Your Workforce: Expense or Asset?

May 14, 2019

Pay close attention to how managers view the commodity called “labor.” In most organizations, the perspective is that labor is an expense. It is handled on the financial statements as an expense.

In most cases, labor is the highest monthly expense for an operation. It is the payment made in order to secure the resources needed to create the products or services sold by the organization.

As the largest expense for many operations, labor is watched and managed very closely. The profitability of the operation is directly impacted by how many workers there are, so all kinds of techniques are used to keep this variable under tight control.

Managers want to have exactly the right number of people on the roster, so perhaps they utilize temporary workers during peak times to mitigate overtime. They need to be careful because the temporary workers need to be sufficiently trained so there are no safety issues or quality lapses.

In many professional settings, the workers are stretched to the elastic limit and beyond. Managers ask individuals to take on responsibilities that were formerly done by two people or even more. This is done in the pursuit of maximum productivity, which is thought to be the prime governing mechanism for profit.

When budgeting, managers at various levels play games trying to pump up the size of the workforce realizing there will be cuts down the road. Alternatively some managers cut the estimated number of people to the bone in order to show positive yearly trends in productivity. The sequence goes on year after year in many organizations. The charade is well known by managers at all levels, and the posturing or tactics sometimes go beyond annoying to downright fraudulent.

Only in a small percentage of organizations do they view employees not as expense items but as assets. Oh sure, most companies have a value on the plaque in the lobby that states, “People are our most important asset,” but the managers’ daily actions reveal the hypocrisy of that platitude.

If people were the most important asset, then during times of low demand, the managers would be selling inventory or buildings and training the employees for future service. Instead, you inevitably see layoffs or at least furloughs to control labor expenses in slack times.

Try looking through a different lens

What if we really did think of employees as assets rather than expenses? Would that provide some unique and amazing possibilities for profits? I think so. Here are some benefits you might see…

1. People would feel valued

In most organizations, people feel like pawns. The investment is always minimal, and the expectation is that employment is a temporary condition at the whim of management and the vicissitudes of the fickle marketplace.

Treating people as valued assets would bring out the best in people because they would feel more engaged in the business. The magnitude of this effect can only be estimated, but it is a lot larger than most leaders realize.

For example, several studies have shown that the productivity multiplier between low trust groups and high trust groups is two to five times. When people are engaged in the work, they perform significantly better because they feel valued.

2. Development of people would be emphasized

The mindset of treating employees as assets would lead to continual training. When you invest in an asset, you take care of it and make sure it is performing at peak levels. This creates a situation where employees truly want to stay with an organization, which reduces the issue of turnover.

Turnover is often the most controllable expense in an organization, yet the true cost is hidden somewhat. World class organizations achieve turnover rates below 5%, while many organizations habitually live with a 30% or higher turnover rate. Do you know the turnover rate for your organization? Do you have an estimate of the cost for turnover?

3. The culture would be uplifting

When employees are learning and growing, they become more valuable not only for what they can do but for how they influence others. The workplace takes on a feeling of freedom and joy rather than of being an oarsman on a Viking ship. When people are treated like assets, they band together as a strong team or family that is unstoppable. The power of synergy is obvious, and the productivity gained from lack of quarreling is immense.

4. The focus would be on the right stuff

In most organizations, where people are considered expenses, the daily focus is myopic. People are grumbling about each other and trying to protect their turf and future. The atmosphere is one of scarcity where the resources are not there to do what is needed to survive. People are always clamoring for more resources.  I knew one professional who spent about 40% of his time going around grumbling about not having enough resources to do his job.

When people are assets, the atmosphere is one of abundance where there is high value internally. People focus on the customer and on the mission of the unit. Since there is no longer a need to protect your back, you have the ability to move beyond just satisfying the customer or even delighting the customer to actually amazing the customer. That focus becomes a competitive weapon which further entrenches security for the future.

5. Organizations could be flatter

The need for numerous hierarchical levels has to do with control. When people are treated as expense items, they need to be kept in line. That means the span of control for any one manager cannot be too great. There is a lot of accounting work that needs to be done in order to assure the expense of labor is optimized.

When people are treated as assets, trust grows naturally. That dynamic means less supervision is required, so over time the hierarchy can become flatter. The overhead cost savings available to most organizations is staggering.

6. Improved Teamwork

If people are assets, the organization is going to do a lot of cross training, especially during slack times.  That increased capability pays off handsomely when the cycle reverses and there is a need to cover some critical positions based on bench strength.

When workers cross train each other, they form a kind of bond that is intangible but highly valuable in times of high need.

These are just six ways an organization can prosper by considering employees as assets instead of expenses. The operation can be much more profitable in the long run with this kind of mindset. Try it in your organization and experience the difference for yourself.

 

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of: The Trust Factor: Advanced Leadership for Professionals, Understanding E-Body Language: Building Trust Online, and Leading with Trust is Like Sailing Downwind. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


The Benefits of a High Trust Environment

March 26, 2019

The advantages of working in a high trust environment are evident to everyone from the CEO to the shop floor, from suppliers to customers, and even the competition. Building and maintaining trust within any organization pays off with many benefits.

Here are 12 benefits of working in a high trust culture:

1. Problems are easier to solve – because the energy is on the real problem, and people are not afraid to suggest creative solutions.
2. Focus is on the mission – rather than interpersonal protection.
3. Efficient Communication – less need to “spin” information.
4. Less unrest – little need for damage control.
5. Passion for the work – that is obvious to customers.
6. A real environment – no need to play head games.
7. People respect each other – less bickering and wasting time.
8. Fewer distractions – things get done right the first time.
9. Leaders allowed to be human – can make a mistake and not get derailed.
10. Developing people – emphasis on being the best possible.
11. Reinforcement works better – because it is not perceived as manipulative.
12. People enjoy work – the atmosphere is light and sometimes even fun.

With advantages like these, it is not hard to figure out why high trust groups out perform low trust organizations dramatically. There have been many studies that indicate the leverage you get with a high trust group over a low trust one is at least three times. That is why it is common for groups to more than double productivity in less that a year if the leaders know how to build trust.

There are dozens of leadership behaviors that will develop higher trust. An example would be to do what you say (“walk your talk”). I believe the most powerful leadership behavior that will develop higher trust is to create a safe environment. My quote for this phenomenon is “The absence of fear is the incubator of trust.”

Creating a culture of low fear is not rocket science at all. Leaders simply need to make people understand that they will not be put down for sharing their opinions as long as it is done in an appropriate way and time. I call this action “reinforcing candor,” because the person needs to feel welcome to share a contrary view without fear. Leaders who can accomplish this kind of culture will have the advantages listed above.
Work to consistently build, maintain, and repair trust in your organization. I believe the leverage in doing so is the most significant path to greatness in any organization.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.TheTrust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 600 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Successful Supervisor 93 Create Your Own Development Plan

September 15, 2018

If you are an active supervisor, most likely you have discussed a development plan with your manager. A key responsibility of all managers is to document a specific plan to improve the capability of their employees. Included in the plan would be training on things like compliance, ethics, safety, and health, as well as operational concepts like Lean Thinking or Six Sigma.

You need a Personal Development Plan

I recommend that each supervisor also have a plan for personal development that is separate from the corporate plan and contains a different set of concepts. Some possible things to consider might be improving your patience, becoming less judgmental, handling stressful situations, and creating greater team cohesion.

How to develop your Plan

First, identify areas in your own performance where more seasoning would improve your effectiveness. Have a chat with your supervisor to get some additional ideas. There are numerous free resources you can use to develop your plan. There are many YouTube instructional videos on specific skill areas, such as becoming less judgmental. The internet has an infinite supply of articles, and there are many educational periodicals such as “The Harvard Business Review.”

How will having a personal development plan help you?

It is human nature to identify the things that other people need to do to shape up, but it is less easy to see what you must do to improve yourself. Focusing some energy on your own developmental opportunities makes your approach to others more balanced. Having improvement goals helps you focus and be more aware of the direction in which you are moving.

Many supervisors get into a pattern of constantly showing body language that signals the individual workers need to make improvements. That mindset conveniently overlooks the fact that the supervisor needs to improve as well. If you would brainstorm things you need to do in order to be a better manager, it would soften your stance on what other people need to do to be more perfect. Let’s take a specific and classic example to contrast the two modes of operating.

Suppose the supervisor notices that some employees are less respectful of their peers than she would like. One obvious course of action would be to have some team building activities and maybe some reading or videos on treating others respectfully. If that thought pattern dominates her conscious thinking, she may be perceived as being impatient.

If that same supervisor had a personal goal to become less judgmental, then her approach to the workers might be better received. The slight shift to acknowledge that she is not perfect either makes her appear to be more reasonable and helpful. The workers would likely respond positively to the change in body language.

Another approach might be for the supervisor to do some reading or watch some videos on respect to see if she is adequately modeling respect herself. Change starts at the top.

How this process helps your employees and organization

By showing the humility to invest in your own growth, your employees can see a person who has no illusion of being perfect. This attitude will make you more of a human being, and your increasing skills will make both your employees and your organization more effective in the long run. A more cohesive team means less drama, higher trust, and greater productivity for the group. You are also modeling good behaviors for your employees, which increases your credibility as their mentor.

This is a part in a series of articles on “Successful Supervision.” The entire series can be viewed on http://www.leadergrow.com/articles/supervision or on this blog.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 500 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Successful Supervisor 60 – Tips to Keep Employees from Driving Each Other Crazy

January 13, 2018

It is a peculiarity of human beings that when people work in close proximity to each other, they eventually find ways to drive each other crazy. It is often the little things that begin to annoy others, and the irritation grows over time until there is an eventual altercation.

This problem does not surface in every instance, but it is so common that supervisors need a kind of tool kit of ways to coach people so they stay out of open conflict.

In this article I will share twelve of my favorite methods of preventing interpersonal conflict from becoming a problem among coworkers. These ideas are also part of a video series I made on the topic entitled “Surviving the Corporate Jungle.” Here is a link where you can view three sample videos (just 3 minutes each) from the series of 30 videos.

Ideas You Can Teach Your Employees

Here are 12 simple ideas that can reduce the conflict between people and provide a more pleasant work environment:

1. Reverse Roles – When people take opposing sides in an argument, they become blind to the alternate way of thinking. This polarization causes people to become intransigent, and the rancor escalates. A simple fix is to get each party to verbalize the points being made by the other person.

To accomplish this, each person must truly understand the other person’s perspective, which is why the technique is effective.

2. Don’t Sweat the Small Stuff – Most of the things that drive you crazy about a co-worker are things that you won’t remember by the end of the day or certainly not later in the week.

Recognize that the things annoying you about another person are really insignificant when considering the bigger picture and the numerous things both of you have in common.

3. Live and Let Live – The other person’s personal habits are just the way he or she is built. Don’t fixate on trying to change the person to conform to what you think should happen. Focus your attention on the things you like.

4. Take a Vacation – When pressure builds up, just take a brief vacation in your mind. Close your eyes, take a deep breath, and visualize a happier place and time.

You can take a vicarious trip to the beach anytime you wish. One trick with this technique is to get as many senses involved as possible; feel the warm air on your cheek, taste the salt water on your lips, hear the gentle lapping of the waves, smell the seaweed by your feet, touch the warm sand on which you are sitting, see the beautiful sunset over the water.

5. Be Nice – Kindness begets kindness. Share a treat, say something soothing, compliment the other person, do something helpful. These things make it more difficult for the ill feelings to spread.

6. Extend Trust – Ernest Hemingway said, “The best way to find out if you can trust somebody is to trust them.” We’ll forgive the flawed grammar, since Ernest is already in the grave, and also since his meaning is powerfully true. Trust is bilateral, and you can usually increase trust by extending more of it to others. I call this “The First Law of Trust.”

7. Don’t Talk Behind their Back – When you spread gossip about people, a little of it eventually leaks back to them, and it will destroy the relationship. If there is an issue, handle it directly, just as you would have that person do with you.

8. Don’t Regress to Childish Behavior – It is easy for adults in the work setting to act like children. You can witness it every day. Get off the playground, and remember to act like an adult.

Work is not a place to have tantrums, sulk, pout, have a food fight, undermine, or any number of common tactics used by people who are short on coping mechanisms because of their immaturity.

9. Care About the Person – It is hard to be upset with someone you really care about. Recognize that the load other people carry is equal or heavier than your own.

Show empathy and try to help them in every way possible. This mindset is the route to real gratitude.

10. Listen More Than You Speak – When you are talking or otherwise expounding, it is impossible to be sensitive to the feelings of the other person. Take the time to listen to the other person. Practice reflective listening and keep the ratio of talking to listening well below 50%.

11. Create Your Development Plan – Most individuals have a long list of what other people need to do to shape up but a rather short list of the things they need to improve upon.

Make sure you identify the things in your own behavior that need to change, and you will take the focus off the shortcomings of others.

12. Follow the Golden Rule – The famous Golden Rule will cure most strife in any organization. We tend to forget to apply it to our everyday battles at work.

If you teach employees to follow these 12 simple rules, there would be a lot less conflict in the work place. It takes some effort, but it is really worth it because we spend so much time working with other people.

Following these rules also means leading by example. If just a few people in an organization model these ideas, other people will see the impact and start to abide by them as well. A big part of your role as a supervisor is to model good interpersonal behavior. That initiative can form a trend that will change an entire culture in a short period of time.

This is a part in a series of articles on “Successful Supervision.” The entire series can be viewed on http://www.leadergrow.com/articles/supervision or on this blog.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 500 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Successful Supervisor 56 – Reducing Turnover

December 9, 2017

In any organization, voluntary turnover is a kind of waste that needs to be held to an absolute minimum. This is true for all levels in an organization and can be particularly important for supervisors.

Reducing employee turnover is not rocket science; however, many companies struggle with very high turnover year after year.

The common denominator of high turnover in organizations comes back to leadership issues. The old saying that “People do not leave organizations, they leave their supervisor” is generally accurate.

If you study the best companies to work for worldwide, you will discover they have a much lower turnover rate than the average numbers.

I believe having the kind of culture where employees are locked in with no desire to leave for any reason is a sustainable competitive advantage. It is easy to achieve if you follow the 10 rules listed below.

10 Low Cost Ways a Supervisor Can Drastically Reduce Turnover

1. Develop People – Organizations that focus on employee development enjoy higher employee satisfaction, which leads to lower turnover.

If each employee has a concrete development plan that is reviewed at least annually and contains a variety of growth opportunities, the employee will have little reason to look for greener pastures elsewhere.

2. Recognize Good Performance – Reinforcing people for doing good work lets them know they are appreciated. Tangible and intangible rewards are a great way to show appreciation for workers who excel.

This improves morale if done well. However, understand that reinforcement can be a minefield if it is not handled properly. Make sure employees receive sincere appreciation by supervision on a continuing basis.

3. Build Trust – By extending trust to employees, supervisors demonstrate their willingness to support them. This pays off in terms of higher trust on the part of employees toward the organization.

There is a whole science on how to build trust. By creating a safe environment, more trust in an organization will lead to lower turnover.

4. Reduce Boredom – Employees who are underutilized, tend to get bored and restless. If there is a vacuum of activity, people often get into mischief.

It is important for supervisors to craft job duties and responsibilities such that people are actively engaged in the work every day.

5. Communicate More – In nearly every survey on employee satisfaction, the issue of communication surfaces as either the number one or number two complaint.

Communication needs to be ubiquitous and consistent. It is not enough to have a monthly shift news letter or an occasional town hall meeting.

Communication needs to take many different forms and be a constant priority for the supervisor.

6. Cross Train – Employees, who have been trained on several different jobs recognize they are of higher value to the organization and tend to be less inclined to leave.

Along with the pleasure of having more variety of work, employees appreciate the ability to take on additional skills. Having good bench strength allows the organization to function well, even during times of high vacation or illness.

7. Don’t Overtax – During lean economic times, companies have a need to stretch resources as much as possible. Many organizations exceed the elastic limit of what employees can be expected to maintain long term. This leads to burnout and people leaving for health reasons or just plain quitting in disgust over the abuse.

It is important for supervisors to assess carefully how far resources can be stretched, because going beyond the elastic limit guarantees a high level of employee turnover.

I believe this rule is habitually violated in many organizations, and they pay for it big time. Stretching people too far is a false economy.

8. Keep It Light – When managers apply constant pressure to squeeze out the last drop of productivity, they often go over the line, and it becomes counter productive.

If leaders grind people down to a stump with constant pressure for perfection and ever higher productivity, the quality of work life suffers. Employees can tolerate a certain amount of this for some time, but eventually they will break down.

It is smart to set aggressive goals, but very important to have employees believe the stretch goals are attainable.

One good way to provide this assurance is to have the employees themselves participate in setting the goals.

The best companies find ways to work in a little fun somewhere, even (and especially) in high pressure situations.

9. Feedback Performance – there needs to be a constant flow of information on how all employees are doing in each area. People who are kept in the dark about their performance become disillusioned and cranky.

The simple kindness of letting people know how they are doing on a daily or weekly basis pays off in terms of lower turnover.

10. Train Group Leaders – All levels of supervision need to be highly proficient at creating an environment where the culture is upbeat, positive, and has high trust. This does not happen by accident, or simply by desire. It takes work and lots of emphasis by the supervisor.

These are 10 ways in which supervisors can lower the level of turnover in their organization. The magic here is not any new discovery; but the consistent application of these principles will make a huge difference in any organization.

The good news is that the items mentioned above are not very expensive. They are all common sense. Too bad they are often not common practice.

This is a part in a series of articles on “Successful Supervision.” The entire series can be viewed on http://www.leadergrow.com/articles/supervision or on this blog.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 500 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Successful Supervisor 32 – Generational Issues

June 25, 2017

Ever since we stopped obsessing about the Generation X individuals (born 1965-1980), we have seen an uptick of writing and energy having to do with Millennials (born after 1980).

At this point, we have an approximately equal number of Boomers, Gen X, and Millennial workers in the U.S. workforce. As a supervisor, you need to keep the built-in communication and style issues from causing problems within your group.

In my leadership classes, I hear a common lament, especially from supervisors, that it is so much more difficult to reach Millennials and to keep them on board than was experienced with the Gen X workers.

I am sure the phenomenon is true, and have some suggestions in this article that may provide some assistance.

Tips for Supervisors

Beware of stereotypical generalities

We often read that Millennials are lazy or less loyal than previous work groups. There may be some truth to the trend in specific cases, but individual differences make it dangerous to label everyone in a specific group as having specific traits.

It is important to understand each person as an individual and not deal with an entire generation with one technique and biased labels. Each worker is a person first and foremost and a member of a stereotypical age group second.

Understand the Generational Environment

Pay attention to the different environment that each person grew up in as a significant force in shaping the way a person thinks or acts.

Way back in the late 1980s Dr. Morris Massey, from the University of Colorado at Boulder, did a series of programs entitled, “What You Are is Where You Were When (you were value programmed).”

At the time, Dr. Massey was focusing on the differences between Boomers (born between 1945-1964) and Generation X (born between 1965-1980). His conclusion was that significant behavioral patterns could be explained by the environment that an individual grew up in, but we had to leave significant room for individual differences before trying to pigeonhole people.

Undoubtedly the most significant difference between Millennials and prior generations is in the area of communications. Millennials were the first fully digital generation, so their whole approach to interfacing with other people is different.

Curiously, the keyboard layout thumbed by all Millennials to “text” each other was invented by Christopher Sholes in 1867. You would think that their main mode of communication with each other would be voice and video.

While there is plenty of that, the preferred method of “conversation” (even when sitting right next to the other person) is by the juxtaposition of letters, spaces, and “emojis” projected onto a little screen.

Just because most Millennials have over-developed thumb muscles does not make them less capable to think or to be dedicated. It is only the vehicle by which they gain and share information that is different, although older generations are catching up in terms of comfort level with texting. Inside we are all people who have dreams and aspirations, regardless of our age.

Have a Concrete Development Plan

One generality that I believe is true is that on average, Millennials are less patient with a slow pace for their own development. This is a hint for all supervisors who are working with Millennials.

It is much more important for people in this group to have a concrete development plan, which includes milestones and projected advancement. The danger here is that advancement opportunities are not totally predictable and appear to be glacial to younger people. That could lead to frustration.

Cross Train

Once a person has gained the skills for the next level career position, it is tedious to wait in line until the next opportunity to move up appears. Hence, we see Millennials willing to job hop in order to move up if no opportunity is available in their current organization. The antidote here is to cross train the person on additional skills, so he or she becomes more valuable to the organization through the passage of time.

The lesson here is that if you try to keep a millennial static or keep promising movement that does not occur, you often are going to lose the person to another organization. That pattern leads to high turnover, which is a major cost problem for any organization.

If you have such a great culture that each employee, regardless of age, is convinced no other organization is going to be better, then retention takes care of itself.

The Wegmans Grocery Chain was recently awarded one of the best organizations for Millennials. They have been on the list of 100 Best Workplaces for the past 19 years.

The secret of their success is to train and cross train the young people constantly. It adds to bench strength and it allows Wegmans to operate with about 8% turnover in an industry that often runs in excess of 40% turnover. That is a huge financial advantage.

Be Principle Centered

Another way to appeal to Millennials is to have a principle centered business. These young people are highly interested in the social responsibility of the organization for which they work, because they are convinced that it leads to long term success.

The younger generation is less tolerant of hypocrisy and bureaucracy than more seasoned workers, because they see it as a conscious choice, and they want to work at a place that has staying power.

Make sure you let all employees know the purpose of your business and that you always act in ways consistent with that purpose.

Foster Respect in Both Directions

As a supervisor, you need to instill a culture of trust that is not dependent on the age demographics of different work groups. You need to teach younger people that the more established workers have vital process knowledge and a history of experience from which they need to learn.

Conversely, you need to work with the more seasoned workers to help them see the benefits that the younger generation brings to the equation and appreciate them in affirming ways. It is a two-way street, and you are in the middle directing traffic.

One frustration for supervisors is that younger generation employees often have less sensitivity when communicating with others. They share their feelings with unvarnished candor, which often can offend older workers.

Teach them to avoid addressing an older person the same way verbally as they would a peer in a 140-character “Tweet” or a “text.” Stress that to get the result they want, Millennials need to be tactful and respectful when addressing other people, regardless of their age.

In any organization, the culture is set from the top. As a supervisor, you need to foster an atmosphere of respect that is rarely taught in school anymore but that is needed to build an environment of trust between people, regardless of age.

Working with Millennials may seem frustrating, if you are trying to apply the operating philosophies that worked for the Boomers or Generation X. You cannot fight the trends, and they are not going away.

The best approach is to embrace the younger generation into the workforce and impress them with your operational excellence and vision for the future. Make sure your culture is the best one around, and you will have few problems with turnover.

This is a part in a series of articles on “Successful Supervision.” The entire series can be viewed on http://www.leadergrow.com/articles/supervision or on this blog.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 500 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Successful Supervisor 21 – The Importance of Trust

April 8, 2017

In my seminars on trust, I always do an exercise that illustrates the pivotal importance of trust in any organization.

In this experiential exercise I split the group up into small discussion groups and give each group a different dimension to work on by answering the following question: for your dimension, can you contrast what it is like to try to accomplish it if you are working with a high trust group versus a low trust group?

I could think up dozens of dimensions to explore, but to keep the exercise bounded in terms of time, I use only nine dimensions with groups. Here is a list of the nine dimensions along with my comments on the contrast of trying to do them in a high versus low trust group.

1. Solving Problems

In organizations of high trust, problems are dealt with easily and efficiently. In low trust organizations, problems become huge obstacles as leaders work to unscramble the mess to find out who said what or who caused the problem to spiral out of control.

Often feelings are hurt or long term damage in relationships occurs. While problems exist in any environment, they take many times longer to resolve if there is low trust.

In addition, the creative ideas of people are more readily accessible to the group when people aren’t afraid to speak their minds.

Sometimes a lack of trust can cause small problems to bloom into first class disasters.

A good example of this progression is the Challenger Disaster in 1986. The Rogers Commission (1987) found that NASA’s organizational culture and decision making process were key contributing factors of the accident. Technicians who were aware of a problem did not feel it was safe to bring it up due to low trust levels.

2. Focused Energy

People in organizations with high trust do not need to be defensive. They focus energy on accomplishing the Vision and Mission of the organization. Their energy is directed toward the customer and against the competition.

In low trust organizations, people are myopic and waste energy due to infighting and politics. Their focus is on internal squabbles and destructive turf battles.

Bad blood between people creates a litany of issues that distract supervision from the pursuit of excellence. Instead, they play referee to a bunch of adult workers who often act like children.

Trust leads to constancy of purpose as well as focus. In Managing People is Like Herding Cats (1999), Warren Bennis wrote: “A recent study showed people would rather follow individuals they can count on, even when they disagree with their viewpoint, than people they agree with but who shift positions frequently. I cannot emphasize enough the significance of constancy and focus.” (p.85)

3. Efficient Communication

When trust is high, the communication process is efficient, as leaders freely share valuable insights about business conditions and strategy.

In low trust organizations, rumors and gossip zap around the organization like laser beams in a hall of mirrors. Before long, leaders are blinded with problems coming from every direction. Trying to control the rumors takes energy away from the mission and strategy.

High trust organizations rely on solid, believable communication, while the atmosphere in low trust groups is usually one of damage control and minimizing employee unrest.

Since people’s reality is what they believe rather than what is objectively happening, the need for damage control in low trust groups is often a huge burden. Not only is verbal communication enhanced by trust, all forms of communication including e-mail, body language, and listening are improved by trust.

In A Contrarian’s Guide to Leadership, Steven B. Sample (2002) discusses the concept of Artful Listening which enables a leader to “…see things through the eyes of his followers while at the same time seeing things from his own perspective” (p.22). He calls this skill “seeing double.” Sample stresses that Artful Listening is enabled by trust.

4. Retaining Customers

Workers in high trust organizations have a passion for their work that is obvious to customers. When trust is lacking, workers often display apathy toward the company that is transparent to customers.

Most of us have experienced this apathy while sitting in a restaurant where the service is poor. If there is a low trust environment, we feel an uncomfortable tension that discourages our future return to that establishment.

All it takes is the roll of eyes or some shoddy body language to send valuable customers looking for alternatives.

5. A “Real” Environment

People who work in high trust environments describe the atmosphere as being “real.” They are not playing games with one another in a futile attempt to outdo or embarrass the other person.

Rather, they are focused toward a common goal that permeates all activities. When something is real, people know it and respond positively.

When trust is high, people might not always like each other, but they have great respect for each other. That means, they work to support and reinforce the good deeds done by fellow workers rather than try to find sarcastic or belittling remarks to make about them.

The reduction of infighting creates hours of extra time spent achieving business results.

6. Saving Time and Reducing Costs

High trust organizations get things done more quickly because there are fewer distractions. There is no need to double check everything because people generally do things right.

In areas of low trust, there is a constant need to spin things to be acceptable and then to explain what the spin means. This takes time, which drives costs up.

In The Speed of Trust, Stephen M.R. Covey relates that when trust is low, organizations pay a kind of “tax.” This tax increases costs and reduces speed (Covey, 2006).

7. Perfection not Required

A culture of high trust relieves leaders from the need to be perfect. Where trust is high, people will understand the intent of a communication even if the words were phrased poorly.

In low trust groups, the leader must be perfect because people are poised to spring on every misstep or misstatement to prove the leader is not trustworthy. Without trust, speaking to groups of people is like walking on egg shells.

The irony is that leaders should be glad when people are vocal about apparent inconsistencies between actions and values. People will not do so unless the leader has created an environment of trust.

This phenomenon was described by Noel Tichy (1997) in The Cycle of Leadership as follows: “The truth is that the leader gets nailed to the wall for failing to live the values only if he or she has created an open and honest shop. More often, people simply become demoralized and ignore the values just as the leader does” (p. 43).

8. More Development and Growth

In low trust organizations, people stagnate because there is little emphasis placed on growth. All of the energy is spent jousting between individuals and groups.

High trust groups emphasize development, so there is a constant focus on personal and organizational growth, as described in Treat People Right (Edward Lawler, 2003).

 

9. Better Reinforcement

When trust is high, positive reinforcement works because it is sincere and well executed.

In low trust organizations, reinforcement is often considered phony, manipulative, or duplicitous, which lowers morale. Without trust, attempts to improve motivation through reinforcement programs often backfire.

The trick is to get people to want to do the right thing through reinforcement.

Ken Blanchard (2002) in Whale Done wrote “Instead of building dependency on others for a reward, you want people to do the right thing because they themselves enjoy it” (p. 56).

Once groups wrestle with these nine dimensions and contrast what it is like to operate as part of a high trust group versus a low trust one, they understand the immense impact that trust has on every aspect of how an organization operates.

Simply put, if you have high trust, all aspects of the organization work well, but with low trust, nothing works as expected.

Seek to build trust at every level all of the time. If trust becomes compromised for any reason, move swiftly to repair it (the subject of a future article).

This is a part in a series of articles on “Successful Supervision.” The entire series can be viewed on http://www.leadergrow.com/articles/supervision or on this blog.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 500 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763