May 2009
How to Keep Employees Motivated
May 29, 2009 by Marshall Goldsmith
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Keeping employees committed and motivated during tough economic times seems like a tall task, 
especially after downsizing or program cutbacks.
I hear this concern everywhere I travel these days. Who doesn't? My friend Joe Wheeler, Executive Director of The Service Profit Chain Institute, recently co-authored a book with Harvard Business School Professors James L. Heskett and W. Earl Sasser, Jr. entitled The Ownership Quotient, Putting The Service Profit Chain to Work for Unbeatable Competitive Advantage. I asked him for his perspective on this question. Here's his take:
Managers across the country are facing tough decisions as they try to manage their cost base against diminishing demand. In many cases, this affects labor costs and the potential for layoffs, furloughs, or other cutbacks. These disruptions can have a nasty impact on employee morale and commitment.
In our book, we studied the practices of organizations like Wegmans Food Markets, ING Direct, and Harrah's Entertainment — organizations we characterize as "service profit chain leaders." They achieve a large percentage of 'owners' in their employee base — employees that are highly engaged and demonstrate an 'ownership' mentality. These employees recommend new employees to the organization, and participate in efforts to improve current products, services, and processes. This engagement inevitably leads to greater success for the company, and is of significant benefit especially during tough times.
Here are three things you can do to maintain and foster an ownership culture:
1. Communicate, Communicate, Communicate
Of course you're busy searching for business to keep the organization afloat. But employees with an ownership mentality want to know what is happening in their company. Set aside time regularly to provide your employee-owners with information that will help them understand their short-term job prospects. Just as important, provide them with specific plans for using the next 18 to 24 months to reposition the organization for the next decade.
There is a lot of anxiety and uncertainty in many organizations today. In some cases, it interferes with quality and productivity. Merely recognizing employee concerns can help alleviate them. Relatively inexpensive employee counseling can become memorable at times like these. These actions, coupled with incentives that elicit new ideas for improving operations can send important positive messages at a time of stress. They can foster "ownership" behaviors — loyalty, high productivity, and referrals of others as potential employees — that enhance the lifetime value of members of the organization.
2. Appeal to the Better Nature of Your Employee-Owners
The current economic crisis provides the national government with the basis for establishing a citizenry characterized by volunteerism. It provides you with the "burning platform" necessary to enlist everyone in transforming your organization to win the competitive battles of the future. It's a great time to engage employee-owners in coming up with ideas to deal with the downturn. This doesn't have to involve an elaborate "program," just an organized appeal.
It may involve juicing up an already existent effort. For example, at Baptist Health Care, an organization regularly cited as one of the best places to work, managers lead discussions on subjects such as survey results and solicit ideas for ways to improve customer service as part of an ongoing Listening and Learning program. The resulting "customer snapshot reports" compile all employee observations and ideas for general distribution.
3. Upgrade Talent: Avoid the Freeze
Winners like to work with winners; losers like to work with winners; but winners don't like to work with losers. Who are the losers? Ironically, many times it's not those who are performing at a sub-par level; they often can be coached and supported in ways that help them improve their productivity. More frequently, it's those who violate the norms of the organization and can't manage by the values shared by others. In the context of the organization and its culture, they are regarded as "jerks" by their colleagues — jerks who are tolerated because of the ability to "make the numbers." But most often, the "losers" are simply those who are not inspired and excited about the business, who go about performing the necessary but not the extra.
Now is the time to let go of the losers, thereby raising the average level of talent in the organization. That doesn't mean a freeze on hiring, however. Instead, it may be a great time to take advantage of a depressed talent market by making a few strategic hires of long-sought candidates from competitors or other organizations.
Marshall: Thank you Joe! This is great advice. To learn more about The Ownership Quotient visit www.ownershipquotient.com .
Readers, do you have a employee ownership issues to share? Do you have techniques you use to motivate employees in lean, even frightening times? Please send share them with us.
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June 16, 2009 in Chicago - Linkage: What Got You Here Won't Get You There one day program
June 30, 2009 in Edinburgh - IMS full day program
July 1, 2009 in London - IMS full day program
July 2, 2009 in Manchester, England - IMS full day program
August 3, 2009 in Hanover, New Hampshire - Dartmouth one day program
Spotting the Uncoachables
May 3, 2009 by Marshall Goldsmith
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wisdom, relationship, leadership
Even if you are the best coach in the world, if the person you are coaching shouldn't be coached, the coaching isn't going to work. The good news is that the "uncoachables" are easier than you think to spot. How do you know when someone is uncoachable? How do you detect a lost cause? Following are four indicators that you are dealing with one of these people:
1. She doesn't think she has a problem.
This successful adult has no interest in changing. Her behavior is working fine for her. If she doesn't care to change, you are wasting your time!
Let me give you an example of a nice woman who didn't think she had a problem. My mother, a lovely woman and much-admired first-grade teacher, was so dedicated to her craft that she didn't draw the line between inside and outside the classroom. She talked to all of us, including my father, in the same slow, patient manner, using the same simple vocabulary that she used with her six-year-olds every day.
One day as she graciously and methodically corrected his grammar for the millionth time, he looked at her, sighed, and said, "Honey, I'm 70 years old. Let it go." My father had absolutely no interest in changing. He didn't perceive a problem. So no matter how much, how hard, or how diligently she coached, he wasn't going to change.
2. He is pursuing the wrong strategy for the organization.
If this guy is already going in the wrong direction, all you're going to do with your coaching is help him get there faster.
Sometimes people feel that they're in the wrong job with the wrong company. They may believe they're meant to be doing something else or that their skills are being misused. Here's a good way to determine if you're working with one of these people. Ask them, "If we shut down the company today, would you be relieved, surprised, or sad?" If you hear 'relieved,' you've got yourself a live one. Send them packing. You can't change the behavior of unhappy people so that they become happy: You can only fix behavior that's making people around them unhappy.
4. They think everyone else is the problem.
A long time ago I had a client who, after a few high-profile employee departures, was concerned about employee morale. He had a fun, successful company and people liked the work, but feedback said that the boss played favorites in the way he compensated people. When I reported this feedback to my client, he completely surprised me. He said he agreed with the charge and thought he was right to do so.
First off, I'm not a compensation strategist and so I wasn't equipped to deal with this problem, but then he surprised me again. He hadn't called me to help him change; he wanted me to fix his employees. It's times like these that I find the nearest exit. It's hard to help people who don't think they have a problem. It's impossible to fix people who think someone else is the problem.
My suggestion in cases like these? Save time, skip the heroic measures, and move on. These are arguments you can't ever win.
Life is good.
Marshall
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June 16, 2009 in Chicago - Linkage: What Got You Here Won't Get You There one day program
June 30, 2009 in Edinburgh - IMS full day program
July 1, 2009 in London - IMS full day program
July 2, 2009 in Manchester, England - IMS full day program
August 3, 2009 in Hanover, New Hampshire - Dartmouth one day program