Tuesday, October 4, 2016

How to Manage a Toxic Employee

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There’s that one person on your team — the bad apple who has nothing positive to say, riles up other team members, and makes work life miserable. If you can’t fire him, how do you respond to his behavior? What feedback do you give? How do you mitigate the damage he inflicts? 

What the Experts Say
There’s a difference between a difficult employee and a toxic one, says Dylan Minor, an assistant professor at the Kellogg School of Management who studies this topic. “I call them toxic because not only do they cause harm but they also spread their behavior to others,” she explains. “There’s a pattern of de-energizing, frustrating or putting down teammates,” adds Christine Porath, an associate professor at Georgetown and the author of Mastering Civility: A Manifesto for the Workplace.  “It’s not just that Joe is rude. The whole team suffers because of it.” Of course,  your first step as a manager should be to avoid hiring toxic people in the first place, but once they’re on your team, it can be hard to get rid of them. “Oftentimes the behavior doesn’t run against anything legal so you can’t fire them if others in the organization don’t agree that a line has been crossed,” Porath explains. Here’s what to do instead.


Dig deeper
The first step is to take a closer look at the behavior and what’s causing it. Is the person unhappy in the job? Struggling in their personal life? Frustrated with coworkers? “You might meet with them and ask how they’re doing — at work, at home, and with their career development,” suggests Porath. If you find there’s a reason for why they’re acting the way they are, offer to help. “A manager can use this information to coach the person, or suggest resources to help address the root of the problem.” For example, adds Minor, if the person is going through a divorce or struggling with a mental health issue, you could offer “counseling resources or time off that could potentially alleviate” the underlying issue.


Give them direct feedback
In many cases, toxic people are oblivious to the effect they have on others. “Most of the time people don’t realize that they’re as destructive as they are,” Porath says. “They’re too focused on their own behaviors and needs to be aware of the broader impact.”  That’s why it’s crucial to give direct and honest feedback — so they understand the problem and have an opportunity to change. The standard feedback rules apply:  Objectively explain the behavior and its effects, using specific, concrete examples.  “It’s not helpful to say, ‘You’re annoying us all,’” Porath explains. “You have to ground it in the work.”  Also discuss what kind of behavior you’d like to see instead and develop an improvement plan with the employee. “What do you expect them to change? Strive for clearly defined, measurable goals,” Porath says.  “You’re giving them the chance to have a more positive impact on people.”


Explain the consequences
If the carrot doesn’t work, you can also try the stick. “We all tend to respond more strongly to potential losses than we do to potential gains, so it’s important to show offenders what they stand to lose if they don’t improve,” says Porath. If the person is hesitant to reform, figure out what they care most about — the privilege of working from home, their bonus—and put that at stake. For most people, the possibility of missing out on a promised promotion or suffering other consequences “tied to the pocketbook” will be a strong motivation to behave in a more civil way.


Accept that some people won’t change
Of course, you should always hope that the person can change but not everyone will respond to the tactics listed above. Minor is currently researching toxic doctors and says that early results indicate that some are either unable or unwilling to change. Porath’s research on incivility has meanwhile found that “4% of people engage in this kind of behavior just because it’s fun and they believe they can get away with it.” In those extreme cases, you should recognize that you won’t be able to fix the problem and begin to explore more serious responses.


Document everything
If you conclude that you really need to fire the person, you must first document their offenses and any response you’ve offered so far. “You want to establish a pattern of behavior, the steps you took to address it, the information, warnings or resources provided to the employee, and the failure of the employee to change,” Porath says.  Include “supporting material” too: formal complaints, relevant information from performance evaluations, such as 360-degree or peer reviews. The idea, says Minor, is to protect yourself and the company and to show your employee exactly why they are being let go.


Separate the toxic person from other team members
Even if you can’t get rid of a bad apple, you can isolate it from the rest of the bushel so the rot doesn’t spread. Minor’s research shows that people close to a toxic employee are more likely to become toxic themselves, but the good news is that the risk also subsides quickly,” he says. As soon as you put some physical distance between the offender and the rest of the team – for example, by rearranging desks, reassigning projects, scheduling fewer all-hands meetings, or encouraging more work-from-home days — you’ll see the situation start to improve. Porath calls this “immunizing” the others. “You’re trying to protect people like you would with a disease,” she says. “You will hopefully decrease the number of run-ins and the cognitive loss.” But make sure to do this with discretion. Let employees come to you with their complaints about the toxic colleague and use “one-on-one conversations” to coach them on how they might minimize their interactions.”


Don’t get distracted
Managing a toxic person can eat up your time, energy, and productivity. But “don’t spend so much on one individual that your other priorities fall by the wayside,” says Porath. To counteract the negativity and make sure you’re still thriving, “surround yourself with supportive, positive people” and “look for meaning and purpose in your work,” she says.  Also focus on basic self-care. “If someone is draining you, build yourself up by exercising, eating right, sleeping, and taking breaks, both short-term ones and vacations,” she says. “Being healthy and proactive is the one thing we know that buffers people from the effects of toxic behavior.”


Principles to Remember
Do:
  • Talk to the person to try to understand what’s causing the behavior.
  • Give concrete, specific feedback and offer the opportunity to change.
  • Look for ways to minimize interactions between the toxic employee and the rest of your team.
Don’t:
  • Bring the situation up with your other team members. Allow them to mention it first and then provide suggestions.
  • Try to fire the person unless you’ve documented the behavior, its impact, and your response.
  • Get so wrapped up in handling the issue that you ignore more important work and responsibilities.
Case Study #1: Give direct feedback and support the rest of the team
Christina Del Villar, the director of marketing at the e-commerce operations software firm Webgility, managed a small team at a start-up earlier in her career. One employee, Sharon (not her real name), a senior marketing manager, was making the rest of the group miserable.


“She was an alcoholic, abused drugs, and had a medical condition,” Christina recalls, Her work was “full of mistakes,” her work ethic was poor — ”she was often out of the office, at least one day a week, if not more” — and she frequently took credit for others’ efforts.

Christina made sure to document the behavior but says she couldn’t fire Sharon because the woman “had threatened to sue for a variety of reasons, including her medical condition” should she be let go. Instead, she worked to prevent “the negativity from seeping into everything” by routinely giving Sharon feedback and direction. “Sometimes people don’t realize the impact they’re having so I like to have a blunt conversation with them about their behavior, what they can do to change it, and how they can work better with the team.”  Her approach was “delicate” because, with Sharon “you never really knew who you were going to get on any given day.” But she learned to read her employee’s “state of mind” and “pick days where she would be more accepting of this kind of conversation.”

Christina also supported the rest of the team. “Sometimes it was as easy as saying they were doing a great job or thanking them for stepping up to “fill the void” left by Sharon, she explains. She also encouraged them to focus on themselves and their work, “not on what someone else was or was not be doing.” When they complained about Sharon, she offered advice “while still respecting everyone’s privacy and staying within the law.”

While Christina’s efforts reduced the negative impact Sharon was having, the problem was ultimately solved by circumstance. When their business was acquired by a larger company,  Sharon moved to a different department.

Case Study #2: Help him rebuild his reputation
Daniel Hanson (not his real name) once managed an IT team at a large multinational that suffered every time it had to interact with Bob (also not his real name), a senior internal consultant. “He had a habit of talking down to people and being dismissive and was blissfully unaware that his behaviors  irritated people,” Daniel recalls.


With a little probing, Daniel discovered some of the reasons for Bob’s negativity. “His personal life was a mess between bad relationships and estranged children. Plus he’d realized that he had reached a certain age and hadn’t achieved the professional satisfaction that he wanted and he thought he deserved.”

Still, Daniel made clear to Bob that his behavior needed to change. He recommended a counselor provided by the company and offered up his own time and advice in weekly meetings. “I told him this was his last chance and that the next step was a formal performance management plan and almost inevitably exit from the business,” he says.
Although many managers “hated Bob with a passion,” Daniel encouraged them to stop talking about him behind his back, “to see that he was trying to change and to include him in more senior projects under close observation.” He spoke to people individually and “pointed out that his contribution on numerous projects had been immense.”

“Gradually, as Bob’s behavior changed, their attitudes toward him changed as well,” Daniel says. He’s proud that, when Bob did eventually transfer to another team, it was because he’d wanted to go, not because he’d been forced out.

Amy Gallo is a contributing editor at Harvard Business Review and the author of the HBR Guide to Managing Conflict at Work. She writes and speaks about workplace dynamics. Follow her on Twitter at @amyegallo.

2016 Canadian Social Media Usage

If You’re Not Outside Your Comfort Zone, You Won’t Learn Anything

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You need to speak in public, but your knees buckle even before you reach the podium. You want to expand your network, but you’d rather swallow nails than make small talk with strangers. Speaking up in meetings would further your reputation at work, but you’re afraid of saying the wrong thing. Situations like these — ones that are important professionally, but personally terrifying — are, unfortunately, ubiquitous. An easy response to these situations is avoidance. Who wants to feel anxious when you don’t have to?

But the problem, of course, is that these tasks aren’t just unpleasant; they’re also necessary. As we grow and learn in our jobs and in our careers, we’re constantly faced with situations where we need to adapt our behavior. It’s simply a reality of the world we work in today. And without the skill and courage to take the leap, we can miss out on important opportunities for advancement. How can we as professionals stop building our lives around avoiding these unpleasant, but professionally beneficial, tasks?

First, be honest with yourself. When you turned down that opportunity to speak at a big industry conference, was it really because you didn’t have the time, or were you scared to step on a stage and present? And when you didn’t confront that coworker who had been undermining you, was it really because you felt he would eventually stop, or was it because you were terrified of conflict? Take an inventory of the excuses you tend to make about avoiding situations outside your comfort zone and ask yourself if they are truly legitimate. If someone else offered you those same excuses about their behavior, would you see these as excuses or legitimate reasons to decline? The answer isn’t always clear, but you’ll never be able to overcome inaction without being honest about your motives in the first place.

Then, make the behavior your own. Very few people struggle in every single version of a formidable work situation. You might have a hard time making small talk generally, but find it easier if the topic is something you know a lot about. Or you may have a hard time networking, except when it’s in a really small setting.

Recognize these opportunities and take advantage — don’t chalk this variability up to randomness. For many years, I’ve worked with people struggling to step outside their comfort zones at work and in everyday life, and what I’ve found is that we often have much more leeway than we believe to make these tasks feel less loathsome. We can often find a way to tweak what we have to do to make it palatable enough to perform by sculpting situations in a way that minimizes discomfort. For example, if you’re like me and get queasy talking with big groups during large, noisy settings, find a quiet corner of that setting to talk, or step outside into the hallway or just outside the building. If you hate public speaking and networking events, but feel slightly more comfortable in small groups, look for opportunities to speak with smaller groups or set up intimate coffee meetings with those you want to network with.

Finally, take the plunge. In order to step outside your comfort zone, you have to do it, even if it’s uncomfortable. Put mechanisms in place that will force you to dive in, and you might discover that what you initially feared isn’t as bad as you thought.

For example, I have a history of being uncomfortable with public speaking. In graduate school I took a public speaking class and the professor had us deliver speeches — using notes — every class. Then, after the third or fourth class, we were told to hand over our notes and to speak extemporaneously. I was terrified, as was everyone else in the course, but you know what? It actually worked. I did just fine, and so did everyone else. In fact, speaking without notes ended up being much more effective, making my speaking more natural and authentic. But without this mechanism of forcing me into action, I might never have taken the plunge.

Start with small steps. Instead of jumping right into speaking at an industry event, sign up for a public speaking class. Instead of speaking up in the boardroom, in front of your most senior colleagues, start by speaking up in smaller meetings with peers to see how it feels. And while you’re at it, see if you can recruit a close friend or colleague to offer advice and encouragement in advance of a challenging situation.

You may stumble, but that’s OK. In fact, it’s the only way you’ll learn, especially if you can appreciate that missteps are an inevitable — and in fact essential — part of the learning process. In the end, even though we might feel powerless in situations outside our comfort zone, we have more power than we think. So, give it a go. Be honest with yourself, make the behavior your own, and take the plunge. My guess is you’ll be pleased at having given yourself the opportunity to grow, learn, and expand your professional repertoire.


Andy Molinsky is a Professor of International Management and Organizational Behavior at the Brandeis International Business School. He is the author of Global Dexterity (HBR Press, 2013) and the forthcoming book Reach: A New Strategy to Help You Step Outside Your Comfort Zone, Rise to the Challenge, and Build Confidence (Penguin, 2017). You can receive his free e-book to master ten key cultural codes from around the world. Follow Andy on Twitter: @andymolinsky.

Thursday, September 15, 2016

How to Make the Banks Do Your Bidding


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Illustration: Sam Island
When husband and wife duo David and Stephanie Ciccarelli were rebranding their young voice talent firm in 2004—then called Interactive Voices—from a physical studio to an online marketplace, they found the perfect domain name: voices.com. The URL carried with it six years of credibility and search power, with an organic influx of traffic that would allow the Ciccarellis to stop paying for online advertising. The cost: $30,000, which the Ciccarellis did not have. 

David, the company’s CEO, prepared a spreadsheet detailing projected equipment expenses, printed out his 50-page business plan and made appointments with nine different banks. All nine rejected his request. One particularly blunt lender called the business “unbankable.”

It was a harsh lesson in the difficulties entrepreneurs often face when pursuing bank financing. It also galvanized the couple. “After that, we wanted to button up and run a real company,” David recalls. They incorporated the business, updated their forecasts, edited the mammoth business plan into something more digestible and finally got the $30,000 loan. Voices.com has since convinced its bank to to loan it $50,000—followed by $100,000, $150,000 and $500,000—and, just this year, $2 million to help fund its expansion. It’s proven a safe bet: The company, which ranks No. 94 on the 2016 PROFIT 500 ranking of Canada’s Fastest-Growing Companies, has seen sales spike 798% in the past five years. 

The experiences of the Ciccarellis and many of their PROFIT 500 peers show that money can come freely when you learn to work with—not against—your bank. 

Give yourself choice
Family-run food manufacturer Stemmler’s Meats & Cheese (PROFIT 500: No. 485) began a major expansion last year at its Heidelberg, Ont., headquarters, which its startup-focused bank refused to back. Seeking not just a new lender but also the best deal possible, its owners decided to go in prepared, hiring an accountant and a consultant to conduct a feasibility study, detail the capital costs for expansion and calculate its projected profitability. “Banks want to know you’re not some pie-in-the-sky company,” says Terry Stemmler, who co-owns the business with his brothers, Kevin and Shawn. It took months, but that extra effort convinced all four banks the Stemmlers approached to offer loans, putting the company in the enviable position of being able to dictate its terms. In their case, that meant scratching two lenders that wanted personal guarantees and choosing one that put forward 20% more than the original request. 

Ask ambitiously
About that 20% cushion: The Stemmlers have become big believers in getting more money than they need—even if they don’t plan to spend it. “It’s better to ask for more and then not use it,” says Terry Stemmler, adding that he and his brothers have created strict rules about when and how they can expend the extra cash. “It makes banks edgy if you keep going back for more money; it makes them wonder if you have the project under control.” Asking for more at the outset—experts recommend between 20% and 30%—is unlikely to be a deal breaker for an interested lender and will minimize emergency cap-in-hand requests. 

Ask Often
Four years ago, Brendan Howe, CEO of Toronto managed IT services provider Techify (PROFIT 500: No. 340) had what he calls an “oh, shit!” moment. Howe had just bought out his business partner, spurring the company’s bank to cut its credit line in half—just as Techify hit a growth spurt and was desperate for cash to cover operating costs. “Not having the money when we needed it added significant stress,” he says.

Frustrated, Howe pulled the company’s account and moved to a new bank, with a new approach: Every year since, he has met with his banker to discuss Techify’s growth plan and to secure a loan—whether the company needs it or not. This has proven effective in easing the anxieties of both Howe and his banker. “Luckily, since that first incident, we haven’t really needed a big loan,” says Howe. “But I’ve learned that the best time to ask is when you don’t need it.” 

Become buddies
Rounds of golf or lunchtime drinks might seem hopelessly dated, but face time remains a great way to convince your lender you’re a safe bet. Matthew Harding, president and CEO of Ottawa-based IT services provider the KTL Group (PROFIT 500: No. 219), either phones or visits his banking manager almost every day, sharing good news with proof and not-so-good news with a proactive explanation. “I want them to see me,” he explains. “I want them to know when I’m thriving.” 

According to Alma Johns, president of Toronto’s Bench Capital Advisory, which helps small- and mid-sized businesses get financing, banks consider such candid behaviour a mark of good character (read: worthy of investment). “The moment you start hiding, they become suspicious.”

Wednesday, September 14, 2016

Leadership

by Michele Milan

As the CEO of Rotman Executive Programs, Michele Milan is up-to-date on the latest theories and best practices for being an effective leader. She shares some of her insights on what it takes to be a great leader in the current business landscape. 

Strong Ethical Foundation 
Leadership is more difficult than ever. We are in a period when trust in leaders and our institutions has been eroded.  Society is demanding and deserves leaders who are moral and ethical.  Leaders with character.  Authentic leadership means speaking and doing from a centre of moral conviction.  It is personal integrity that cultivates credibility and trust. I also believe this is key to finding real meaning in one’s work, and enabling employees to do likewise - to find their work meaningful and really believe they are contributing to something worthwhile. This is important not only for individuals, and not only as a driver of productivity, but for society as a whole.  Businesses have a huge impact on the world around them. A strong ethical foundation in an organization means it will contribute to society in a way that sustains and enriches the lives of all. 


Ability to Communicate
It is still true that a good leader has the ability to envision her organization’s future, and to clearly communicate that vision. Clear and straightforward communication allows everyone to understand their individual roles, in making decisions in line with strategy and moving the organization forward. But good communication is two-way and goes beyond formal occasions. In our more collaborative work environments, with rapidly changing demographics, leaders really need to listen and they need to seek to understand what is really going on. I personally meet with everyone in the organization at least once a year and speak with as many clients as possible. Seeking understanding is critical, but can be difficult because the signal-to-noise ratio can be really high. We are all dealing with vast amounts of information. It can be overwhelming. Leaders now need to communicate constantly to translate complexity and to keep people aligned as the pace of change continues to accelerate. Tuning in to and maintaining awareness of informal networks and channels of communication is crucial for a leader since it is these systems that often determine what really goes on in an organization. 


Strategic Agility
Creating and maintaining a path for advancing an organization’s agenda in a rapidly changing environment requires strategic agility on the part of a leader, both to synthesize and assess vast amounts of information, and to readjust as necessary. This means responding to new circumstances, research and technology in real time. The pace of change is incredible. Leaders must constantly fine-tune their strategy to keep their organizations agile. Clear, two-way communication about changing circumstances and strategy allows employees to respond and realign their own initiatives and roles.

Self-awareness
Self-awareness, self-regulation and a habit of self-reflection are essential for a leader’s personal effectiveness; they also determine the tone a leader sets for her organization. A leader must be able to manage her own emotional reactions, and to understand the effect she has on others, both personally and in terms of the organization’s power structure. There are many techniques for developing greater self-awareness and the ability to self-regulate. My personal favourites are journaling and mindfulness meditation.


Good Practices and Habits
Effective leadership occurs not just in grand moments, but in daily hourly habits. In addition to a practice of reflection, habits of learning and self-care are critical.  Habitually seeking learning prepares a leader for rapid change. Leading also takes a tremendous amount of energy and stamina; a good leader must create habits that foster resilience, practices that recharge and replenish her resources in order to maintain health and well-being. Of course, this is true of everyone in the organization as well and supporting the health and wellness of employees makes the whole organization more resilient and productive.


As the CEO of Rotman Executive Programs, Michele Milan is up-to-date on the latest theories and best practices for being an effective leader. She shares some of her insights on what it takes to be a great leader in the current business landscape. To learn more about Rotman's leadership programs visit: www.rotmanexecutive.com

Friday, September 9, 2016

Ritual Questions Help Inform Effective Leaders

Eric McNulty
Eric J. McNulty is the director of research at the National Preparedness Leadership Initiative and writes frequently about leadership and resilience.

High-impact leaders are insatiably curious — about themselves, the people who work for and with them, and the world in which they operate and beyond. Inquisitive leaders are effective because building knowledge and wisdom are essential to professional success.
Naturally curious people ask lots of questions and take time to reflect on the answers. Even if you aren’t naturally curious, you can build this type of reflection into both your agenda and the agendas of your employees by asking so-called ritual questions (example: “What have I learned today?”). Although ritual questions are not widely used in organizational settings, they can be a simple tool for improving your leadership skills and style.

Ritual questions give your brain time to process the torrent of data you encounter every day. According to Colonel Eric Kail, the former course director of military leadership at the U.S. Military Academy at West Point, this reflection “is an effort to understand how the events of our life shape the way in which we see the world, ourselves, and others.”

Taking time to reflect can feel uncomfortable, but once you push past the fear of not being busy and realize the benefits of a deeper level of thinking, you can linger longer on these questions. Even taking time out for as little as 10 minutes of quiet thought each day can help you tap into the vast stores of information buried in your subconscious and open yourself to sometimes surprising insights. Using ritual questions such as “When was I at my best today? When was I at my worst?” can help both prompt and guide your thinking.

Ritual questions such as “When was I at my best today? When was I at my worst?” can help guide your thinking.

And although high-powered analytics can generate reams of data, it is easy to fall prey to chasing the usual generic-query suspects, such as conversion rates or viewership rankings, and overlooking anomalies that can provoke deeper inquiry. Instead, a ritual question such as “What do we know today that we didn’t know yesterday?” will push you to probe more intensely. After all, “nothing” is not a satisfying answer — and it likely isn’t accurate, either.

True leaders build capacity and capability in people for tackling tomorrow’s challenges while meeting today’s goals; it is a matter of cultivating performance rather than simply extracting value. Answering ritual questions will help build the self-awareness necessary for growth in both you and your team.

Here are four ritual questions that I have found most useful for leaders to ask themselves:
• “What encounter did I handle particularly well today and why?”
• “What encounter do I believe the other person in the exchange thinks I handled well and why?”
• “What encounter did I handle poorly today and why?”
• “What encounter do I believe the other person in the exchange thinks I handled poorly and why?”

By exploring both positive and negative experiences from multiple perspectives, you develop a more nuanced and dimensional understanding of your strengths, weaknesses, motivations, and fears. Such exploration will also help you navigate the constant pull between being who you are as a leader and who others need you to be.

And while ritual questions are asked regularly, they are not cookie-cutter. Answering them must require thoughtful consideration. The best ritual questions are open-ended in order to promote contemplation and discovery. “How are we progressing against the sales goal?” may be regularly asked, but it does not rise to the level of a ritual question any more than “How’s the weather?”

If daily practice is too much for you, try setting aside time for asking weekly ritual questions — doing it any less frequently will make it harder to detect recurring themes and engage in timely follow-up. If, however, you have standing biweekly or monthly meetings that can’t be made more frequent, weave ritual questions into these, and carve out some time in the meeting intervals to check in with yourself. The important thing is to establish the discipline and experience the benefits.

Integrating ritual questions into team meetings and one-on-one meetings with your direct reports can help everyone become more self-aware and grow.

One-on-one ritual questions inform performance management and alleviate the pain of a once-a-year assessment. Include questions such as “What have you accomplished since we last met?” “What’s challenging you?” and “How can I best help you meet that challenge?” in each meeting. When well-documented, the answers comprise a record of achievement and a roadmap for development. These particular questions frame your relationship as one where success is celebrated and obstacles are openly discussed. It gives you the opportunity to intervene early where necessary and provide needed ideas or other resources. As you continue to ask these questions over time, their ritual nature encourages your subordinates to reflect in preparation for meeting with you.

With your team, ask group-oriented versions of these questions, such as “What can we learn from a collaborative success from the past week?” or “What obstacle can we only overcome together?” These not only spur conversation but emphasize why you are meeting, and working, as a team.

Don’t relegate your leadership development to periodic courses or workshops (as useful as those can be). Expanding your capacity and capability as a leader is an ongoing endeavor. Using ritual questions will create frequent opportunities to hone your skills, deepen your understanding, and increase your impact.