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Leading your team ‘through’ tough times

October 17, 2009 · Leave a Comment

Leading-tough-times1

Reality Check


Perspective and Strategic Thinking!

People often ask me, how is leading in this present economy different from leading in what might be considered a normal economy? Actually, the main things, for the most part, will always remain the same, but when times get tough, that’s when the ability to provide effective leadership really becomes critical. It’s easy to ‘lead’ when things are going relatively well, but ‘turn up the heat’ and that’s when we get to see what we are really made of. In times like these, companies will succeed, just survive or even fail based on the effectiveness of the leadership they are provided at every level in the organization.

The challenge is obvious. Both sides of the business equation really need to be taken under consideration. For example, in times like these, prospects and customers become very selective when it comes to making purchase decisions; “Do we really need it or can we do without it?” If they believe they need it, they’re only going to be willing to give their business to those companies who they believe can provide them with the greatest degree of value per dollar invested. It’s because of this that smart companies have to ask themselves, “Given the nature of the times we are living and operating in, when it comes to our customers and prospects, what really are their greatest needs?” “What problems do they have that we can be the solution to?” They then have to position themselves to be able to become their customer’s most convenient and cost-effective solution – especially in light of what their competition may already have to offer.

What makes it even more challenging is the fact that these very same smart companies have to be able to find creative ways to accomplish that goal while still looking for ways to be able to provide more – with less. It’s in times like these that leadership teams really need to know how to best utilize their organization’s resources to not only meet their customer’s needs but to also exceed their customer’s expectations, while remaining lean, competitive and profitable in the process. How do you do that? It will be the goal of this article to provide you with a few ideas that will hopefully not only stimulate your own creative processes in this area but also help you begin to recognize the true value of the greatest resource you have when it comes to moving your organization ‘through’ tough times like these.

Opportunity


What have I learned from my years of business?

Yes, these are tough times. For anyone who has been around the block a few times, I’m sure you will agree that not only have we weathered tough times many times in the past but we will most probably be called upon to navigate our way through more tough times in the future. Such is life. I really like what Tom Peters had to say in a recent talk. He said that weathering the storm is all about becoming ‘distinct’ and not ‘extinct’. (I sure wish I would have thought of that, but either way, he hit the nail right on the head!)

I’ve discovered that being an effective leader is all about being able to rise to the occasion in the midst of the most difficult of times. It’s the ability to avoid the natural tendency toward ‘fight or flight’ thinking. It’s the ability to step up and adopt the right kind of perspective and then provide your people with what they are going to need from you to be able to function at their very best in order to make the kinds of meaningful contributions that will lead to the organization’s ultimate success.

It’s been suggested that adversity is the soil of great accomplishment. Smart organizations will typically view a difficult environment as a genuine opportunity. It offers a chance to re-think products and services, fine tune internal processes, sharpen policies and procedures, and an opportunity to take a fresh look at their strategic plan. It’s also been suggested that necessity is the mother of invention. Difficult times produce better ideas and they become a filtering process, if you will, for what works and what doesn’t, what’s a good idea and what’s an even better idea. The most valuable thing you can do right now as a leader is to put a very legitimate, positive spin on the times we are going ‘through’, rally your people and engage them in positive, reality based, solution oriented discussions regarding what steps we can take ‘together’ as a team to win in the midst of what many are calling tough times. Smart leaders will take full advantage of the intellectual capital available to them in their organization; and as the result, they will not only stay afloat but they will ultimately make it to the other side without having to throw any valuable cargo overboard in the process.

Common Mistakes


Chop – Chop!

When times do get tough, the typical reaction is to take a hatchet to the budget, impose layoffs and halt all plans for any growth. For example, when the economy begins to cycle downward, upper management will typically begin to reduce operational costs, defer most, if not all, capital expenditures; they will review all operating procedures, tighten controls, and reserve all decision-making and approvals to themselves so that expenditures are tightly controlled. In addition, they often times will discontinue certain products and services or reduce prices on their products and services in hopes that their customers will increase their purchases, and as mentioned above, they will often times cut staff members.

These steps are relatively easy to take, so real leadership skills rarely come into play. And more times than not, in studying all kinds of companies over the years, I’ve found, for any number of reasons, that many of these things end up being, unfortunately, the wrong things to do. These kinds of steps have more to do with just surviving as opposed to succeeding as the result of discovering creative ways to take advantage of the current circumstances, and also making sure that you are prepared for when the conditions in the marketplace begin to improve. The blind spot where most of these short-term steps are concerned is the fact that they are all top-down decisions that don’t really include the people that make up the organization, and they create an atmosphere of fear and anxiety which serves to only diminish people’s effectiveness at a time when you really need them performing at their very best.

Short-Term Thinking!

If you will study the most successful companies out there, you will see that true, long-term prosperity is driven by growth, rather than by focusing on savings or cost reductions. A strategy focused only on cost savings will likely push the organization to reduce its staff, skimp on important services and ultimately achieve the opposite results than those being desired. Even though it sometimes produces a ‘quick fix’, I have never seen an organization implement layoffs, for example, without experiencing a long list of unintended consequences, including poor morale, reductions in the quality of service being provided their existing customers, or in some cases, even sabotage by unhappy staff members, (just to name a few). A better strategy is to focus on achieving growth by developing new business opportunities, either for new clients or creating new revenue-producing services that will address the needs of existing clients; services that are unique to the times we are all going through. It is always better in the long run to increase the size of the pie rather than have to reduce the size of the individual slices for those who remain.

What’s needed in times like these are not the sorts of short-term, top-down balance sheet approaches we see typically being taken. Rather a style of leadership that is inclusive and cooperative; a style of leadership that is committed to the long-term as well as to the short-term. Effective leaders don’t react impulsively. Their decisions are well-thought-out; they reflect wisdom and the collective input of every member of the team who has a stake in the organization’s success. Team members care and will rise to the occasion when given the opportunity to take ownership and contribute.

The Leader


Who you are will speak much louder than what you say!

The former mayor of New York City, Rudy Giuliani, emphasized in his book ‘Leadership’ that the role of effective leadership in times of crises was about inspiring and motivating people, fostering and recognizing teamwork, and remaining visibly present and optimistic even during the toughest of times. Subordinates, colleagues and peers all look to their leaders for confidence, direction and motivation. This means that senior executives, department heads and front line managers all carry a tremendous responsibility for the level of morale in their organization, especially during tough times. Moods and behaviors carry a lot of weight, and they communicate powerful messages; optimism, trust and personal integrity are more important than charisma or the power of command. Peter Drucker once observed that Harry Truman did not have one ounce of charisma, yet he was among the most effective chief executives in US history. Employees will go to the mat every time for a leader that they respect, admire and that they can place their complete and total confidence in. It’s important that we keep this in mind as we are working to move our organization through the tough times we are in.

Work Smarter – Not Harder!

When slowdowns occur and the business finds itself under pressure it’s often tempting to revert to a more traditional ‘command and control’ style of management; or to appoint an individual who uses more of  an ‘authoritarian’ style of management and is good with numbers.

Presidents, Chief Executive Officers, finance directors, senior executives, front line managers and team leaders must avoid ‘boss-like’ behavior at all costs, and instead realize that their greatest resource in times like these is the creative insight and resourcefulness of their people. A far more effective style of management is one that gives employees a sense of business priorities and the support they need to deliver needed results. One does not have to be a ‘boss’ in order to be an effective leader. Confident leaders are not afraid to step away from command and control styles of management and move more toward empowerment, especially in tough times.

Ultimately, managers must lead by example. For many this could mean changing old habits and the ways they typically deal and communicate with others. If this seems to be somewhat of a stretch for them, rather than risk the possibility of becoming part of the problem, they should consider participation in a good leadership development program or taking advantage of the opportunity for personal coaching to better understand their role and to develop the skills they will need to be able to more effectively achieve the goals of their organization through their people.

Best ‘Tough Times’ Approaches


Genuine Open Door Policy!

One of the worst things upper management can do when the going gets tough is to separate themselves from their people and attempt to manage the situation primarily on their own. Senior executives who invest their time with only a limited number of people in the company will end up getting only a limited view or picture of what’s really going on throughout the organization; and they will be limited to too few perspectives when it comes to making the important decisions that will ultimately rest on their shoulders. It’s been suggested that there is wisdom in a multitude of counselors. A wise leader will get as much input as he or she can, from as many qualified sources as possible, and then make a smart decision.

It’s critical to develop and encourage a genuine ‘open door’ management style during times like these. This means cultivating good working relationships with people at every level in the organization, asking a lot of open-ended questions and listening to their responses and considering their perspectives and suggestions. Keep in mind that what I am encouraging goes beyond the typical employee surveys; what I am referring to is a real commitment to seeking out the opinions and experiences of those working at the sharp end. You’re much more likely to find out what is really going on and discover workable options if you take the time to really converse with your people and listen. That’s where you will find the real ideas and solutions you are looking for and you are going to need in order to move your company through the tough times.

Focus on your Core Business!

Paying attention to your core business seems like a no-brainer. While I’m certainly a big believer in providing clients value-added services, in tough times it’s important that you have a clear understanding of where the company actually makes and loses money. Rather than just simply reducing prices across the board in the hope of building volume, the idea is to increase profits by marketing and delivering the right combination of products and services that will cause you to be perceived in your marketplace as being ‘unique’ and that, simply put, will make you the most money. The obvious question has got to be “What’s profitable and what’s not?” “What combination of which products and services will set us apart from our competition?” “How can we deliver those in the most efficient and profitable way possible?” These considerations can raise some difficult questions that can end up requiring some tough decisions, but they must be addressed by the organization as a whole with you at the helm.

Redefine the Vision!

One of the great challenges and responsibilities of leadership is to be able to articulate a compelling vision and mission in such a way that it will get people involved and give them something to rally around. As you know, leadership is all about motivating and inspiring people to go well above and beyond the call – to provide greater quality service, to think more creatively than the competition, to be more productive – in short, to give more of themselves to an important cause – your cause. This is easier said than done, of course, but it can be accomplished by sharing with them a vision of a future made better as the result of their efforts. Even the most jaded want to make a difference when they believe it truly is possible. As their leader, it’s your responsibility to redirect their focus from what’s wrong with what they see going on around them to what the possibilities truly are, what our future can and will look like as the result of us working together to make something unique happen for all of us.

Refine your Strategic Plan!

If you do not have a strategic plan, now is the time to develop one. An organization without a strategic plan is like a ship on rough seas without a rudder. With the future looking more and more uncertain each day, it’s tempting to try to convince yourself and your organization that effective planning can’t occur during such upheaval. Yet there’s little chance to achieve success when you have not defined what success really means for your company. If you have a strategic plan, congratulations! Get it out, dust it off and take a fresh look at it in the context of the environment that is changing all around us. Refine your plan and capitalize on the changes we are moving through and the new opportunities emerging in your marketplace as the result.

Pull your people together, ask the tough questions, solicit their input, have them weigh in on what they feel the goals of the organization should be and also on the directions they feel the organization should take to achieve those goals. Remember, your strategic plan is the road map for your business. Develop it, keep it current and relevant, and implement it. Use it to chart your course through those rough seas. And remind yourself everyday that it’s all about execution.

Promote Open Communication!

In the same talk I referenced above, Tom Peters encouraged his listeners to practice transparency to a fault. He said that people ‘in the know’ – from receptionists to executive vice presidents – are far more likely to be positively engaged and supportive during a nasty downturn. Based on my years in the people business, I fully agree. There’s nothing worse than not knowing what’s going on or what to expect. It causes you to feel uncertain and insecure. You can’t really apply yourself because you no longer feel you know what the goals are or what your purpose is. It causes the average person a great deal of stress and it also causes them to begin thinking about maybe needing to locate another opportunity where they can better apply themselves and feel more secure in their position. This often times leads to organizations losing the very people who they are going to need to depend on the most in order to move the organization through the tough times they are presently in.

And by the way, ‘in the know’ means ‘the works,’ not just a few breadcrumbs of sanitized information. Now is the time to build ‘real trust’ across the organization. Don’t cut out meetings, or intensify internal competition, or reduce investments in learning. Increase your organization’s collaborative capacity by strengthening relationships and encouraging the exchange of knowledge and new ideas.

Remember that People Matter!

Especially now – more than ever! I’m sure you know as well as I that nothing matters more than the people we hire; and that includes the way we develop them, the way we support them and how we reward them for their commitment to the success of our organization. As I alluded to above, any action that harms your workforce will always negatively impact your business success. It’s undeniable – the two are intertwined and inseparable. Layoffs, salary reductions and benefit changes may seem like logical moves, but the impact of these decisions will harm the organization in ways that no one really ever totally expects. It really should be your very last resort because the people left after a layoff are damaged in both visible and in non-visible ways. They become leery of taking risks, they are unwilling or unable to exercise initiative when it comes to solving problems, and they become preoccupied with watching their backs to see if they are next in line to lose their jobs.

No matter what your industry is or what your products and services might be, you are in a  people-driven business. Those business leaders who may think that the path to success does not go through a well-trained, well-compensated, motivated work force are simply fooling themselves. It’s all about serving our customers – both our internal and our external customers. Keep in mind that the quality of the service we provide our internal customers will be reflected in the quality of service they provide our external customers.

By the way, if you do deem it necessary to go ahead and reduce the size of your staff, keep in mind the fact that there is a risk that the decisions you make short term may actually result in you losing people who could make a real impact in the long term. Be sure and take a close look at the contribution individuals are currently making and also the contribution they could make in the future to the long-term success of the organization. Try your best to avoid making lay-off decisions based solely on tenure and existing compensation packages.

Minimize Waste and Inefficiency!

No matter what type organization you lead, it is highly probable that there are degrees of waste and/or inefficiencies that exist in various parts of your organization. Yet they are often completely overlooked or ignored when it comes to cost reduction and cost containment exercises. These areas of waste and inefficiency can often generate cost reduction opportunities with minimal pain or impact to the organization. Formally challenge your people to closely evaluate the processes that exist in their areas of responsibility with the view of finding creative ways to reduce any waste or inefficiencies that might exist. Have them involve each one of their direct reports in their evaluation process. Have them compile the information in such a way that it can be quantified and openly discussed. Then plan to meet with them as a leadership team for the purpose of having each person share their findings and present their suggestions as to how they see themselves being able to reduce those types of costs in their areas of responsibility. Plan to recognize those who are able to come up with the most creative ideas and those who end up being able to save the company the most money in the process. This exercise will yield benefits that will go far beyond just the financial savings that the company will experience as the result.

Let Employees Know You Care!

I know it’s obvious, but as you and your team are working together to move the company through these tough times, you need to remember to let your employees know that you truly do care about them on a regular basis. One of the most powerful motivational tools you have as leader is your ability to acknowledge their efforts and to openly recognize their accomplishments. Keep your eyes open and look for opportunities to offer up a “Great Job” or a “Thanks for going the extra mile for us.” Be sure and let your team members know you see and really do appreciate their hard work. This will only serve to enhance their loyalty and their commitment to the success of the organization.

Another great way to let your employees know that you care is by providing them with an Employee Assistance Program. Employee Assistance Programs are, in essence, employee benefit programs offered by many employers, typically in conjunction with a health insurance plan but not always. Employee Assistance Programs are intended to help employees deal with personal problems that might adversely impact their work performance, their health, and/or their well-being. Employee Assistance Programs generally include assessment, short-term counseling and referral services for employees and their household members. These programs are becoming increasingly more common in today’s workplaces. These cost-effective programs make a tremendous difference in the workplace especially given the current levels of stress and the challenges that employees are now being faced with. We make several of these programs available through the Leadership Institute.

Keep Your Customers!

As you can imagine, customer service becomes even more important when the company is moving through a down-turn in the economy. Now is the time to enhance customer service in order to make sure that the customers and clients who already love what you do ‘don’t slip away’. This is going to be particularly important given the fact that new business may be a little tougher to come by in a more competitive environment.

Now is the time to train your customer service people to become much more aware of who their customers really are and the importance of understanding their business models, what their goals are and how you as a company can best support them in the midst of what they are dealing with in their individual businesses. As we stated above, your customer service people need to deal with each of their customers from the perspective that asks: “What problems do they have that we can be the solution to?” Now more than ever, customer service people need to understand that we keep our customers because we are able to provide creative solutions to their problems, we are able to meet their basic needs where our types of products and services are concerned, we are able to help them achieve their most important goals and, as the result, we are able to help them grow their business. And this may seem like a small thing, but you also need to make sure that your customer service people have the ability to cause each of your customers or clients feel like they are the single most important customer or client you have.

And by the way, now will be a great time to have your customer service people brush up on their product knowledge training. Here’s why; when things begin to get a little tough out there, customers will often times begin to start looking for what they believe will be the same basic products and services for less money, and what they don’t always realize is that ‘you ultimately get what you pay for’, meaning that they, in most cases, end up having to sacrifice quality in order to save a buck.  This is typically because they don’t understand value. If your customer service people really know your company’s products and services, they will be able to help your existing customers cost-justify staying with you because they will be made to understand that it will ultimately save them money and be to their advantage in the long run.

Increase Marketing Efforts!

A number of different research projects have proven that companies that continue to market actively during economic down-turns will typically increase their market share in the short-term, and that they almost always come out stronger when things begin to turnaround. The reason is very simple. It’s because their competitors will typically clear the way for them by cutting their marketing budget as a way to save money. They focus on short-term savings without taking into account the long-term costs associated with losing market share. In doing so they are, in essence, withdrawing from their customers rather than staying engaged in the marketplace. Smart companies recognize this and they seize the obvious opportunity. Viewed another way, when business is harder to come by, which makes more sense: having a customer see more of you or less of you?

When the waters get a little choppy out there, I do more marketing, not less. Many companies reflexively shut off their advertising efforts during tough times. I’d rather shut off the water supply than shut down my marketing plan. With fewer customers out there effective marketing becomes even more important. If my competitors stop advertising, I’ll get more bang for my buck; and if the marketplace is less cluttered, our marketing efforts stand an even better chance of getting noticed and responded to.

From a sales perspective, the sales person who stays the course, meaning the sales person who is inflexible, who chooses not to adapt to the current situation, will lose out to the sales person who is constantly searching out new sources of business and trying new sales presentations and new selling techniques. Wisdom would suggest that we need to look for new opportunities that are being created as the result of the current economic challenges we are facing. For example, what new trends or new needs exist today as the result of the current slowdown in the economy? Therein lies the real opportunity. It’s all a matter of perspective. As a leader, it’s your job to influence that change in perspective throughout your organization. As we say in our leadership development sessions, a large part of leadership is salesmanship; influencing the ways that our people perceive things so as to be able to help them make smarter decisions that will lead to increases in productivity and greater success for everyone.

Watch Your Competition!

Let’s face it, a good idea is a good idea no matter where it originated. Who cares if one of your competitors thought of it first? Smart leaders have an intuitive ability to recognize a good idea when they see or hear one; and because of their competitive nature, and because of their tendency toward staying on top of their game, they remain continually aware of the new ideas and the new innovations that are continually being developed in their industry.

Smart leaders who enjoy being challenged and who enjoy winning also know who their key competitors are. They know what they’re selling, how effectively they deliver and how their value is perceived in the marketplace. They know their strengths and their weaknesses, and more importantly, they know how to successfully compete against them in the midst of tough times.

In a highly competitive business environment, with a minimal potential in some cases for differentiating your company, you must focus not just on remaining current, but more importantly on leading the way in your particular industry. You accomplish that by knowing your market, knowing your organization, knowing your competition and by keeping your people engaged in the process of continually looking for even the smallest possible ways to increase the value of your products and services for your customers. As opposed to allowing your organization to get swept up in the turbulence of our times, keep your team focused on your organization’s quest to be the best and the tough times will take care of themselves. And remember to watch your competition and learn from them while you are at it!

Continue to Develop your People!

It’s been suggested that when the going gets tough, the tough get going. In a tough economy, the business is going to go to the company or companies that can offer and deliver the greatest degree of value per dollar invested. It’s that simple. The question then is obvious; how will you be able to expect your team to compete successfully and win if they are not equipped to out-perform their competition? If you are going to lower your investment in training, consider doing so when your marketplace is less competitive and there is more than enough business to go around. It’s kind of like knowing that you’ve got a big game coming up in a few weeks but rather than make the needed investment in their training and preparation, you’re just going to allow the team to show up, do their jobs and hope for the best. When it comes to your ability to out-perform your competition in the midst of tough times, it’s all about those seven P’s; proper prior preparation prevents pitiful poor performance.

Typically, when companies start cutting their budgets, one of the first things to go is employee training, particularly training in the soft skills. Those soft skills will often times include leadership development, management training and first-line supervisory skills training. It also typically means cuts in other training areas such as communication skills, negotiating skills and basic selling skills. Again, rather than simply making cuts across the board, you need to ask yourself what types of training will make the biggest difference not only in the short-term but also in the long-term, keeping in mind of course that economies typically cycle, and this economy will rebound as well, and you will want to be geared up and ready for it when it does by having a well trained and well equipped staff that’s able to perform as needed both in the good times, and in the tough times.

Here are a few pointers to take under consideration when it comes to determining which types of training will be the most critical to your organization’s ability to compete effectively in the midst of tough times. Consider which parts of your business you are going to have to place the greatest degree of dependency on when it comes to their ability to really produce for you when the going gets tough.

For example, marketing is all about achieving a credible presence in the marketplace and attracting attention; sales is all about locating and identifying qualified prospects, making effective presentations, effectively moving prospects through positive decision making processes and closing profitable sales; industry specific training is all about the development of your products and/or services and your ability to effectively deliver them to your marketplace; customer service is all about making sure that your customers are not just satisfied with their purchase but they are genuinely proud of the smart decision they made to the degree that they are committed to providing you with a steady flow of repeat and referral business. And then there are the leadership and management components of your business, both of which have a direct impact on your entire organization. They both have everything to do with leading and influencing the human beings that make up your organization in such a way that you are able to not just get the job done through them on a daily basis, but that you are able to achieve the greatest return possible on what you are already investing in them. I could provide additional examples but I believe the point is made. As opposed to just cutting employee training across the board, in what areas of your business are you going to need to see your people performing at their best – in particular given the nature of the competitive times we are operating in – that is the  most important consideration.

When it comes to selecting the actual training product/s that you feel will be most valuable to you and your unique organization, there are a number of components that you will want to make sure it includes. It will need to be customized to who you are and what you do, and designed in such a way that it will be able to effectively address your company’s current needs. It will need to be on-going; meaning that it will need to include a number of individual sessions designed to keep your participants involved in the process long enough for them to begin to develop new perspectives, new thought processes and new habit patterns, all of which will influence both the quantity and quality of their performance. The group training sessions will need to be very interactive, and the program facilitators will need to be willing to provide individual participants with ‘on-site’ ‘one-on-one’ coaching to make sure they are able to personally identify with, and effectively apply, what is being taught in the sessions in order to insure their ultimate success with the material, (knowledge, skills, etc.) It takes the right combination of these components in order to produce the change you are going to want to see in your people; and it’s that kind of change that will produce the sustained return on investment you will be looking for from the investment you will have made in the training.

There are several more reasons I could give you to continue investing in the development of your employees in the midst of tough times, but time will not permit me to address those here. Suffice it to say, we all want to strengthen and retain our most valued employees, and quality training is one of the most effective ways to do just that. It influences an optimistic perspective on the part of employees and it keeps them genuinely motivated. It also lets them know you really care about them and that you truly value them as important contributing members of your team, which serves to build loyalty and increase their dedication to the ultimate success of your organization. Ultimately, quality training turns out to be a real ‘win-win’ for both you and your people. It’s really the only way to achieve the maximum return possible on what you have and are continuing to invest in your people. I am reminded of what one of my early mentors used to say about employee training: “What’s worse than training your workers and losing them? Not training them and keeping them.” Zig Ziglar.

Challenge


As I stated above, succeeding in the midst of tough times is really all about three things: perspective, creativity and a willingness to operate outside the traditional box. You’ve heard it said yourself on many occasions I’m sure: “Is the glass half full or is it half empty?” Or how about: “Successful people make a habit of doing those things that unsuccessful people won’t do.”  And then again, how about this one: “When the going gets tough, the tough really get going.” Why have ‘old sayings’ like these been around so long?

Difficult times like these really do present us with genuine opportunities. We can take a fresh look at our organization, our environment and our customers, and determine if there are ways to improve our products and services, and our position in the marketplace; or we can hunker down and wait for the storm to pass. However, this may mean that your organization will fall behind, lose market share and potentially never catch up. Keep in mind that it’s in times like these that tremendous shifts take place in most industries. Where do you plan to be when the dust settles?

What’s called for in times like these is a fresh perspective, a renewed optimism and a commitment to being the best you can be – as a leader in your industry and in your own organization. It starts with you remembering that you are first and foremost in the people business and that the secret to your success will be found in your ability to take full advantage of the greatest resource you have available to you – your people!

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Jim Abbondante

Jim Abbondante presently lives in Lindale, Texas, just east of the Dallas, Fort Worth area, where he is President of the Leadership Institute. Jim has traveled extensively across the United States and Canada for the last 32 years as a successful entrepreneur, a corporate training consultant, a personal success coach and workshop facilitator with Owens Training of America, Zig Ziglar Corporation, Tom Hopkins International, the Leadership Institute, and also as a member of The Leadership Group.

The Leadership Institute is a well-established human resource development organization that – since 1990 – has been dedicated to providing companies with the information and tools necessary to be able to better understand and more effectively utilize their most important and valuable resource, their people.

We’ve specialized primarily in executive leadership skills, management development, relationship selling, career development for the professional sales executive, personal success coaching and employee assistance programs.

We have helped literally hundreds of companies achieve a much greater return on what they’re already investing in their people as the result of their involvement in our public and customized training processes and the various other services we provide.

You can learn more about our organization and our various programs and services by visiting our website at www.LeadershipInstituteUSA.com; Be sure and ask about scheduling a complimentary introductory leadership or sales development workshop for your team. We are also happy to conduct a complimentary training needs analysis for you at your location to help you determine your needs and to design a cost-effecting and results-oriented training agenda for your unique organization.

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Contact Information

Jim Abbondante
President, Director of Training
Direct Line: (817) 304-2225

Leadership Institute
Main Number: (817) 405-0012

Student Services Number:    1-800-955-0109
(Personal and/or Executive Coaching, Misc. Needs, etc.)

E-Mail:    Leadership.Team@LeadershipInstituteUSA.com

Web-Site:    www.LeadershipInstituteUSA.com

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Retaining Good Employees Matters!

April 1, 2009 · Leave a Comment

Employee-Retention6

Employee Retention (Part 1)

In doing research for an upcoming session, I reviewed a recent Gallup poll and discovered that 77% of all the employed people out there actually ‘hate’ their jobs. I must say that it was a surprise to me. It is obvious that there always have been and will always be folks out there who are not particularly happy on their jobs, but I wasn’t quite ready for the startling fact that as many as 77% of the employed people out there actually hate their jobs. I think ‘hate’ is a pretty strong word, don’t you think? So why do you think that reality might actually be the case? Got any ideas?

Anyway, the content of the survey also stated that this ‘condition’ is actually costing employers more than $350 billion dollars per year in ‘lost productivity’. With those statistics looming ever so present, I’ll bet you would certainly agree that it’s pretty important that we go to work on determining ‘why’ this condition exists, and whether or not it exists in our own organizations; and also the steps we might want to take to make sure that we minimize the potential for that ‘condition’ to develop in our own companies.

As I began to really think about it from the perspective of what it means to be in the people business, and based on what I have learned from business leaders and from their employees over the years, I would have to say that there are probably three primary reasons for this startling statistic. There are obviously more than just these three reasons, but these tend to be the most common that I’ve run into consistently over the years, and they do represent a good place to start.

Does Anybody Really Know Who I am . . .

Like it or not, in the ‘people business’ it’s all about significance and relationship. ‘Anonymity’ is the feeling that employees get when they realize that their manager has little or no interest in them as a human being, and that they know little about their lives, their aspirations, and their interests. We will typically reinforce in our leadership sessions the fact that when people do respect the ‘leader’ or ‘manager’ they work for, and they enjoy a good relationship with that individual, and when they are made to feel like they’re valued and an important part of the team, it goes a long way toward creating a sense of ‘well-being’ on the job, which then leads to a ’great attitude’ which contributes to better performance overall.

Do I Really Make a Difference . . .

Another unfortunate contributor to this negative condition is ‘irrelevance’. People need to know that they really do make a difference, and what they contribute on a daily basis is strategic in nature and that it contributes to the success of the whole.

This ‘useless feeling’ takes root when employees cannot see how their job makes a difference in the lives of others. Every employee needs to know that the work they do impacts someone’s life, be it a customer, a co-worker, even a supervisor, in one way or another. People not only need to be acknowledged for their good performance on the job but they also need to know ‘why’ their contribution is appreciated, and the important ‘difference’ it makes needs to be regularly reinforced.

Try it and see what kind of a response you get. If it’s not already a ‘consistent’ part of your leadership style, I’ll bet you’ll be surprised, and impressed, with the response you receive.

How Am I Doing . . .

In addition to relationship and a feeling that their personal contribution makes a genuine difference, people also need to know what ‘good’ looks like and whether or not they are ‘hitting the mark’ and are either meeting or exceeding the expectations being placed on them. It’s tough to have to ‘fly by the seat of your pants’ especially when you’re in the dark!  It’ll eventually wear you out and sap you of your optimism and your emotional energy.

It’s the employee’s inability to know whether or not they really are succeeding and making a difference that keeps them from experiencing that all important feeling of ‘personal satisfaction’ that comes with accomplishment. It literally feeds the soul and replenishes what is lost in the doing of a thing.

Employees who have no means of measuring how well they’re doing on any given day or during their average workweek, must rely on their own inadequate opinion, or the subjective opinions of others, usually another employee or their manager who’s not really in touch with them anyway, to measure their progress or their contribution.

They need a clearly defined, agreed upon means by which they themselves can measure their own performance and their accomplishments on a regular basis. Well then, the obvious question is what? You’re right!  It’s . . .

“What’s The Solution?”

Both the primary cause and the best possible solution for this all too prevalent condition, lies in the hands of one very important individual – you - their direct supervisor, their leader, their mentor, their coach, their manager.

As an employee, your primary focus was only on performing only a specific ‘function’ or ‘task’, but when you were promoted into a management role, it was because your company had confidence in your leadership ability and in your ability to influence others and achieve results through others.

They put you directly into the ‘people business’ and gave you the responsibility for the ‘well-being’ of your people. They made your ‘people’, (your most valuable resource), your primary focus. They, your people, look to you now for any number of things, not the least of which is fulfillment in these three very important areas of their daily life. Like it or not, if it’s to be (for them), it’s up to you (their leader). You can handle it. If you couldn’t, you wouldn’t be where you are, in the ‘captain’s chair’, so ‘cowboy up’ and get after it!

There are countless studies confirming the fact that you are the solution to the majority of the people issues that exist in your own organization. Credible organizations like the Gallup Poll organization and The Blanchard Companies (One Minute Manager) have found that an employee’s relationship with their direct manager is the most important factor in determining employee satisfaction, levels and quality of employee production and employee retention. It really is. Trust me. I’ve been around too long and have seen too much to deny it.

Remember, with respect to the three very important issues we’ve raised here, all you really need to do is to take a genuine interest in your people, remind them of the importance of their work and the impact their work has on others, and finally, help them establish creative ways to measure and assess their performance along the way. Set them up to feel significant and like they are ‘winning’ on the job and watch what happens!

Do these simple things and not only will you improve your retention ratios but you will help your boss save a pretty good chunk of that $350 billion dollars that is lost each year due to a lack of productivity in the workplace. They will certainly thank you for it!

By the way, these are just a very few of the types of issues we deal with on a regular basis as a part of our leadership and management development processes. We include a lot of the mechanics, the ‘how-to’s, in each of our monthly sessions as well.

Leadership-The Bottom Line

Sales-The Bottom Line

Give us a call or you can simply fire off an email and we’ll be happy to provide you with information regarding our ‘out-of-the-box’ approaches to leadership, management and sales development. Also be sure to ask us about scheduling a free workshop for you and your team at your location.

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Also, let us know what your thoughts are about the ideas listed above. We always enjoy your comments. See you in class!

Jim Abbondante

Jim Abbondante presently lives in Lindale, Texas, just east of the Dallas, Fort Worth area, where he is President of the Leadership Institute. Jim has traveled extensively across the United States and Canada for the last 32 years as a successful entrepreneur, a corporate training consultant, a personal success coach and workshop facilitator with Owens Training of America, Zig Ziglar Corporation, Tom Hopkins International, the Leadership Institute, and also as a member of The Leadership Group.

The Leadership Institute is a well-established human resource development organization that – since 1990 – has been dedicated to providing companies with the information and tools necessary to be able to better understand and more effectively utilize their most important and valuable resource, their people.

We’ve specialized primarily in executive leadership skills, management development, relationship selling, career development for the professional sales executive, personal success coaching and employee assistance programs.

We have helped literally hundreds of companies achieve a much greater return on what they’re already investing in their people as the result of their involvement in our public and customized training processes and the various other services we provide.

You can learn more about our organization and our various programs and services by visiting our website at www.LeadershipInstituteUSA.com; Be sure and ask about scheduling a complimentary introductory leadership or sales development workshop for your team. We are also happy to conduct a complimentary training needs analysis for you at your location to help you determine your needs and to design a cost-effecting and results-oriented training agenda for your unique organization.

FirstCho

Contact Information

Jim-002-tn

Jim Abbondante
President, Director of Training
Direct Line: (817) 304-2225

Leadership Institute
Main Number: (817) 405-0012

Student Services Number:    1-800-955-0109
(Personal and/or Executive Coaching, Misc. Needs, etc.)

E-Mail:    Leadership.Team@LeadershipInstituteUSA.com

Web-Site:    www.LeadershipInstituteUSA.com

Come see us on Facebook!

Categories: Articles · Employee Retention · People Skills · Reduce Turnover · Turnover
Tagged: , , , ,

Hangin’ On To The Good Ones!

April 1, 2009 · Leave a Comment

Employee-Retention3

Employee Retention (Part 2)

One of the smartest ways to achieve the maximum return possible on what you are investing in your most valuable resource is to understand your people well enough to be able to hang on to them while finding ways to maximize their ability to produce quality in the process.

Everyone knows that there are significant costs associated with recruiting, interviewing, hiring and ‘fast-starting’ a new employee. Assuming that you’ve selected properly, trained effectively, and that you’ve also set the new team member up to ‘win’ in their new position, it obviously doesn’t stop there; we have to consider what are our ‘long-term’ goals are for each particular individual.

Our thinking has to move beyond just keeping a good employee to the development of one who will become one of our organization’s future leaders, (whether we think they will or not – but we’ll address that in a separate article.)

In order to achieve the maximum return possible on what has been, and what will continue to be invested in the new team member over time, our paradigm must be correct and our demonstrated commitment must be to the ‘long-term’ success of the individual from two very important perspectives; theirs and the company’s.

The leader’s ultimate responsibility is to the long-term success of both. You might say that the leader’s challenge will be to facilitate a successful ‘marriage’ between the two; a marriage that will ‘last’ and will prove to be both enjoyable and fulfilling to both ‘marriage partners’.

Here are ten additional tips that can, and really should be, consistently applied in the leadership and management of the new individual that will ultimately contribute to the long-term success of the healthy ‘marriage’ referenced above; (By the way, these steps should really be applied with all your people, not just the new ones!)

Leadership

We discussed in a recent leadership development session the fact that the number one reason why people ‘choose’ to leave their jobs can be traced back to ineffective leadership on the part of their immediate supervisor. We referred to ’statistics’ that confirmed the fact that people have a tendency to leave managers and supervisors more often than they leave companies or jobs.

It’s certainly helpful when a manager or supervisor is perceived as being a ‘nice person’ and is well-liked by the people in his or her department, but what people really want and need is effective leadership on the part of someone they respect and someone they trust enough to follow. They need someone who they feel has something to impart when it comes to helping them achieve their full potential and to helping them achieve the success they desire on their job and also in their career overall.

When managers and supervisors make an employee feel respected, valued and also appreciated, the manager or supervisor is not only functioning more in a ‘leadership’ capacity but they are contributing to the ultimate retention of the employee. And in like manner, anything the supervisor does to make an employee feel under-valued will contribute to unwanted turnover.

Probably one of the most important functions that will lead to employee retention involves letting team members know in specific terms what ‘good’ looks like, and why it’s considered ‘good’. Some of the most common complaints that have come out of exit interviews and from ‘blind’ exit surveys we’ve conducted on behalf of clients, have included a lack of clarity regarding specific expectations, a lack of clarity regarding one’s earning potential, a lack of feedback regarding one’s performance, a lack of  ‘follow through’ with regard to commitments made, canceling scheduled meetings, and a failure to create an environment that’s conducive to the employee’s achieving success; all of which reflect ineffective leadership on the part of their supervisor. We get into this in greater detail in our leadership sessions when we cover the 10 characteristics of the high-performance leader, typically in our January session.

Communication

On one hand we say that we want our employees to take ‘ownership’; that we want them to really care, and we ask for their ‘commitment’ to the ultimate success of the company; while on the other hand, we are not always as ‘open’ as we need to be, or as we really should be, to their open and honest input.

When a team member feels that their insight or suggestions are valued and they feel that they can speak their mind freely without fear of reprisal, they begin to feel more like an important and integral part of the organization which leads to better attitudes, increased commitment and employee retention.

One of the smartest things you can do is to promote an ‘open door policy’ in your company. Encourage your people to provide ‘feedback’ regarding decisions that need to be made or ways to improve upon products or services, or ways to improve upon internal processes.

It’s important that team members feel free to offer ideas, provide constructive criticism and that they be allowed to demonstrate their personal commitment to company improvement. If they are not allowed to do so, they end up having to internalize too much, or they find themselves constantly “in trouble”. That kind of stress leads to unwanted turnover.

Utilization of Talents & Abilities

One of the most valuable things you can do, (not only for your employees but for the health of your organization as well), is to get to know what talents and abilities exist in your organization that go beyond those that are required to perform normal job functions. People that are motivated by their genuine interest in the success of the company want to be able to invest ‘all’ of their talents and abilities on the job, and not just those few that relate to their own specific job description.

Get to know your people. Learn about what they enjoy doing and what they’re good at and then find ways to tap into those existing resources when you need something done in your organization. Why go outside the organization to get things done when you’re probably already paying for it anyway? Get to know your people and become aware of their real potential value to your company.

Let me give you a few examples; Instead of going outside the company when you decide that your existing brochure or marketing pieces need to be redesigned, why not find out who your resident ‘artists’ are, who your creative people are and get them involved in a new challenge. When it comes time to update your website, who in your organization enjoys working with computers and already knows and understands website design?

How many people could contribute far more than they currently are if they were only given the opportunity? Not only will it represent a stimulating challenge for them, potentially a pleasant departure from the norm, but it will allow you to increase the return you’re getting on what you’re already investing in that individual while positively impacting ‘retention’ in the process.

Favoritism vs. Fairness

Perception is everything! If your employees believe you to be ‘fair’ then they will remain flexible and committed. They may not necessarily agree with all your decisions but if they believe you to be fair, then they will be far more accepting of those important decisions they feel they might have made differently; especially if they feel their perspective was taken into consideration in the decision making process.

I have lost count of the number of times over the years I have heard employees make statements like, “One thing I can say about so-and-so is, while I may not agree with all their decisions, one thing I can say is that they’re fair.” The perception of fairness goes a long way toward earning one’s respect and toward engendering their loyalty toward their supervisor and their company. (By the way, to them, their supervisor is the company!)

There are few things that will lead to unwanted turnover faster than favoritism. It causes people to feel like it doesn’t really matter how much they care and/or how well they perform on the job; it’s who you know, rather than what you do, that determines who receives the perks and all the promotions when openings become available. The unfortunate end result is decreased morale and also reduced productivity. And, if it’s not caught quickly enough, attitudes can ‘deteriorate’, and quickly; they go from ‘optimism’ to “why bother”.  Favoritism may exist ‘unintentionally’ on the part of only one or two managers in the organization, or it might even be systemic. Either way, it’s important that we keep a watchful eye, and make sure that we maintain a ‘level playing field’ for everyone at all levels in the organization.

Needed Resources

I’ve learned over the years in my dealings with client companies and their employees that when an individual is failing, it usually comes down to at least one or more of the following; It is usually related to a lack of training, temperament, talent or tools. Ideally, issues specific to temperament and talent should have been addressed during the initial hiring process, but in some cases those issues are missed and have to be addressed after the fact; (that’s part of the function of an effective leader).

In some cases, those employees can be moved to different parts of the organization and given different assignments. But in all cases, the easiest to address and solve, and the ones most affecting employee retention, are tools, time and training. Team members must have all the tools, time and training necessary to do their jobs well. If they don’t they will look for an employer who provides them with enough of each to be able to succeed in their position. The question you must ask yourself as a leader is, “Am I setting them up to succeed or fail?”

Challenges & Opportunities

Your best employees, those employees you really want to retain and develop for future leadership roles, they want opportunities to learn and grow. They want to acquire new skills, and they want to broaden their knowledge in their area or areas of expertise.

Without the opportunities to try new things and take on new challenges, they begin to feel they will stagnate. They need opportunities to be a part of challenging committees, attend stimulating seminars and to read and discuss interesting articles and books with others in the organization.

A career-oriented, valued employee must experience new challenges and opportunities for growth in order to be motivated to want to remain in the game.

Relationships

One of the most common things I’ve heard over the years that typically disappoints people the most about their jobs is the fact that their ‘perception’ is that the senior management is not really aware of their existence. One of the smartest things that a company president can do is to get to know who their employees are, and be able to call them by name when they see them around the office or in the field.

This holds true for ‘all’ senior management executives. Senior executives should take time to meet with new employees to learn about their talents and abilities, and a little something about their families. Taking an interest will yield impressive results.

Members of the executive team should make it a point to meet with ‘all’ employees periodically; short informal meetings that allow for employees to feel ‘connected’ and an important part of the ‘team’. When upper management knows who I am and calls me by name and asks me questions about how I’m doing, and maybe how a particular member of my family might be doing, you can bet that my ’sense of belonging’ and my commitment to the success of the team will soar.

Implied Job Security

I’m sorry to say that I have seen this occur on far too many occasions; Under no circumstances, never ever threaten an employee’s job or their income! You might as well tell them to get out their resume’ and go to work on getting it revised and ready for action.

You may know in reality that business is off and that layoffs might be required if certain numbers aren’t hit within a certain time frame. It doesn’t make any difference. You never share this information with employees. It makes them nervous; no matter how you phrase the information; no matter how you try and explain the circumstances, all you do is create intense insecurity.

You might think that by sharing the information that it might somehow serve to motivate them into action. Trust me; it will not. It will only backfire on you. I am not advocating that you mislead people; however, my encouragement is that you do ’think’ before you say anything that even indirectly makes people feel they need to start searching for another job.

Recognition & Reward

Recognition and reward is critical to the successful retention of good, quality people! In all the surveys we discuss in our leadership development sessions on ‘motivation’, full appreciation for work being done was number one on the lists. Recognition for a job well done and even for honest effort will go along way toward validating a person’s worth and to reinforcing good performance. There is no real accomplishment without celebration!

Team members must feel rewarded, recognized and appreciated. One of the least expensive and most effective means of recognition is to say ‘thank you’, and to let people know what you really like about their work and what you appreciate the most about their contribution.

Obviously, when you tie ‘monetary’ rewards, bonuses and ‘gifts’ that are specific to the individual, to your verbal expressions of appreciation, they become even more impacting and appreciated. Periodic raises that are tied directly to accomplishment and achievement go a long way toward helping to retain good people. In particular where ’sales people’ are concerned, the commissions and bonuses that are easily understood and calculated on a daily basis increase motivation and directly influence the retention of good sales people.

Summary

In summary, one of the most important things I’ve learned over the years in this business is that ‘work’ is about the money, but ‘loyalty’ is all about relationship and how people feel about themselves on the job and also how important they feel their contribution is to the success of the team (family), and whether or not they feel really appreciated.

Why not take a look at your organization. Are you really doing your best to retain your most valued people? Consider these additional suggestions. Ask yourself what you can do to make an ever ‘bigger’ difference in the lives of your people, and see how many ways it will come back to you. ‘Leadership’ really is ‘the bottom line’ in the people business – and the right kind of leadership will go a long way toward making it possible for you to hang on to your really good ones!

Again, we address these as well as many other important issues in our monthly leadership development sessions which are made available both in a public format and which are also customized and implemented for our client’s and implemented at their locations.

Give us a call and/or send an email note and we will be happy to provide you with information regarding the very cost-effective and results-oriented approach we take when it comes to turning good managers into highly effective leaders and developers of their most valuable resource – their people!

Be sure and ask about our complimentary introductory workshops!

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Choose to Win!!

Jim-002-tn

Jim Abbondante

Jim Abbondante presently lives in Lindale, Texas, just east of the Dallas, Fort Worth area, where he is President of the Leadership Institute. Jim has traveled extensively across the United States and Canada for the last 32 years as a successful entrepreneur, a corporate training consultant, a personal success coach and workshop facilitator with Owens Training of America, Zig Ziglar Corporation, Tom Hopkins International, the Leadership Institute, and also as a member of The Leadership Group.

The Leadership Institute is a well-established human resource development organization that – since 1990 – has been dedicated to providing companies with the information and tools necessary to be able to better understand and more effectively utilize their most important and valuable resource, their people.

We’ve specialized primarily in executive leadership skills, management development, relationship selling, career development for the professional sales executive, personal success coaching and employee assistance programs.

We have helped literally hundreds of companies achieve a much greater return on what they’re already investing in their people as the result of their involvement in our public and customized training processes and the various other services we provide.

You can learn more about our organization and our various programs and services by visiting our website at www.LeadershipInstituteUSA.com; Be sure and ask about scheduling a complimentary introductory leadership or sales development workshop for your team. We are also happy to conduct a complimentary training needs analysis for you at your location to help you determine your needs and to design a cost-effecting and results-oriented training agenda for your unique organization.

FirstCho

Contact Information

Jim Abbondante
President, Director of Training
Direct Line: (817) 304-2225

Leadership Institute
Main Number: (817) 405-0012

Student Services Number:    1-800-955-0109
(Personal and/or Executive Coaching, Misc. Needs, etc.)

E-Mail:    Leadership.Team@LeadershipInstituteUSA.com

Web-Site:    www.LeadershipInstituteUSA.com

Come see us on Facebook!

Categories: Articles · Employee Retention · Reduce Turnover
Tagged: , , , , ,