9/8/11

Human Capital is on its new site

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5/18/11

Leading by Example


by Sharon Daniels

Economic recovery is fragile, and the workplace psyche is just as delicate. As businesses start hiring again, many workers will begin weighing better offers, and top performers likely are already evaluating how well they were treated during the most rugged patches of the recession. Further, the changes wrought by the recession have created a new work and business environment, which means managers have to motivate employees through a new phase of anxiety as employees grapple with change.
 
Senior managers can lead by example to motivate the workforce. In companies of all sizes, employees at all levels seek cues and reassurance from their leaders. As the workforce churns and reshapes itself in the wake of retiree departures, temporary leaves of absence and layoffs, the need for management guidance is magnified.
 
Strategic initiatives around employee engagement often gain traction when senior leaders successfully align supervisors to key messages and programs. Think of an automobile with a broken drive-train. Someone could rev the engine forever, but if there's no connection to the wheels, the car won't go anywhere. In organizations, supervisors represent that linkage - they need to be credible with their direct reports. Employees need the right resources, and supervisors need commitment from their workgroups.
 
Senior executives who lead by example and cascade messages on corporate initiatives and priorities through supervisors extend their credibility, which is a necessary building block today as trust in management and overall job satisfaction waned during the recession.
 
In a 2010 Conference Board report on job satisfaction, only 45 percent of employees surveyed said they were satisfied with their jobs; this is down from 61.1 percent in 1987, the first year the survey was conducted.
 
"Widespread job dissatisfaction negatively affects employee behavior and retention, which can impact enterprise-level success," said John Gibbons, program director for employee engagement research and survey services at The Conference Board.
 
It also can impact retention. According to the report, 22 percent of respondents said they didn't expect to be in their current job in a year.
 
"This data throws up a big red flag because the increasing dissatisfaction is not just a 'survivor syndrome' artifact of having coworkers and neighbors laid off in the recession," Gibbons said.
 
Management has a duty to inspire its staff, starting with supervisors, but they may need development to figure out how. In many cases both first-time and experienced supervisors face a set of responsibilities that may be at odds with the abilities and attributes that got them promoted to a supervisory role in the first place. Thus, having models who can lead and teach by example can be beneficial.
 
Of course, supervisors demand strong leadership examples from management for many reasons. For instance, leaders can show other leaders how to increase diversity and how to mitigate the challenges and maximize the opportunities inherent when leading a more diverse workforce. They also can ease woes brought on by an uncertain economy and the changing relationship between organizations and employees as employees take on greater roles with fewer resources. The aforementioned reasons all have a big impact on today's frontline workers and individual contributors, creating a need for supervisors to have special skills such as the ability to communicate complex messages in a succinct way and a willingness to make tough decisions when necessary.
 
There are several relatively simple strategies supervisors can emulate or execute to inspire their direct reports.
 
1. Show respect.
Senior managers must convey to and through supervisors that every employee in the organization is respected. A 2009 AchieveGlobal study of 512 employees from the U.S., China, Singapore, Germany and U.K. revealed that respect is an attribute valued by all employees, no matter what generation. Showing respect and instilling respect for others also is a proven way to promote motivation throughout an organization.
 
Today's leaders would be wise to treat people like the individuals they are and use performance management tools to measure individual performances, goals and expectations. Leaders also should recognize that just because the economy is troubled doesn't mean there aren't jobs available for high performers elsewhere.
 
Treating each employee individually can help greatly to increase retention, which is a critical component for any organization trying to recover from the recession. Taking a person's skills, experience, drive, perspective, energy and even personality into account helps to communicate a supervisor's respect for an employee. There are numerous ways to show respect, such as:
 
a) Encouraging employees to share their ideas and perspectives.
b) Highlighting and utilizing employees' unique skills.
c) Focusing on being a professional coach as well as a manager.
 
2. Build personal credibility.
As organizations become less hierarchical, personal credibility represents a greater hallmark of leadership than positional authority. Personal credibility is neither an attitude nor a quality. It's a perception others form of supervisors, based on their actions over time. Everything supervisors do and say will be noted carefully by members of their workgroup and others in the organization. For instance, do their words match their actions? Do they keep their promises? Are they willing to take on the tough issues?
 
There are several ways to build personal credibility. These include:
 
a) Acknowledge mistakes.
Managers should admit when they don't have the answer and be willing to learn from others.
 
b) Follow through.
Ensure words match actions.
 
c) Give others credit.
Acknowledge and show appreciation for others' hard work; highlight examples of exemplary work.
 
d) Work hard to remove obstacles for workgroups and get them the resources they need.
Supervisors should position themselves as team champions, let team members know they are vested in their success, and prove it by ensuring they have the tools necessary to succeed.
 
Being known as personally credible helps supervisors achieve success by buying some slack when they don't know what to do or they do the wrong thing. It also becomes easier to convince others of new or unpopular ideas. If employees trust their supervisor, they'll be more likely to buy into what the supervisor says.
 
3. Activate workgroup commitment.
These days, organizations cannot succeed simply by maintaining business as usual. Creativity and extra effort are required from every employee from the president to the front-line workers. Successful supervisors and managers know how to activate their employees' energy and dedication. Creating commitment begins with helping employees see the connection between their daily activities and the organization's goals.
 
Of course, supervisors need to know the organization's goals and understand why they're important. If supervisors do not fully understand the organization's strategic or tactical rationales, they should seek clarity from senior leaders.
 
Successful supervisors gain workgroup commitment by:
 
a) Creating a sense that the workgroup is doing something worthwhile.
b) Showing how each employee's work fits into the bigger picture.
c) Making sure employees have clear directions and understand how they will be measured when they meet objectives.
d) Creating a sense of ownership for work.
 
Fully committed employees will use their own ingenuity and dedication to go the extra mile to help reach organizational goals. Then the supervisor can spend less time giving directions and making sure everyone is doing their jobs, and more time strategizing how to meet higher level priorities.
 
4. Create meaningful rewards.
All too often managers and supervisors see external rewards as the only or the best tools with which to drive motivation. While an intuitive reaction might be to focus on material rewards such as money or extra vacation days, research has demonstrated that these kinds of systems actually can depress internal motivation. Certainly, people want to be paid what they're worth, but they're motivated by far more than money. They want to grow and develop. They want to be valued. They want to be in control of their careers.
 
As senior managers work to encourage internal motivation in the workforce, it's critical that employees are rewarded in meaningful ways that contribute to their overall growth. One such reward is autonomy. It is important that employees be given boundaries that allow them autonomy within their given roles and responsibilities. Giving employee autonomy over how their work is completed shows confidence and empowers them to meet and exceed expectations while rewarding their past efforts.
 
Autonomy, competence and relatedness - the need for social connection and intimacy - are three core psychological needs at the root of human aspiration, according to Edward Deci and Richard Ryan of the University of Rochester. They have developed a motivational framework known as self-determination theory (SDT), which is "concerned with supporting our natural or intrinsic tendencies to behave in effective and healthy ways." The theory has been examined and confirmed by researchers around the world, including author Daniel Pink, who references SDT in Drive: The Surprising Truth About What Motivates Us.
 
Fulfilling all three of these core needs is crucial to drive motivation, and that's why compensation isn't a panacea; filling up these three buckets doesn't come solely from equitable pay. Workers must learn, have fun and grow - qualities not directly fed by a paycheck.
 
5. Create accessibility to senior leaders.
Successful supervisors know that without a solid relationship with the senior leaders they report to, they can't count on the support they need to achieve results. As supervisors work to motivate employees, they also must have a strong relationship with their own managers to ensure they are communicating the right priorities and messages to their direct reports.
 
Further, the best relationships focus not on pleasing the boss, but on establishing an alliance between partners. Supervisors can help develop a mutually supportive relationship with the organization's senior leaders by:
 
a) Knowing what's important to the leader and working to support it.
b) Offering the manager solutions, not just problems.
c) Keeping their manager up-to-date on any issues he or she is expected to own.
d) Asking directly for help when necessary, rather than waiting for the leader to offer it.
 
Supervisors who enjoy strong relationships with their senior leaders not only excel, but also set examples for other employees. Senior leaders will be more inclined to support these supervisors when they require extra resources or need obstacles removed.
 
In the future, organizations are going to need more employees at all levels who can work independently. As long as change continues to be a dominant theme, senior leaders should reinforce success strategies for their supervisors. These strategies will give supervisors and managers the traction they need to motivate their direct reports to achieve new successes.
 
 
[About the Author: Sharon Daniels is president and CEO of AchieveGlobal, an interpersonal business skills provider.]

3/27/11

Business Ethics 2.0


by Paul Gorrell | Talent Management

Five weeks into the Deepwater Horizon oil spill, when there was no apparent solution to plugging the voluminous leak that was devastating the fishing industry and devaluing the tourist season across four states, BP CEO Tony Hayward said, "I would like my life back." These words dovetailed with a weak apology communicating indifference to thousands of workers in the Gulf Coast region who were losing personal wealth, livelihoods and family traditions.
 
Hayward's quote became symbolic of the public perception that BP's business practices contributed to the oil spill in the first place and that its priority after the spill was to defensively protect its own value and standing with shareholders. Along with negative public sentiment about bank bailouts, this type of public struggle in stating and delivering on corporate values provides fodder when considering business ethics today.
 
Business ethics inside organizations is typically focused on legal concerns in an attempt to lower a company's potential exposure. In business schools, case studies such as the Johnson & Johnson Tylenol scare in the 1980s are used to explore the principles behind an organization's mission statement, business policies and leadership decisions. It is time for a larger, more purposeful business ethics discussion focused on values-based leadership, a business ethics 2.0 approach that goes beyond compliance.
 
Ethics Lessons From Diversity
 
Today, companies celebrate diversity and inclusion within their organizations, touting these qualities as representative of their employer brand. However, diversity has not always been a promoted value in organizations. We have evolved to this positive perspective, which has become best practice.
 
The origins of diversity were less about building an employment brand and more about defending organizations from corporate exposure. Although large companies got used to absorbing sexual harassment lawsuits in the 1970s because of bad behavior from their executives, they felt more pressure from growing numbers of class action lawsuits, where groups of individuals from a protected class joined together seeking justice for inappropriate corporate actions.
 
These lawsuits were brutally expensive, and bad publicity prompted a wave of training to curb executives' bad behavior and ensure that systems were put into place to remove enterprisewide bias in hiring and promotion. This was the diversity compliance stage, where company protection was the foremost priority.
 
Over time, factors shifted businesses' approaches toward diversity and inclusion. First, the shortage associated with the talent war caused businesses to look to nontraditional sources for talent. By expanding the available pool, companies were able to source key roles and manage productivity pressures.
 
Second, companies saw the emerging global market as a growth opportunity, which increased the need to embrace different styles, worldviews and cultures. Global teams, often forced to work virtually, created opportunities to experience new ideologies, perspectives and ways of working.
 
Third, consumers demonstrated loyalty to companies and brands that included a diverse workforce and a diversity focus. Negatively, boycotts of brands from minority groups, such as when gay rights groups boycotted Coors in the 1970s, proved the need to adjust policies and create inclusive processes to adjust brand perception within key demographics. Positively, business opportunities were realized because of diversity and inclusion-related customer experiences. This is demonstrated by the recent involvement of women in car showrooms so that female customers can buy from salespeople who can better understand their needs.
 
Today, many organizations speak of diversity and inclusion as a core value. Some would argue that we are in the age of diversity in business, with additional focus on the different perspectives of individuals from different generations in the workplace and how they interact with each other. Diversity and inclusion is believed to have a demonstrable impact on the performance and retention of key employees. We have gone far beyond the compliance stage.
 
Ethics 1.0
 
A similar trend provides us with a glimmer of the future of business ethics. Given the early 2000s scandals of Enron, Tyco and WorldCom, businesses were placed in a defensive position where they were forced to comply with new expectations focused on protecting shareholders. The Sarbanes-Oxley Act of 2002 created standards for accounting and reporting, which enforced and inscribed new levels of transparency. Because of this legislation, organizations focused carefully on compliance to ensure they were managing risk exposure and the potential penalties involved.
 
This was a reactionary and protective approach to be aboveboard as an organization. This approach does not build public trust in brands or raise stock price or customer loyalty because the ethics focus has been more about limiting bad behavior than promoting good behavior.
 
Compliance approaches only go so far in risk management. John McCarthy, executive vice president of human resources at Guardian Life Insurance Co., said one cannot use compliance alone to govern or control employee behavior.
 
"Compliance should function as the guardrails for ethical and acceptable behavior. But if someone wants to do the wrong thing, compliance alone will not stop them," he explained. "We believe in emphasizing ethical behavior. Guardian employees - beginning with on-boarding on their very first day - learn the relevance of ethical behavior and its foundational importance to our culture and values."
 
Ethics 2.0
 
Despite the perceived ethical lapses of particular companies or industries, there are many indicators that ethics is evolving to provide exciting opportunities for organizations, leaders and talent managers. We are shifting to a stage where ethics is understood in a more holistic framework with an intersecting connection between the employee and consumer. This connection happens at the brand level - how that brand is perceived by those who purchase products and services and those who make up the organization's workforce.
 
We are moving toward an age of ethics in the way we do business and encourage behavior from our leaders. This is not because we want to be do-gooders, but because doing good is good business. Consider:
 
1. Ethical organizations build marketplace loyalty.
Consumers are more likely to buy products and services if they are provided by companies that also promote and commit to the social good - improving the circumstances of people, the earth and its resources.
 
2. Ethical organizations attract talent.
We may be in a state of high unemployment, but organizations still want the best of the best. And the best employees are still valuable in the marketplace. Social good acts as a magnet for many stars and emerging leaders from younger generations.
 
3. Ethical organizations engage employees, promoting retention and higher levels of productivity.
People feel proud when their brand stands for something beyond traditional ideas of profit and sales.
 
Craig Dinsell, senior vice president of human resources at OppenheimerFunds, agree that a commitment to ethics builds marketplace loyalty. "We have earned the trust of the millions of investors who have chosen us to protect and grow their wealth," he said. "Our corporate values are the foundation of our business, and they define and influence the behaviors, attitudes and philosophies that guide our company. We are deeply committed to our corporate and ethical values and believe that our success is measured not only by what we achieve - but how we achieve it."
 
Dinsell also can show the connection to OppenheimerFunds' brand as an employer. "Our employment brand is an extension of our company's brand - 'the right way to invest,'" he said. "Our ethics program, and the policies, procedures and behaviors that support our corporate values, are critical components of our business strategy. Because of this, employees view OppenheimerFunds as more than a workplace - it's a place where they feel comfortable investing their careers."
 
Two points of evidence of the move toward a commitment to ethics are the increasing numbers of companies that have corporate social responsibility programs and sustainability programs. Corporate social responsibility efforts incorporate ethics within organizations to create alignment between the public good and business operations. This often includes demonstrated commitment to social causes whereby the organization provides resources for specific events or opportunities.
 
But true corporate social responsibility involves a more integrated effort, where business operations, employee decisions and causes endorsed by the organization are part of an effort to drive a cultural vision. Sustainability is similar in that it attempts to bring together an integrated focus on planet, profit and performance. Here, organizations commit to green ways of working that are measured, rewarded and proven to drive profit.
 
Ethics and Talent Management
 
In the age of ethics, talent managers can provide significant value, deepening an organization's capability to commit to social responsibility and practice what it preaches. Some ideas include:
 
1. Incorporate ethics- and values-based leadership qualities within competency models.
One must be careful since many ethical notions, such as courage and integrity, are difficult to measure and validate. Competency models that include notions linked to social responsibility can provide significant value to every aspect of leadership and promote more effective teamwork.
 
2. Create development experiences that are embedded within the current work that leaders and employees undertake.
Ethics is typically taught through case studies, but employees' current working challenges provide incredible scenarios with which to learn how to operate in line with one's values while leveraging capabilities. While action learning can be effective for leadership development when offered in a programmatic manner, such as high-potential development, it is even more effective if presented within intact teams so they can wrestle with real challenges together in light of competing values, ideas and strategies.
 
3. Integrate social causes within the learning and development space.
We can teach great leadership behavior and commitment to values by using extra work-related activities as fodder for learning.
 
Building ethical organizations involves specific work with the leaders who represent the firm and act as champions of its culture. Because of this, focus on developing leaders' ethics is essential. "The way an organization embraces values is represented by the ethical behaviors of its leaders," said McCarthy. "We do this by building awareness, educating leaders on best practices and holding them accountable in a consistent way."
 
Oppenheimer devotes specific training experiences to ethics. "We work each day to build and maintain an organization that customers and shareholders trust and employees are proud to be a part of," Dinsell said. "We view our individual and shared ethical responsibilities as more than compliance and regulatory duties - they are foundational to our culture and our products."
 
 
[About the Author: Paul Gorrell is an executive coach for Partners in Human Resources International and the author of Contextual Coaching.]