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!

 
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?

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

I love to ride horses.  I don’t have the space to board my own, nor the time (nor talent) to care for and train them as they should be.  But I do have a friend who has a beautiful farm where I can ride and where the owner, is not only talented in training horses, but in training people to ride them.  As with many of us with families and businesses, sometimes our passions get put on a back burner so my friend and I try to make a date every Friday to ride together.  Usually we confirm the day before and weather permitting, get some riding time in while kids are in school and phones are on hold.  Recently our riding time was sabotaged by a communication breakdown,  that went something like this via cell text messaging:

ME:  leaving in a few min

HER:  on conf call, then to my parents, can’t talk

ME:  ?

HER:  Horses were out all night, I just fed them

ME:  Ok.  TTYL (talk to you later)

HER:  (45 minutes later) Where r u?

ME:  I thought we weren’t riding

The net-net - on one of the most beautiful fall days of the year, we missed out riding. 

So I give you the interpretation for those of you who may not understand horse text speak was, from each of our perspectives:

ME:  Hi – I am on my way

HER:  OK, I will be a few minutes late. The horses are tired so they don’t have to be lunged, we can get right on them and start riding right away – if you want to go ahead and start without me.

ME:  I’m pretty bummed we aren’t riding.

Why do I bring this up?  Because so often our communications (especially when using digital means such as email and texting) get misinterpreted due to short hand and internal interpretations.  Always take the time to make sure you’ve communicated what you meant to – that means, not only saying or writing what you mean, but making sure the receiver interprets what you meant.  Because the real danger is when you don’t find out until its too late.  And you may have just missed out on a great opportunity.

Think social media and how we interact with it doesn't affect your business.  Think again.  Now, more than ever, technology impacts how we hire, fire, act and think. 

Consider the following:

• Facebook, Twitter, text messaging, im-ing provide people with 'headlines" of information.  This impacts not only how we convey information, but also how your employees and customers are influenced.
  
• Your hiring has changed - Craigslist is now the largest job board on earth.  And think about how the new normal means reference checking includes googling job candidates.
  
• Everyone is an author.  And their musings never go out of publication.  Rightly or wrongly when your employees post something on Facebook, your prospective customers and suppliers may take offense.
• Your customers have greater choices in how to communicate with you.  Understanding their preferences (email, phone, live, chat or traditional mail, to name a few) is important as the best product or solution won't sell without the appropriate communication vehicle.
  
• Your appropriate company asset usage information now must include policies on data, information and electronic devices - including cell phones, email, laptops and the web.

"Yes, that's right.... Because cell phone texts leave a physical trail which can be retrieved as evidence, cases are no longer simply 'he said, she said.'  In a recent case in Michigan, the defendant denied that he sexually harassed the plaintiff via inappropriate text messages stating that they never happened and the plaintiff was making it up.  A forensic expert retrieved the deleted messages from plaintiff's cell phone and the case settled before litigation was filed for $450,000!!!"

What does it all mean - be aware.  The ubiquity of digital and electronic devices, and ability to share information quickly and succinctly can be a tremendously effective way to share and receive information, but it also means companies must make sure that all of their workplace policies include data and devices, especially if the employer provides or pays for the service and the device.

With all of the fervor taking place in the National Health Care debate, there is much that we as business owners can learn.  All sides are arguing for something but just as when the radio is turned up too high and too many stations are coming in at once, the noise level removes any ability to hear clearly.  Is this happening in your company?  How often have you heard a passionate plea (be it from a customer, partner, vendor or employee) that had no substance, but lots of noise?  Often times the real issues are fear, uncertainty and/or a lack of understanding.   By regularly and proactively tuning into what and where the real issues and opportunities lie, you’ll better position your company to move ahead.  Remember, if you aren’t moving forward, you’re falling behind!  Let us know how you're keeping tuned-in during these turbulent business times.

There's a saying - "If you're not moving forward, you are falling behind" - true because at any one time, someone is working toward moving themselves forward.  Now, more than ever, small business owners need to make sure they are leading the competition by constatnly evaluating and reacting to current circumstances, while planning for the future.  A huge thank you to David Halpern of The Alternative Board for the following tips!  And while these seven tactics below don’t define everything youneed to do to succeed in today's environment and poise yourself for the rebound, but if you execute all seven, you’ll be positioned to outrunthe others who are in front of the bear with you.  

Plan. If you don’t have a written business plan, start writing one now. The planning process will force you to think through the strengths and weaknesses of your business, and identify theopportunities and threats that could vastly improve or damage your company.Luck is preparation meeting opportunity, and volatile times offer the chance ofexperiencing great luck.

Manage to the profit line. Ingood times, we get lazy. Revenues go up 15%, profits increase 10%, and we are happy. Tough times call for a ruthless focus on profitability. Decide that afailure to make an appropriate return is just not an option, and be relentless in your commitment to it.

Build a top grading structure.The New York/New Jersey metro area has many out of work people. Identify theideal skills you want in a better employee. Mentally inventory your currentstaff for weak links that need to be replaced. Clearly define positions and duties so new hires can be integrated quickly. Make sure that your company is visible to job seeking candidates.

Keep your powder dry. Cash is your primary resource in a downturn. It gives you the power and flexibility to grab opportunities and survive disasters. Hoard cash; the more, the better.

Know your numbers. If you haven’t defined Key Performance Indicators, do it now. Know which factors mean the most to your success and stay on top of them.

Increase your horizon. What are the leading indicators for your business? What is happening todaythat will impact your business three, six or twelve months down the road? The Internet allows you access to unlimited information. Find where your leading indicators reside and bookmark it for frequent reference, and thenvisit it often.

Monitor your competitors.Competition heats up in times of scarcity. Some of your rivals will changetheir tactics, and could surprise you. Others are weak and can be acquired oreliminated all together, with a little push at the right time. Have regularconversations with your customers and vendors about what they see the competitiondoing.  Train your employees to watch events in the field and report back to you.