Managing Organisational Performance

There cannot be a CEO or a Divisional Manager anywhere who doesn’t believe that the performance of their organisation could not be enhanced, if only their employees displayed a greater sense of teamwork and motivation.

Yet having accepted that it is they who need to take the initiative to bring this about, any initial enthusiasm quickly wanes, as they grapple with other issues and the management of the business itself. Developing greater teamwork is perceived as a ‘nice to have’ issue not a ‘must have’.

Most managers regard teamwork and its development as a separate issue to business management. They do this because when they think of teamwork, the things that come most immediately to mind are the interpersonal factors that characterise teams and team members – high levels of motivation, respect for and trust in one another, constructive conflict, innovation etc. And so the logic goes, that to develop such characteristics requires a separate program to be run in parallel with the ‘normal’ program of running the business. Consultants are hired, programs are devised, large sums of money are spent – but with what result?

At best, such team building programs lead to the establishment of pseudo teams – workgroups that display the appearance of teams but not the substance. And in the final analysis, it’s the substance – improved organisational performance – that is the only worthwhile result.

The fundamental flaw in the management logic is that teams and teamwork can be created and once established, uplift in organisational performance will result. This is not the case.

The three things that lead to the development of teamwork and the establishment of real teams have nothing directly to do with the team characteristics referred to above – but everything to do with the achievement of the organisational objectives.

For workgroups to develop into teams, they need a:

• Common purpose
• Common goal
• Common approach

Let’s take each of these factors in turn.

The workgroup’s common purpose should be expressed not only in the context of the workgroup but also in the context of the organisation as a whole.

The above common purpose is an activity and as such cannot be measured. Therefore, the common purpose has to be expressed in terms of a common goal. The common goal should be specific, measurable, achievable, a result and time related (SMART).

Note that achievement of the common goal involves every member of the workgroup, is related to the common purpose of the workgroup and of the company as a whole, and is a goal to which workgroup members may relate and over which they have control.

The workgroup’s common approach covers such issues as who does what, meeting schedules and agreeing on subsidiary objectives or milestones.

Since the purpose, goal and approach is one shared by all members of the workgroup, mutual accountability is a rational consequence and mutual accountability leads naturally to the development of trust, motivation and commitment – those characteristics that turn workgroups into real teams of substance.

Adopting this strategy over the more traditional approach that treats the development of teams and teamwork as a discrete program has enormous advantages.

• Management’s focus remains on the management of the business. Managers are not being asked to do anything extra – they are being asked to work smarter by realising the potential of their staff.
• By developing a common purpose and a common goal for each workgroup in the manner suggested above, organisational alignment will be much improved.
• Insisting that each workgroup have a common purpose, goal and approach will lead to a very significant rise in workgroup effectiveness.
• United by the above three factors, there is a much greater likelihood that workgroup members will develop teamwork, and display the characteristics of real teams.
• Resources are not diverted to a separate program of ‘team development‘.

There is just one missing component to the above and that’s the need to measure. You cannot manage what you cannot measure.

There is a fair degree of cynicism surrounding the traditional ‘team/teamwork development program’, which is justified. Such programs are expensive, time-consuming to administer, based on false logic and ineffective in the long term. Yet no one would disagree that a small group of people working together can accomplish more than a similar number working as individuals.

So the message is simple. Successful organisations and successful workgroups have an enduring focus on performance and, in the process of setting and achieving performance goals, teamwork develops as a consequence. But like so many management concepts, it’s the implementation that’s complex.

Guest Author

Graham Haines is principal consultant of Plans To Reality. Graham has a Joint Honours Degree in Law and Economics from Durham University and a Grad. Dip. Ed from Melbourne University. He is both a Certified Management Consultant and a Certified Practicing Marketer. In addition to his consulting activities, Graham has taught marketing and management at a tertiary level and written over 150 articles for specialist press and his own web site. He can be contacted via Email: ghaines@planstoreality.com.au or Visit: http://www.planstoreality.com.au

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Why High Performing Teams Don’t Perform

Ever wondered why ‘High Performing Team‘ training often does not produce ‘High Performing Teams’?

The training says, “An all star team beats a team of all stars any day”. This fundamental flaw causes the failure of high performance team training. It puts high performing people against high performing teams, as if you have to make a choice.

In this case, you can have your cake and eat it too. You do not have to choose between high performing teams and high performing people. You need to choose both for either to work effectively.

Reasons why teams don’t perform

Four key reasons why teams do not perform are:

1. The team is more important than the individuals –  If the team is more important than the individual, staff engagement will fall, as people do not feel that their individual contribution to the team is valued. In this scenario, training is directed at the team. This can lead to under-skilling of the members of the team that will seriously affect the ability of the team to perform.
2. The individual is not playing as part of a team – In the other extreme, if the individuals are more important than the team, the focus will be on individual achievement. The challenge with this is that people focus on their achievement at the cost of other people. This can lead to the “team” pulling in different directions at the same time and hence the team burns up a large amount of energy pulling against each other.
3. The team lacks focus – A lack of focus will also hinder a team’s performance. Imagine a soccer team trying to score if it did not know where the goals were! Workplace teams often have exactly that situation. Goals are not clear or are constantly moving. In some cases, goals even conflict with each other. This will also occur where the team does not have a clear understanding of its purpose, strategy and goals.
4. The team lacks an effective leader – A team will flounder without a leader clearly guiding the team in a single direction. This person does not have to tell the team what to do, but does need the skills to facilitate decision making in the team so that the team continues to travel in a single forward direction. They must be able to clearly sell a common theme for the team, using a common language, to be effective.

Recognising when teams don’t perform

Do you know whether your team is performing? This may sound like a strange question to ask. Teams often do not have clear direction, nor clear measures of how they are performing. Even if they do have measures, they usually measure outcomes, rather than reviewing the team itself and its efficiency.

If the team is more important than the individual is, you are likely to find low engagement and missed individual KPIs. High turnover, high unplanned absenteeism and low morale will generally result from low engagement. If you do not currently track these, they are good indicators to show how the team is performing.

If the individual is more important than the team, you will generally see individual KPIs met. This will, however, be done with a large degree of frustration. There are unlikely to be shared goals and your people will talk with a different perspective on the same topics. The team will miss their KPIs on a regular basis if they are not also the individual’s KPIs.

If the team lacks focus, it will also tend to miss the team KPIs (that is if there are any team KPIs). The lack of team KPIs will contribute to poor team performance. The manager’s KPIs usually then become the team’s KPIs by default. The manager does not communicate these clearly and so the team becomes frustrated trying to hit what appears to be a moving target.

Rectifying teams that don’t perform

The first step to rectifying team performance is to recognise that the team is not performing. This can be done by reviewing team and individual KPIs and using a balanced team scorecard. Being able to measure the team performance is vital to an effective improvement process.

Once you can measure the performance level, you can use a balanced team scorecard to help you identify key areas to concentrate on to improve the team. Put in place the activities and training to rectify the gaps and then re-measure.

When measuring team performance you need to measure the activities and training that you put in place as a way of getting some quick wins for the team. If all the KPIs and measures are focussed on longer term measures (lag indicators) it will take too long for the team to see that they are working together to improve.

High performing teams do not have to be a myth. High performing teams can be high performing. It takes effort focussed on the functioning of the team, the individuals in the team and the team goals & objectives. As you measure these, monitor, feedback and correct in a continual cycle you can see your team become a high performing team.

Guest Author

Brad Cork, The People Expert, Improving People. Brad can help you get the most out of your people. Contact Brad on 0425 335 659 or brad@improvingpeople.com.au to find out how! To download a complimentary one page report on each of the six great keys to getting the most out of your people please visit http://www.improvingpeople.com.au.

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Make Yours The Greenest Pasture – Retaining Your Top Talent

Employee turnover can cost companies up to 40% of their annual profit. The financial impact of losing a significant number of high performing and high potential employees can be exponentially higher.

Furthermore, these top notch employees are the ones who are being contacted daily by executive recruiters. Are they ready to bolt? Consider these recent survey findings from Salary.com:

Over 66% of employees surveyed said they plan to look for a new job in the next three months; nearly double the 36% that employers believe are looking.
More importantly, employers are at risk of losing their most productive talent – people who have been in their positions for 3-10 years. Nearly 66% of tenured employees plan to find new jobs over the next 3 months.

This could have tremendous hard and soft cost implications for employers. HR professionals estimate that the hard costs to replace an employee ranges between 33% and 50% of their base salary, in addition to soft costs such as the loss of productivity and institutional knowledge, as well as new hire recruiting and training expenses.

How do you stem the flow of your top talent from leaving the organisation? While one can never reduce the flow completely, there are five clear steps that can be taken to ensure that people aren’t attracted to what appear to be greener pastures elsewhere, and you are prepared to address the eventuality that everyone will not stay forever. These five steps are:

• Know who your top talent is and where they are located – Too many organisations only begin to recognise how valuable their talent was when those employees have decided to leave the organisation. Work is not getting done as quickly, effectively, or creatively. How can this be prevented? An effective performance management system should identify and differentiate top, acceptable, and marginal performers. This requires that:
  • Clear, challenging performance standards demonstrate how each employee adds value and contributes to the overall business objectives.
  • Clear, challenging performance standards demonstrate how each employee adds value and contributes to the overall business objectives.
  • A meaningful performance rating scale differentiates talent. Often, a 3-point scale to assess the extent to which goals/results were met coupled with a 3-point scale to assess the extent to which competencies were applied will suffice.
  • Managers calibrate their ratings to ensure they are using the rating scales consistently.
  • Communication and education are provided to enable managers to have performance-based conversations.
• Communicate with your top talent – do they know they are valued? – Special attention should be given to those identified as top performers by the performance management system. In order to continue to reap the value that these employees provide, managers should take time to have sincere dialogue with them throughout the year, ensuring that managers do the following:
  • Recognise their efforts and accomplishments
  • Explain how their contributions add value to the business, and to other leaders
  • Ask what additional help and resources they may need
  • Pay attention to any indicators that may suggest that their interest is waning, and address it promptly
• What is the Employee Value Proposition for high performers/potentials? – Several organisations conduct periodic employee engagement surveys. This data is often analysed in terms of various demographic criteria (e.g., geographic location, functional area, etc.). In order to keep the data anonymous, it is rarely analysed in terms of high performers/potentials. However, we need to measure the attitudinal pulse of this group. It is important not to fall into a “one size fits all” trap; instead, get a good handle on the needs and desires of this employee population as well as regularly monitor their levels of engagement. Some suggestions on identifying the Employee Value Proposition for this community include:
  • Convene focus groups with this targeted group of employees and determine their key drivers (what does the organisation offer to them that they value) as well as what organisational barriers get in the way of them feeling completely engaged.
  • Consider establishing task forces to explore these barriers in greater detail and determine how they can be minimised or eliminated. Involvement of high potentials in these task forces can be a great way to help them have additional organisational impact and be a part of the solution.
  • Use the outputs from this process to develop and communicate a unique “employee brand” that can be used in recruiting other top performers to your organisation.
• Ensure they are receiving rewards that are meaningful to them –  None of us would likely turn away more money. However, a total rewards program considers not just monetary rewards, but also non-monetary rewards that are valuable to many. Consider the following list as you explore how to build engagement with all top performers, and ensure you are effectively communicating the rewards that people have at their disposal. Employees often do not realise the true market value of the benefits they receive – distributing a customised Employee Benefit Sheet providing the market value of salary, benefits (e.g, employer retirement contributions, employer contributions to health care, sick time, vacation time, etc.) to show the “total rewards package” is very meaningful and can make someone think twice before they jump ship.
  • Monetary rewards:
  • Base pay
  • Benefits (retirement, healthcare, paid time off, etc.)
  • Annual incentives/variable compensation and cash recognition
  • Long-term incentives (pension, stock options, increased paid time off, etc.)
  • Non-monetary rewards:
  • Growth and career development
  • Non-monetary recognition and visibility
  • Training
  • Work environment (e.g., telecommuting options, flextime, collaboration with others, etc.)
• Develop a Workforce Plan – Realistically, we cannot hold on to our best performers forever. Some attrition is expected, especially as employees near retirement age. It is important to analyse your demographic data for your most critical roles in order to identify and prepare talent for future roles, as well as ensure that a great deal of your institutional knowledge does not leave the organisation as people retire. Consider the following as you develop a workforce plan and determine your future recruitment and development needs:
  • Current numbers of employees
  • Projected growth rate for the organisation
  • Expected turnover rate
  • New entrant turnover rate
  • Retirement rate (based on age distribution of workforce)

If you are able to hold on to your better performers longer, and ensure that a plan is in place to replace them when they do leave, the bottom-line savings are dramatic.

Consider an organisation that loses 20 high performers/high potentials per year, with an average salary of $50,000 per hire. Assuming the organisation stays the same size over five years (no growth), and the recruitment and lost productivity cost of replacing this talent is at least 50% of their salary, this turnover costs the organisation $2.5 million over that five year period.

Reducing this turnover by 20% per year (four top performers decide to stay each year) produces a very conservative savings of at least $500,000, and undoubtedly more when one considers the impact that high performers leaving an organisation has on the morale of those who are left behind. If your projected growth rate is greater than 0% or your high performers earn more than $50,000 per year, the savings are even more dramatic.

Author Credits

Scott Cohen, Capital H Group. Capital H Group is a consulting firm that takes a value-based approach to helping companies manage, and invest in, their human capital. Partnering with our clients, we focus on creating value through their people. For further information, visit web site: http://www.capitalHgroup.com

Republished from IIDM – your online business resource – www.iidmglobal.com. Get valuable business tips and easy-to-read articles delivered direct to your inbox. Register NOW for your copy of IIDM’s FREE e-newsletter: http://www.iidmglobal.com/subscribe/

Bye, Bye Boomers: Planning For The Inevitable

Your leaders are leaving soon and you may have gaps within the ranks, both in qualified people and the necessary competencies. While this is potentially alarming information, now is not the time to panic.

Many companies have been stripping out layers of management to gain operating and cost efficiencies. But in the process of paring down, these ‘lean’ organisations cut out many developmental opportunities for next-generation leaders. So there are fewer and fewer candidates ready to step into crucial management roles as older managers retire.

Replacing capable and seasoned employees, while developing a new cadre of managers, certainly takes considerable time and investment. It is time to focus efforts on creating a leadership development strategy to meet this challenge, and then rigorously execute this strategy to maintain – and drive – business both during and after this flux.

The key is to get ahead of other companies by taking action now, with six critical steps designed to competitively position your organisation during and after this dramatic workforce transition:

1. Map the exiting skills and expertise – Determine who is retirement-eligible and when retirement is likely. Have frank discussions with your senior management team on their future plans and determine if they have made any efforts regarding succession planning. Know what skills the company will lose and what functions, locations and roles will be impacted the most.
2. Accelerate knowledge transfer – Start with a preliminary meeting with potential retirees to understand the gap between the knowledge only known by the individual(s) versus that which is documented as part of your company’s process or knowledge management.Once you have a general sense of the information that needs to be captured, you can then decide how to do it. If you use a technology system, be sure to think through how the successor will employ it, in order to balance a system with a lot of “bells and whistles” with a practical one.Also, keep in mind how the knowledge transfer process might change for different positions, and whether a third party will do the gathering or if it will be left to the retiree. The higher the impact of the retirement on the organisation, the more tailored this process needs to be in order to capture all relevant information.

   The process may need to involve speaking with direct reports and job shadowing, particularly for senior management. For departments where there will be a larger number of retirements, a process can be designed for department heads to distribute knowledge transfer plans in a more time efficient manner.

3. Assess talent supply and demand – both internally and externally – Once you have identified the impending skill gaps, the next obvious step is to fill them. First look internally, and use the information you have gathered from retirees and other managers to determine whether the skill sets exist within your organisation. The goal is to identify successors.Where no successors exist, look externally to see if the type of skill you need is available in the market. If talent is available, begin building a pipeline. If it looks like a tough market, use a three-pronged approach: build a pipeline, keep looking internally for potential successors and work to retain Boomers past retirement.

4. Accelerate development – Now that you have identified the successors, they need to start moving towards the goal of stepping into the retiree’s position. This will require creating a plan that develops the required skills within the necessary time frame.This is often a difficult process to balance that only gets tougher the longer companies wait to prepare for retiring Boomers. The plans ideally should include on-the-job activities, formal training and knowledge building.
5. Maintain focus – The first four steps require a methodological approach that is best carried out by one project management office or one team leader depending on company size. Nominate a person or group to centrally coordinate and lead workforce planning. Ensure that the leader(s) also keeps an eye on your employee brand in terms of how retirees are treated as they exit and how the company is portrayed to external candidates during this crunch process.

6. Learn from others – Now that you are aware of your problem areas, keep an eye out for ideas. Consider ways to retain Baby Boomers past their retirement date with alternative arrangements such as part-time retirement.

Many companies have already addressed the Baby Boomer issue. While this is further reason to get started if you have yet to begin, there is also the chance to learn from others who have gone down this path.

Guest Author

Norman Schippers, Capital H Group. Capital H Group is a consulting firm that takes a value-based approach to helping companies manage, and invest in, their human capital. Partnering with our clients, we focus on creating value through their people. For further information, visit web site: http://www.capitalHgroup.com

Republished from CEO Online – your online business resource – www.ceoonline.com. Get valuable business tips and easy-to-read articles delivered direct to your inbox. Register NOW for your copy of CEO Online’s FREE e-newsletter: http://www.ceoonline.com/subscribe/

Recognising The Traits Of Outstanding Employees

Great employees are reliable, dependable, proactive, diligent, great leaders and great followers … they possess a wide range of easily-defined – but hard to find – qualities. A few hit the next level and are remarkable, possessing qualities that may not appear on performance appraisals, but nonetheless make a major impact on performance. Forget good to great – what makes a great employee, remarkable?

Here are eight qualities of remarkable employees:

1. They ignore job descriptions – The smaller the company, the more important it is that employees can think on their feet, adapt quickly to shifting priorities, and do whatever it takes, regardless of role or position, to get things done.When a key customer’s project is in jeopardy, remarkable employees know without being told there’s a problem and jump in without being asked – even if it’s not their job.
2. They’re eccentric – The best employees are often a little different: quirky, sometimes irreverent, even delighted to be unusual. They seem slightly odd, but in a really good way. Unusual personalities shake things up, make work more fun, and transform a plain-vanilla group into a team with flair and flavour. People who aren’t afraid to be different naturally stretch boundaries and challenge the status quo, and they often come up with the best ideas.
3. But they know when to dial it back – An unusual personality is a lot of fun … until it isn’t. When a major challenge pops up or a situation gets stressful, the best employees stop expressing their individuality and fit seamlessly into the team. Remarkable employees know when to play and when to be serious; when to be irreverent and when to conform; and when to challenge and when to back off. It’s a tough balance to strike, but a rare few can walk that fine line with ease.
4. They publicly praise – Praise from a boss feels good. Praise from a peer feels awesome, especially when you look up to that person. Remarkable employees recognise the contributions of others, especially in group settings where the impact of their words is even greater.
5. And they complain privately – We all want employees to bring issues forward, but some problems are better handled in private. Great employees often get more latitude to bring up controversial subjects in a group setting because their performance allows greater freedom.Remarkable employees come to you before or after a meeting to discuss a sensitive issue, knowing that bringing it up in a group setting could set off a firestorm.
6. They speak when others won’t – Some employees are hesitant to speak up in meetings. Some are even hesitant to speak up privately.An employee once asked me a question about potential layoffs. After the meeting I said to him, “Why did you ask about that? You already know what’s going on”. He said, “I do, but a lot of other people don’t, and they’re afraid to ask. I thought it would help if they heard the answer from you”. Remarkable employees have an innate feel for the issues and concerns of those around them, and step up to ask questions or raise important issues when others hesitate.
7. They like to prove others wrong – Self-motivation often springs from a desire to show that doubters are wrong. The kid without a college degree or the woman who was told she didn’t have leadership potential often possess a burning desire to prove other people wrong.Education, intelligence, talent, and skill are important – but drive is critical. Remarkable employees are driven by something deeper and more personal than just the desire to do a good job.
8. They’re always fiddling – Some people are rarely satisfied (I mean that in a good way) and are constantly tinkering with something: Reworking a timeline, adjusting a process, tweaking a workflow.Great employees follow processes. Remarkable employees find ways to make those processes even better, not only because they are expected to … but because they just can’t help it.

Guest Author

Jeff Haden learned much of what he knows about business and technology as he worked his way up in the manufacturing industry. Everything else he picks up from ghostwriting books for some of the smartest leaders he knows in business. Visit http://www.blackbirdinc.com

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Management Tips To Ensure That Your Good Employees Stay

It is difficult to put a value on maintaining a team of loyal, experienced workers, particularly in the present climate of skills shortages and the looming exit of experienced baby boomers. However most employers would agree that good staff are priceless. So, how do you keep good employees satisfied enough to want to stay in your business?

• Have strong core values which demonstrate that you value long-term relationships with both employees and clients
• Ensure there is a two-way street of dignity, trust and respect between management and employees|
• Encourage open two way communication; listen; and back up talk with action
• Nurture a sense of ‘community’ and connection amongst staff
• Provide higher than average benefits
• Build a transparent culture
• Recognise both work and life events
• Encourage and support ongoing education and personal growth
• Encourage a collaborative atmosphere and involve employees in the planning and feedback process
• Empower by encouraging self-reliance and accountability
• Be sensitive to individual employee needs and lifestyle; foster a good work/life balance
• Consider creating an ‘employee care’ program tailored to the needs of your employees

Guest Author:

NSW Business Chamber.

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Determining Your Pay DNA

More and more, employers are redefining and allocating their mix of rewards based on individual needs – like a stock portfolio of investments – and finding trends amongst workers as they begin to look at work-life balance, flex-time and other original ways to keep people happy and productive.

There’s much talk today circling diversity in the workplace, both in the make-up of workers and the delivery of rewards. Smart companies have also discovered that contributions of this new “multi” workforce – multi-cultural, multi-generational and multi-otherwise – positively impact the competitive advantage of the organisation.

However, companies will not benefit unless they keep these widely-varied groups happily rewarded and retained. This presents a totally new compensation challenge: When designing total rewards packages that work for each employee, regardless of segment, it is now necessary to understand multiple needs and desires from different workers, and then compensate them accordingly.

When it comes to packaging pay, employers today are clearly challenged. In the average company, there are as many different vehicles to reward employees as there are diverse segments within the employee population.

To get a clearer idea of how to assess what is important to your top talent, let’s take a look at the four distinct employee population segments and what each group values in the work experience – ground zero for understanding what drives their rewards needs.

1. Traditionalists (1909-1945), or Veterans, are part of the old school, command and control, brick and mortar chain of authority. And while they may be the “old guard” of a company, they are traditional in the best sense: They know that people, face-to-face communication and ideas are what make businesses run.They are willing to change and see new points of view, but it may not be easy. Hardworking and hierarchical, they have seen business change for decades – and adapted. They are “company” men and women.
2. Baby Boomers (1946-1964) traditionally have been motivated by money and career advancement. Yet ironically, as Boomers age, yet remain in the workforce, flexibility and work/life balance have become much more important than the need to make senior partner – a goal that may have driven them two decades earlier.Today, many Boomers’ complex lifestyles have shifted to include caring for both their children and aging parents, sometimes in the same household. They have already made a significant mark in the business world, and while they may not be quite ready to relinquish life at the top, they have come to understand the value of balance and life beyond the board room.
3. Among the most popular rewards requested today for the Generation X (1965-1978) crowd include better benefits: wellness, work-from-home arrangements, education reimbursements and, in some cases, child care in the office. For this independent group, it is critically important to set goals and then step away, letting them find their own solutions rather than “how things have always been done”.They are often unconcerned with long-term loyalty and have experienced significant downsizing during the dot.com bust, fostering a spirit of self-preservation, rather than survival of the company. They build strong relationships and serve as a bridge between older and younger groups.
4. On the other side of the coin, Millennials (1979-2000), or Generation Y, are looking for a high level of engagement on a team and employment-based rewards, a concept they hold as near and dear as their 80 GB iPods. They like instant gratification over long term investments of time and effort and want to contribute to society and have full and balanced lives.They want responsibility, the ability to make a direct impact and be rewarded accordingly. And they continually redefine their commitment to the workplace with the knowledge that they are able to “move around” significantly until they find the best employment fit – and they will.

Given the variety of priorities across these four groups, it is nearly impossible for a company to be all things to all people. Therefore, an important first step toward developing a competitive package is to examine organisational demographics.

Understanding what people in your organisation value will help guide decisions on setting compensation opportunities and benefit options. However, in looking at demographics, you must consider expectations and timing of future shifts of the makeup of your workforce. Planning for these shifts can help retain high-performers, as well as attract new talent.

In addition to demographic analysis, collecting information that can add an essential qualitative aspect to a rewards strategy is important, sourced from:

• employee opinion surveys,
• exit interviews,
• focus groups, and
• recruiting feedback.

Armed with this knowledge, competitive compensation and benefits packages should be designed to reflect the values held by employees.

Increasingly, professional and office employees are willing to put pay at risk for the opportunity of being rewarded for superior performance. Team-based awards and project-based bonuses are becoming more prevalent and attractive to lower level employees.

The difference in values across generations can be addressed by varying opportunities at different levels in the organisation. Comfortable base salaries can be offered at the executive level, whereas individual recognition through significant merit awards and variable pay may be more appropriate for middle managers. Similarly, deferred compensation or supplemental retirement contributions will help to keep key leaders engaged and satisfied up through their retirement years.

Individualising rewards

There is no longer a “one-size-fits-all” approach to total rewards. It is time to shift your view on how you promote and reward employees. The system presently utilised in most organisations often promotes and rewards seniority, rather than results.

If you look at most companies today, you find the executive leadership tends to come from the older group and more of the entry positions are filled by the youngest. This approach needs to be exploded and rebuilt, to allow for a more collaborative team ethic that taps into the collective wisdom that all four generations bring to the table.

Younger employees are not going to be patient and follow the path that Baby Boomers set of working up rungs of the corporate ladder. If they are not engaged quickly, they will simply move on. Gone is competitive advantage, and succession plans crumble.

Perhaps the most important considerations employers can incorporate into how they pay today, include a strict performance management assessment process, that is based on individual goals and metrics, unrelated to seniority and utilising the “3-F” appeal to each job: balancing;

1. family,
2. fun, and
3. flexibility.

In fact, an HR executive for one of the world’s largest Internet information portals recently revealed an experimental program for top employees to work in a “few months on, few months off” schedule, an extreme – and workable, in this case – solution to keep a talented team member happy.

Despite differences, all employees want some of the same elements when it comes to the work experience:

• the ability to be satisfied,
• valued,
• have clear objectives, and
• most importantly, directly report to a superior who empathises with a strong degree of work/life balance.

Using the same rewards vehicles – cash, equity, flex-time, incentives – employers can invest differently depending upon the needs of the individual.

Guest Author:

Jonamay Lambert and Adam Steinbrunner, Capital H Group.

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Seven Suggestions For Sensational Staff

Apply these seven simple suggestions to nurture your team and you’ll end up with the best team in town!

Quite often when I’m out stumping the speaking circuit a boss with a problem corners me. The problem – “How can I keep my good staff?” and they want an instant solution.

The story is always much the same. They have a terrific team, but they keep losing team members.

In working with teams from many types of businesses, I’ve found that if there are some common elements in place it makes it much easier to retain top performing people. They are:

1. Communication

   High on the list of complaints of team members in virtually every company I’ve worked with has always been “lack of communication”. Most bosses think they communicate well with their staff but that’s not the way the team sees it. Sometimes the only information they get is what they find out on the notorious “grapevine”. Sit down with them on a regular basis and ensure that they know what you know and that they have the opportunity to get answers to their questions.

2. Training

   A perennial complaint is that there’s no point in training people and losing them. Sure, but there’s one thing worse…not training people and keeping them! Frankly, I’m amazed at how few bosses ensure their people are provided with the skills training that they need to perform their job better. This is especially true in areas where team members have acquired their skills “on-the-job” by watching what other team members do. When they get to the level of proficiency of their colleagues, they see the only course open to them that will change their results is to change their employer. It is far better for you to skills train existing staff. By training them you will retain staff.

3. Team meetings

   Great team meetings are one of the most important contributors to a stable, contented and productive team. They need be of no more than one hour’s duration and should always start on time. The objective is to motivate, educate, inform and recognise and to do it in such a way that team members want to be there.

4. Recognition

   A good team leader will look for opportunities to acknowledge the achievements of all performers publicly amongst their peers. The team meeting affords a great opportunity to do this. Private recognition is also very powerful! This can be as simple as sending a personal letter home to a team member just to let them know that they’ve done a great job.

5. Authority and responsibility

   One of the gripes I constantly hear from bosses is that their team members left to take a job with higher responsibility but “if they’d only just waited they would have had the same opportunity here.” Don’t make your team members leave to get authority and responsibility: give it to them soon rather than later.

6. Reward

   Your team members want to feel that their efforts are valued and that they are earning rewards in line with the market. If you’re going to have your team perform, pay them the income they reckon they’re worth and then manage them so they earn it. Over pay your people and establish an environment in which they can over perform.

7. Interesting job

   In the poll of what people look for in their work this was their most important demand. People want a job that has variety and interest. Maybe they see that they are just doing the same old thing day after day with no relief from the relentless grind. Give them an occasional challenge, a nutty problem or an interesting project to get their teeth into that will add variety, flavor and spice to their routine activities. A little bit of curry in a bland diet works miracles.

Guest Author:

Winston Marsh. Ideas are just one of the weapons in Winston Marsh’s incredible business building holsters. You can harness the power of his fantastic ideas at your next conference to fire up your business, people and your profits.

Republished from CEO Online – your online business resource – www.ceoonline.com. Get valuable business tips and easy-to-read articles delivered direct to your inbox every week. Register NOW for your copy of CEO Online’s FREE e-newsletter: http://www.ceoonline.com.au/subscribe/

 

Giving Engaging Feedback

People are reluctant to give each other feedback in the workplace. On the one hand, some people hold back on giving constructive feedback as they worry about how the other person will respond. But on the other hand, inaction leaves staff performance problems going unaddressed and building over time.

Even when constructive feedback is given, it is not always done well. People are not giving enough positive feedback either – due to either not appreciating the importance of recognition or getting stuck in unnecessary paperwork.

Here are five keys you can use to get a better result from any staff feedback you give.

1. Feedback is always better received from those with whom we have a good relationship. So get to really know your co-workers and manager and let them get to know you. Chat with them, tease them, laugh with them, and be human. You are effectively placing deposits in the emotional bank account of that relationship which increases the likelihood of your feedback being well-received.
2. Feedback also needs to be occurring regularly, not just out-of-the blue. A yearly performance review is nowhere near good enough. Touch base with your workmates at least on a weekly basis, letting them know what you are happy about. Some staff with a strong need for connection or recognition need feedback even more frequently. When you are giving positive feedback, you have to mean what you say, of course. If people sense you are not being genuine they will simply feel patronized. Positive feedback also has to be specific and targeted towards those things the individual values about themselves. Positive feedback that is specific and meaningful to the person is always better received.
3. Constructive feedback is always easier to give when it is asked for. But you will find constructive comments are better received when they are outweighed by five times more positive feedback. This does not mean that when you give feedback there needs to be five compliments followed by one criticism.
4. Of course, constructive feedback needs to be given in ways seen as respectfulby the person receiving it. So although your intentions may be respectful, it is important to monitor how your feedback is being received and to adjust yourself for the individual. For most people, simply sounding respectful and speaking to them privately will be sufficient. For the sensitive types, you can allow them to save face by criticising yourself first – perhaps you weren’t clear in what you were expecting from them. If you are going to criticise, keep this to their behaviour and not them as a person. You can soften the blow by using the ‘kiss, kick, kiss’ approach, where you start and finish on a positive note.You can also say what you would prefer to see rather than what you dislike. There is a difference between saying, ‘You’re a self-centred, control-freak!’ and saying, ‘I really would like to have more say in how I do things.’ But you are allowed to think the former.
5. Feedback is also better received if you are open to feedback yourself. Sometimes feedback will be uninvited, given poorly, and you may be feeling defensive. But remind yourself that it is only feedback. You won’t die from it and it is good that any frustrations are coming out. Apologise and agree where you can before offering something for the future. For example, ‘I’m sorry if I came across that way. And I agree you do need to have some say in how you do your work. How would you like to do your work differently?’

If you are in management, make it easy for others to give you feedback. Staff surveys are one option, but you can also do so by routinely asking, ‘What can I do to better support you in your role?’ You can also let them know you know you are not perfect and will be OK if they give you constructive comments. You could say,‘I know I have been caught up in my paperwork and haven’t touched base with you much of late. What do you need from me so you can feel better about your work?’

So, that’s it. You can give engaging feedback by:

• Having a good relationship with that person
• Being frequent, genuine, and specific with your feedback
• Giving five times more positive feedback than constructive feedback overall
• Monitoring how the other person is responding and adjusting your approach
• Being open to feedback yourself

Guest Author:

Ken Warren is Australia’s leading speaker on Dealing with Demanding, Aggressive and Unmotivated People. With his engaging, interactive and positive approach, Ken has shown thousands how to turn difficult people around and bring out their best.

Republished from CEO Online – your online business resource – www.ceoonline.com. Get valuable business tips and easy-to-read articles delivered direct to your inbox every week. Register NOW for your copy of CEO Online’s FREE e-newsletter: http://www.ceoonline.com.au/subscribe/

Five Factors That Disconnect Your Team

Dealing with these will improve synergy and stability within your company, freeing up your staff’s energy to move the business ahead.

“What’s wrong with my team? Why don’t they co-operate more? Where’s their team spirit? Why do they seem surly so much of the time? Why don’t they speak up at staff meetings? Why do we have such a high turnover of staff? Why do people seem to operate in their own little world and not care about the ‘Big Picture’?”

Often we fail to get the best from our staff simply because we haven’t yet made ways for each member of the team to actually live in a healthy relational connection with the rest of the team. In fact the word team is a misnomer for many workplaces which are staffing a bunch of individuals doing their own thing in ways that merely keep them employed.

Is your workplace a place where people compete for resources rather than collaborating toward outcomes? Where self-protective behaviour prevents innovation and synergy?

While your staff can quote the mission statement, do their daily activities actually seem to work against it?

If you’ve answered YES to any of these questions, perhaps some of the following disconnecting factors are affecting your team.

1. Napoleonic wars 

   There are some individuals who – while occupying “small” positions in context with the wider organisation – pursue their own grandiose dreams with a super-sized passion. Effectively they wage a war of attrition on your resources, your time, the morale of the team, even your relationship with your customers. At the very least, they annoy and distract some of your most talented and loyal people.At the same time, there is an upside to this Napoleonic lust for conquest and expansion. You may have in your midst some true mover and shakers, pioneering go-getters. If treated correctly, these people can be an asset rather than a pain in the assets – a force for the up-turn rather than the stagnation of your business.Rather than blocking and crushing them, negotiate with them to find the way in which their “vision” can serve your vision. Debrief and rebrief them regularly. Make them go through management to access resources so that they don’t play people off against each other. Keep them on a tight (not necessarily short) leash through clear direction and consistent accountability. Empower them fully to the limit that you set. Remind them constantly of their place in the team.

2. No relational space
   
   When there are no rhythms that place us across the lunch-table or pool-table from each other, then misunderstandings and offences can take root and fester far more easily. When there are no shared spaces where team-mates can laugh, debate and commiserate, workplace relations can be colourless and superficial. You don’t need to program relationships; it’s our default setting. We just need the opportunity.Make a physical space which invites your team to chat, to spend time together without a productivity-focus. Create traditions where your team can “break bread”. Give your staff the chance to do life together, to ask “What’s up?” or “Have I done something to offend you?”, to dig through their differences and find common ground.
3. Faddish cycles of change
   
   Personality profiling tells us that up to 70% of the general population actually dislike and resist change. If that’s true, then when you are initiating change in the workplace, you better make sure it’s worth the hard work of helping these people adopt it.If your workplace has a proven track-record of adopting the latest business or marketing idea, it’s possible it also has a track-record of alienating over half its staffers in the process. While this might contribute to those staffers banding together to form passive-aggressive resistance movements, I think you’d agree that’s not the kind of teamworkyou’re looking for. You now have a disconnect between management and staff.Long-term team-members watch the fashionable initiatives come and go, slowly losing their passion and commitment, finding their own ruts to stay in, regardless of what the latest memo says. Change for change’s sake can be easily justified with flashy charts and jingoistic phrases, but its nature is unhealthy and unhelpful.When considering any major change to the organisation’s environment, methodology or other systems, think long and hard about old adages like “If it ain’t broke…” and “reinventing the wheel”!
4. Fear
   
   Nothing causes people to hunker down and keep to themselves like this “f”-word!Where staffers seem reticent to share their thoughts, where they avoid contact with management, where they lash out in completely irrational ways – these may be indications that these people are scared.Spend some time discerning what could be causing the fear. Is there an air of uncertainty in the air? Are disciplinary issues dealt with harshly?I love the story I heard about an Australian CEO and one of his new admin staff. When it turned out the young lady had made an enormous error in regards to printing promotional material – an error which would cost the organisation over $16000 – she reported it to the senior manager.

   She ended her confession with: “I suppose that’s the end for me?” The CEO replied “Why would I sack you? I’ve just spent $16000 training you.” While she was left in no doubt as to the seriousness of her mistake, the grace that was shown this young woman resulted in her fast-paced professional development and deep loyalty toward her employer.

   It also worked wonders for the morale of other team members.

   What can you do about anxiety and uncertainty in your company?

5. The Talk Monopoly
   
   Who holds the floor in the staff meeting? Can you pick the small group of individuals who do most of the talking, who freeze out others’ contributions opinions and ideas?Try finding ways to acknowledge the monopolisers while giving other team members equal time. (“Ralph, thanks for that perspective. I’m really interested in what Betty sees as the issue here.”)Remember that some people won’t speak without being asked, yet they could hold the very idea your group needs. Others need help focussing their thoughts so you will have to ask them a specific question to elicit a response (“Graham, what would you do in my position?” rather than “Graham, what do you think?”).

Guest Author:

Peter Aldin is founder of Great Circle Life Coaching. In a complex world, instinct and habit often drive us off course rather than steering us toward success and satisfaction. Great Circle is about re-learning and re-thinking our approach to family and business dynamics and relationships.

Republished from CEO Online – your online business resource – www.ceoonline.com. Get valuable business tips and easy-to-read articles delivered FREE to your email inbox every week. REGISTER NOW for your copy of CEO Online’s FREE e-newsletter: http://www.ceoonline.com.au/subscribe/