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Laughter, the Best Key Performance Indicator

Thursday, February 16, 2012

 

I recently met with one of my clients, Budget Home & Office Cleaning.  The company is in a tough industry, working in a difficult environment given today's economic woes for the demographic they serve.  Through much hard work, smart marketing (much of it Social Media) and great leadership, they have continued to grow year after year.   We were recently discussing what kind of Key Performance Indicators they can use as predictors to understand where their business is headed and how healthy it is.  And one of the most interesting ones we discussed was the "laughter factor."  Will (the owner's son and future successor) explained it as follows:

"When the crews are getting ready for their day, when everyone is running around putting supplies and equipment in our team vehicles, there's a new energy in the air.  There's a higher sense of camaraderie & happiness, there's joking around, there's well - frankly, a lot of laughter!" 

We both paused for a moment and then talked about how that "whistle when you work" attitude builds on itself.  It becomes self-fulfilling and ultimately leads to indicating how happy the employees are - which in turn impacts productivity and retention, customer-service and the customer's experience.  

Yes, employee surveys are important tools to gauge employee loyalty & engagement.  Yes, performance evaluations are critical.  But for a quick pulse & checkpoint - consider your happiness factor, with the amount of laughter coming from you teams as a clear indicator of your company's future health!

Employee Engagement

Wednesday, February 08, 2012

 
If you haven’t yet heard the term employee engagement, it’s a pretty sure bet you will soon.  The term refers to how closely aligned your employees feel to your company – how emotionally attached they are to the company, the brand and their fellow employees. The closer they feel, the happier their work experience – which in turn reduces employee absenteeism, increases loyalty, promotes your brand and improves overall productivity.  The science to back the concept up is impressive and the bottom line impact to companies is even more so.  To see how your engaged your employees are, consider the following engagement factors:

  • Employee perception of job importance:  An employee’s feelings of worth and how their role ties to the overall success of company
  • Clarity of job expectation:   Having clarity of purpose as relates to the employee’s role, and having the tools & skills to accomplish what is asked of him/her supports an employees' ability to succeed
  • Ongoing, relevant feedback:  It is not enough to have annual performance appraisals; engaged employees receive ongoing, specific feedback as to how they are doing
  • Opportunity for advancement:  In Dan Pink's book, Drive, the author talks about how important working toward mastery is in motivating people.  Employees want to stretch and grow, and having opportunities in your company for advancement will provide them the opportunity to grow and develop themselves
  • Relationships matter:  Employees are human beings first.  As such, positive, productive relations that are built on mutual trust and support enable them to perform optimally and towards common goals
  • Values & leadership:  When their work value system is in line with their personal value system, and that system is supported, encouraged and nurtured by company leadership, employees are motivated from within.
  • Communications:   Just as family members care about what is going on within the family, engaged employees are more connected when they are aware of company direction, successes and wins – both large and small. 
  • Recognition & reward:   A good rewards & incentive program is not only self-funded, but is aligned to company goals, is attainable (with stretch goals), is within the power of the employees to influence outcome and is built on the company’s value system.  If any of these elements are missing there is the potential for more damage than if no reward system were put in place. 

Implement any of the above and you’re well on your way to furthering your employee engagement.  You’ll soon be on your way to having employees who are in flow state – but that’s for another posting.

In the meantime, please share your thoughts & comments – what are you doing to keep your employees engaged?  Where have you felt most engaged as an employee & why?

Servant Leadership and The Triple Bottom Line: People, Profit, Planet

Friday, January 20, 2012

 

I'm a fan of Servant Leadership.  If you are not aware of the concept, check out this video of Colleen Barrett, CEO of Southwest Airlines or The Greenleaf Center for Servant Leadership to learn more.  The basic premise is that when company leadership serves their employees as their number 1 priority, the employees will be more engaged and motivated and better able to serve their customers and markets.  I love the concept because it assumes we are part of something greater than ourselves, that the whole is greater than the sum of its part when this care taking is the fabric of an organization.  This also feeds my (and others') spirtual and emotional self, in that by giving we become better beings. And there is an added bonus.  Companies that embrace a long term strategy of servant leadership are more profitable than their peers.  In turn "profits are the applause for the employees doing well."  It's a win-win for all.   

My analytical side loves to analyze the tangible implications of Servant Leadership. And that's where the term Triple Bottom Line (People Profits & Planet - or Triple P) comes in.  Triple Bottom Line management can be used to find the balance between People, Profits and Planet to create sustainable businesses that serve.  All companies have components of each element but without the right balance, one or more of the other factors may become skewed. 

Consider the 3 components as sides of a triangle, where sustainability is a board that balances at the tip of the triangle foundation  - too much emphasis on one or two will cause an imbalance - eventually resulting in a breakdown of the foundation.  Too much emphasis on profit, and employees and/or planet will suffer.  Too much emphasis on employees, and profits and/or planet will suffer.  You get the point.  Triple P allows for a measureable way to manage and grow a company based on the company and owner's unique value system with our real world business, social and environmental ecosystem.  

Want to learn more about People Profit & Planet, Triple Bottom Line?  I encourage you to join a group on linked in, or check out CNBC's series on the subject

Next Level Leadership Series: Team Building and Ames

Thursday, August 11, 2011

Welcome to the sixth installment of our Next Level Leadership series! Here, we interview TAB members about issues facing industry leaders in today's business world. The members with whom we speak have risen to various challenges, proving themselves to be true Next Level Leaders.

Today we share our interview with Chuck Roberts, President and CEO of Ames, a leading supplier of elastomeric design solutions to international, high-tech customers who require molded components, protective coatings and dispensed gaskets that meet high-quality standards. After taking over as President/CEO in 2004, Chuck has helped implement team building strategies to develop a stronger culture of workers dedicated to common goals. Since its inception in 1949, Ames has committed itself to the importance of teaming, from leadership to language: employees have been called "Teammates" since 1986, and as Chuck says, "We always consider ourselves 'the Ames family'."

When was Ames founded? When did you take over as President/CEO?

Ames was founded in 1949.

I’ve been with Ames since 1976, so I have more than 35 years with the company holding positions in areas of the company over that time.  I became President and CEO in July 2004.

Did you have any prior training in team building?

Yes.  Ames has approximately 200 employees.  We always consider ourselves “the Ames family”.  We’ve considered ourselves a team since 1949.

In 1986 we entered into a new era of Quality at Ames, beginning our Total Quality journey.  In preparing for this journey we delivered much more training to the Ames Team.  Part of the training was focused on team building.

While we did a lot of teaming prior to embarking on our Total Quality journey, the Total Quality Process forced us to look at the need for more and deeper training.  We needed to help our Teammates learn how to be better team members and Teammates by showing them how to interact in a team setting, helping them improve their inter-personal skills. [For example], how to ask good questions, or if a team member is dominating a meeting how to shut that Teammate down. On the flip side of that coin, if a teammate is quiet and not contributing, how to draw them into the meeting by asking them questions.

How did you come to develop your style of coaching and motivating employees?

All of us who are part of the teaming process go through the same training and for those of us who were more involved in the training process, we became good at the techniques and become good at facilitation.  You learn those teaming skills through practice and facilitation.

Coaching and mentoring are different from teaming, but are core to building a team at any level. The more coaching I do with my direct reports, the better they understand the company vision and mission and what is required of them.  They in turn are better prepared meet with and coach and mentor their subordinates, build continuity of our vision and mission throughout the company.

At Ames, you use the term “teammates” instead of “coworkers”, “associates”, or “employees”. Why is that?

Common today are the words “associates” or “partners” when referring to a company’s employees.

We adopted the use of Teammates in 1986.  Our president at that time was a graduate of Northwestern [University], and played football for them.  He understood the importance of teams and working together for a common goal.  He wasn’t comfortable with employee or associate that were in common use at that time.  He really felt we were a family and with his likening what we do to that of a football team, he believed we were truly Teammates and that has stuck for 25 years.

We have been and are the Ames family and as I see it the Ames Team and Teammates fits very nicely together with the unity of the Ames family.  When I’m communicating with the team, I always refer to them as the Ames Team, or Teammates.  It’s an important part of the past, present and future language and culture.

The “Teammate Pledge Card”

Each year we give all Ames Teammate an Ames Pledge Card.  The Pledge Card contains key pieces of information about the company such as our Vision, Mission, and Quality Policy.  Teammates can use the information used on the card to assist in answering questions during an audit or in referring to goals and objectives. 

The card also contains a Teammate Pledge which begins:  “As an Ames Teammate I recognize that I am committed to the Vision, Mission, and Goals and Objectives of the company, I share in and constantly practice the company’s values, I strive for customer satisfaction in everything I do, I have a stake in the company success, I believe the company’s success is my success. …”

At the end of each year, I go around and ask all Teammates to sign the Pledge Card which I sign also.  The Pledge Cards are collected and entered into a drawing where the winners (15 or so Teammates) receive a $100 gift card.

Ames follows Lean Manufacturing and Six Sigma practices – does this affect your approach to Teammate motivation and/or team building?

We are reinventing Ames and in support of the new Ames creating a new culture based on execution, urgency, and accountability, the elements that will be key to our  future success in this ever-changing international business environment..

To create a new culture we need to better educate and engage our entire Team.  Today, our training has some elements of Lean and Six Sigma.  However, what is included today in these areas and others is not sufficient and why we are actively revising all our training materials.

Does Ames recognize it Teammates for their contribution to the company’s success?

Yes, we offer both individual and team awards.  These awards range from a simple written acknowledge of a Teammates effort - an “attaboy” to various levels of financial reward.

What do you like most about being a member of The Alternative Board and/or personal coaching?

It’s the input, the thoughts and perspectives of fellow TAB members, of how they see my business.  Sometime I’m too deep in the trees, not able to see the forest, and my fellow TAB members quickly see that and are able to offer an outside perspective, helping me regain the right level of focus and making all the difference.

I am a big fan of reading and education.  I enjoy reading books and then passing the education onto my Teammates and fellow TAB members.  Helping and receiving help from fellow TAB members is very rewarding and reinforces the concept of peer groups.

Employee Motivation: A Few Myths (And A Few Motivators)

Tuesday, June 07, 2011

“Act as if what you do makes a difference. It does.” ~ William James

While much has been written about employee motivation (check out a previous post of ours here!), the topic is so crucial to business success that it is helpful to revisit the subject from time to time. In fact, one of the most important aspects of keeping your employees motivated is keeping yourself, as a business owner, continually engaged and inspired.

Today we explore a few of the common myths of employee motivation. But first we need a good understanding as to what, exactly, this wide world of motivation involves. An article from the Harvard Business Review called “Employee Motivation: A Powerful New Model” highlights four key drives to human motivation. These are the drives to:

  •   Acquire: To obtain scare goods, including tangible aspects like money and intangible aspects like social status.
  •   Bond: To form connections with other individuals and groups.
  •   Comprehend: To satisfy our curiosity and master the world around us.
  •   Defend: To protect against external threats and promote justice.

Research shows that these drives underlie everything we do, and prove a good basis to understanding what motivates employees in the work place.

Our earlier post on employee motivation points out several important questions in regard to passion in the work place (and no, we’re not talking about office romances), and how this can translate to positive employee motivation. While you explore the various factors in keeping your employees passionate and motivated about their roles in your business, keep in mind the following common myths in employee motivation:

MYTH 1: Money is a good motivator.

Money certainly motivates, but dollar only stretches so far when it comes to long-term motivation. For instance, if you give a bonus to reward an employee’s past accomplishments, he or she will likely be very happy – but studies show that that happiness is short-lived. Within six month, employees have difficulty remembering the bonus, as it does not have the same impact as it did upon its receipt. Money alone will not continually motivate individuals.

MYTH 2: Fear is a good motivator.

Fear, like money, can be a good motivator – but only for a very short time. Fear of being yelled at, or worse, fired, creates a constant stress that reduces employee productivity. How can a person focus on their job if they are focused on being scared? For long-term, sustainable motivation, positivity is key.

MYTH 3: What motivates you motivates your employees.

While research shows that we all have the same basic drives, what makes up those drives, and to what percent each of those drives is important, varies from person to person. You might be motivated by earning more time to spend with your family, while one of your employees might be motivated by recognition of a job well done.

The key is to understand the underlying motives of each of your employees.

To Build A Team

Tuesday, April 26, 2011

As the sun shows its bright face more and the weather slowly warms, we start to look for ways to work outside the office. Why not welcome spring and strengthen employee relationships by engaging in a few interesting team building exercises beyond the walls of work?

Team building activities and exercises are stimulating problem-solving tasks that help group members improve their ability to work together effectively – that is, become a stronger team. Team building activities range from simple puzzle games to complex physical tasks like rope courses or scavenger hunts. Hosting group exercises outside the office is a helpful change of pace, providing new perspectives and inspiring creative energy.

Team building exercises can be as elaborate or as simple as your schedule and budget allow. For more in-depth, structured team building exercises, you might try contacting an outside party. Various companies specialize in day- and weekend-long corporate team building workshops. Activities range from rope climbing to bike building to creating short films.

More budget-conscious approaches to team building can take place just outside your office. A nearby park or community center provides a great spot for fun, inexpensive group exercises like:

The Minefield: In this exercise, large objects (like chairs, tables or easels) are scattered strategically throughout the playing space. Teams work in pairs: one person verbally guides his or her blindfolded partner through the furniture minefield. The activity focuses on verbal communication and guidance.

All Aboard!: This exercise challenges a group to physically support one another as a way to occupy an increasingly diminishing space. A square is roped off, and your team must step and stay inside the square, even as the space gets smaller and smaller. Members of the team will have to physically hold one another to stay in the square. This team building activity focuses on group cooperation, communication, problem solving strategies and patience. (Who wouldn’t need patience to smell so many of your coworkers so closely, and all at once?)

The Handcuff: For this exercise, members of your group will be tied to one another by pieces of string, from wrist to waist. The object of the exercise is to get free of the “handcuff” without untying, breaking or pulling the string from the wrist. This activity focuses on problem solving strategies, cooperation and changing perspectives.

Do you have any interesting team building stories you’d like you share? We would love to hear your experiences!

The Happiness Factor

Monday, March 07, 2011

The more fulfilled and happy people are, the healthier, and more productive they are.  And it's not about money.  A new study by Forbes shows employees value their coworkers & personal control over compensation most when asked about job satisfaction.  In addition, working for a purpose (your company's mission) is much more important to employees than the what (the company (the what).

 

Are you doing what you can so your staff can do what they love, with whom they enjoy doing it, while also working for a purpose they believe in?  Take the Purpose Profiler (based on the best selling book by Nikos Mourkogiannis) and see what your company's driving force says about your company's purpose.   

Why Do We Do What We Do?

Saturday, January 22, 2011
I have the pleasure of working with some incredibly talented business leaders.  One of the areas that fascinates and inspires me is their desire to help others achieve all they can.  I recently came across some great  clips on the subject of motivation.  And, in its simplest form - our human drivers are not so self-centered as one might think.  Yes, there are needs that have to be met before we can think of others.  But once our physiological, physical, and safety needs are met – self actualization, greater good and desire to fulfill purpose drive us. 

Consider the following

So - think about it - How might you, as a leader, best enable & support those you work with, manage, care for & partner with? 

Thinking Like a Level 5 Leader

Monday, December 06, 2010

I was speaking with a business owner recently whose business was struggling.  She shared that the economy was taking its toll and until it improved, she would continue to be in a tough position.  She’d always gotten business by referrals and never had to market in the past.  And now – sales were down, and until the economy got better, her strategy would be to hunker down and wait it out.  She wished her employees were more motivated and took more initiative to find sales or reduce costs, which in turn would help the company would be in a much better position. 

Contrast this with business owner #2, whose business has consistently grown over the last 4 years (in a down market and an industry that is facing greater and greater challenges).  His approach is to consistently credit successes to his employees and partners, and evaluate failures as teachable moments for his own leadership development skills. 

In Jim Collins’ book, Good to Great, Mr. Collins talks about how great companies are led by Level 5 leaders.  These are the CEOs, Business Owners & Executives who consistently encourage and empower their employees and give credit outwardly when the company achieves success, have an almost paranoid approach to viewing future threats to the business and, when positive results are not achieved, look inwardly for what they could have done differently. 

If your company isn’t achieving the results you’d like, consider thinking like a Level 5 leader:

  • What behavior can you change in yourself as leader?  Remember the adage – “Insanity is doing the same thing over and over and expecting different results.”
  • Have you shared why you are in business with your employees?  What are you building?
  • Have you hired right?  That is, are the employees you have passionate about the “why”?  Do they believe in the why?  If not, why are they still working for your company?
  • If your employees believe in the why, have you given them the tools, training and time to succeed in their roles to help achieve the company Vision?
  • Are you consistently recognizing employees for, and their roles in, the company’s successes?  (Success is contagious.  Recognized success becomes viral.)
  • Is your time being used for highest and best benefit/use of the company?
  • Are you taking the time you need to look forward?
  • Do you reflect on what has worked and what hasn’t in the past? How are you incorporating these lessons in your company’s future?

Every successful business is a culmination of not only smaller past successes, but also of lessons learned from failures.  Give credit generously and consider where there are problems and what you can do differently. Then, as they say at Nike - do it.

Passion Matters

Monday, July 05, 2010

Much has been written on how to motivate employees (and whether it is even possible).  And yet, the highest performing employees are those who are internally driven.  Great leaders know this.  They focus employees’ individual passions into a collective effort through communicating and supporting a clearly articulated vision.  And that vision invariably supports a shared value system.   

This is no great epiphany.  Consider the following:  given the same financial resources, the same products to sell and the same customer base, if you have one set of employees who are passionate about what they are selling and another that aren’t – who do you think will have better results over time?

Easy enough concepts to understand, but as is often the case – the devil is in the details of turning a concept into reality.    Great leaders inspire their teams into creating great companies by determining what it is that drives the company and why.  Some ideas to start you in the process:

  • Determine what it is that you and your employees are passionate about.  What do you and they love about what you’re doing?   Not sure?  Ask.  Great leaders listen more than they speak.  And if you aren’t sure where to start, consider a third party to assist you in the process.
  • Observe.  Actions speak volumes.  Is it really problem solving that Sharon from Customer Service loves, or is it making a customer’s day a little brighter?
  • Distill what you find into a company culture statement and incorporate it into your Company Vision Statement. 
  • Communicate, communicate, communicate.  Share the culture statement, where  the company is going, how the company is doing and what the company needs to get there.
  • Embrace experience diversity and skills, but remember to focus your hiring and employee development efforts on supporting the Culture and Vision. 
  • Take time to nurture the Culture or like any living thing it will wilt.
  • Make sure your employees have the tools, training, time and authority they need to turn the Vision into reality. 

As in any relationship, passion ebbs and flows.  As a business owner, it manifests itself as owner burnout (a topic we’ve talked about on this blog in the past).  For employees it can translate into poor performance, quality and service issues, and a lack of innovation, among other things.  Keeping the passion going for everyone, through nurturing and maintaining your culture, will keep it fresh and alive.  And that’s good business. 


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