Wally Bock
My friend, John, sat on the patio, complaining loudly. His company had just adopted the forced ranking system that General Electric (GE) uses for personnel evaluations. "It's wrong for us," John grumbled, "We work in project teams. We shouldn't be competing with each other to see who stays and who goes."
No less an authority than Business Week has run stories implying that when Jim McNerny went from GE to 3M, he applied the "GE toolkit" in the form of Six Sigma. The results were mixed. Profits and share price went up. The company's reputation for innovation went down.
There was a time, not that long ago, when anything GE did was slavishly copied by companies everywhere. That time is gone. But you can still learn a lot from GE. Whether you measure success by stock price, profits, innovation, flexibility or simply impact on society and business, General Electric is one of the world's great companies.
So forget about Six Sigma, boundaryless organization, forced ranking, and even the vaunted GE toolkit. Pay attention instead to the things that have made GE a great company for so long.
GE History
In 1890, Thomas Edison brought all his companies into a single organization. He called it the Edison General Electric Company. In some ways he would recognize today's GE because many product lines are the same. GE has been doing business in lighting, transportation, industrial products, power transmission, and medical equipment since the beginning.
General Electric has always been seen as an important company. GE was one of the companies in the first Dow Jones Industrial Average in 1896. When the first Standard and Poor's 500 list was published in 1959, GE was in the top 100. It's the only company still there today.
GE has always been known for innovation. Product innovation has been important. GE established the first industrial research and development laboratory in Charles Steinmetz' barn in 1896.
And GE's innovation hasn't been limited to products. Throughout its history, the company has also been a pacesetter in corporate structure, strategy and management practice. That's one key reason why it's a different company today than it was a hundred or fifty or even ten years ago.
A Company is Like a River
Heraclitus said, "You can't step into the same river twice." Companies are like that, too. GE today is different from GE fifty, or even ten, years ago. That's illustrated by the last three CEOs.
When Reg Jones took over the top spot at GE in 1972, just about everyone outside the company thought things were great. Jones knew otherwise. Working capital was anemic. He inherited an organizational structure where he had to work with three vice chairmen. There was no coherent strategy and there were threats on all sides.
He stopped the bleeding, solving the cash crisis within six months. Then he re-organized top management and created a coherent strategy. He left a record of 26 consecutive quarters of improved earnings and 14 percent compound growth in profits. He retired as "The Most Admired Businessman in America" and handed GE over to the youngest chairman in GE's history.
Jack Welch inherited a company that was doing well but needed to change. To start with, Welch thought it had to get leaner. Within five years he removed one in four people from the GE payroll, earning the nickname, "Neutron Jack," because he eliminated the people but left the buildings.
Thirty-seven thousand of those people left right along with their business unit. Jack said that a GE business should be number one or two in its industry or it should be sold. Lots of businesses got sold.
But Welch didn't just take things away. He moved aggressively to change things. Processes like Work-Out opened up the system. The upgrades to training and the Crotonville facility gave GE a place to bring things together. And initiatives like globalization, move to services, e-business and Six Sigma changed the nature of GE as a company.
During Welch's tenure as CEO, revenues went from $26.8 billion to $130 billion. Capitalization went from a market value of $14 billion to one of more than $410 billion. And Fortune magazine named him "The Executive of the Century."
Now, it's Jeff Immelt's turn. And he's been in the job long enough that we can begin to see just how his idea of what GE should become differs from what GE has been. Without much fanfare, he has softened the hard-line Welch dictum to fire the bottom ten percent, even though ranking is still in place. It's still taking shape, but one thing that looks certain is that Jeff Immelt's GE will be a bit more human and much more team oriented than the GE he inherited.
Besides being great CEOs, these three men seem to have very little in common. Jones was controlled and statesmanlike. Welch was the hard-charging hockey player. Immelt is the Ivy League athlete and fraternity president.
They do have one important thing in common, though. All three were shaped by GE's leadership development process.
Train and Develop
In over 100 years, every CEO but the first one, Thomas Edison, has come from inside the company. Eighty percent of senior managers are GE careerists. You've got to be good at development and make it a priority for that to happen.
At GE, it's a boss's job to develop subordinates and to identify high potential performers. That extends all the way to the top of the company where the CEO is involved in reviewing the performance and progress of GE's top potential executives.
The GE helps with lifetime career development for people that want it. Development includes permanent and temporary assignments that build both skills and visibility. It also includes training.
General Electric spends more than a billion dollars a year on training for people at all levels. Training is a reward for good performance. But it's much more than that. GE understands that training is important for skill-building, but that it provides opportunity for other important things. At GE, training is a place to build relationships, to share ideas and to gain perspective.
Training is also the carrier of culture. It's where the company can present the important initiative of the moment and where senior executives can share values directly with newer managers.
At GE, training is very much a gathering and scattering phenomenon. Managers come together to learn, share and meet others. They scatter to put their learning and connections to work. Then they gather again in a continuing cycle. It seems to work. Think of it this way. A company can get lucky and wind up with a great CEO. But only a company where training and leadership development are a priority can come up with them one after another.
Leaders that come up through a program like GE's know the company and its strengths and weaknesses because they've been there are awhile. They can also take unpopular positions, or survive a period with a stagnant stock price because everyone expects them to be around for a long time to come.
Leadership for the Long Term
Jeff Immelt expects to be on the job for twenty years. The board has similar expectations. That creates a situation that's almost unique in publicly traded American companies. Immelt doesn't have to do short term things to look good. He can concentrate on creating the kind of company GE should be to compete profitably in the decades to come.
If you're going to be around a long time, you can afford to resist the winds of fad. You don't have to make your mark quickly. You can take the time to do things right.
Take the Time to Do it Right
Companies today suffer from a kind of attention deficit hyperactivity disorder when it comes to initiatives. They run from finding their lost cheese to running their business like a fish market to discovering their strengths to learning the carrot principle, searching for the magic potion that will make all things profitable. But most don't stop long enough for anything to work. GE does.
Jack Welch was CEO of General Electric for twenty years. In that time, according to the man himself, he had four key initiatives. They were globalization, movement to services, e-business and Six Sigma.
The idea is to take the time to make sure the initiative is absorbed into the company and the culture. The values and skills that go with each initiative become part of training and performance evaluation and career development. Eventually they become part of the culture.
The Important Lessons
There are lots of lessons you can learn from GE about techniques and practices, but they're not the most important lessons. The most important lessons are the things that have made GE consistently competitive and profitable for more than a century. What was great before won't be tomorrow. You have to keep constantly moving forward, changing and adapting to the world as it changes.
Growing your people is a key to long term competitive advantage. So training and development are both crucial, but training is more than skill development. It's where you develop the company of the future by developing relationships, inculcating culture and making your initiatives into realities.
Take the long view. That means a long term look at strategy. It means limiting your major change initiatives and giving them energy and the time to become part of the culture. It sounds simple, and it is. It's just not easy. But GE is one good example of what it really takes to be a great company.
Showing posts with label HRM. Show all posts
Showing posts with label HRM. Show all posts
Wednesday, April 9, 2008
The Three Keys to Effective Motivation
Without motivation, every business will fail, every team will lose, and every goal will lie unmet. Motivation makes things happen. It is what drives you to do what you do. It's your purpose, your reason for getting out of bed in the morning. It's what's in it for you. What are three of the basic keys to effective motivation?
Ultimately, motivation can be broken down into two types, intrinsic and extrinsic. Extrinsic motivating forces are those physical rewards we will receive when we accomplish whatever it is we want to accomplish. For instance, a paycheck is an extrinsic motivator that gets you to do some work. A better looking figure is a motivator for exercising. An award or prize can be an effective extrinsic motivator if you find yourself working hard to win it. Intrinsic motivating forces, on the other hand, are those motivators that come from within us. Confidence and self-esteem will grow if we work hard toward our goals. These interior feelings are examples of intrinsic motivators. Wishing to live up to a spiritual or social standard is another. Feeling guilty or proud can motivate us to change the things we do, as well. Finding three keys to motivation means analyzing what motivates you both on the outside and on the inside, and letting these rewards change your behavior.
Key Number One: Love your work. Do you like what you do? Did you choose your business because you were inspired to do it, or did it seem like a good idea because someone else made money at it? Unless you really love and value what you're working at, it is likely to become a drag eventually, regardless of how easy-going you are. Of course, even working at your dearest passion involves drudgery and routine from time to
time. Still, if you don't love your work, it might be time to rethink what you're doing, or find a new way to look at it.
Key Number Two: Reduce clutter. Having things piled up really saps a person's energy. Learn to take action on papers that come your way before they pile up. A lot of the lack of organization is really just a matter of putting off making decisions. You hesitate to throw a piece of mail away because you are mildly interested in it and might want to look at it again some day. When this happens 5 or more times a day, you soon have stacks of paper you'll never be able to organize so that you'd find any one item again. Be quicker to throw things out in the beginning. Chances are, you'll get another one pretty soon, anyway.
Key Number Three: Have written goals, both large and small. Most businesses have a written plan that includes the big picture and the big goals. This is good, because you want to know what the ultimate target is. Still, it is helpful to morale and motivation to have those big goals broken down into manageable bites. What can you do right now as a stepping stone to seeing that big goal come about? Write it down, do it, and then
reward yourself some way.
Ultimately, motivation can be broken down into two types, intrinsic and extrinsic. Extrinsic motivating forces are those physical rewards we will receive when we accomplish whatever it is we want to accomplish. For instance, a paycheck is an extrinsic motivator that gets you to do some work. A better looking figure is a motivator for exercising. An award or prize can be an effective extrinsic motivator if you find yourself working hard to win it. Intrinsic motivating forces, on the other hand, are those motivators that come from within us. Confidence and self-esteem will grow if we work hard toward our goals. These interior feelings are examples of intrinsic motivators. Wishing to live up to a spiritual or social standard is another. Feeling guilty or proud can motivate us to change the things we do, as well. Finding three keys to motivation means analyzing what motivates you both on the outside and on the inside, and letting these rewards change your behavior.
Key Number One: Love your work. Do you like what you do? Did you choose your business because you were inspired to do it, or did it seem like a good idea because someone else made money at it? Unless you really love and value what you're working at, it is likely to become a drag eventually, regardless of how easy-going you are. Of course, even working at your dearest passion involves drudgery and routine from time to
time. Still, if you don't love your work, it might be time to rethink what you're doing, or find a new way to look at it.
Key Number Two: Reduce clutter. Having things piled up really saps a person's energy. Learn to take action on papers that come your way before they pile up. A lot of the lack of organization is really just a matter of putting off making decisions. You hesitate to throw a piece of mail away because you are mildly interested in it and might want to look at it again some day. When this happens 5 or more times a day, you soon have stacks of paper you'll never be able to organize so that you'd find any one item again. Be quicker to throw things out in the beginning. Chances are, you'll get another one pretty soon, anyway.
Key Number Three: Have written goals, both large and small. Most businesses have a written plan that includes the big picture and the big goals. This is good, because you want to know what the ultimate target is. Still, it is helpful to morale and motivation to have those big goals broken down into manageable bites. What can you do right now as a stepping stone to seeing that big goal come about? Write it down, do it, and then
reward yourself some way.
Tuesday, April 8, 2008
THE MAGIC OF TEAM WORK
(One Indian = 10 Japanese, 10 Indians = One Japanese)
Lack of teamwork and co-operation is one of the most serious problems affecting progress in all areas of India and wherever Indians work worldwide. The key problem in India is always implementation, not lack of policies. We have great policies and ideas about how to do things, but severely lacking teamwork.
When the Japanese came to work in India to develop the Maruti Suzuki car, a joke went around that one Indian was equal to 10 Japanese: Indians were very smart, capable and dedicated individuals. But 10 Indians were equal to 1 Japanese: Indians lacked team spirit and co-operation.
What makes matters even worse is our "crab" mentality – if someone is trying to climb higher and achieve more, the others just drag him down. The signal that the others send out is, " I wouldn't do it; I wouldn't let you do it; and if by change you start succeeding, we will all gang up and make sure that you don't get to do it."
The question is: Where does this attitude come from, and how do we recognize and handle it?
Hierarchical System
Part of the problem is our cultural background. We've had feudal and a hierarchical social system in which whoever is senior supposedly knows best. This was fine in earlier times when knowledge and wisdom were passed on orally; but in modern society, there is no way that one person can know everything. Today, you may find that a young computer-trained person has more answers for an accounting problem than a senior accountant has. Until we understand how best to leverage this diversity of experience, we will not be able to create and fully utilize the right kind of teams.
Sam Pitroda: " In my younger days in the US, I attended an executive seminar for Rockwell International, where about 25 senior company executives had congregated for a week for strategic discussion. In the evenings, we would break out into five different groups of five people each. In those group workshops, someone would delegate tasks, saying: " You make coffee; you take notes; you are the chairman; and you clean the board". The next day, there would be different duties for each group member. No one ever said, " But I made coffee twice or I cleaned the board entire day". I thought to myself, if this were happening in India, people would be saying, " But I'm the senior secretary – why should I make the coffee and you be the chairman?" Hierarchy comes naturally to our minds.
What Derails a Team?
Group work requires a thorough understanding of the strengths and weaknesses of individuals irrespective of their hierarchy. Because of our background, we often don't learn how to exercise and accept leadership- to lead and to follow – simultaneously. Some gravitate toward exercising leadership, and others gravitate toward accepting the lead of others. But in true teamwork, everyone needs to do both.
Being a good team player implies respect for others, tolerance of different points of view and willingness to give. The ability to resolve conflicts without either egotism or sycophancy is a very important aspect of being a team player: You have to agree to disagree. I find that people in India somehow tend to focus on achieving total agreement, which is almost always impossible. So before work begins people want everyone to agree on everything instead they should say OK. This is what we agree on, so let's start working on this. What we don't agree on, we will resolve as we go along". For things to move forward, it's important to work on the agreed-upon aspects and not get bogged down in the areas of disagreement. Yet another snake that kills teamwork is people's political agendas. You've got to be open, clear and honest to be a good team player. Most people though, have a hidden agenda – they say something but mean the exact opposite. I call it "split-level consciousness". To say and mean the same thing is a very critical part of a good work ethic.
Criticizing the individual or the idea?
When Sam was working in C-DOT (400 employee size company), If someone had not been doing well, Sam used to tell the person directly to his face in a general meeting. The employees said that was insulting and they should be pulled aside individually to be told of the inefficiency. But in today's world, you cannot afford to do that every time. Besides, Sam figured that criticizing someone in a meeting was for the benefit of all present, and everyone could learn from that individual's mistakes. It was then that Sam learned how Indians do not differentiate between criticizing an idea and criticizing an individual.
So in a group, if you tell someone that his idea is no good, he automatically takes it personally and assumes that you are criticizing him. No one can have a good idea everyday on every issue. If you disagree with my idea, that does not mean that you have found fault with me as a person. Thus, it is perfectly acceptable for anyone to criticize the boss - but this concept is not a part of the Indian System. So from time to time, it is important for an organization's Chief Executive to get a report on the psychological health of the firm. How do people in the team feel? Are they stable? Confident? Secure? Comfortable? These are the key elements of a team's success. For a boss to be comfortable accepting criticism from subordinates, he must feel good about himself. Self-esteem is a key prerequisite to such a system being successful.
Mental Vs. Physical Workers
Another serious problem facing India is the dichotomy and difference in respectability between physical and mental workers, which seriously affects team performance.
Mr. Sam had a driver named Ram, who he thought was one of the best drivers in the world. He used to open the door for him whenever he entered or exited the car. Right in the first few days Sam told him " Ram bhai, you are not going to open the door for me. You can do that If I lose my hands". Ram almost started crying. He said, " Sir, what are you saying? This is my job!" Sam told him that I didn't want to treat him like a mere driver. He had to become a team player. Sam told him that whenever he was not driving, he should come into office and help out with office work - make copies, file papers, send faxes, answer phone call or simply read - rather than sit in the car and wait for me to show up.
Diversifying tasks increases workers' self-esteem and motivation and makes them team players. Now, even If Sam calls him for work in the middle of the night, he is ready - because Sam respects him for what he does. Team Interactions unfortunately, when good teams do get created, they almost invariably fall apart. In our system today it is very difficult to build teams because nobody wants to be seen playing second fiddle. It is very hard in India to find good losers. Well, you win some and you lose some. If you lose some, you should move on! You don't need to spend all your time and energy of different cultural backgrounds, religions, ethnicities and caste groups - a fertile ground of diversity in the workplace. We should actually be experts in working with diversity. But it can only happen when we get rid of personal, caste and community interests.
There could be a 40-year-old CEO with a 55-year-old VP. It has nothing to do with age; capability and expertise are what counts. But you don't yet see these attitudes taking hold in India. Managers in the US corporate environment who work with Indians - and in fact, with Asians in general - need to recognize that these individuals have a tendency to feel that they are not getting recognition or are not being respected. It must be realized that these individuals have lower self-esteem to begin with and therefore have to be pampered and encouraged a little more because they need it. This makes them feel better and work better. No Substitute for Teamwork. Teamwork is key to corporate and national governance, and to get anything done.
The fundamental Issues are respect for others, openness, honesty, communication, willingness to disagree, resolution of conflict, and recognition that the larger goal of the team as a whole rumps Individual or personal agendas.
Don't be afraid of pressure.
Remember that Pressure is what turns a lump of coal into a diamond.
Lack of teamwork and co-operation is one of the most serious problems affecting progress in all areas of India and wherever Indians work worldwide. The key problem in India is always implementation, not lack of policies. We have great policies and ideas about how to do things, but severely lacking teamwork.
When the Japanese came to work in India to develop the Maruti Suzuki car, a joke went around that one Indian was equal to 10 Japanese: Indians were very smart, capable and dedicated individuals. But 10 Indians were equal to 1 Japanese: Indians lacked team spirit and co-operation.
What makes matters even worse is our "crab" mentality – if someone is trying to climb higher and achieve more, the others just drag him down. The signal that the others send out is, " I wouldn't do it; I wouldn't let you do it; and if by change you start succeeding, we will all gang up and make sure that you don't get to do it."
The question is: Where does this attitude come from, and how do we recognize and handle it?
Hierarchical System
Part of the problem is our cultural background. We've had feudal and a hierarchical social system in which whoever is senior supposedly knows best. This was fine in earlier times when knowledge and wisdom were passed on orally; but in modern society, there is no way that one person can know everything. Today, you may find that a young computer-trained person has more answers for an accounting problem than a senior accountant has. Until we understand how best to leverage this diversity of experience, we will not be able to create and fully utilize the right kind of teams.
Sam Pitroda: " In my younger days in the US, I attended an executive seminar for Rockwell International, where about 25 senior company executives had congregated for a week for strategic discussion. In the evenings, we would break out into five different groups of five people each. In those group workshops, someone would delegate tasks, saying: " You make coffee; you take notes; you are the chairman; and you clean the board". The next day, there would be different duties for each group member. No one ever said, " But I made coffee twice or I cleaned the board entire day". I thought to myself, if this were happening in India, people would be saying, " But I'm the senior secretary – why should I make the coffee and you be the chairman?" Hierarchy comes naturally to our minds.
What Derails a Team?
Group work requires a thorough understanding of the strengths and weaknesses of individuals irrespective of their hierarchy. Because of our background, we often don't learn how to exercise and accept leadership- to lead and to follow – simultaneously. Some gravitate toward exercising leadership, and others gravitate toward accepting the lead of others. But in true teamwork, everyone needs to do both.
Being a good team player implies respect for others, tolerance of different points of view and willingness to give. The ability to resolve conflicts without either egotism or sycophancy is a very important aspect of being a team player: You have to agree to disagree. I find that people in India somehow tend to focus on achieving total agreement, which is almost always impossible. So before work begins people want everyone to agree on everything instead they should say OK. This is what we agree on, so let's start working on this. What we don't agree on, we will resolve as we go along". For things to move forward, it's important to work on the agreed-upon aspects and not get bogged down in the areas of disagreement. Yet another snake that kills teamwork is people's political agendas. You've got to be open, clear and honest to be a good team player. Most people though, have a hidden agenda – they say something but mean the exact opposite. I call it "split-level consciousness". To say and mean the same thing is a very critical part of a good work ethic.
Criticizing the individual or the idea?
When Sam was working in C-DOT (400 employee size company), If someone had not been doing well, Sam used to tell the person directly to his face in a general meeting. The employees said that was insulting and they should be pulled aside individually to be told of the inefficiency. But in today's world, you cannot afford to do that every time. Besides, Sam figured that criticizing someone in a meeting was for the benefit of all present, and everyone could learn from that individual's mistakes. It was then that Sam learned how Indians do not differentiate between criticizing an idea and criticizing an individual.
So in a group, if you tell someone that his idea is no good, he automatically takes it personally and assumes that you are criticizing him. No one can have a good idea everyday on every issue. If you disagree with my idea, that does not mean that you have found fault with me as a person. Thus, it is perfectly acceptable for anyone to criticize the boss - but this concept is not a part of the Indian System. So from time to time, it is important for an organization's Chief Executive to get a report on the psychological health of the firm. How do people in the team feel? Are they stable? Confident? Secure? Comfortable? These are the key elements of a team's success. For a boss to be comfortable accepting criticism from subordinates, he must feel good about himself. Self-esteem is a key prerequisite to such a system being successful.
Mental Vs. Physical Workers
Another serious problem facing India is the dichotomy and difference in respectability between physical and mental workers, which seriously affects team performance.
Mr. Sam had a driver named Ram, who he thought was one of the best drivers in the world. He used to open the door for him whenever he entered or exited the car. Right in the first few days Sam told him " Ram bhai, you are not going to open the door for me. You can do that If I lose my hands". Ram almost started crying. He said, " Sir, what are you saying? This is my job!" Sam told him that I didn't want to treat him like a mere driver. He had to become a team player. Sam told him that whenever he was not driving, he should come into office and help out with office work - make copies, file papers, send faxes, answer phone call or simply read - rather than sit in the car and wait for me to show up.
Diversifying tasks increases workers' self-esteem and motivation and makes them team players. Now, even If Sam calls him for work in the middle of the night, he is ready - because Sam respects him for what he does. Team Interactions unfortunately, when good teams do get created, they almost invariably fall apart. In our system today it is very difficult to build teams because nobody wants to be seen playing second fiddle. It is very hard in India to find good losers. Well, you win some and you lose some. If you lose some, you should move on! You don't need to spend all your time and energy of different cultural backgrounds, religions, ethnicities and caste groups - a fertile ground of diversity in the workplace. We should actually be experts in working with diversity. But it can only happen when we get rid of personal, caste and community interests.
There could be a 40-year-old CEO with a 55-year-old VP. It has nothing to do with age; capability and expertise are what counts. But you don't yet see these attitudes taking hold in India. Managers in the US corporate environment who work with Indians - and in fact, with Asians in general - need to recognize that these individuals have a tendency to feel that they are not getting recognition or are not being respected. It must be realized that these individuals have lower self-esteem to begin with and therefore have to be pampered and encouraged a little more because they need it. This makes them feel better and work better. No Substitute for Teamwork. Teamwork is key to corporate and national governance, and to get anything done.
The fundamental Issues are respect for others, openness, honesty, communication, willingness to disagree, resolution of conflict, and recognition that the larger goal of the team as a whole rumps Individual or personal agendas.
Don't be afraid of pressure.
Remember that Pressure is what turns a lump of coal into a diamond.
Friday, March 28, 2008
Employee Communication: 5 Ways Leaders Can Communicate Change
by Marcia Xenitelis
I am often asked about the role of the CEO or leader of any organization in employee communication. My opinion is that no matter what the issue is, even if it is just business as usual, having a good communicator as a CEO is critical to impact the culture of an organization in a positive way.
Lets start with looking at some scenarios. These can include a merger or acquisition, an organizational crisis, announcement of annual financial results, corporate social responsibility or even trying to create a culture of innovation.
My contention is that no matter what the issue, there are 5 ways that your CEO can communicate with employees and achieve positive outcomes each time. Most of the methods listed below involve face to face dialogue to ensure the greatest engagement.
1. Staff Forums
Otherwise known as “Town Halls” these are opportunities for the CEO and Senior Management team to visit employees in all locations and address the real issues and concerns of staff as well as communicating the big picture. Employee communication tips include handing out cards to attendees so that the questions can be addressed after a break in proceedings, tailoring the presentation in part to the unique situation in the particular region the CEO is visiting and following up any issues that cannot be answered at the time.
2. Site Visits
These are an excellent employee communication tool for the CEO to find out specifically from the frontline exactly what the issues and concerns are of a particular region or department. The key is not only to spend time with the leadership team but also to sit with employees and find out what they are working on and inviting them to suggest innovative ways of doing things differently. CEOs' rarely spend time communicating with employees and this is one way to break down perceptions and encourage two way communication.
3. Employee Achievement
Another way the CEO can communicate change is to support and encourage employees personally for their achievements. These maybe directly related to the issue at hand and by taking time out to recognize high achievers or change agents it sends a strong message to all employees that the CEO will reward those who support and are engaged in the change agenda.
4. Leaderships Forums
One of the smartest things an CEO can do during times of change is to communicate with his / her leadership team. I have always found that employee communication strategies need to be pitched at different levels and with different strategies to suit the role and expectations of the employees. When we think of change it is the leadership team that will drive it, from regional managers, state managers to frontline supervisors it is important that the CEO communicates face to face with the leadership team to be very clear about his or her expectation of them during times of change. One employee communication tip here is that face to face one on one meetings be held with the direct reports to the CEO and the next level down; it is a very powerful tool and has maximum impact.
5. CEO Blog
Finally where would we be if we did not mention some form of technology driven communication tool. A CEO blog is very effective if it is used to support and report on the transformation process whilst the employee engagement strategy is underway. For example the CEO has one on one meetings with the leadership team, he / she then reports in the Blog on the key messages and expectations. The CEO begins visits to each region and reports back on the Blog the key observations and achievements of employees and so on. Employee communication tools to inform are always a back up and support to the real communication taking place, the employee communication engagement strategies as listed in points 1 – 4 above.
The methods suggested above also achieve another goal often neglected in employee communication. As this is the opportunity for the CEO to find out what people at all levels of the organization really think about a particular issue, it will cause the CEO to think differently next time about the importance of employee communication and will ensure that change communication is addressed at the planning phase of any major organizational change.
I am often asked about the role of the CEO or leader of any organization in employee communication. My opinion is that no matter what the issue is, even if it is just business as usual, having a good communicator as a CEO is critical to impact the culture of an organization in a positive way.
Lets start with looking at some scenarios. These can include a merger or acquisition, an organizational crisis, announcement of annual financial results, corporate social responsibility or even trying to create a culture of innovation.
My contention is that no matter what the issue, there are 5 ways that your CEO can communicate with employees and achieve positive outcomes each time. Most of the methods listed below involve face to face dialogue to ensure the greatest engagement.
1. Staff Forums
Otherwise known as “Town Halls” these are opportunities for the CEO and Senior Management team to visit employees in all locations and address the real issues and concerns of staff as well as communicating the big picture. Employee communication tips include handing out cards to attendees so that the questions can be addressed after a break in proceedings, tailoring the presentation in part to the unique situation in the particular region the CEO is visiting and following up any issues that cannot be answered at the time.
2. Site Visits
These are an excellent employee communication tool for the CEO to find out specifically from the frontline exactly what the issues and concerns are of a particular region or department. The key is not only to spend time with the leadership team but also to sit with employees and find out what they are working on and inviting them to suggest innovative ways of doing things differently. CEOs' rarely spend time communicating with employees and this is one way to break down perceptions and encourage two way communication.
3. Employee Achievement
Another way the CEO can communicate change is to support and encourage employees personally for their achievements. These maybe directly related to the issue at hand and by taking time out to recognize high achievers or change agents it sends a strong message to all employees that the CEO will reward those who support and are engaged in the change agenda.
4. Leaderships Forums
One of the smartest things an CEO can do during times of change is to communicate with his / her leadership team. I have always found that employee communication strategies need to be pitched at different levels and with different strategies to suit the role and expectations of the employees. When we think of change it is the leadership team that will drive it, from regional managers, state managers to frontline supervisors it is important that the CEO communicates face to face with the leadership team to be very clear about his or her expectation of them during times of change. One employee communication tip here is that face to face one on one meetings be held with the direct reports to the CEO and the next level down; it is a very powerful tool and has maximum impact.
5. CEO Blog
Finally where would we be if we did not mention some form of technology driven communication tool. A CEO blog is very effective if it is used to support and report on the transformation process whilst the employee engagement strategy is underway. For example the CEO has one on one meetings with the leadership team, he / she then reports in the Blog on the key messages and expectations. The CEO begins visits to each region and reports back on the Blog the key observations and achievements of employees and so on. Employee communication tools to inform are always a back up and support to the real communication taking place, the employee communication engagement strategies as listed in points 1 – 4 above.
The methods suggested above also achieve another goal often neglected in employee communication. As this is the opportunity for the CEO to find out what people at all levels of the organization really think about a particular issue, it will cause the CEO to think differently next time about the importance of employee communication and will ensure that change communication is addressed at the planning phase of any major organizational change.
Wednesday, March 19, 2008
Top 10 Ways to Succeed at Succession Planning
Gordon Neufeld
For succession planning to be successful, companies need to establish a culture in which the process is consistently viewed as a bottom-up activity. Managers, technical gurus, sales stars, and even key executive assistants all play vital and valuable roles. Without this type of culture and a process in place to ensure a seamless transfer of knowledge and relationships, the equivalent of corporate dead air may result: performance lags, productivity loss, not to mention the financial costs associated with not having someone in a key position. Smart companies put a protocol in place for high-value individuals to ensure a succession-ready environment.
A top 10 list for succeeding at succession requires that talent managers:
10. Pick a timeline. Orienting an individual into a successor’s role takes time. At minimum, a 12-month window gives both parties the opportunity to transfer knowledge and manage relationships.
9. Choose possible successors. Starting with a short list, select who works well with the organization and who the emerging stars are. Is there a likely candidate or an unlikely candidate missing from the list?
8. Narrow the list. Everyone on the list should be interviewed to discern their interest and eligibility. Some may gracefully decline, while others will feel honored to be asked. Everyone needs to know there are other candidates so that no one is considered a sure thing.
7. Get buy-in. Discussions in both directions will help with the decision making. What is HR’s responsibility? What do managers higher up in the organization think?
6. Plan. What are the development needs of the potential successor? Is there technical training that needs to take place? Perhaps an executive MBA that needs to be conquered? Don’t forget the soft skills, as well. For instance, a Gen Y employee might need coaching to learn how to deal inoffensively with older colleagues who have boomer-type values and ways of doing business.
5. Facilitate succession via formal and informal shadowing. Let employees learn from the master. They should go on the sales calls, take minutes at the board of directors meetings and be part of the vice president’s budget sessions. Having the successor shadow his or her successee can be the most valuable way to impart knowledge.
4. Capture learning. Do this on paper, on tape, on video. Often, what is most important are the stories. Those leaving an organization must have their corporate histories captured. Generation Y and the millennials may ingest these stories best if delivered via social
networking or another Web 2.0 device. But, however they are shared, listening to or reading about a successor’s business war stories will transfer valuable knowledge to help those less experienced build the future.
3. Do a test drive. Assuming things have gone well (if not, see No. 9) it is time for a role reversal and some on-the-job experience. While a successee is completing a part of his or her new success plan, the successor needs to step in and fly solo.
2. Handoff. Whenever the formal switch takes place, the handoff should be smooth, with roles functioning as prescribed.
1. Evaluate. Don’t forget to lead a session on the process. What worked? What improvements need to be implemented? Most importantly, who is your successor?
The key to a consistent, successful succession plan starts with HR dialogue that might begin five to 10 years from an expected retirement day. With average retirement ages dropping like stones in a lake, the day when successors will be needed may arrive a lot sooner than many companies think. Adopting a systemic process and succession culture will pay off in many ways for forward-thinking companies. The most important payoff is ensuring valuable employees remain with the company, allowing them to evolve and reinvent while doing what they do best — creating value for their employers.
For succession planning to be successful, companies need to establish a culture in which the process is consistently viewed as a bottom-up activity. Managers, technical gurus, sales stars, and even key executive assistants all play vital and valuable roles. Without this type of culture and a process in place to ensure a seamless transfer of knowledge and relationships, the equivalent of corporate dead air may result: performance lags, productivity loss, not to mention the financial costs associated with not having someone in a key position. Smart companies put a protocol in place for high-value individuals to ensure a succession-ready environment.
A top 10 list for succeeding at succession requires that talent managers:
10. Pick a timeline. Orienting an individual into a successor’s role takes time. At minimum, a 12-month window gives both parties the opportunity to transfer knowledge and manage relationships.
9. Choose possible successors. Starting with a short list, select who works well with the organization and who the emerging stars are. Is there a likely candidate or an unlikely candidate missing from the list?
8. Narrow the list. Everyone on the list should be interviewed to discern their interest and eligibility. Some may gracefully decline, while others will feel honored to be asked. Everyone needs to know there are other candidates so that no one is considered a sure thing.
7. Get buy-in. Discussions in both directions will help with the decision making. What is HR’s responsibility? What do managers higher up in the organization think?
6. Plan. What are the development needs of the potential successor? Is there technical training that needs to take place? Perhaps an executive MBA that needs to be conquered? Don’t forget the soft skills, as well. For instance, a Gen Y employee might need coaching to learn how to deal inoffensively with older colleagues who have boomer-type values and ways of doing business.
5. Facilitate succession via formal and informal shadowing. Let employees learn from the master. They should go on the sales calls, take minutes at the board of directors meetings and be part of the vice president’s budget sessions. Having the successor shadow his or her successee can be the most valuable way to impart knowledge.
4. Capture learning. Do this on paper, on tape, on video. Often, what is most important are the stories. Those leaving an organization must have their corporate histories captured. Generation Y and the millennials may ingest these stories best if delivered via social
networking or another Web 2.0 device. But, however they are shared, listening to or reading about a successor’s business war stories will transfer valuable knowledge to help those less experienced build the future.
3. Do a test drive. Assuming things have gone well (if not, see No. 9) it is time for a role reversal and some on-the-job experience. While a successee is completing a part of his or her new success plan, the successor needs to step in and fly solo.
2. Handoff. Whenever the formal switch takes place, the handoff should be smooth, with roles functioning as prescribed.
1. Evaluate. Don’t forget to lead a session on the process. What worked? What improvements need to be implemented? Most importantly, who is your successor?
The key to a consistent, successful succession plan starts with HR dialogue that might begin five to 10 years from an expected retirement day. With average retirement ages dropping like stones in a lake, the day when successors will be needed may arrive a lot sooner than many companies think. Adopting a systemic process and succession culture will pay off in many ways for forward-thinking companies. The most important payoff is ensuring valuable employees remain with the company, allowing them to evolve and reinvent while doing what they do best — creating value for their employers.
Why Don’t We Ask?
Marshall Goldsmith
Why is asking so important? In the Information Age, leaders must manage knowledge workers. Peter Drucker has defined knowledge workers as people who know more about what they are doing than their boss does. It is hard to tell people what to do and how to do it when they already know more than we do. In today’s rapidly changing world, we need to ask, listen and learn from everyone around us.
Research shows that asking works. Howard Morgan and I recently published a study involving more than 11,000 leaders and 86,000 of their co-workers from eight major corporations. Our findings were clear: Leaders who ask, listen, learn and consistently follow up are seen as becoming more effective. Leaders who don’t ask don’t get much better. A few years ago, Alyssa Freas joined us in a similar study with customers and discovered nearly identical results. External customer satisfaction goes up when customer service representatives ask, listen, learn and follow up.
In addition to being supported by research, asking is just common sense. When people ask us for our input, listen to us, try to learn from us and follow up to see if they are getting better, our relationship with them improves.
This seems simple and obvious—so why don’t we do it?
Reviews of summary 360-degree feedback involving thousands of leaders from more than 50 organizations have shown that when the item “Asks people what he or she can do to improve” is included in the company’s leadership inventory, it almost always falls near the bottom (if not in last place) in terms of employee satisfaction. As a rule, leaders don’t ask.
I recently asked the vice president of customer satisfaction in a major organization if his employees should be asking their key customers for feedback—listening, learning and following up to ensure service keeps getting better. “Of course,” he replied.
“How important it this to your company?” I asked. “It’s damn important!” he exclaimed.
I then lowered my voice and asked, “Have you ever asked your wife for feedback on how you can become a better husband?” He stopped, thought for a second, and sighed, “No.”
“Who is more important—your company’s customers or your wife?” I asked. “My wife, of course,” he replied.
“If you believe in asking so much, why don’t you do it at home?” I inquired. He ruefully admitted, “Because I am afraid of the answer.” Why don’t most of us ask—even though we know we should? We don’t ask, because we are afraid of the answers.
Let me give you a personal example. I am 55 years old, and at my age, one type of input that I should be asking for every year is a physical exam. I managed to avoid this exam, for not one or two years, but seven years. How did I successfully avoid a physical exam for seven years? What did I keep telling myself? I will do it when I quit traveling so much. I’ll go after I begin my “healthy foods” diet. I will get that exam after I get in shape.
Have you ever told yourself the same thing? Who are we kidding? The doctor? Our families? No, we are only kidding ourselves.
My suggestions are very simple:
* As a leader: Get in the habit of asking key co-workers for their ideas on what needs to be done. Thank them for their input, listen to them, learn as much as you can, incorporate the ideas that make the most sense and follow up to ensure that real, positive change is occurring.
* As a coach: Encourage the people you are coaching to ask questions, listen to the answers and learn from everyone around them. Be a great role model for learning, then ask the people you are coaching to learn in the same way that you are. As an executive coach, I find that my clients can learn a lot more from their key stakeholders than they ever learn from me.
* As a friend and family member: Ask your loved ones how you can be a better partner, friend, parent or child. Listen to their ideas. Don’t get so busy with work that you forget that they are the most important people in your life. Improving interpersonal relationships doesn’t have to take a lot of our time. It does require having the courage to ask for important people’s opinions and the discipline to follow up and do something about what we learn.
Why is asking so important? In the Information Age, leaders must manage knowledge workers. Peter Drucker has defined knowledge workers as people who know more about what they are doing than their boss does. It is hard to tell people what to do and how to do it when they already know more than we do. In today’s rapidly changing world, we need to ask, listen and learn from everyone around us.
Research shows that asking works. Howard Morgan and I recently published a study involving more than 11,000 leaders and 86,000 of their co-workers from eight major corporations. Our findings were clear: Leaders who ask, listen, learn and consistently follow up are seen as becoming more effective. Leaders who don’t ask don’t get much better. A few years ago, Alyssa Freas joined us in a similar study with customers and discovered nearly identical results. External customer satisfaction goes up when customer service representatives ask, listen, learn and follow up.
In addition to being supported by research, asking is just common sense. When people ask us for our input, listen to us, try to learn from us and follow up to see if they are getting better, our relationship with them improves.
This seems simple and obvious—so why don’t we do it?
Reviews of summary 360-degree feedback involving thousands of leaders from more than 50 organizations have shown that when the item “Asks people what he or she can do to improve” is included in the company’s leadership inventory, it almost always falls near the bottom (if not in last place) in terms of employee satisfaction. As a rule, leaders don’t ask.
I recently asked the vice president of customer satisfaction in a major organization if his employees should be asking their key customers for feedback—listening, learning and following up to ensure service keeps getting better. “Of course,” he replied.
“How important it this to your company?” I asked. “It’s damn important!” he exclaimed.
I then lowered my voice and asked, “Have you ever asked your wife for feedback on how you can become a better husband?” He stopped, thought for a second, and sighed, “No.”
“Who is more important—your company’s customers or your wife?” I asked. “My wife, of course,” he replied.
“If you believe in asking so much, why don’t you do it at home?” I inquired. He ruefully admitted, “Because I am afraid of the answer.” Why don’t most of us ask—even though we know we should? We don’t ask, because we are afraid of the answers.
Let me give you a personal example. I am 55 years old, and at my age, one type of input that I should be asking for every year is a physical exam. I managed to avoid this exam, for not one or two years, but seven years. How did I successfully avoid a physical exam for seven years? What did I keep telling myself? I will do it when I quit traveling so much. I’ll go after I begin my “healthy foods” diet. I will get that exam after I get in shape.
Have you ever told yourself the same thing? Who are we kidding? The doctor? Our families? No, we are only kidding ourselves.
My suggestions are very simple:
* As a leader: Get in the habit of asking key co-workers for their ideas on what needs to be done. Thank them for their input, listen to them, learn as much as you can, incorporate the ideas that make the most sense and follow up to ensure that real, positive change is occurring.
* As a coach: Encourage the people you are coaching to ask questions, listen to the answers and learn from everyone around them. Be a great role model for learning, then ask the people you are coaching to learn in the same way that you are. As an executive coach, I find that my clients can learn a lot more from their key stakeholders than they ever learn from me.
* As a friend and family member: Ask your loved ones how you can be a better partner, friend, parent or child. Listen to their ideas. Don’t get so busy with work that you forget that they are the most important people in your life. Improving interpersonal relationships doesn’t have to take a lot of our time. It does require having the courage to ask for important people’s opinions and the discipline to follow up and do something about what we learn.
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