Maybe it’s Time for a New Foundation

March 16, 2013

FoundationWould you build a 30-room mansion on a foundation made for a small Colonial? Sometimes as organizations grow, they may no longer fit on the foundation that was perfect when they were a start up. An organization outgrowing its foundation is a frequent problem, and great leaders instinctively adjust the foundation for the size of the current business, ensuring a stable condition.

In my analogy, the foundation is the strategic plan for the organization. Every business needs an operating framework that includes the following things at a minimum: Values, Vision, Mission, Behaviors, SWOT, Goals, Strategies, Tactics, and Measures. Without these guiding premises for the business, it would be as useless and grotesque as a luxury cruise ship with no power or operational engine.

When organizations start out, they are often small groups of people who operate like a family. The procedures can be informal and communication is just raising one’s voice to be heard in the next cubicle. Customer focus is pretty easy, because everyone in the office can hear the phone conversation the service person is having with a customer in need. In this small business mentality, the foundation items mentioned above are easy to describe, but that does not mean they should be ignored. Some level of documentation of things like values and vision will help the young organization to survive the treacherous infant years and grow into adolescence.

In the subsequent paragraphs, I will use sales revenue as a surrogate for the size of an organization. That variable is one typical measure that is often used. Realize that there are many other factors that can require a change to an organization’s foundation. For example, a not for profit group may take on a new major activity. Another example is a volunteer organization deciding to change their model for meetings. Any fundamental change in conditions can create the need to re-examine the foundation documents.

When an organization reaches roughly $50M annual revenue, the old foundation no longer fits, because there is usually a new physical space, and communication has become much more complex as the size and staff of the entity grows. It is time to revisit and revise the strategic framework for the journey toward a larger organization. Trying to hang on to the operating rules that applied on starting up will be a formula that severely limits future growth.

Another significant shift occurs somewhere between $100M and $200M annual revenue. By that time, the organization is a fully operating business entity with all the advantages of size, but with all the complexities and bureaucratic pitfalls that beset a large organization. Once again, it is imperative when organizations go through this metamorphosis that the foundation be resized to work correctly. The operating realities of a large organization are vastly different from a mid-sized company, and the strategic framework must reflect these realities or the organization will suffer.

It is a best practice to review and modify an organization’s strategy about once a year to verify it is still configured correctly for the current business situation. Normally these reviews can be done quickly with emphasis only on what has changed since the last review. As the organization reaches certain milestones of size, however, it is time to take a deeper look and make a zero-based activity of the strategic review. This will allow the strategic plan foundation to match the current business reality.


Strategic Jargon

February 16, 2013

dentistDoes your strategic plan clarify or complicate? When organizations do a strategic plan, a bunch of specific words are used to describe the various pieces, but you would be surprised how those words are often used incorrectly. Many people hate to work on strategy because it is either eternal or terrifying, like going to the dentist. This problem fascinates me, because I do a lot of strategic work with corporations, not-for-profit groups, and educational institutions. I also teach strategic thinking at two universities. One cure for confusing strategic plans is to use the jargon correctly.

For example, it is common to have the mission and vision statements mixed. I have written about that problem and given some typical examples in another article entitled “Mission and Vision Essentials.” Another common sticking point is getting the strategy separated from the tactics. Strategy is the overarching way you are going to move from the current situation to the vision, and tactics are the detailed actions you will take to accomplish the strategy.

Most facilitators have an order they prefer when helping groups with strategy. I believe it is not essential to have a rigid pattern, but I generally prefer to start out with the values. Reason: Values are a kind of foundation upon which the other elements rest. To me, putting values late in the process feels like digging the foundation after the house is already constructed.

A key element in most strategic work is a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This work is the basis for determining an intelligent strategy. It consists of two views of the organization. In the first view, we look through a “microscope” at the internal strengths and weaknesses of the current organization. The second view is looking through a “telescope” at the environment around the organization to determine the opportunities and threats.

The SWOT analysis can be a time consuming and very boring process. It does not need to be. Facilitators can move through this exercise by breaking up a large group into four subgroups for the exercise. The use of creative techniques, like giving a prize for the most novel idea, can keep the atmosphere light. Of course, like in any brainstorm activity, it is essential to have a “safe” environment where the ideas are just captured, but not critiqued during the session.

One technique that I like to use is a “two wave” approach to the ideas. Let’s suppose we just completed a 10 minute discussion of the “Opportunities” part of SWOT. I then will say something like this, “That is a really great list of opportunities. We could stop here, but I want to challenge the group.

Most of these ideas came quickly and were from the top of your minds. I am sure there are additional creative and dynamite ideas still lurking in the corners of your brains. Let’s take another 10 minutes and see if we can double the number of opportunities on our list.” That process brings out some highly creative ideas, because all the obvious ones have already been mentioned.

I do not use this technique for all sections of the SWOT, as that would get old. It works best for the opportunities section.

After doing a SWOT, it is possible to identify the overarching strategy and tactics. A mistake made by most organizations is to have too many strategic thrusts in the analysis. The reason for a strategic plan is to focus effort on the vital few activities. If you have 32 high priority strategies, you will have trouble making much progress. I encourage groups to narrow the analysis down to three strategies: perhaps four.

One additional activity that is extremely important, but often left out by groups, is to document the behaviors we expect of team members. Without specific behaviors stated in advance, it is difficult to hold people accountable for doing them.

I use a story to illustrate what the jargon on a strategic plan means. Sometimes this helps groups focus on the work and not get muddled up in the terminology. Here is a typical story I use for that.

I liken the strategic process to taking a trip. I want to go from New York City to Toronto. My mission is to have a safe and enjoyable trip. I am considerate and make sure people on the other end are aware of my plans (values). Reaching Toronto is my vision; I can see the skyline in my mind.
I now look at my resources: my late model car is a strength; the fact that the tires are almost bald is a weakness. I see on the map there are some excellent highways (opportunities) but also there is some potential bad weather on the way (threats). I need to select the route and timing wisely.

I decide which day to leave and the route to take (my strategy). The plan is to stay in Toronto three nights, because I have two days worth of business to conduct. My goal is to drive there in 10 hours. I know it is not possible to get there in 9 hours, and I am willing to accept up to 12 hours if there is construction or other delays. There are contingency plans associated with potential problems.

Then I figure out what things to pack, decide what time to leave, and buy two new tires (tactics). I monitor my progress and determine my gas mileage along the way (measures). For example, I know it is necessary to reach Buffalo by 1 pm to make my timing goal. I drive within the speed limit, am courteous to other drivers, and I stop frequently enough to not get over tired (behaviors). I have a very good chance of having a good trip, which was my original mission.

Now if I can only get those SOBs in Toronto to sign my contract, I will be fine. Hold on a minute; maybe that is worth some planning as well. Maybe my vision in the first place should have been more about a signed contract than about seeing the Toronto Skyline. For that, I need to make sure my strategy achieves the true purpose for the trip, and make sure all parts of the plan align with that objective. In this case, I would have been wise to state the vision was to get a signed contract, and the trip to Toronto was one of the strategies. Now my strategic plan would stand a better chance of getting me what I really need.

The process of creating a strategic plan is fairly straightforward, yet many groups get tripped up with all these strange words, and come up with a plan that looks good on paper but does not work well in the real world. That is a colossal waste of time. Make sure you have someone who knows what he or she is doing lead the activities when creating your strategic plan.


Get Mission and Vision Statements Right

February 10, 2013

VisionMost organizations have done some strategic planning work that includes generating a mission statement and vision statement. I am amazed how much confusion there is relative to these two simple concepts and how the quality of statements is all over the map. This article will untangle the mess and give examples to show the difference in quality.

There are huge differences between a mission statement and a vision statement, although some organizations try to combine them into one statement. Actually, I have seen several organizations that have a mission statement that is really a vision and a vision statement that is their mission. It does not kill the organization, but it can get really confusing, and since the role of these statements is to clarify rather than confuse, why not get it right?

The mission statement is always about current reality. It is what we are trying to accomplish every day at work. It tells people what is important now, and it is crystal clear about that. Let me share a good mission statement and a terrible mission statement.

Great Mission statement – for the Wegmans Grocery Chain – “Every day you get our best.”

Terrible Mission statement – “To establish beneficial business relationships with diverse suppliers who share our commitment to customer service, quality, and competitive pricing.”

The reason the first one is good is because it is short, memorable, and it actually tells people what is important to do today at work. If you work at Wegmans, you know exactly how to treat customers every day.

The second mission statement is not good, because it is a bunch of management-speak and does not even give a whiff of what people are supposed to do at work. In fact, that statement could apply to a hospital, a garbage collection firm, a lawyer’s office, a manufacturing plant, the US military service, a real estate firm, or a baseball team, to name just a few. In reality, that mission statement is for Denny’s – – What? Where is the food? Isn’t Denny’s about getting wholesome food to people at good prices? Fill the tummy with really good stuff, and don’t soak the customer, folks! Don’t talk about establishing beneficial business relationships with diverse suppliers… etc. That is not your mission!

The vision statement is entirely different. The vision is all about where the organization is trying to go in the future. Without a good vision, the organization is like a ship without a rudder. You can go out on the ocean and sail around, but your chances of getting anywhere interesting or profitable are nil. You have no ability to control your destiny. You don’t even know where you are going.

Really good vision – Gorbel Inc. (maker of Cranes) – “We defy gravity”

Really bad vision statement – “Diversity means valuing differences. It’s a corporate value that must be continually developed, embraced, and incorporated into the way we do business.”

The first one makes a great vision statement for many reasons. First, it is short and punchy: easy to remember. Second, it really has a double meaning. One refers to the product made by Gorbel, but the second is that they intend to keep “going up,” even when the market goes down – “We defy gravity.” Now, we all know that to defy gravity literally without assistance is impossible, but that does not prevent the statement from being a powerful and brilliant vision for Gorbel Inc..

The second one is terrible because it, again, does not give a clue about the business and only refers to one thing – diversity. Well, there is nothing wrong with diversity as a value, but if that is the only thing mentioned in the vision, the organization has nowhere to go but down. In fact, they did go down. That was the vision for Blockbuster. Bye Bye now!

It does not take any extra time or energy to get these concepts right. Make sure when you do your strategic plan that you do not mix up the concepts of Vision and Mission, and do think about having high quality statements rather than drivel, so they really work for your organization.


Engagement and Empowerment

November 25, 2012

Engagement and empowerment are two words that get tossed around organizations and OD circles. These words are often confused. I have heard the terms used interchangeably, which is a mistake. The best way to demonstrate the difference between these words is to contrast two scenarios. I will focus on a specific job (customer service representative) for the description, but you can easily extrapolate the concepts to any job once the distinction is clear.

Engaged but not Empowered

Here the customer service person is fully on board with the goals of the organization. She knows her job and wants to help the customer. Unfortunately, she is constrained by numerous rules that tie her hands from fully providing service. For example, she may not be able to issue a refund until the incorrect merchandise has been returned and verified to be in good shape. She may have to get “approval” from a superior to authorize a shipping waiver. There can be numerous administrative hurdles that keep this engaged customer service employee from having the power to execute her job to the satisfaction of her customer. If she is talking to a customer with a faulty chain saw, she might say, “That is a shame you are having a problem with your chain saw. I need you to take the saw in to one of our service centers in your area to verify this is not an operator type of problem before I can have you send it to me and get you a replacement saw.”

Empowered but not Engaged

In this case, the customer service rep has the power to do anything she thinks is useful, but this particular person is not connected well to the business goals. She really does not care if the organization does well; all she wants to do is make the customer feel great. In this case, when a customer complains about his chain saw not working properly, she might say, “Oh I am sorry you have had that problem. Let me send you a full replacement chain saw, and I will also include a carrying case (valued at $60) and some coupons for 6 free chains (valued at $80 total).”

It is obvious that neither of these conditions is the best situation for the employee and the organization. We need to have employees who are fully engaged in the business and fully empowered to accomplish their tasks.

Let us take a look at the impact of these two words on the viability of an organization.

Engagement

In “Smart Trust,” Stephen M.R. Covey reported on some research showing that in the average company there are only two engaged employees for every one disengaged employee. In this case, much of the inherent power of the individuals is leaking out and not available to the organization. Contrast that situation with world class organizations where there are nine engaged employees for every one disengaged employee. You can see the huge difference, and that difference goes quickly to the bottom line.

Having people engaged in the business means having them truly understand the vision for the organization and fully comprehend their role in making that happen. Beyond understanding, to be fully engaged, a worker needs to be fully committed to accomplishing her role, not just involved in the work. Someone once said that the difference between involvement and commitment is like the difference between eggs and bacon. In the case of the eggs, the chicken was involved; in the case of the bacon, the pig was committed!

Empowerment

Empowerment is more closely related to trust. Employees bring their own internal level of empowerment and confidence in their abilities to do their jobs. Managers can increase empowerment through clear communication and a trust-building management style. Unfortunately, managers can decrease an employee’s empowerment and confidence level through negative communication or too many restrictions.

The extent to which people engage their personal power for the benefit of the organization, and the level of freedom they are given to do things right, will determine the level of empowerment experienced by the organization. In OD circles, we use the term “maximum discretionary effort.” The goal of empowerment activities is to solicit maximum discretionary effort from all people. How can we accomplish that in the real world?

First, it is important to realize that what empowers me is probably somewhat different from what empowers you. For an organization to obtain the highest level of empowerment, there needs to be a matching effort between each individual and the conditions that will create a culture that extracts maximum discretionary effort for that person. It sounds complicated, but it is really a process of knowing the people who work for you.

The secret sauce to create a culture of higher empowerment is trust. As trust increases, people naturally feel more empowered because they are allowed to make decisions based on a firm understanding of the goals, but they can accomplish those goals in their own unique way.

Try to avoid mixing the concepts of empowerment and engagement. They are two very different concepts, although they sound almost the same. Seek to obtain both of them through the liberal application of trusting behaviors, and you will experience the best effort that people have to offer.


8 Ways Leaders Build Culture

January 16, 2011

Apathetic people exist in every organization. One can fault workers who allow themselves to be trapped in a state of despair. Managers typically describe these people as having “bad attitudes,” but the culture created by leaders is often the root cause of the problem. If these same individuals are put in a culture of trust, respect, and challenge, many of them will quickly rise up to become happy and productive workers. It is essential that each individual in the workforce find real meaning in the organizational culture. Culture is determined by numerous actions and concepts, but it starts with the values and vision of the leader.

The culture of an organization is not easy to define. Most of the Leadership textbooks I have read describe the culture in terms of physical attributes that characterize an organization. For example, here is a typical list of the things purported to make up a company culture.

• Physical structure
• Language and symbols
• Rituals, ceremonies, gossip, and jokes
• Stories, legends, and heroes
• Beliefs
• Values and norms
• Assumptions

The above list is a montage of the lists in many textbooks. When you think about it, these items do go a long way toward defining the culture of an organization. Unfortunately, I believe these items fall short because they fail to include the emotions of the people. After all, organizations are made up of people, at all levels, interacting in a social structure for a purpose. Let us extend the list of things that make up the culture of an organization.

• Is there a high level of trust within the organization?
• To what extent do people have the opportunity to grow in this organization?
• Do people feel safe and secure, or are they basically fearful?
• How do people treat each other on their own level and on higher or lower levels?
• Is there mutual respect between management and workers?
• Is the culture inclusive or exclusive?
• Do people generally feel like winners or losers at work?
• Is the culture one of reinforcement or punishment?
• Are managers viewed as enablers or barriers?
• Are people trying to get into the organization or trying to get out?
• What is the level of satisfaction for people in this organization?
• Can people “speak their truth” without fear of reprisal?
• Do people follow the rules or find ways to avoid following them?

What can leaders do to ensure that the right culture is built and people have a sense of purpose and meaning in their work? Here are eight approaches that have been used by successful leaders.

1. Have high ethical and moral standards. Operate from a set of values, and make sure people know why those values are important. The essence of values needs to be implanted in the hearts and minds of everyone, and behaviors need to be consistent with them. A plaque on the wall does not make for good values. People living up to their highest standards makes for good values and an environment where people can trust each other and their leaders. It has to start with the leaders.

2. Operate with high Emotional Intelligence. The ability to work well with people is critical. Without Emotional Intelligence, leaders do not have the skill to transform intentions into meaning within people. Leaders with low Emotional Intelligence also have the most significant blind spots in how they are perceived by other people, as documented by Daniel Goleman.

3. Build trust. Trust is the glue that holds people together in a framework of positive purpose. Without trust, we are just playing games with each other, hoping to get through the day unscathed. The most significant way leaders help create trust is by rewarding candor, which is accomplished by not punishing people for speaking their truth. Most leaders find it difficult to reward candor, but it is the heart of great leadership, as documented by Warren Bennis. Trust is also enabled by a shared set of goals or vision.

4. Create a positive vision of the future. Vision is critical, because without it people see no sense of direction for their work. If people have a common goal, and it is communicated well, then it is possible for them to support each other and actually get excited about the future. People have an unquenchable thirst for information. Monthly newsletters and occasional Town Hall Meetings do not constitute adequate communication. People must feel informed and “in the loop” every day. Having a positive vision of the future, and being able to communicate it well, enables the inevitable change process to be more effective.

5. Lead change well. Change processes are in play in every organization daily, yet most leaders struggle with change processes. Using a change model can help people deal with the challenges of constantly changing conditions. An example is to use the grief counseling process where leaders help people cope with the four phases of change: 1) Anticipation, 2) Ending, 3) Transition, and 4) Beginning. People will rise to a challenge if it is properly presented and managed. Challenge is different from constant demands to perform at levels beyond reason, which leads to resentment and burnout. Properly designed, challenges help people find meaning in their work, which keeps them from becoming apathetic and helps enable strong teamwork.

6. Build High Performing Teams. A sense of purpose is enhanced if there is a kind of peer cohesion brought on by good teamwork. Great teams derive an adrenalin rush from achieving results against high goals. Foster togetherness in teams so people will relate to their tasks instinctively. High performing teams need a common goal, trust in team members, and good leadership. Strong teams help build enthusiasm and morale.

7. Build morale the right way. Motivation is derived by treating people with respect and giving them clear vision and autonomy. Avoid trying to motivate people by adding hygiene factors, like picnics, bonuses, or hat days. The acid test is whether a manager frequently uses the word “motivate” as a verb. If a manager constantly says things like “we have to find a way to motivate them,” it indicates a poor understanding of the nature of true motivation. A better approach is to use the word “motivation” as a noun. Motivation is the outcome of a great culture rather than something one does unto other people. Building motivation also means treating people the right way, which includes good reinforcement.

8. Recognize and celebrate excellence. Reinforcement is the most powerful tool leaders have for changing behavior. In a learning environment, errors in reinforcement provide clues to how an improved system of reward and recognition can enhance the meaning of work. Leaders need to learn how to reinforce well and avoid the minefield of reinforcement mistakes that are easy to make. For example:
• Do not try to apply the same reinforcement techniques to all individuals or all situations.
• Avoid too much use of trivial trinkets like t-shirts or hats.
• Make sure the recognition is truly reinforcing to each individual.
• Ensure fairness when reinforcing individuals or groups.

Most of the above concepts sound like common sense; unfortunately, they are not common practice in many groups, which contributes to much of the apathy in organizations. To have people rise to their level of potential, you need a strong culture. To accomplish that, focus on the above concepts, and see a remarkable transformation in your organization. Become a student of these skills, and teach them to other leaders. Learn how to personify the concepts listed above to rise to the level of great leadership.


Trust Keeps Leaders off the Slippery Slope

August 29, 2010

Great leaders have the ability to build a culture of high trust. They consistently work to nurture an environment where people know it is safe to bring up difficult topics because they will be rewarded for doing so. This atmosphere is hard to find in most organizations, but where it does exist, the entity has numerous sustainable competitive advantages. Let’s examine ten of the more obvious ones:

1. Lower risk of ethical debacles – When people know they will be rewarded for speaking their truth, a remarkable thing occurs. They will tell you if an action is not the right thing to be doing. You may be saying “we would never be guilty of doing anything unethical.” Well, most likely you would be wrong. Reason: The number of potentially unethical activities that are on the margin are legion. Any leader will unintentionally step over the ethical line from time to time and not even realize he or she is doing it. That is how most ethical messes, like Enron, get started. At first, it might be just a cosmetic, and perfectly legal, change in reporting transactions to improve clarity. Then, if it is OK to do that today, tomorrow we can do a little more. The day after that someone else is involved, and we slowly but surely head in a direction where everyone would agree we are in an ethical quagmire. It may have started out innocently, but in the end it was clearly illegal. In a culture of high trust, all employees are the watchdogs who let leaders know if they are in danger of heading toward eventual problems, long before anything illegal or dumb has transpired. In high trust organizations, whistleblowers are a blessing rather than a problem.

2. Higher productivity – It is pretty simple, really; turned-on people produce more. Because there is less bickering and selfishness in high trust groups, people tend to pay attention to the true mission and goals. They motivate themselves to do excellent quality work rather than what we see in most organizations where management is constantly trying to figure out more attractive carrots to dangle before workers in a desperate, often pathetic, attempt to “motivate them.”

3. Lower costs – This occurs because people are engaged in the business rather than in outdoing each other. Stephen M.R. Covey, in his book The Speed of Trust, highlights that when trust is high costs go down because speed goes up. It is axiomatic. If something can be accomplished faster, it will take fewer resources of all kinds, so it will be provided at lower cost.

4. Less conflict – The most significant sources of conflict in any workplace are the little things that people do which annoy one another. One of my favorite behavioral rules for teams is “We will remember that we are all adults and try to act that way most of the time.” Low trust encourages people to squabble with each other, often acting like children. In high trust environments, there are still petty differences, but they are usually resolved by open dialog long before a public food fight begins.

5. Focus on the vision – Trust lets groups work side by side in harmony, free to focus on the critical vision rather than build fences of doubt or fear. When trust is low, people focus on the negative side of everything and spend much time trying to protect their parochial interests. Silo thinking is the result. Actually, this is a good test for the level of trust in an organization. Just keep track of the ratio of negative to positive statements you hear in an average day. If the ratio is over 50% negative ( for whatever reason) you can be sure the environment is one of low trust.

6. Trust is evident to customers – When people walk into a business where there is low trust, they get a creepy feeling almost instantly. Human beings are quick to pick up small clues in the body language or tone of voice of the people serving them. People instinctively seek to do more business with an outfit that has high trust.

7. Focus on development of people – High trust organizations spend more energy developing people because it breeds satisfaction and is just smart business. Learning organizations with great bench strength have lower turnover and more dedicated employees. Low trust groups are so consumed with stamping out problems of their own making there is little time or energy to put into developing people.

8. Improved communication – In employee satisfaction surveys, the issue of communication is habitually mentioned as the most significant problem. Reason: In low trust environments, communication is often viewed as manipulative. People sense a degree of spin or even lies, and the leaders lose credibility. There is communication in low trust groups, but most of it is from the “back channel” of rumors and gossip. In high trust groups, communication is credible and believable. The news may not always be good, but people respect their leaders for telling them the truth.

9. Better reinforcement – When leaders in high trust groups reinforce the workers, it feels good to them. Whatever form it takes, (verbal praise, special recognition awards, small bonuses, theater tickets, parties, etc.) people appreciate the sincere effort to recognize great performance. When trust is low, efforts to reinforce workers are often met with skepticism. Reason: People are used to being manipulated, so the reinforcement appears to be part of a ploy to squeeze the last drop of productivity out of an overworked group of people.

10. More efficient problem solving – When trust is low, solving a problem is like wrestling an octopus. As you work on one part of the problem, another tentacle having to do with personal interaction starts winding around your neck. In high trust groups, solving problems is efficient because the only thing to resolve is the problem itself, not a myriad of other gremlins hiding under the surface.

These are just ten ways a high trust organization has a huge advantage over a group with low trust. There are probably dozens of other advantages one could name. The point is that if you are running or involved with an organization of low trust, you cannot possibly hope to compete long term. Seek to build trust and maintain it in every action every day. The payoff is huge.


Keep Values Simple

August 15, 2010

Simple Values

Few people would doubt the impact of a good set of values for any organization. Values provide a bedrock of beliefs on which leaders build the culture for their group. The true power of values lies in having everyone in the organization not only understand them but live them every day. That is why I believe it is a mistake to make the values too complex.

Some leaders get enamored by the idea of values and create a set of complex rules that would take a rocket scientist to remember. It is not uncommon to have a list of 20-30 values published by a leader. This sounds like a good idea on the surface; after all, the more values we have the better, right? Not so fast! If the list is cumbersome and hard to remember, then people will have a difficult time remembering them, much less following them every day.

Coach Krzyzewski of the Duke Basketball Program modeled a kind of philosophy with values that helps illustrate the power of a short memorable list. He has used the analogy of the “fist” with each finger being one powerful value that is used to create passion and unity among his teams. The fingers represent 1) Communication, 2) Trust, 3) Collective Responsibility, 4) Care, and 5) Pride. By centering all activities in relation to a powerful fist, Coach K has nurtured a consistent champion level team that has won two National Championships.

Another coach who understood the benefits of a simple philosophy of values was Lou Holtz. He took over 6 collegiate football programs in his career. He never inherited a winning team, but never failed to take that team to a Bowl Game by his second season at the latest. His values were boiled down to only three concepts: 1) Do what’s right, 2) Do the best you can, and 3) Treat others like you would like to be treated. The incredible simplicity of this philosophy made it easy to translate the passion embodied in these values into the hearts of all players. The results speak for themselves.

Simple but great values are not just for sports teams. Any organization will benefit from a memorable set of foundational concepts. My home town of Rochester, NY is blessed to be the home of Wegmans, one of the most successful chains of grocery stores in the world and a frequent top placement in the 100 best places to work in America. The current CEO, Colleen Wegman, said of their values, “We’re committed to our Who We Are Values because they set a strong foundation for us as a company – a foundation of caring about people and each other.” The Wegmans values are very simple: 1) Caring, 2) Respect, 3) High Standards, 4) Making a Difference, and 5) Empowerment.

If you are a leader in an organization, challenge your senior team to come up with a handful of powerful words that describe the essence of your core values. Keep the list of values short so everyone will remember and live them daily.

Simple Values

Leaders Create Meaning

July 11, 2010

Too many people go to work each day in a zombie-like state where they go through the motions all day and try to stay out of trouble with the boss. Work life is a meaningless array of busywork foisted upon them by the clueless morons who run the place. They hate the environment and intensely dislike their co-workers. Their suffering is tolerated only because there is no viable option for them to survive. What a pity that anyone would spend even a single day on this earth in such a hopeless atmosphere.

We can fault the individuals who allow themselves to be trapped in this way, but I believe the environment created by leaders has a great deal to do with this malaise. Reason: if you put these same individuals in an environment of trust and challenge, nearly all of them would quickly rise up to become happy and productive workers. It is essential that each individual in the workforce find real meaning in the work being done, and the responsibility is on leaders to make that happen.

Some good research into this conundrum was presented by Viktor Frankl a half century ago in his famous book, Man’s Search for Meaning. Frankl posits that it “is a peculiarity of man that he must have something significant yet to do in his life, for that is what gives meaning to life.” He discovered this universally human trait while surviving the most horrible of life conditions in the Auschwitz Concentration Camp. One cannot imagine a more oppressive environment, but believe it or not, many people at work feel like they are in a kind of concentration camp. The antidote is for leaders to create something significant yet to do.

Dave and Wendy Ulrich, co-authors of The Why of Work put it this way. “In organizations, meaning and abundance are more about what we do with what we have than about what we have to begin with.” They point out that workers are in some ways like volunteers who can choose where they allocate their time and energy. For their own peace and health, it is imperative that workers feel connected to the meaning of their work.

What can leaders do to ensure the maximum number of people have a sense of purpose and meaning in their work? Here are a dozen ideas that can help.

1. Create a positive vision of the future. Vision is critical because without it people see no sense of direction for their work. If we have a common goal, then it is possible to actually get excited about the future.

2. Generate trust. Trust is the glue that holds people together in a framework of positive purpose. Without trust, we are just playing games with each other hoping to get through the day unscathed. The most significant way leaders help create trust is by rewarding candor, which is accomplished by not punishing people for speaking their truth.

3. Build morale the right way. This means not trying to motivate people by adding hygiene factors like picnics, bonuses, or hat days. Motivate people by treating them with respect and giving them autonomy. Leaders do not motivate people, rather they create the environment where people decide whether to become motivated. This sounds like doubletalk, but it is a powerful message most leaders do not understand.

4. Recognize and celebrate excellence. Reinforcement is the most powerful tool leaders have for changing behavior. Leaders need to learn how to reinforce well and avoid the mine-field of reinforcement mistakes that are easy to make.

5. Treat people right. In most cases focusing on the Golden Rule works well. In some extreme cases the Golden Rule will not be wise because not all individuals want to be treated the same way. Use of the Platinum Rule (Treat others the way they would like to be treated) is helpful as long as it is not taken to a literal extreme.

6. Communicate more and better. People have an unquenchable thirst for information. Lack of communication is the most often mentioned grievance in any organization. Get some good training on how to communicate in all modes and practice all the time.

7. Unleash maximum discretionary effort in people. People give effort to the organization out of choice, not out of duty. Understand what drives individuals to make a contribution and be sure to provide that element daily. Do not try to apply the same techniques to all individuals or all situations.

8. Have high ethical and moral standards. Operate from a set of values and make sure people know why those values are important. Leaders need to always live their values.

9. Lead change well. Change processes are in play in every organization daily, yet most leaders are poor at managing change. Study the techniques of successful change so people do not become confused and disoriented.

10. Challenge people and set high expectations. People will rise to a challenge if it is properly presented and managed. Challenged individuals are people who have found meaning in their work.

11. Operate with high Emotional Intelligence. The ability to work well with people, upward, sideways, and downward allows things to work smoothly. Without Emotional Intelligence, leaders do not have the ability to transform intentions into meaning within people.

12. Build High Performing Teams. A sense of purpose is enhanced if there is a kind of peer pressure brought on by good teamwork. Foster great togetherness of teams so people will relate to their tasks instinctively.

This is a substantial list of items, but most of them are common sense. Unfortunately they are not common practice in most organizations. If you want to have people rise to their level of potential, they must all have a sense of meaning. To accomplish that, focus on the above items, and see a remarkable transformation in your organization.


Leaders and Managers

March 16, 2010

There is a lot of information on the contrast between leaders and managers. Typically we see a side by side comparison with items such as:

“Managers do things right” while

“Leaders do the right things.”

I like to take a different slant on describing the differences because I believe a pure manager comes to work with an entirely different mindset from a pure leader. Of course, there really is no such thing as a pure manager or leader, it is always some kind of a combination of the two concepts. Here is how I describe the differences.

The Manager

The manager wants everything to go smoothly. He or she wants every process to run the way it should and get the maximum productivity. There should be no waste. The manager wants everyone to follow all the rules and be there every day motivated to do good work. In essence, the manager wants to stabilize things and clone everything to be exactly right. The manager is all about doing things right, and is most closely associated with the mission of the organization (what they are trying to accomplish). The manager works with the process, the equipment, the schedule, and the people in terms of what they should be doing. Managers are now oriented.

The Leader

The leader is often a destabilizing force. He or she is most interested in where the organization is going rather than just optimizing today’s processes. That may mean making people unhappy for some time in order for the greater good. If people are too complacent and do not see the dangers, the leader is there to create a burning platform. Leaders are sometimes very unpopular. The idea is to do the right things, which may mean some pretty difficult decisions. The leader is all about the vision of the organization (where they are trying to go). The leader works with the balance sheet, the strategic plan, the product line, and the people in terms of what they can become. Leaders are future oriented.

The Leader/Manager

This person is able to combine the best of both worlds and act in both roles. All of us act as leaders and managers at times, but each of us favors one mode or the other. A good balance between the two extremes is the best place to be. In general, the world has far more competent managers than competent leaders, so if you have leadership tendencies, that is a good thing to have.

Really great leaders do not mind being average managers. They recognize their weakness and surround themselves with outstanding managers to handle the details.