employee engagement

Leadership

Says easy does hard…really?

Why is it we struggle with the tough business decisions that impact people? Time and time again I see leaders struggle with emotions that add complexity to the business decision making process. What makes us human can also get in the way of us making good business decisions. Feelings, either in the form of too much empathy or a lack there of, can make an already difficult situation even more challenging.

So how do you strike the right balance? Here are some tips from over twenty-five years of leading people. For me personally, as well as from participants attending my leadership learning events, the techniques below are the ones found to be most valuable…

One: Influence vs. Control

The business world is full of challenges. As a leader, one of the many skills you need to exercise is the ability to prioritize and pick your battles. Being able to take on the ones where you will realize the largest return and leave others behind is a talent. To help with this filtering process, consider focusing on those issues where you have direct control. Clearly there will be situations that you can influence but those that you truly control will be fewer. Know the limitations of your sphere of influence and the boundaries of your sphere of control.

Two: Understand vs. Like

Leading people is hard. People are complex entities that can at times act and behave in a totally irrational manner. When having to deliver difficult messages concentrate on the recipient’s understanding of the situation rather than them having to like what you are conveying to them. Sometimes the nature of the situation makes it an unreasonable expectation that the person on the receiving end will like the outcome. Your goal is to have them understand. It is up to them whether they like it or not.

Three: Life’s All About Choices

You are a leader. You’ve chosen a leadership position for a reason. Having made that choice you’ve been bestowed the privilege and responsibility of effecting people’s lives. You need to honour the position and act accordingly. You need to make choices. Not taking action in a responsible way is unacceptable. You will be measured by your choices. Over time the series of choices you make forms your reputation as a leader. Choose wisely.

Four: Keeping it In Perspective

Some of us work to live while others live to work. For me, I’m of the mind that work is extremely important. That being said, it is a distant third to my health and my family. Without them, there is nothing else. Everyone picks their life priorities and to each their own. But for all of us, to help keep perspective in those crazy and difficult times regardless of where your work is positioned on your life priorities list, know that as significant as work is there are things in life that are even more important.

Whether you are a newly anointed Manager or a seasoned veteran, these four guiding principals will help you not only lead better but be a better leader.

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Innovation Culture

There is great interest today by organizations in developing innovation cultures.  And why not?  Creating a mechanism that perpetually harnesses the internal brilliance of your employees is a powerful thing.  Not only is this impactful for employee engagement but, done right, it will continuously delight your customers who will in turn delight your bottom line.

Creating an innovation culture is viewed by most as a daunting undertaking.  While characterized by complexities requiring detailed planning and skillful execution, it doesn’t have to be overwhelming.  Here are some simple techniques that can get you started.

Step One:  Have a Compelling Vision

Having a compelling vision starts with being crystal clear on what your future destination is, including the path to achieve it.  While the future destination should be aspirational and encompass emotional attachment, it must be accompanied by step by step plans outlining the direction in detail.  Your compelling vision should be reflective of your brand and resonate equally with your customers and employees.

Step Two:  Communicating the Vision

Once the vision is created and detailed, a robust communication plan needs to be developed and delivered to begin cascading the vision throughout the organization.  This goes far beyond sending a series of e-mails through various levels of your company.  A successful communication plan includes identification of the types of stakeholders as well as consideration for the various mediums, frequency, timing as well as messaging.  The heart of the communication should address the emotions that customers and employees will experience on the journey to the future destination.  Unaddressed emotions, good or bad, can stall the best planned initiative.  Communicating the vision is one of the first steps in creating a shared goal.

Step Three:  Always Keep the Customer at the Forefront

Like any journey, as your plan for creating an innovation culture unfolds you will face opportunities requiring pivots.  When faced with these junctures, be sure to always keep the customer in mind when determining the best route.  It is easy at times to become distracted by shiny objects along the way.  If you truly understand your customers and use them as the talisman for decision making, you should remain centered on the correct path.

Step Four:  You Just Have to Ask

Part of creating an innovation culture involves tapping into the hearts and minds of your employees.  And who better to understand how to delight your customers then those who work most closely with them.  And the best part, all you have to do is ask the right question to be able to mine this greenfield of opportunity.  Time and time again I am amazed at how few organizations have learned and are utilizing the powerful technique of asking questions.  If you haven’t yet tried this, here’s one to get you started.  Ask a front line employee “If you had a magic wand and could change one thing to make our customers’ lives better, what would you do?”.  Ask it often enough and you’ll begin to see where the pattern of innovation opportunities exist.

Step Five:  Celebrate Successes

Creating an innovation culture takes time.  Along the way you need to mark the milestones with celebrations.  This will help refuel your employees and reinforce the new behaviours you are trying to operationalize into your daily routines.  When creating an innovation culture you will need to celebrate near successes as well as the slam dunks.  Positively calling out selective “almost” wins will help reinforce “trial” behaviour and increase tolerance for risk by reducing fear of failure.  All essential characteristics of an innovation culture.

Creating an innovation culture is one that engages your employees to continuously delight your customers.  While not a simple undertaking, the destination is worth the journey and these five steps will help you get started.

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A good crisis can make for great opportunities

Originally published on September 4, 2015 as a Guest Column in The Globe and Mail: http://www.theglobeandmail.com/report-on-business/small-business/sb-managing/a-good-crisis-can-make-for-great-opportunities/article26204036/

A few weeks ago, I went to Brazil to speak to a large group of manufacturers on the perpetually-topical subject of innovation in a time of crisis. The forum, held by FIERGS (Federation of Industries of Rio Grande do Sul), addressed the well-known struggles of the Brazilian economy. Unfortunately, those same issues are now being faced by the Canadian economy.

With the recent announcement that Canada is in a “technical” recession, these two resource-driven economies are slowing to a crawl. The good news? For me, there’s never been a better time for businesses to embrace innovation. And the best way to succeed in this perpetually challenging area is to look at innovation through the lens of crisis – or turnaround – management.

Innovation has always thrived in hard times. Desperation forces people to question the status quo. In good times, people may be less inclined to rock the boat, but when investors and customers are bolting for the doors, you have no choice. That’s probably why some of the world’s great companies were founded during recession – businesses such as General Electric, IBM, Disney, Microsoft and Adobe.

One of the world’s most successful innovators, Apple, wasn’t founded during a recession. But the same principle applies. When Steve Jobs returned to take the reins in 1997, Apple was facing crisis: too many products, too little focus, not enough revenue. What saved the day? Steve Jobs shaved Apple’s product lines by 70 per cent. Even the best companies can become bloated and undisciplined during the good years and forget the core competencies that made them great.

To stay true to your strategic core, you could do worse than look to the process of strategic turnarounds. Once a company has accepted that it has lost its way, a successful turnaround requires an extraordinary commitment to self-analysis, questioning, reflection and day-to-day change. The same turnaround tools can be adapted to meet the enormous market pressures all businesses face today.

The main reason many companies fail is lack of focus. They start off doing one thing well, and then get attracted to – or distracted by – other opportunities. Some may be successful, others not. But all of them distract the business owners and leaders from what they set out to do. And all too often these shiny new opportunities are well removed from the business’s original roots. That means there is little synergy with established operations, and way too much to learn – about new products, suppliers, distribution channels, markets and customers. It’s falling into this pit of guesswork and improvisation that leads most companies to call in the turnaround experts.

It takes courage to admit that your company needs to reverse course. But successful turnarounds require everyone involved to face the brutal truth.

The best turnarounds usually begin with a strategic review that asks: What are our strengths? What do we do best? Where are we losing money? What operations are most profitable? Where can we grow? Successful change also requires that you reconsider some of the specific actions that got you into trouble. Stop doing the same old things; one definition of insanity is doing the same things and expecting different results.

Here are some of the key elements of a successful turnaround:

  • You need the right people on the journey. A winning turnaround starts with shedding employees who aren’t contributing sufficient value, or lack passion for their job. Once you get rid of the complainers and the complacent, your company has a better chance to bounce back.
  • You need a “change champion” to manage the turnaround – someone who owes nothing to the old, failed ways of doing things, and is prepared to listen carefully, consider many new ideas, and take direct action. His or her objective must be to stop the bleeding and get the company moving in the right direction. This is usually a hard job for the original owner/manager to do. Regardless of who takes charge, they require a formal process. As outlined in my book, The 90% Rule, that means knowing where your organization came from, knowing what it’s best at, and finding more ways to create value for more customers.
  • Focus is key. Trimming marginal operations is imperative – as Steve Jobs knew when he cancelled 70 per cent of Apple’s product lines in order to focus on only the best and biggest opportunities. In crisis, protect the core. Pull the plug on non-core activities.
  • Review prices and margins. Many companies are afraid to raise prices or set minimum margins for fear of losing customers, but it’s the best way to figure out who your best customers really are, and to clear out the unprofitable ones. Every penny of these exercises goes directly to the bottom line. No surprise, then, that the companies I have seen do this all wish they had done it sooner.
  • Refocus on the customer: What do your customers want and need? What are their biggest pain points, and how can you relieve them? Get out and talk to the customers. (It’s a shame so many companies wait till they’re in trouble to do this.) Once you have identified new ideas, opportunities and solutions, let the customers know the new directions your company is taking – and how they contributed to its success.
  • Keep employees well informed of the company’s plans and decisions. In the absence of facts, fear breeds confusion and negativity. Keep everyone informed, involved, and marching forward.
  • Paint a clear picture of what you’re trying to do and the process you are following. Share this vision with all your all stakeholders (customers, employees, suppliers, investors, bankers, etc.). You want everyone to know that there is a better future ahead, and that their sacrifice, hard work and faith will not be in vain. Make sure to offer a specific reward at the end, whether it’s increased job security, bonuses, profit-sharing, and/or a blowout party to end all parties.

Diamonds can only be created under great pressure. Whether your company needs a major rethink or you are simply looking for new opportunities for growth, crisis thinking can create the new opportunities you and your team are looking for.

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