Employer Lessons from the Donald Sterling Incident

Do you have a Donald Sterling at the helm of your agency?  Perhaps he or she is on the Board of Directors, in a position of leadership, or serving as a manager or supervisor.  Maybe he or she is even your newest hire.  The thing is, you usually don’t know until their hateful thoughts or behaviors are somehow exposed.  While it is easy to rally around a common enemy like Donald Sterling, what this story really brings to light is the fact that there are those with racially offensive and prejudicial views all around us.   It is how we handle them, and the situation that exposes their hateful thoughts or actions that makes the difference.

To begin with, don’t imagine that by ridding yourself of the “bad seed” that you no longer have a problem.  That may be the first step, but there is healing and an aftermath to contend with.  An incident, like that involving Sterling, may bond a team together, but it also leaves raw nerves and a level of distrust in its wake.  Who else has these views or opinions?  What is going to happen next?   

   

1. Get in front of the issue – Hold a meeting with staff.  Whether the full organization is aware or just a small group of staff, quick action is key to managing the issue and containing its damage.  Meet with those who are aware and affected immediately after the issue has been exposed and discipline or termination has been administered. 
2. Acknowledge and Inform – Staff already know about the problem, but they need to hear it from you, to know you understand it as well.  Do so, and tell them what has been done to rectify the situation.  If this behavior led to termination, say so.  Owning that decision is important.  If discipline or training were decided upon instead, inform your staff more generally that actions have been taken and that you are closely monitoring the situation.  Recognize that the more egregious or offensive the behavior, the less staff are going to tolerate complacency in managing it.
3. Discuss policy – Be specific and detailed as you describe company policy in managing the issue.  Keep your focus on what is expected - both with regard to staff behavior and with their responsibility for informing about the behavior of others.     
4. Call to Action – Healing.  What is most needed after a traumatic incident or other organizational shake-up is healing.  Identify it – and describe what is going to happen next.  Will the company provide training on issues such as sensitivity?  Is any corporate restructuring necessary?  How are staff expected to behave (i.e. is gossip about the issue forbidden)?
5. Build on the strengths of the team.  End the meeting by beginning the healing process.  Describe the positives that have come out of this difficult circumstance (i.e. staff are more bonded together; this brought a heightened awareness of issues we need to resolve).  List the good qualities that remain true of the team/group affected.  Have and share an optimistic outlook for what the future will hold.

Overcoming a crisis can be a defining moment for any team – NBA or not.  Define your company by building on the positives as you address the challenges.

Feeling Overstressed? Try a mini-vacation

Whether it’s the pressures of work, the demands of our personal lives, a sudden crisis, or the on-going and chronic problems we must work through, most of us feel stressed and tense on a regular basis.  What we need is a vacation; A break from it all.  Unfortunately a true vacation is often not practical or possible.  And, it often provides only a temporary fix before the stressors return.

My solution to this is the mini-vacation.  A special break that can be enjoyed in just a few minutes – often all that we can spare.  Better yet, the mini-vacation is easily cost-free.  The important part is that it is scheduled – like a vacation, and is undisturbed “you” time.
  

Following are some ideas for having a mini-vacation.  This list is far from exhaustive, so please be creative and think up your own!

1.       Stare out the window.  Maybe you have a nice view of the City, a Lake or Ocean.  Look at the grand scene, or take note of the trees blowing in the wind.  Enjoy the quiet of this moment.

2.       Give yourself a hand massage.  Get some lotion with a fragrance you enjoy, take off any jewelry that would interfere and give yourself a slow nourishing massage of the fingers, wrists, and thumbs.

3.       Listen to some music.  Ideally, be able to do this with your eyes closed.  Hear the music without distraction.  Enjoy the melody, lyrics, or beat of the music.

4.       Stretch.  Stand up and stretch your back, your shoulders and neck.  Do a few yoga poses.  If you like, incorporate music into this moment.

5.       Read a book or article.  This is pleasure relaxation reading – the kind you wish you had time to do.  Allow yourself to escape into the characters and to read without interruption.

6.       Take a walk.  Getting outside to feel the sun, the wind, even the rain, can be refreshing and invigorating.
 

7.       Call a friend – If you feel socially isolated, and this is your biggest desire, this may be your ideal mini-vacation.  Be sure to limit your calls to people who inspire you and make you feel good.

8.       Daydream – Imagine being someplace where you are relaxed and happy.  Visualize it.  Hear the sounds that would surround you.  Make the day-dream as real as possible by combining it with music or a photograph if that helps you to escape into the moment.

9.       Write a letter – Perhaps you wish you had more time to correspond with others.   Write a letter to an old friend or loved one.

10.   Look at old pictures – Do you have an online photo account through Shutterfly, Flickr or SmugMug?  Revisiting happy memories of other “real” vacations and seeing images of your friends, children, or pets can revitalize and bring a smile to your face.

By putting your mind and body in a happy zone, even if only for a few minutes, you are giving yourself a much needed vacation from the rest of the stress that surrounds you.  So go on, schedule your mini-vacations, you deserve it.

Stop Workplace Violence - Abandon the "Wait and See" Approach

In mid-February a shooting broke out in Long Beach, California between two high ranking ICE (Immigration and Customs Enforcement) agents during a performance review.  A month earlier, an employee of McBride Lumber in North Carolina shot four of his co-workers, killing three of them, before killing himself.

Workplace violence of this sort makes headlines because it is rare and because it is shocking.  But the issues which lead to such outward demonstrations of hostility are not rare.  These acts of violence are not random.  While they may not always be pre- meditated, they are brought about by a history of tensions and anger between specific individuals in the workplace. 

One-time events do not create this volatility.  Single incidents may upset or confuse, but they don’t trigger a drastic response.  It is the historical repetition of events – be it bullying, intimidation, refusal to cooperate, or other unfair, unkind behaviors – which leads to these reactive measures.  The problem is, if we focus on the violence, we are looking for solutions in the wrong places.

As a conflict resolution and management expert, I see the commonality of the behaviors which lead to workplace shootings.  Thankfully, the vast majority of people never engage in such violent measures, regardless of the abuse they were suffering.  Instead, their reactions more likely lead to employee turnover, increased absenteeism, theft, harassment claims, and EEOC complaints.  These circumstances occur in most workplace settings, and even occur in other teamwork environments.  A timely example can be found with the UCLA Basketball Team.  A failure to discipline or force accountability lead to key players transferring schools, and caused a winning team to become a struggling one.

Most, if not all of this is preventable.  It begins with staff having a trusted place to bring their concerns.  They must believe that by bringing their concerns forward, they will get help.  There must also be a firm resolution, by leaders and managers, to bring swift, decisive intervention when problems perpetuate.  Conflict management readiness is, for this reason, vital to all businesses.  Staff must learn skills in conflict communication.  Human Resources, leaders and managers must have skills for addressing workplace problems in a way that empowers, rather than punishes, staff whenever possible.  And formal conflict resolution, such as mediation, must be engaged at the earliest possible time if other efforts fail to yield the desired results.

If you have questions about how to address these issues, or want to discuss the concerns of your workplace, please contact us for a free consultation.

Don’t Stall Out on the Business Highway

In mid-June I heard a report on the radio regarding the American Automobile Association (AAA). They stated that the number of roadside calls AAA is getting, due to vehicles running out of gas while on the road, has more than doubled from this time last year. The not-so-surprising explanation? Skyrocketing fuel prices.

I’ve noticed the same thing in the business world. As the impact of the economy and our undetermined political future causes concern, I’m seeing the movers, shakers and decision makers becoming still or indecisive in their business practices. In times of economic strain and an uncertain future, fear seems to have a paralyzing effect. Rather than spending the money that must be spent, be it on fuel for our car, or services for our business, some people are hunkering down and doing nothing…hoping that somehow this storm will pass them by.

Unfortunately that strategy doesn’t work. It leaves those people stranded on the side of the road while others, who accept the reality, move forward. Jack Hinsche, Managing Partner of the accounting firm Windes & McClaughry explains, “Peoples’ perception of this economic ‘recession’ has lead to cost control and managing of the bottom-line.” However, these cost-cutting decisions are not always logical. Hinsche notes that his firm is feeling the effect. “Collections and follow-up have become necessary. A typically prompt payment is being stretched to 90 days and more.” Hinsche continues, “People are pushing to the inevitable.”

Kenneth Keller, President of Renaissance Executive Forums, sees a better choice: Make the decision to spend money even when times are tough. Keller consults and trains executives and business owners. He observes “I find the economy to be okay for people who know how to use it as an opportunity.” At his company, “We are choosing to grow, not shrink. I have made the decision not to participate in any economic slowdown.” Both Hinsche and Keller recognize marketing as a key part of their plan to keep business moving. Hinsche comments on the necessity of “investing in core values.” Beyond marketing, his firm is committed to keeping with its “people first” culture. This means budget cuts have not been made in the areas of training, coaching or professional development. This is a particularly noteworthy choice; when you recognize that people are essential to a business just as fuel is essential to a vehicle…without them you’ll have no movement.

Safety in the Workplace

In turbulent times, a first step in managing your staff and your business is to create a safety net. Employees are under just as much stress and strain as their bosses, but often with far less to fall back on when times are tough. This is not the time to evoke panic. Keller notes, “For those that rely on others to generate an income (employees of a company), it is a scary time.”

Cutting out ancillary services is appropriate when it’s necessary to stave off reductions in the workforce, but when done simply to maintain the same profit margin, consider the message it sends to staff. If you are transparent with this decision making, you’re effectively telling your staff that they matter less than the level of profit for the business. This is a risky maneuver at best. If you do not tell them, the situation is liable to be even worse. Staff may assume this is a “last resort” and concern themselves with the possibility of layoffs or cutbacks. The snowballing effect as staff becomes concerned with job loss or salary cuts includes a drop in teamwork, lowered morale and reduced productivity; all of which undermine the intended goal of insulating profits and maintaining the status quo.

In building a safety net, it’s essential to communicate with your entire staff about the status of the company during these challenging economic times. Tell them what the impact has been on the bottom line, explain the company’s immediate and long term plans, and make clear the reasons for those plans. Perhaps the company can retain the full workforce without change as long as sales don’t drop beneath a particular threshold. Or, maybe you know which departments are likely to experience layoffs first, and which ones last. In explaining the situation, keep a positive outlook, but be honest and realistic. Keeping your staff informed empowers them to help, and allows them to be a part of the solution.

Profits now vs. Profits later

It is anticipated that during tough times profits will go down, but trying to stave off any decrease of profitability is likely to come with other significant costs. The importance then is having a vision and looking toward the future. Know that how you handle it now, will determine what comes next. Where do you want your company to be when the tough times are past? Trying to play catch up with what you’ve neglected or being poised and ready to move as opportunity strikes? Making the tough decisions, and the right ones at this time, is critical.

In evaluating your business expenses, two questions to explore are:

• What do I need to spend money on?
• How does it benefit me (my organization)?

While many will turn to “discretionary” spending as the first place to make cuts, it may be necessary to re-evaluate what is truly discretionary. Services to grow or maintain the business – via employee development or marketing - may be of greater significance than originally thought. Cutting costs in these areas will most likely cause business to slow further, and staff to feel more at risk.

Making the Cuts

Unfortunately, it’s easy to make cuts when tangible benefits are difficult to measure. Examine company spending patterns and any available metrics or data that offer evidence as to the value of each expense that you are looking to cut. As you perform the cost-benefit analysis, keep your vision broad. Reducing some expenditures will have minimal impact on productivity and morale, while others may have an unknown result or undesired consequence and should be done as a last resort only. “Marketing and employees are typically an area people make the cut first.” warns Hinsche who sees this as a mistake. He recommends instead that businesses “reduce expenses in occupancy costs including travel and administrative expenses.” A flexible work schedule or telecommuting are options to consider that fall within this plan – staff benefit from reduced travel costs, the business from reduced overhead.

In selecting the best plan for your company, be creative. Brainstorm with colleagues, consider several alternatives, and perhaps, if it’s in the budget, consult with a business advisor for an outside perspective of the situation. Remember even short term decisions have a long-term impact.

Outshine the Competition

While it may be tricky determining the right path for your business, consider the rewards. A forward-thinking attitude will lead others to you from the outside. You stand to outshine your competition who sits idly by, and position yourself to grow as you capture their talent and their customers.

Making thoughtful decisions and planned actions in this turbulent time has profound benefits. In accepting and managing the challenges before you and communicating them with your staff, you demonstrate leadership and vision. You stabilize your staff, retain your top talent, strengthen productivity and keep teamwork high.

Yes, the road ahead is rough – but by keeping business and employee services full, like your car’s gas tank, you will get where you need to go.

The Time to Act - Is Now!

In times of uncertainty many of us put off making decisions and spending money while waiting for a sign of what’s next. In business this generally translates into holding back on the seemingly non-essential business elements of training and development. Given our current economic and political state, this behavior has become increasingly prevalent and somewhat understandable...but is it wise? I’m going to suggest that it's not wise. Instead, I believe now is the time to act, and here’s why:

Staff feel safe – As the media announces more lay-offs and increasing unemployment, your staff are likely to be concerned about their paycheck and their job. By maintaining the company plan for training, development, coaching, etc. you silently reassure your staff that their jobs are safe.

Staff feel rewarded – Investing in your staff not only reassures them that they have value to the company, but also provides them with new skills that enhance their own worth.

Clients see you as successful – We may root for the underdog…but we do business with the champ. The messages you send when making smart choices to strengthen and enhance your business and workforce is that you are the champ. Make that statement and others will flock to you.

You outshine your competition – Bold decisions that help grow or enhance your business, will make you instantly look stronger and more capable than those who do not. This competitive advantage extends as you capture clients and talent from the outside, while retaining your own.

A new forum of Business Mediation

There are two types of business mediators, those who work to end the lawsuit, and those who work to prevent it.

Most businesses think of mediation as an adjunct to their legal services – and it certainly can be. Mediation can quickly and confidentially resolve pending litigation from claims of harassment, discrimination, wrongful termination, etc. In this capacity I myself have negotiated agreements that saved businesses hundreds of thousands of dollars in lawsuits and attorney’s fees. And while this area of mediation is valuable and important, it is just the tip of the mediation iceberg.

Mediation can also prevent the expensive lawsuit. When used as a routine part of a company’s strategy for handling issues between partners, executives, and general employees, problems are addressed in the early stages, when they can still be peaceably resolved. Likewise, this forum of mediation helps businesses retain their best workers, improve teamwork and morale, and increase productivity. And, if an issue is not resolved, evidence of attempting mediation all but eliminates the threat of a wrongful termination lawsuit.

Businesses are often surprised by the speed of the result. Why does it work so well when in-house remedies and efforts do not? In part, the answer is in the question. Mediation makes use of an outside and impartial person. Further, the process is confidential. Together these build a high degree of trust in both the process and the helper, and with trust comes honesty – the key to working out any issue. Likewise, a business that addresses issues in this manner demonstrates to those involved that their concerns have value. When people feel heard, they are more willing to resolve their issues. Putting it together, when people are honest and willing to resolve their issues, a lot gets done quickly.