The Naked King

Brian was a proud leader.  He’d driven his organization forward with growth and innovation and developed a team of high performing individuals.  Yet as Brian exuberantly pushed toward greater investor returns and new opportunities, he simultaneously generated friction among his team.  Unbeknownst to Brian, the team felt restrained, held back, and at times disengaged.  Why didn’t Brian know?  Brian, was a naked King.

As in Hans Christian Andersen’s tale the Emperor’s New Clothes, Brian like many of today’s leaders, shares a common circumstance as the King and his minions in the well-known fable.  Employees, even at the executive level, are like the townspeople, withholding information and feedback.  Why does this happen?  

Leaders, like the rest of us, seek out positive and encouraging feedback, and resist negative or contradictory information.  Similarly, a leader’s style in managing difficult situations is likely to mirror the rest of society and venture toward conflict avoidance (seen as negating or ignoring an issue), or confrontation (seen as bullying or intimidating behaviors).  Further complicating the situation, the power and influence of a leader combined with these common character traits, become more pronounced and more challenging for others to overcome.  

But does our leader know s/he is naked?  Some, no doubt are aware.  These leaders hope to keep others in the dark.  They tend to be secretive and closed off, and their organizations are likely to have heavy turnover.  But most leaders, like Brian, are at best mildly aware.  They are friendly and open, get along well with others, and make an effort toward being available.  They take their ability to be engaging, friendly, and socialize with their staff as evidence that their leadership is strong and healthy.  The problem however, is that they do not invite feedback and criticism.  If it’s hard to give feedback to a friend, what happens when s/he is also your boss?  Forget about it.

So what can the naked King do?

Given that the risks are too high for clear feedback to come through internal efforts, Leaders who want to know what their team is thinking will need to consider getting outside help.  Through quasi-360° evaluations conducted by a consultant or coach, a leader can learn of the concerns which exist in the organization, and of his/her leadership style, while minimizing fear and resistance among the staff or executives who are providing the feedback.  But that’s only step 1.  Step 2 is to utilize that feedback and prove to your team that it was worth their effort, and risk, to provide it.  This will most likely entail executive coaching, as well as a degree of transparency regarding your knowledge or acceptance of the feedback and your efforts to remedy the situation.  Steps 3 through infinity will be to keep that conversation going.  Encouraging others to give feedback in real time – not after the King has walked naked through the town.

D.I.Y. – A Plan for Culture Change

What’s your company’s culture?  I’m not asking what you want it to be, or what you tell your customers or clients.  I mean what are the day to day behaviors that are encouraged, rewarded and repeated by members of your team?  Is success based in camaraderie or cut-throat attitudes?  Do your foster teamwork or territorial behaviors?  An organization’s culture is not about what you say, but what you do.

As we start the New Year, this may be the perfect time to begin looking at making change, building upon what works, eliminating what doesn’t, and creating the culture your organization needs to succeed.  This isn’t about making a statement or creating a Phantom Culture.  This is about making deep, meaningful change.  Identifying and developing the culture that you want requires vision, planning, and commitment.

Vision – Know what you want the culture to be.  You may not be able to define the specifics, but you know that behaviors, attitudes, or teamwork will be different.  Have a vision, for how work will flow, people will function, and how business will be conducted.  As you determine your ideal, you can begin identifying what does, and does not, currently support that ideal.  Find your dream-team – those who are dedicated to creating that ideal.  They are needed to move any vision forward.

Planning – The vision is your end-game.  Planning is where you begin the work to get there.  Assemble your dream team and support them with time, space, and any other necessary tools to begin working toward that goal.  This team will need to work collaboratively to identify the specific qualities, in terms of behavior and performance, which will support the vision.  They will more fully imagine the vision, while refining the needs that the vision identified, and breaking them down into action steps.

Commitment – Having the vision, and carry-through of developing a plan will not change your culture unless you are committed to implementing it in every way possible.  Creating a culture and standing behind it means addressing those behavioral and performance standards during routine feedback, annual performance reviews, and everything in between.  It means holding every employee, at every level of the organization, accountable to that same standard, and it means making hard decisions when someone doesn’t “fit” your culture. 

Creating a new company culture is not simple or easy, but it yields impressive results.  When you identify and support your top performers, loyalty and productivity rise.  When you eliminate those on your staff who don’t demonstrate competency or accountability, you remove errors and stagnation.  A new culture allows you to promote the skills your organization needs to be its best, while removing the human hurdles that limit success.  The result - You create a dynamic team that can accomplish great things.  And who doesn’t want, and need, that? 

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.

Communication - Enough is Enough!

We talk about the importance of communication, yet are we getting any closer to solving our communication problems?  All too often, the answer is "No".  Well I'm here to say, "Enough is enough."  Are you with me?

Good. Because here is what I'm really saying - enough is enough. In other words, as a specialist in communication and conflict resolution, I can tell you that the biggest problems I find in business, among teams, and within families, occurs when one, both or all parties fail to pay attention to whether or not enough information has actually been exchanged. How could you know when this is happening? Read on:

1. You can tell the other person is "giving in" to you - or you are giving in to them.  Often done to avoid an argument or lengthy discussion, this situation occurs when we try to get things done without over-questioning or over-explaining. Things may seem fine as work is getting done and things are being handled. However, the long term result is that the party who "gives in" makes assumptions about the other person and the reason for their requests. They may see him or her as difficult, unreasonable, or even foolish. Over time respect is lost and the relationship is damaged.

2. You unexpectedly get resistance over something - Similar to the situation above, this time the other person isn't giving in, but is in some way pushing back. S/he may be quietly avoiding work that should be done, pushing your buttons by asking questions you see as unnecessary, or repeatedly doing something the "wrong" way. You may feel frustrated or angry with this person's attitude or behavior. Over time this resistance may reach to a level of insubordination and discipline.


3. You find yourself telling the other person to "Just do it" - Perhaps you've learned to expect resistance over a particular request or by a specific individual.  Rather than enter into a discussion you give a straight-forward order. You may see this as the fastest way to get from point A to point B, but at what cost? While intended to cut out some of the problems above, instead this type of communication complicates things further. A direct order demonstrates a lack of trust in the recipient's ability to make decisions or think things through. In business this causes employee dissatisfaction and in any situation erodes positive elements of the relationship.


4. You sense the other person's unspoken confusion, annoyance, or frustration - Perhaps you are savvy enough to recognize these signs of resistance, but are you addressing them? Have you truly unveiled the problems that lead to those feelings? Most of the time we take the shortest route for getting something done, and instead of entering into a discussion about the task, request, etc., we respond by allowing one of the three prior scenarios to take hold. Or, we do seek to address the issue, but allow it to be closed even when we aren't sure that the problem has been solved - only that the effort has been made.


In all of these situations, "enough" did not happen. The best of intentions did not lead to the best results. Instead, communication was stilted, incomplete, compromised, or completely ignored.  To improve communication, you must be sure that the information exchange also answered the question, "Why?"  In other words, why is this needed, why should it be done this way, and/or why are you resisting the request that was made?

Changing The Phantom Culture

Google the words “company culture” and you’ll find nearly ¾ billion results.  Yet ask business leaders to define their company’s culture or to discuss ways their culture was created or changed, and the results are minimal.  Company culture it seems, is a bit of an enigma. 

On the surface, it’s often characterized as a product of the company’s values, beliefs, and behaviors.  But when the stated values, beliefs, and behaviors take a detour from the reality of daily business activities, the culture isn’t living up to the mission of the organization.  And most certainly the employees know it, further destabilizing the potential of that purported culture to ever take hold.  As an added concern, the opportunity for the company culture to positively impact clients, customers, and consumers is lost as well.

So where does the declared culture separate from reality?  The divide occurs through daily interactions, and decisions, through policies and practices.  Look to the following to determine where your culture is truly defined:

1.      Rewards.  Who and what is promoted in your company?  Are the hardest and most competent workers rewarded in kind?  Do employee attitude or workplace relations factor into opportunities and pay raises?  How are requests for paid time off granted?  Also looks at areas of nepotism, loyalty (regardless of competency), and highest sales performance (regardless of attitude).  How each of these is rewarded will also impact your company culture.

2.      Punishment.  Who is terminated and why?  Does poor behavior, insubordination, dishonesty, or other problem behavior get addressed – and punished – in a swift and decisive manner?  Are problem people allowed to move about seemingly untouched?  How many opportunities is staff given to change/improve before consequences set in? 

3.      Communication.  How open are the channels of communication?  Do staff have a voice in discussing things that impact them – like a new computer program or a recent update to how work-load is to be calculated?  Or are they blind-sided or surprised by things that are occurring or changes that are implemented?  Can staff adequately rely on the chain of command for getting information to or from where it needs to be?  Is communication one-way (ie: top-down) or reciprocal? 

4.      Teamwork.  How do people work together?  Are teams thoughtfully created with competent leaders put in charge?  Is blame or finger-pointing a problem?  Are accountability and personal responsibility being reinforced?  Are collaboration and operational reciprocity a reality or are people or divisions siloed and disconnected? 

5.      Conflict Management.  How are tensions or conflicts managed?  Are people encouraged to seek help or left to deal with issues themselves?  Are people in leadership roles trained in basic conflict management?  When help is offered, is it legitimate and multi-tiered or superficial and temporary?  Do managers and leaders receive training in employee relations or conflict management?    

The above questions offer just the start for examining the factors which determine your company's true culture.  We hope they pose a healthy challenge to all companies looking to create or improve their own company culture.

Office Politics

Office politics may be something we all talk about – but in an election year, the expression takes on a whole new meaning.  As a behavior brought about by those who seek power and influence, consider the potential for staff in your organization to desire the power and influence to see their party or candidate take office come Election Day.  

Hot-button issues like the economy, unemployment, and healthcare are hitting-home and leading people to become more opinionated and more entrenched in their beliefs.  Friendly conversation about current events can quickly turn into heated debate.  Repeat interactions may lead some to feel pushed, challenged, or bullied.  It is these office politics that threaten to derail your business as they undermine morale, hinder teamwork, damage productivity, and may also lead to more troubling (and potentially litigious) behaviors – all of which are sure to linger beyond Election Day.

The best strategy for keeping these office politics at bay is to get in front of them and plan ahead.  

Steps to Take

1 – Review your company policy on social or political behavior.  This may also overlap with policies on diversity.  Are there policies addressing the use the display or demonstration of affiliations, etc.?

2 – Determine what will be acceptable company behavior.  Some thoughts to consider:

• If friendly debate/conversation is allowed, is it limited to lunch and break rooms?
• Can a person post their affiliation in their office/cubicle?
• Is staff allowed to congregate or campaign on company grounds?
• How does title/role play a part in determining what a person can/cannot say?

3 – Consult with your company attorney.  While 1^st Amendment Rights were created to establish political freedom, the workplace is not public property and therefore is not the appropriate forum for enacting those rights.  

4 – Talk with your staff.  Be sure all staff know the position of the company regarding these behaviors, and how they may address any concerns which still arise.  Be clear about rules and consequences.

5 – Be Consistent.  Nothing is more troubling or will lead to more discord than allowing some individuals to express their beliefs freely while others are held accountable.  This is especially true if the rules seem to favor a certain individual, a particular rank within the company, or a given political party.

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.