: “That’s what you’ve got to figure out.”

The wisdom was expressed in the cowboy’s words: the secret to life is one thing. Research suggests that the secret to a successful “work life” can similarly be found in “one thing.” Based on interviews with more than 3 million employees in a variety of industries, the Gallup organization has concluded this: Happy, productive employees are those who clearly see a link between what they do everyday and the mission of the organization. This link is the “one thing” that creates engaged employees.

Jim Shaffer in his book, The Leadership Solution, says, “People should come to work each day excited about the prospects of making a difference. They should go home at night feeling as though they did, that they added value and are valued.”

Focusing on the link between what we do everyday and the company’s mission gives meaning to the work we do. By focusing on this “one thing,” the customer wins through improved quality and service, the company wins through increased efficiency and greater profits, and most importantly, the employee wins by having a more meaningful work life, knowing that what he or she does everyday is important to the success of the company.

As Curly said, “You stick to that and everything else don’t matter.”

How Full is Your Bucket?

What is the number one reason most people leave their jobs? “They don’t feel appreciated,” says Tom Rath, coauthor of the national bestseller How Full Is Your Bucket? The book is based on research by the Gallup Organization that includes survey data from more than 4 million employees in more than 10,000 business units and more than 30 industries.

The research reveals how even the briefest interactions affect our relationships, productivity, health, and longevity. Organized around a simple metaphor of a dipper and a bucket, the author shows us how to greatly increase the positive moments in our work and our life -- while reducing the negative. “Each of us has a bucket,” says Rath. “It is constantly emptied or filled, depending on what others say or do to us. When our bucket is full, we feel great. When it’s empty, we feel awful.

“Each of us also has an invisible dipper. When we use that dipper to fill other people’s buckets¾by saying or doing things to increase their positive emotions¾we also fill our own bucket. But when we use that dipper to dip from others’ buckets -- by saying or doing things that decrease their positive emotions -- we diminish ourselves.”

All of this can have a significant impact on employees. It can also affect the company’s bottom line. Here’s why. Companies that have begun offering recognition and praise report:


- Increased individual productivity
- Better safety records/fewer accidents on the job
- Employees stay with the organization longer
- Higher loyalty and satisfaction scores from customers

Like the cup that runneth over, a full bucket gives us a positive outlook and renewed energy. Every drop in that bucket makes us stronger and more optimistic. But an empty bucket poisons our outlook, saps our energy, and undermines our will. That's why every time someone dips from our bucket, it hurts us.

So we face a choice every moment of every day: We can fill one another’s buckets, or we can dip from them. It’s an important choice¾one that profoundly influences our relationships, productivity, health, and happiness.

Monday, June 15, 2009

The Purpose-Driven Job

In the February 7, 2005, edition of Time magazine, it was noted that The Purpose Driven Life, by Rick Warren, has been the best-selling hardcover book in history. In his book, Warren proposes, “without God, life has no purpose; and without purpose life has no meaning; and without meaning, life has no significance or hope.”

Interestingly, a number of major research studies point to a similar philosophy in the workplace. Research done by The Gallup Organization, Watson Wyatt Worldwide, and the Corporate Leadership Council, suggest this: Without a mission, work has no purpose, and without a purpose, work has no meaning; and without meaning, work has no significance.

If we want to have meaningful work (and I assume most of us do), then we must link what we do every day at work to the mission of the company.

Whether we work outdoors, in a manufacturing facility, or an office cubiclewhatever our jobwe should be able to connect that job to our company’s mission.

According to research by the Gallup Organization, only 26% of employees have found purpose in their work. These are the ones who are engaged in their jobs. They have made the connection to the company’s mission. They see the big picture. On the other end of the spectrum, about 19% are actively disengaged. They’re called “CAVE” people because they are Consistently Against Virtually Everything. About 55% of employees are somewhere in between. They are neither engaged in their work, nor disengaged. They just show up, and are usually bored most of the time.

The good news is that the choice is ours. We can choose to be a “cave dweller,” or we can choose to find a purpose in our job. In the real world, most of us can’t do what we like, but we can like what we do. And with a purpose-driven job, the chances are good that we will like what we do.