Showing posts with label mission. Show all posts
Showing posts with label mission. Show all posts

Tuesday, November 24, 2015

The Truth About KPIs and Other Corporate Bullsh*t

Liz Ryan

CEO and Founder, Human Workplace


If you don't have KPIs to hit on the job, you can say a little prayer of thanks in your head right now. KPIs are Key Performance Indicators. They are yardsticks. They are idiotic, but weenie organizations love them. Measuring things is a lousy manager's favorite pastime!

In our quest to make business and work as mechanical and inhuman as possible over the past hundred years, every position in many large organizations has been sliced and diced into tiny pieces so that each piece can be measured and evaluated against a chart posted on the wall.

 

Some employers use software that tracks their employees' every keystroke and tracks the length of every phone call. 

Other organizations track the number of minutes their teammates spend in the restroom. The more fear-based an organization's culture is, the more things they measure and count.

We treat people at work like production machines, which is not only unethical but stupid,  too.

People are capable of much more than machines are, because people synthesize what they learn and come up with ideas every day if they are plugged into their personal power source at work.

 

They transcend their desk and their job description, especially when a group of people is energized around the same mission.

The only catch is that if people are constantly poked and prodded and measured and yammered at, they stop winning. They stop collaborating. They stop caring.
The goose stops laying the golden eggs.

Every single living person knows this about people, but at work we pretend it's not true. In real life, we know that people are at their best when they're excited about what they're doing. At work we stick our fingers in our ears and say "If you can't measure it, you can't manage it!" like blithering idiots.

 

When people are jointly committed to a big goal that excites them, they are unstoppable. That's why it is stupid to shackle and burden employees by measuring their every move so that nearly all of their focus goes to reaching their daily and weekly goals. Forget about your mission, then! 

How does our obsession with individual performance measurements help a customer or help the world? KPIs spring completely from fear. They have no business purpose at all except to assuage the fear of higher-ups who don't trust themselves enough to trust other people.

 

When employees are treated like machines whose only value is to answer forty customer calls a day and get each caller off the phone within three minutes, they will never give a fig about your company's success. How can you blame them?

They will  never give you anything better than grudging compliance with the rules and standards. Who ever got excited about hitting someone else's yardsticks --  goals that were shoved down his or her throat?

What happens in most organizations when you hit your goals for a quarter or for the year? When you hit your goals, they get bigger for the next reporting period and you don't get a "Great job!" or a pay raise to acknowledge your success.

Work is broken and it is time for us to tell the truth about that. We have foolishly tried to apply junk science to work, and KPIs and the cult of measurement in general are testaments to that foolishness.

 

What makes an organization successful? The effort of its team on behalf of the organization's mission and their own missions is the obvious answer.

That momentum - what we call Team Mojo - is not hard to build. It only takes trusting the people you hired, meaning that you have to trust yourself first.

You have to talk about fear and trust at work to begin to build the Team Mojo level. You have to be honest about things that are going well and things that aren't. You have to name the elephant in the room and stop pretending that you can make your organization successful by hitting little numbers in little cells in spreadsheets.

 

What puts those numbers in those cells, after all? Conversations do. Trust puts the numbers in the cells. That's where your leadership energy should go - toward building the trust level at work, and getting rid of pointless yardsticks that impede the energy flow.

Sadly many leaders can't trust themselves to lead, so they install layers upon layers of rules and measurements, instead. 

We lead stupidly and then we're surprised when survey after survey tells us that employees don't give a dang about their employers' goals. What person with three functioning brain cells would? We have made it impossible for our employees to care.

We've told them that if they cared more than they do about their work, they'd be squandering their flame and wasting their effort, because we don't care about them beyond their production capacity.


The organizations that will win both in the talent marketplace and in the  marketplace for their services or products are the ones who see the connection between passion and performance.

They'll get rid of KPIs and other bureaucratic systems and they'll talk about the mission and the roadblocks in their way to reaching it.

They'll talk about those things every day, and they'll be human with one another at work every day, too. It's very easy to begin. Anyone can start the chain reaction, and the more people who do, the better!

There is a lot of bullsh*t and wasted effort in corporate and institutional everywhere but the good news is that every organization gets to choose for itself how to navigate in this new-millennium workplace. Every individual gets to choose how much of him- or herself to bring to work.

 

You get to be as human or machine-like as you want to be. Working people  get to choose where to invest their precious talents, time and flame. 

We are stepping out of the old religion of data and measurement as keys to the kingdom of success.

Now we know that there is a key, but it's connected to human energy, about as distant a topic as you could find from yardsticks and KPIs. We can focus on human energy the same way we have traditionally focused on numbers, and we must. We can talk about the trust level and the Team Mojo on our teams. 

 

Those things won't show up on a spreadsheet until it's too late to fix whatever has gone wrong. No Employee Engagement survey is going to help an organization that doesn't know how its team members are doing without taking a survey.

Are you brave enough to get step out of the 19th-century, mechanical-business frame and into the Human Workplace?

Everyone gets the same invitation, from the CEO's office to the loading dock. Now is a great time to take a step toward bringing yourself to work. Your flame will grow brighter every time you do!

Monday, March 30, 2015

Purpose

5E4FF642-EF5C-46AE-A36C-2555679DF519.jpg

Saturday, March 8, 2014

Using Performance Indicators to Drive Your Business Strategy - White Paper


 

We’ve all heard the old management adage “you can’t manage what you don’t measure”, but in the world of big data where managers have countless reports and data at their fingertips, the key challenge for companies is to identify what they need to measure and to ensure they are measuring it properly. In many companies, existing reporting doesn’t provide the key data that employees need to identify performance issues and take action. Many organizations have a lot of financial accounting data but only a few measures that relate to strategic and non-financial performance. In many cases there is too much data, but too little information, with no linkage to the strategy of the business. How do you go about fixing this problem?

This article describes an approach to developing and aligning performance indicators with strategic objectives. Other processes, such as developing objectives and measures through a formal contin- uous improvement or ISO program can also be used. There is no single “right” way to decide on the best approach for your business; you need to consider what fits both within your business culture as well as the other systems you have in place.

 

A Balanced Approach To Identifying Strategic Objectives

It all starts with a strategy that flows from the company’s mission, vision and values (see Figure 1). If you do not have a strategic plan for your business, you need to start by developing a plan along with specific measurable objectives. These objectives could cover a broad range of perspectives, including these areas:
  • Internal Processes - streamlining key processes, applying new technology to improve efficiency
  • Environment and Community - support local businesses, community leadership and connecting with future employees
  • Learning and Growth - increase expertise and skills through training or mentoring
  • Financial – revenue growth, asset utilization, cash flow
  • Customer Focus - customer satisfaction, identifying and targeting the most profitable customers
  • Employee Satisfaction - staff retention and positive company culture

Identifying the Right Performance Indicators

Once strategic objectives are in place, you need to ask: what are the critical success factors required to drive each objective? For those success factors, develop a list of potential measures we call “indicators”, which will allow you to track performance. From this list of indicators, prioritize the ones that will have the biggest impact on achieving the strategic objectives. A simple example of how a strategic objective is converted to performance indicators is shown in Figure 2.

In order to measure performance, you must be able to readily obtain the data needed. Therefore, it is important to consider the availability of data, the effort required to obtain it, and any changes to systems or processes needed when selecting your performance indicators. If you are implementing performance indicators for the first time, keep it simple. Use data that is readily available in the organization; if you need to collect new data, ensure the benefit outweighs the cost and effort of obtaining it.


Cascading Objectives AND Performance Indicators to Align the Organization
Cascading your strategic objectives and indicators to all levels of the organization is a powerful way to align behaviour across your organization and improve performance. In order to do this successfully, you must develop indicators appropriate for the level of the organization at which they will be used. The manager or team using the indicator must be able to influence the results within their scope of responsibility. It is not necessary to have indicators related to each strategic objective; only the ones that are relevant to the manager or team. The best way to develop these indicators is to directly involve the people who are responsible for achieving results or have an influence on the outcome.

Setting Targets 

Establishing targets enables you to check if you are on track in reaching your objectives. There are a number of ways to set targets, but the main point to keep in mind is that you want your teams to be motivated to achieve the results.

A target can be set using an external or internal benchmark. External bench- marks are applicable in cases where you have access to published data on industry best practices. Frequently they are most applicable in areas such as cost, quality, production cycle time, sales and marketing. Internal benchmarking involves analyzing internal data to understand where the company performance currently stands in order to set improvement targets. If you do not have the data, it may be necessary to collect it for a period of time (e.g. 3 months to 1 year depending on the measure) so as to establish a baseline.

Stretch targets are a great way to challenge and motivate staff to achieve great results. When setting stretch targets, be sure to break them down into more achievable targets or sub targets and quantify them in a shorter time frame. This will reduce the anxiety amongst staff and help them see what actions are needed to achieve results.

An example of how an objective can be cascaded through the organization, with targets set that are specific to the position in the company is shown in Figure 3. 

Developing Reports and Dashboards
Once you’ve identified your performance indicators and set targets, the next step is to establish an approach to ongoing monitoring and reporting that can be used by managers and teams to track progress. The reporting framework must consider requirements of different levels of the organization and the reporting frequency that is required to support effective decision making.

A simple dashboard, which is a one-page tool displaying the performance indicators, targets, and historical data in a graphical form, can be an effective tool for reporting. The purpose of a dashboard is to provide a big picture view, focusing on the key performance indicators, and draw attention to areas of concern so that mangers can drill down into additional information that is needed to take action. There are a wide variety of software tools available for dashboard reporting; however, existing reporting systems can easily be used to create simple custom dashboards. In designing reports or dashboards, here are few things to keep in mind:
  • Keep the data for each area of the business limited to a single, easy-to-read page
  • Provide context to the data, historical trends and targets help the user to see if they are on track
  • Use graphs or tables that clearly communicate the data
  • Don’t change your reports too frequently, people need time to get used to them

Implementation

If performance indicators are new to your organization, you need to approach the design and implementation process as a change initiative. You should consider building these steps into your process:
  1. Make it a priority – The President / CEO and senior management must support this initiative and ensure there is a sense of urgency within the organization to follow through with this project.
  2. Develop a team – This group should have enough authority within the organization to lead the change and include people from various functions. This team needs to be given the time and resources to develop and implement the program. You may want to include an external consultant or advisor who can facilitate and guide the process.
  3. Communicate – A clear and consis- tent message needs to be delivered to the business on the strategic objectives and changes that are being implemented to introduce performance indicators. This is not a one-time thing; use as many vehicles as possible to communicate the message (e.g. newsletters, staff meetings, workshops and one-on-one discussions with staff).
  4. Empower employees – Involve a broad group of people in the process in order to gain their support and input in developing the performance measures through workshops, facili- tated meetings, or surveys tools.
  5. Plan for and celebrate success - Set targets that are achievable so that people can see visible results from their efforts. Acknowledge and celebrate success, reward people who have been fundametal to achieving the results. Be sure to start this early enough in the implementation process to motivate staff and build momentum.
  6. Keep the ball rolling – Establish an annual process to review and update your performance indicators to align with changes in strategy and set new targets. Continuously improve your approach by introducing per- formance measures to other levels of your businesses, or link it to your performance management system — any time you do this, remember to start at step one in this process.


Annual Review And Continuous Improvement 

Once you’ve established a performance indicator system, you need to revisit and refine it to ensure relevance to the business. This should be linked to an annual strategic plan review and budget setting process. You should review which measures have worked well and which have not; it is especially important to look at which measures need to be changed based on adjustments to your strategic objectives. If you need to develop new measures, brainstorm on the success factors and identify new measures for each level within the organization. Regardless of whether the measures are new or not, you should be reviewing your annual performance and setting new targets for the upcoming year. Once these are established, they need to be communicated to the appropriate level of the company.

Identifying and linking performance indicators to the organization’s strategic objectives provides a foundation for aligning activities across the business. Developing simple reporting tools or dashboards will improve communication, decision making and performance monitoring. Overall, this process will help you to continuously improve your business and adjust your strategy as needed. 

Further Reading:
Kaplan, R., and Norton, D., “Using the Balanced Scorecard as a Strategic Management System”, Harvard Business Review, July-August 2007
Marr, B., “How to Design Key Performance Indicators” Advanced Performance Institute, (www.ap-institute.com), 2010
Pateman, A., “5 East Steps for Developing Your BSC Measures”, Harvard Business Publishing, March – April 2004

Tips for Development Performance Indicators

  • Link indictors to your strategic objectives and align them across your organization for maximum performance improvement
  • Develop indicators that are measurable, simple and easy to understand for those responsible
  • for the performance
  • Indicators must provide meaningful information on progress relative to the objectives
  • Ensure there is a clear definition and precise methodology for calculation
  • Have clearly defined targets that are challenging and motivating, but obtainable with a reasonable amount of effort
  • Review objectives, performance indicators and targets on an annual basis to ensure alignment with the business strategy
  • Stay focused, limit number for each level or area of the business to 10 measures maximum

ABOUT US

McNally Brown Group is a boutique management consulting and business advisory firm that works with companies to improve business performance. We work collaboratively with clients to conduct assessments, develop tools, and facilitate implementation of strategic initiatives in a broad range of areas including strategic planning and implementation of key performance indicators and dashboards.

Monday, March 3, 2014

Using Performance Indicators to Drive Your Business Strategy - White Paper



 

We’ve all heard the old management adage “you can’t manage what you don’t measure”, but in the world of big data where managers have countless reports and data at their fingertips, the key challenge for companies is to identify what they need to measure and to ensure they are measuring it properly. In many companies, existing reporting doesn’t provide the key data that employees need to identify performance issues and take action. Many organizations have a lot of financial accounting data but only a few measures that relate to strategic and non-financial performance. In many cases there is too much data, but too little information, with no linkage to the strategy of the business. How do you go about fixing this problem?

This article describes an approach to developing and aligning performance indicators with strategic objectives. Other processes, such as developing objectives and measures through a formal contin- uous improvement or ISO program can also be used. There is no single “right” way to decide on the best approach for your business; you need to consider what fits both within your business culture as well as the other systems you have in place.

 

A Balanced Approach To Identifying Strategic Objectives

It all starts with a strategy that flows from the company’s mission, vision and values (see Figure 1). If you do not have a strategic plan for your business, you need to start by developing a plan along with specific measurable objectives. These objectives could cover a broad range of perspectives, including these areas:
  • Internal Processes - streamlining key processes, applying new technology to improve efficiency
  • Environment and Community - support local businesses, community leadership and connecting with future employees
  • Learning and Growth - increase expertise and skills through training or mentoring
  • Financial – revenue growth, asset utilization, cash flow
  • Customer Focus - customer satisfaction, identifying and targeting the most profitable customers
  • Employee Satisfaction - staff retention and positive company culture

Identifying the Right Performance Indicators

Once strategic objectives are in place, you need to ask: what are the critical success factors required to drive each objective? For those success factors, develop a list of potential measures we call “indicators”, which will allow you to track performance. From this list of indicators, prioritize the ones that will have the biggest impact on achieving the strategic objectives. A simple example of how a strategic objective is converted to performance indicators is shown in Figure 2.

In order to measure performance, you must be able to readily obtain the data needed. Therefore, it is important to consider the availability of data, the effort required to obtain it, and any changes to systems or processes needed when selecting your performance indicators. If you are implementing performance indicators for the first time, keep it simple. Use data that is readily available in the organization; if you need to collect new data, ensure the benefit outweighs the cost and effort of obtaining it.


Cascading Objectives AND Performance Indicators to Align the Organization
Cascading your strategic objectives and indicators to all levels of the organization is a powerful way to align behaviour across your organization and improve performance. In order to do this successfully, you must develop indicators appropriate for the level of the organization at which they will be used. The manager or team using the indicator must be able to influence the results within their scope of responsibility. It is not necessary to have indicators related to each strategic objective; only the ones that are relevant to the manager or team. The best way to develop these indicators is to directly involve the people who are responsible for achieving results or have an influence on the outcome.

Setting Targets 

Establishing targets enables you to check if you are on track in reaching your objectives. There are a number of ways to set targets, but the main point to keep in mind is that you want your teams to be motivated to achieve the results.

A target can be set using an external or internal benchmark. External bench- marks are applicable in cases where you have access to published data on industry best practices. Frequently they are most applicable in areas such as cost, quality, production cycle time, sales and marketing. Internal benchmarking involves analyzing internal data to understand where the company performance currently stands in order to set improvement targets. If you do not have the data, it may be necessary to collect it for a period of time (e.g. 3 months to 1 year depending on the measure) so as to establish a baseline.

Stretch targets are a great way to challenge and motivate staff to achieve great results. When setting stretch targets, be sure to break them down into more achievable targets or sub targets and quantify them in a shorter time frame. This will reduce the anxiety amongst staff and help them see what actions are needed to achieve results.

An example of how an objective can be cascaded through the organization, with targets set that are specific to the position in the company is shown in Figure 3. 

Developing Reports and Dashboards
Once you’ve identified your performance indicators and set targets, the next step is to establish an approach to ongoing monitoring and reporting that can be used by managers and teams to track progress. The reporting framework must consider requirements of different levels of the organization and the reporting frequency that is required to support effective decision making.

A simple dashboard, which is a one-page tool displaying the performance indicators, targets, and historical data in a graphical form, can be an effective tool for reporting. The purpose of a dashboard is to provide a big picture view, focusing on the key performance indicators, and draw attention to areas of concern so that mangers can drill down into additional information that is needed to take action. There are a wide variety of software tools available for dashboard reporting; however, existing reporting systems can easily be used to create simple custom dashboards. In designing reports or dashboards, here are few things to keep in mind:
  • Keep the data for each area of the business limited to a single, easy-to-read page
  • Provide context to the data, historical trends and targets help the user to see if they are on track
  • Use graphs or tables that clearly communicate the data
  • Don’t change your reports too frequently, people need time to get used to them

Implementation

If performance indicators are new to your organization, you need to approach the design and implementation process as a change initiative. You should consider building these steps into your process:
  1. Make it a priority – The President / CEO and senior management must support this initiative and ensure there is a sense of urgency within the organization to follow through with this project.
  2. Develop a team – This group should have enough authority within the organization to lead the change and include people from various functions. This team needs to be given the time and resources to develop and implement the program. You may want to include an external consultant or advisor who can facilitate and guide the process.
  3. Communicate – A clear and consis- tent message needs to be delivered to the business on the strategic objectives and changes that are being implemented to introduce performance indicators. This is not a one-time thing; use as many vehicles as possible to communicate the message (e.g. newsletters, staff meetings, workshops and one-on-one discussions with staff).
  4. Empower employees – Involve a broad group of people in the process in order to gain their support and input in developing the performance measures through workshops, facili- tated meetings, or surveys tools.
  5. Plan for and celebrate success - Set targets that are achievable so that people can see visible results from their efforts. Acknowledge and celebrate success, reward people who have been fundametal to achieving the results. Be sure to start this early enough in the implementation process to motivate staff and build momentum.
  6. Keep the ball rolling – Establish an annual process to review and update your performance indicators to align with changes in strategy and set new targets. Continuously improve your approach by introducing per- formance measures to other levels of your businesses, or link it to your performance management system — any time you do this, remember to start at step one in this process.


Annual Review And Continuous Improvement 

Once you’ve established a performance indicator system, you need to revisit and refine it to ensure relevance to the business. This should be linked to an annual strategic plan review and budget setting process. You should review which measures have worked well and which have not; it is especially important to look at which measures need to be changed based on adjustments to your strategic objectives. If you need to develop new measures, brainstorm on the success factors and identify new measures for each level within the organization. Regardless of whether the measures are new or not, you should be reviewing your annual performance and setting new targets for the upcoming year. Once these are established, they need to be communicated to the appropriate level of the company.

Identifying and linking performance indicators to the organization’s strategic objectives provides a foundation for aligning activities across the business. Developing simple reporting tools or dashboards will improve communication, decision making and performance monitoring. Overall, this process will help you to continuously improve your business and adjust your strategy as needed. 

Further Reading:
Kaplan, R., and Norton, D., “Using the Balanced Scorecard as a Strategic Management System”, Harvard Business Review, July-August 2007
Marr, B., “How to Design Key Performance Indicators” Advanced Performance Institute, (www.ap-institute.com), 2010
Pateman, A., “5 East Steps for Developing Your BSC Measures”, Harvard Business Publishing, March – April 2004

Tips for Development Performance Indicators

  • Link indictors to your strategic objectives and align them across your organization for maximum performance improvement
  • Develop indicators that are measurable, simple and easy to understand for those responsible
  • for the performance
  • Indicators must provide meaningful information on progress relative to the objectives
  • Ensure there is a clear definition and precise methodology for calculation
  • Have clearly defined targets that are challenging and motivating, but obtainable with a reasonable amount of effort
  • Review objectives, performance indicators and targets on an annual basis to ensure alignment with the business strategy
  • Stay focused, limit number for each level or area of the business to 10 measures maximum

ABOUT US

McNally Brown Group is a boutique management consulting and business advisory firm that works with companies to improve business performance. We work collaboratively with clients to conduct assessments, develop tools, and facilitate implementation of strategic initiatives in a broad range of areas including strategic planning and implementation of key performance indicators and dashboards.

Wednesday, January 22, 2014

8 Traps Successful Leaders Must Avoid


When an organization is performing well, investments in talent and innovation should be at full-throttle.   As recent history has shown, companies tend to get complacent when they are on top, instead of sustaining their momentum through strategic focus.   Great leaders know how to keep momentum alive by leveraging their distinct competitive advantages.   They remain hungry in their passionate pursuit of endless possibilities and continually push the envelope to assure the promise of the organization’s culture remains vibrant.  Unfortunately, many leaders stop taking initiative and the required risks to sustain their competitive edge. They fall into the trap of playing it too safe and become self-satisfied, while others get too greedy and lose their attention to detail.

It is more difficult to stay on top than it is to get there.  This is why successful leaders know the importance of “managing disruption” to stay in the lead.  Managing disruption is about finding new methods for how the organization can win, grow and elevate its relevancy.  It’s about  changing what got you to the top, and this means discovering untapped interconnection points amongst the organization’s talent pool, their capabilities, technologies, brands, vendors, the supply chain, etc. – to sustain cutting-edge success.  It means that as a leader, you must live with the entrepreneurial spirit.

Successful leaders know that the global marketplace is changing rapidly.  They recognize that the cause of one’s initial success may be difficult to repeat and sustain because the competition is so incredibly fierce.  As such, great leaders know they must continually look for new ways to strengthen their company’s value proposition and further develop their marketplace distinction.  More than ever before, leaders must manage disruption in ways that inspire hope, not fear – by helping the organization become more productive and forward-thinking, incentivizing performance, encouraging growth in its people, and improving operating standards.   This is why companies such as Apple, Nike, Amazon, Google, Target, Samsung and others like them are regarded as the most innovative and progressive-thinking organizations in the world.

Failure to effectively manage disruption leaves your organization vulnerable rather than fully prepared for and in better control of its future.   This is why CEOs are coming and going so frequently.   Perhaps this also explains why the cost of firing a CEO has grown so significantly.   Daniel Gross recently wrote a compelling story in The Daily Beast titled, Fast Times In The Corner Office, where he discusses why the impatience of investors and volatility of Wall Street is speeding up the inevitable doom of CEOs.    From CEO  to store manager, your ultimate responsibility is to continually and proactively put your organization  in a position of attainable and sustainable growth by creating a culture that never becomes complacent and is always being tasked to elevate its game.

To assure that you are able to effectively manage disruption and strengthen the value proposition of your organization along the way, here are eight traps you must avoid – especially when times are good and the profit and loss statement looks strong: 

1.  Overlooking or Ignoring Potential Problems
As a leader you are either in the midst of solving a problem, coming out of a problem or heading into a set of new problems.   Effective leaders know how to alleviate tension points throughout the various life cycles of business.   I’ve seen too many leaders ignore what is a new problem or threat on the horizon only to see their market share slip – thus creating a bigger more costly problem.

Great leaders know how to anticipate crisis and manage problems before circumstances force their hand.  The ones that do find more success as a result of the problems they’ve solved.   The key is not to wait for the potential problem to multiply.  Take the initiative and confront every problem head-on.    Discover the opportunities embedded within problems and you will be more comfortable dealing with them, regardless of the magnitude.  Leaders who ignore a potential problem do so because they approach it through a lens of negativity, expecting the worst and not wanting to be held accountable if they can’t solve it.

When you begin to associate problems as opportunity, you will make a powerful observation:  problems are all the same, just packaged differently. 

2.  Managing Tactics Versus Leading Growth and Improvements
Leaders have a tendency to get too tactical when they become risk adverse.  They begin to follow more than lead.  They forget what their teams need and expect from them and lose sight of the bigger picture.

Leaders should always be focused on growth and improvements – of people, sales, revenue, maturity of the corporate culture, customers and vendor relationships, etc.  As a leader, you must instinctually be focused on creating a high-performance work environment.
Don’t get caught off guard by your competitors because you got lost in the details and your vision became blurry in the process.  

3.  Allowing Employees to Become Complacent
Complacency is a common trap leaders fall into and it’s most noticeable in the performance of their employees.   You know when leaders have lost their edge when employees are losing theirs, too.   Employees who carefully observe their leaders, paying close attention to their behaviors and natural tendencies,   notice when their intensity, focus and expectations begin to wane – and they view this as permission to withdraw themselves.

As a leader, it is your responsibility to set the tone for your department, team and organization.   When you slip, it creates a domino effect.   This is why leaders are caught off guard when their top-performing employees leave the organization.
Top performers like to be in an environment of self-starters and they enjoy competition.  Keep the competition alive and don’t allow your employees to become complacent   or create unhealthy disruption that weakens the organization.  By focusing on your own performance, perhaps next time you can avoid top-talent from walking out the door. 


4.  Stop Selling Change
Change management is the new normal.  If you’re not selling change, you’re disabling the organization.  Change should be an embedded part of the company’s culture and as a leader you should demand it.    Change keeps your employees on their toes and allows you to filter out the talent that doesn’t belong in the organization.

For example, I am constantly challenging the organization I lead to “discover the next phase.”  They are tasked to identify the next wave in the company’s evolution and what that means from a product and service innovation, talent, brand, culture, thought leadership and client experience standpoint.  Everyone sells change in my organization.  It’s part of everyone’s job description and every quarter we select “one big idea” for the change pipeline.   A budget, timeline and project manager is assigned.   After the project is launched, we carefully measure the impact on our clients, our culture and our employees.

 We want our employees to be comfortable with change and the positive outcomes it can produce.

When leaders stop selling change, they not only become vulnerable but irresponsible to the clients and industries they serve. 

5.  Ineffective Use of Resources
Many times leaders forget about the abundance of direct and indirect resources (internal and external) that are available to the organization.  Whether it’s your employees, teams, colleagues, brands, relationships, vendors, industry partners, the media, government, local community, etc. – there are more resources available to leaders than they always know what to do with.   As a leader, be mindful of how you enable those resources to strengthen the organization’s value proposition.    Discover new ways to utilize resources and challenge the entire organization to do the same.

As leaders we are all being asked to do more with less, though many are unsure how to get the most out of fewer resources.   Learn how to optimize your resources, when and when not to use them.   Never abuse resources but know which ones exist and how they can be best put into action, enabled during a time of crisis, or used to support a strategy for growth.

For starters, ask each one of your team members to independently list their 5-10 most valuable resources that they think can help the business grow.   Request that each team member present in detail how each resource could be utilized, in what capacity, to save the company money and/or increase revenue.  If you have a team of 10 people, you will have 50 to 100 resources to choose from. More importantly, you will have taught and now wired your team members to value their resources and that of others for the betterment of a healthier whole. 

6.  Mismanagement of Corporate Culture
Many companies are being challenged to re-evaluate their corporate culture in search of new ways to increase productivity and cultivate a best-place-to-work atmosphere where people enjoy working with one another – and can grow in the process.   People want to trust one another and they seek transparency from their leaders.   Top-down leadership will never be fully extinct but more and more organizations are in search of leaders that can build a horizontal leadership environment – one that begins to minimize the importance of hierarchies and silos, which have been shown to cause reductions in productivity and unpleasant work environments (especially amongst the growing younger workforce).

Leaders must have a strong pulse on their corporate culture and not be afraid to test new dynamics and introduce them into the culture.   Running a business is a very fluid activity of evolving pieces and moving parts.  Nothing remains the same.  As such, you must be mindful enough to change the corporate culture to the needs of the business.   Swimming upstream is hard and further magnified when the corporate culture is mismanaged and not in alignment with the requirements to maintain and strengthen the organization’s competitive advantage. 

7.  Losing Passion  for the Mission
It’s easy to get comfortable with success.  And with success it’s even easier to lose passion for your company’s mission.   When you lose sight of the mission statement, you make the statement that you’re losing your passion for accomplishing the mission at hand.  This is what happens when greed gets in the way.  You think more about the money and success and less about the impact and significance of what you are ultimately striving to achieve.


 Don’t ever fall into the trap of losing your passionate pursuit for the mission for this is what your company stands for.  You sold the mission to your people and they expect their leadership to live up to those expectations.   Great leaders are always asking themselves what they must keep doing, stop doing and start doing – in their pursuit of excellence as they seek to fulfill the mission.  They remain ever mindful and accountable for the mission, for they are ultimately responsible for achieving it.

Always remind yourself, your team(s) and the organization that you serve of  your mission statement and the progress being made towards it.  Don’t ever forget or lose your passion for it! 

8.  Ignoring the Management and Development of Talent
When you begin to ignore the management and development of talent, the organization is immediately put into a position of risk and vulnerability.   As we all know, the success and significance of an organization always lies within its people.    Yet, as fundamental as this is, it continues to be the first budget line-item that is either cut or eliminated.

Talent  shouldn’t be managed  as a commodity, but rather as a valuable gem.

My organization works with Fortune 500s to help their employees discover their leadership impact and influence.   Time and again, we identify untapped talent potential that is not being used because the organization’s leaders haven’t taken the time to discover it.    Every day is an opportunity to elevate the capabilities, competencies and know-how of your talent pool.  Don’t manage to the job description, but rather to the potential that lies within it.

Your employees and your organization deserve your full attention at all times.  Giving it to them will help you avoid the traps of success and the temptations of complacency.  Steer away from these traps and you will be able to manage any negative disruption and create and sustain unlimited momentum to grow and compete.


Glenn Llopis

Wednesday, August 21, 2013

10 Ways To Make Each Day A Leadership Masterpiece



 

Brian Layer, Brigadier General, United States Army (Retired) knows a few things about leadership. Brian is a West Point graduate who also holds three masters degrees. He twice commanded a brigade in Iraq, and is perhaps the most gifted and humble leader I’ve ever worked with. Brian now chairs our organizational development practice at N2growth.  I am surrendering my column today in favor of a guest contribution from Brian. You’ll find his thinking to be crisp, insightful and on point. I’ll be back next week, but in the meantime please enjoy this introduction to some of Brian’s work…
—————————————————————
Years ago, I picked up a pearl of wisdom from coaching great, John Wooden.  Make each day your masterpiece!  Living at that level is a powerful and challenging concept.  Most of us fall short and it‘s easy to blame our circumstances and those around us for their distraction.  Yet, a leader has a duty to perform at the highest possible level and an honest assessment may reveal days laden with missed leadership opportunities.

The riddle of a leadership masterpiece is the hands of others reveal our artistry.  Therefore, we must make their performance and growth our daily focus.  How much time do we really spend helping, leading and developing others? That’s an important question because it reveals our priorities.

The following daily goals will help assess your performance.  You can use them to review your leadership opportunities at the beginning of the day and assess your performance at the end.  In time, these goals will become habits and when they do, you may find you are making each day your leadership masterpiece.
  1. Excel in the moment.  Your focused attention is true barometer of your interest.  Presence in the moment requires discipline, preparation and empathy.
  2. Invest in a relationship and build trust.  Relationships built on trust hold up in tough conditions.  Every interaction alters the well of trust between two people.  A wise leader fills the well at every opportunity.  Listen!
  3. Help someone else achieve and grow.  The success and growth of others is the legacy of great leadership and worthy of your time, energy, and passion.
  4. Listen.  Take time to listen to a variety of voices.  A leader who fails to listen is likely to fail.
  5. Connect someone to your vision, mission, and priorities.  Every organization has noise and distortion. A leader’s clarity sets the course, builds confidence and saves time.  Never miss an opportunity to tie another’s effort to the greater purpose.
  6. Thank someone.  Expressing gratitude is an essential leadership task.  The two most powerful words in a leader’s vocabulary are thank you.
  7. Prepare for the known and study for the unknown.  Adequate preparation allows you to excel in the present.  Yet, every leadership environment is uncertain and the unexpected will demand great leadership too.  Education is the best hedge against uncertainty.
  8. Prepare for an important decision.  Charisma makes you interesting, good decisions make you effective.  They spring from preparation, wisdom and timing and are the proof of thoughtful leadership.  Remember, deciding what not to do is also your responsibility.
  9. Leverage white space.  Avoid the trap of filling every minute of your calendar.  Leaders need white space to respond to unexpected opportunities and issues.  Better to commit to less and deliver more than to promise and not come through.
  10. Grow physically, mentally, spiritually. Making each day a masterpiece takes stamina.  Leadership challenges are unpredictable and you need strength to face them when they arise. Get stronger today for an uncertain tomorrow.
What is keeping you from making each day your leadership masterpiece?

Mike Myatt

Mike Myatt, Contributor

Saturday, June 15, 2013

Successful Leadership Requires The Right Order Of Operation


Mike Myatt
Mike Myatt, Contributor

 

Ever heard the following statement? “Focus on the what, not the how.” While this may appear to be sage advice, it’s actually quite the opposite. I find it troubling at two levels:

 Firstly, it’s a horribly incorrect and incomplete message. Secondly, far too many people in leadership positions seem perfectly content to follow this bad advice. In today’s column I’ll share the reasons underpinning my strong disagreement with using what as a leadership driver.

If you’ve guessed my advice is a bit different from the statement you read in the opening paragraph above, you are correct. Here’s my version – Focus on the “why”, align the “who” with the “why”, and then allow the “who” to determine the appropriate course of action with regard to “what” and “how” – say that fast five times. All kidding aside, read my last statement a few times and let it sink in. The powerful difference between my statement in this paragraph, as contrasted with the one in the opening paragraph should leap off the page for anyone serious about leadership.

Don’t be in the business of business – be in the business of leadership. At its essence, leadership is the business of defining and articulating vision (why), and then aligning people (who) with said vision – these are the two key strategic elements of leadership (leadership + purpose + people = culture). The tactical elements of leadership (what and how) are best accomplished only after the “why” is clearly understood, and the “who” is soundly in place. A business that pursues a purpose driven culture of leadership will simply outperform a business which focuses solely on profit.

Much like an algebraic formula, there is a correct order of operation for leadership as well.  I developed the following order of operation more than 20 years ago, and it’s as powerfully accurate today as it was then:

“Values should underpin Vision, which dictates Mission, which determines Strategy, which surfaces Goals that frame Objectives, which in turn drives the Tactics that tell an organization what Resources, Infrastructure and Processes are needed to support a certainty of execution.” ~Mike Myatt, 1988
Leadership isn’t easy, but it also need not be overly complex – it’s bad leaders who complicate things with poor understanding and flawed delivery. Great leaders, on the other hand, are gifted at simplifying everything around them – they are focused on the right things, which allows their processes to fuel creativity and innovation not stifle them. It’s the efficiency and effectiveness of simplification that attracts and develops talent, and builds healthy cultures.

My advice is simple – While successful leaders address all four areas, the best leaders always start with why followed very closely by who. Then, and only then, do they work on the design of what and how.

Tuesday, May 7, 2013

Six Components of a Great Corporate Culture

The benefits of a strong corporate culture are both intuitive and supported by social science. According to James L. Heskett, culture "can account for 20-30% of the differential in corporate performance when compared with 'culturally unremarkable' competitors." And HBR writers have offered advice on navigating different geographic cultures, selecting jobs based on culture, changing cultures, and offering feedback across cultures, among other topics. 

But what makes a culture? Each culture is unique and myriad factors go into creating one, but I've observed at least six common components of great cultures. Isolating those elements can be the first step to building a differentiated culture and a lasting organization.

1. Vision: A great culture starts with a vision or mission statement. These simple turns of phrase guide a company's values and provide it with purpose. That purpose, in turn, orients every decision employees make. When they are deeply authentic and prominently displayed, good vision statements can even help orient customers, suppliers, and other stakeholders. Nonprofits often excel at having compelling, simple vision statements. The Alzheimer's Association, for example, is dedicated to "a world without Alzheimer's." And Oxfam envisions "a just world without poverty." A vision statement is a simple but foundational element of culture.

2. Values: A company's values are the core of its culture. While a vision articulates a company's purpose, values offer a set of guidelines on the behaviors and mindsets needed to achieve that vision. McKinsey & Company, for example, has a clearly articulated set of values that are prominently communicated to all employees and involve the way that firm vows to serve clients, treat colleagues, and uphold professional standards. Google's values might be best articulated by their famous phrase, "Don't be evil." But they are also enshrined in their "ten things we know to be true." And while many companies find their values revolve around a few simple topics (employees, clients, professionalism, etc.), the originality of those values is less important than their authenticity.

3. Practices: Of course, values are of little importance unless they are enshrined in a company's practices. If an organization professes, "people are our greatest asset," it should also be ready to invest in people in visible ways. Wegman's, for example, heralds values like "caring" and "respect," promising prospects "a job [they'll] love." And it follows through in its company practices, ranked by Fortune as the fifth best company to work for. Similarly, if an organization values "flat" hierarchy, it must encourage more junior team members to dissent in discussions without fear or negative repercussions. And whatever an organization's values, they must be reinforced in review criteria and promotion policies, and baked into the operating principles of daily life in the firm. 
 i
4. People: No company can build a coherent culture without people who either share its core values or possess the willingness and ability to embrace those values. That's why the greatest firms in the world also have some of the most stringent recruiting policies. According to Charles Ellis, as noted in a recent review of his book What it Takes: Seven Secrets of Success from the World's Greatest Professional Firms, the best firms are "fanatical about recruiting new employees who are not just the most talented but also the best suited to a particular corporate culture." Ellis highlights that those firms often have 8-20 people interview each candidate. And as an added benefit, Steven Hunt notes at Monster.com that one study found applicants who were a cultural fit would accept a 7% lower salary, and departments with cultural alignment had 30% less turnover. People stick with cultures they like, and bringing on the right "culture carriers" reinforces the culture an organization already has.

5. Narrative: Marshall Ganz was once a key part of Caesar Chavez's United Farm Workers movement and helped structure the organizing platform for Barack Obama's 2008 presidential campaign. Now a professor at Harvard, one of Ganz's core areas of research and teaching is the power of narrative. Any organization has a unique history — a unique story. And the ability to unearth that history and craft it into a narrative is a core element of culture creation. The elements of that narrative can be formal — like Coca-Cola, which dedicated an enormous resource to celebrating its heritage and even has a World of Coke museum in Atlanta — or informal, like those stories about how Steve Jobs' early fascination with calligraphy shaped the aesthetically oriented culture at Apple. But they are more powerful when identified, shaped, and retold as a part of a firm's ongoing culture. 

6. Place: Why does Pixar have a huge open atrium engineering an environment where firm members run into each other throughout the day and interact in informal, unplanned ways? Why does Mayor Michael Bloomberg prefer his staff sit in a "bullpen" environment, rather than one of separate offices with soundproof doors? And why do tech firms cluster in Silicon Valley and financial firms cluster in London and New York? There are obviously numerous answers to each of these questions, but one clear answer is that place shapes culture. Open architecture is more conducive to certain office behaviors, like collaboration. Certain cities and countries have local cultures that may reinforce or contradict the culture a firm is trying to create. Place — whether geography, architecture, or aesthetic design — impacts the values and behaviors of people in a workplace. 

There are other factors that influence culture. But these six components can provide a firm foundation for shaping a new organization's culture. And identifying and understanding them more fully in an existing organization can be the first step to revitalizing or reshaping culture in a company looking for change.