Magnify L&D

A FATHER LEADING THROUGH EXAMPLE: SERVANT LEADERSHIP

2011-02-28T13:18:00.001-08:00

Thanks to all of you who contributed your examples of excellent Servant Leaders. Your examples included religious leaders, business people, community activists, parents and many others.

In particular I want to recognize the story the father of an anonymous contributor. This story(in the column at the right) strikes right to the essence of leadership lessons covered in the Camino workshop! While the story has a religious theme, even if you are not religious, I believe you will find it an important leadership lesson. This great father was clearly anchored to core values, and guided by a moral compass. It also reminds us that all of us have the potential to influence and lead others; you don't have to be the CEO, president, team leader or head of the organization to have a positive impact of others; each of us can be a servant leader and positively impact others around us!

A FATHER LEADING THROUGH EXAMPLE: SERVANT LEADERSHIP

Although I have known many great "servant Leaders" in business and academic pursuits, when I think of the ones that have most affected my life, affected who I am, and my ability, in turn, to be a leader myself, my father stands out. As a humble rancher and oil field laborer, my father never set a sales record, or made an amazing presentation to "C" level management. He was never the leader who received the applause, made the speech or accepted the trophy; still he was a true leader to those whom he influenced around him.
As the father of eight children my dad had plenty of opportunities to exhibit unending patience as youthful follies; such as driving a tractor into the truck, inevitably came along. He was quiet, steady and constant; we always knew where he stood and why he stood there. Dad's life provides a basic primer for those with whom he associated because he did the right thing for the right reason; basing every choice on principle rather than circumstance.

One primer lesson focuses on my sister's high school graduation. A week before the graduation, Dad realized it was scheduled on a Sunday and quietly apologized to my sister saying he would not be able to attend.
Opposition from mom came fast. Dad was reminded that our own religious congregation had changed its meeting time to accommodate the graduation! Congregation leaders would even be offering the prayers! Was he "holier than them?!" His daughter was even the Valedictorian! She had put our town on the map with her nationally recognized academic achievements. Didn't he care for her feelings?!
Through all of this, dad held his ground. At the graduation, Mom announced through tears to school administrators that her husband was not there. In response to the principal's query if Sunday observance were a personal choice or religious conviction, my father replied simply: "My Savior has given me all I have and am. All he asks is that I honor Him on the Sabbath day. A graduation is to honor the graduates."

It may have seemed that my father stood alone and perhaps had no influence on anyone around him at this time. However, his example did make me re-examine my own personal understanding of the Sabbath day, and my motives for doing or not doing certain things. I think it helped others to do the same. The following year, and every year since whenever the calendar lists Sunday as graduation day, letters from seniors have been written to the school administration explaining that they would not be attending the graduation ceremony if it is to be held on Sunday! It seems my father's example may have given "voice" to others who shared similar convictions!

Like so much of his life my Father's regard for Sunday was part of what defined him. He did not demand others to agree or hold the same convictions. He honored individuals for who they were as they came. Remaining constant Dad never swayed to the winds of peer pressure for societal acceptance. As a firm pillar, Dad impacted our community for good one small decision at a time.

- Anonymous

Speaking Dates in Europe

2011-02-23T14:59:00.000-08:00

I will have the pleasure of facilitating "The Camino": The Way to Personal Leadership Workshop on March 16th at the 6th Global Pharma SFE Forum in Lisbon Portugal, March 15 - 16, 2011. For those of you interested in learning more about this conference, click here!

While in Europe, I will be conducting workshops for other clients as well, but still have a few open dates. If Personal Leadership (values, vision, focus) and/or Change Leadership is a need in your organization, I would like to talk to you about the possibility of facilitating a workshop for you and your organization as well.

I have one week in which I still have open dates (The week of March 21st). I would be happy to offer either "The Camino" or Change Worskhop at a a 50% discount per participant to you for booking that week.

Of course, if the week of March 21st does not work for you, we can explore other dates as well. For example, I am also currently booking dates in Europe in late May and early June 2011.
Please feel free to contact by clicking the email address below if you have interest in a program in March, May or sometime in the future. I look forward to hearing from you.

Kind Regards!

James Gehrke

Servant Leaders

2010-12-02T15:30:00.000-08:00

Happy Holidays!

I believe the holiday season and the end of the year is an excellent time to step back from our day-to-day routines and reflect upon what I like to call our personal self leadership "pilgrimage."

A key personal leadership lesson I address in the "Camino" workshop is about becoming a Servant Leader. This time of year is an excellent time for us to strive to become a more effective "servant" to those we serve and/or lead.

A perfect example of such a leader is Aaron Feuerstein, the 3rd generation owner and CEO of Malden Mills, the New England manufacture of "climate control" materials like Polertec and Polarfleece.

Feuerstein was a business leader who had built his business based on Talmudic teachings and values that extended far beyond the minimum legal responsibilities he had toward the shareholders of the company. He also built a business that focused on assisting his workers and the community where they lived.

However, when a fire destroyed the company's New England factories in 1995, Feuerstein faced an ethical dilemma. Prior to this time, he had maintained his factories in Maine even though most other fabric manufacturers were closing plants in the US and moving their facilities overseas in order to improve profitability. Now that his factories were destroyed, he had to decide whether to take the opportunity to follow the trend and move overseas where manufacturing costs would have been less, or rebuild in New England.

When asked about his decision, Feuerstein explained that his religious beliefs and heritage guided him in his decision. In other words, he made the decision he made not only for economic reasons, but because he was firmly anchored to core values and guided by a strong moral compass. He stated in an interview with Parade Magazine in 1996 that "I have a responsibility to the worker; both blue-collar and white-collar...I have an equal responsibility to the community." Even though it would have been easier to move overseas, he re-built the plants in the same communities and kept all the employees on the payroll through the period of reconstruction!

What a striking difference this story provides in comparison to the all too common headlines where only the bottom-line, self aggrandizement and greed seem to be the focus of our leaders!

While they may be on a smaller scale, we all face similar dilemmas at one point or another in our careers. What makes Mr. Feuerstein's story memorable is that not only did he give lip service to core values; he acted on them by creating a corporate culture that was securely anchored to core values and was personally guided by a clear moral compass.

We should not be surprised by unethical behaviors of those around us if our only focus is the bottom line, personal aggrandizement or selfish pursuits. If that is our main focus, then we should not be surprised if our actions and the actions of those we influence only focus on ways to improve profitability or increase sales or power at the risk of everything else!

We could all benefit from having the same moral courage shown by Mr. Feuerstein. Let us take the time this season to anchor ourselves more firmly in core values and become more aligned to a clear moral compass so that when we are faced with ethical dilemmas our actions are just as admirable and memorable as Mr. Feuerstein's!

Share your examples of Servant Leaders!

Too often it is the bad examples of leadership that gets our attention. I am interested in gathering from examples of leaders who were anchored to core values, guided by a moral compass and could be considered "servant" leaders. By submitting your example, you will be entered into a drawing for a copy of my book: Magnify Change Leadership: A Practical Guide for Leading Teams in Times of Change! I will announce the winner and share some of the examples in January's newsletter. Click the link below to submit your ideas and/or add your suggestion by commenting on our blog:

http://survey.constantcontact.com/survey/a07e36fvnewgh85wx9y/start

I would be happy to facilitate "El Camino" The Way to Personal Leadership and/or other Magnify L&D workshops for you and your organization or as a public workshop in your area. Don't hesitate to contact us for more information.

Happy Holiday Season!

James Gehrke

5442 South 900 East Suite 203
Murray, Utah 84117
801-266-0849
Europe: (34) 91 829 5109
james.gehrke@magnifyleadership.com
www.magnifyleadership.com

"El Camino:" (The Way) to Magnify Personal Leadership - Lessons Learned from the Camino de Santiago

2010-11-22T11:41:00.000-08:00

I believe that personal self-leadership is like a personal pilgrimage. I recently shared with a group of global HR professionals in London thoughts I have regarding leadership that were solidified on my personal pilgrimage on the Camino de Santiago, or the Way of St. James.

The Camino is a UNESCO World Heritage site honoring the pilgrimage to the Cathedral of Santiago de Compostela in northwest Spain, where medieval pilgrims believed they would find the remains of St. James the Apostle of Jesus. They also believed that because of the journey they would receive freedom from penance due to sins committed in this life. While the motivations for making the pilgrimage have changed, to this day, thousands continue the journey.

To achieve our full potential, each of us must embark on a similar pilgrimage of personal development and mastery. However, in today's world, we are often so bombarded by day-to-day pressures that we don't stop and reflect on what is our own unique role and purpose. Discovering this is akin to a personal pilgrimage in self leadership.

I believe there are at least eight crucial lessons of personal leadership that I learned on my own personal pilgrimage on the the Camino de Santiago, including:

1. To achieve great things, Focus on What is Important.
2. Anchor ourselves to Core Values.
3. Set and achieve Aspirations Goals(Compass).
4. Chart an effective course through Effective Planning.
5. Communicate to motivate and inspire others.
6. Become a Servant Leader.
7. Adapt and Persevere in the face of obstacles.
8. Celebrate both small and large victories.

I would be happy to facilitate this and/or other Magnify L&D workshops for you and your organization or as a public workshop in your area. Don't hesitate to contact us for more information.

Best Regards!

James Gehrke

5442 South 900 East Suite 203
Murray, Utah 84117
801-266-0849

Europe: (34) 91 829 5109

james.gehrke@magnifyleadership.com

www.magnifyleadership.com

8 Steps to Overcome Resistance to Change

2010-11-11T15:13:00.000-08:00

73% of managers who responded to our recent survey feel that people in their organizations are not flexible and adaptable when adjusting to organizational change. In a day when organizational change is more rapid and constant than ever before, the fact that nearly ¾ of all employees are resistant to change poses a huge obstacle to any organizational or team leader who must help their teams progress and adapt effectively to change.

The fact that the majority of employees may be resistant to change must weigh heavy on any team leader's mind who is attempting to improve performance by implementing any type of change since resistance may greatly diminish the leader's own ability to successfully implement change even if they are personally convinced that implementing the change will increase productivity, reduce costs, improve competitiveness or overcome threats and obstacles. Gone are the days of command and control organizations where a leader can implement change by decree. Without the buy-in and enthusiastic support of the vast majority of the workforce, there will be huge obstacles that prevent eventual success in implementing change. Perhaps this is the reason why studies show that success rates for changes in Fortune 1000 companies are less than 50% and even could be as low as 20% (Harvard Business Review, 1998, p. 140).

The logical question to ask then is what can a leader do about it? Before a leader determines what to do, it would be helpful to understand why the resistance exists in the first place. Our survey results offer important insights into why employees resist change. Too often it is easy for managers to view their organizations as machines, which can be tinkered with and improved upon with the expectation that when you are done, they will be able to turn it back on and presto, it will go! Rather, modern organizations are more like living organisms, with interconnected systems that are dependent on one another and affect one another. Living organisms do not lay back and react passively to outside stimuli. When pricked they flinch; when threatened the either turn and run or turn and fight. Because organizations are made up of people, it is to be expected that they react this way.

But leaders often forget what our survey points out; that people react with dysfunctional behavior in response to organizational change because their first preoccupation is not what is best for the organization as a whole, but how any change will first affect them. One survey responded called this the "what's in it for me factor." Many respondents of the survey characterized this initial reaction to change a fear; fear of the unknown, fear of a loss of power, fear of losing friends and colleagues; fear of losing a job; fear of not being able to perform a new role; fear of failure, etc. So, leaders should not be surprised if individuals react negatively to change when they treat their organization as if it were a machine an not a living, breathing, feeling organism, made up of individuals who will naturally be most concerned abut how the change will affect them personally.

Keeping this in mind, respondents to the survey offered many suggestions of how leaders can lead and influence their teams more effectively during times of change. These ideas can be synthesized into a road map that should prove helpful for leaders to consider when organizing and implementing change. The suggestions include:

1. Build an environment of trust with the employees in order to create a workplace where employees are more open to ideas and more willing to discuss possibilities and problems associated with change. To do this, respondents mentioned the need to be open to ideas, to listen, to provide a safe environment where people are free to express their opinions without fear of retribution, etc.

2. Link the change effort to a common team value in order to help employees feel they can relate to the change effort at a personal level. This increases the desire and motivation to change.

3. Articulate and communicate a clear message about why the change effort is needed and will help the team. Don't rely on facts and figures alone to support the reasons for change. Facts and figures don't inspire and motivate people to action. Linking to values and aspirations does. Respondents to the survey emphasized that this communication cannot be seen as a one time event. Rather, it should be constant throughout the effort and it must reach out to all members of the organization on as frequent and personable a level as possible. They also point out that this communication must be honest and complete. One respondent mentioned that there is reluctance to without bad news. However, more damage is done if bad news is discovered through the "grapevine" than if it is communicated open and honestly by leaders.

4. Establish a vision with the employees regarding the possible advantages of making the change in order to help the team define for themselves where the change will take them. Almost all respondents to the survey emphasized that employees must see the benefits of the change. They must understand that the change will have positive impact on them personally.

5. By far, the most common suggestion by survey respondents regarding how to improve the effectiveness of a change effort related to involving team members in the change. A leader must collaborate with team members so that employees are involved with and buy into the changes and not perceive the whole exercise as something that is being done to them without their consent.

6. Establish and celebrate wins along the way. The leader should actively orchestrate wins and celebrations so employees can see that the change effort is important and see that changes in behavior will lead to positive outcomes.

7. The leader must manage performance around the change. This includes coaching those who need support with the change, disciplining or removing those who continually resist the change or have decided to fight against it, rewarding positive changes, hiring employees who have the new capabilities needed in the change effort, etc...

8. Constantly monitor the process and the results to ensure that the change effort is on track.

Creating a Message That Motivates Change!

2010-03-10T14:23:00.000-08:00

Some time ago I asked sales leaders to prepare a quick "elevator speech" that explains the compelling reasons for their strategic imperatives. Overwhelmingly, the individuals laid out the facts and figures that supported their reasoning. While technically correct, most all of these speeches lacked something. While they identified the key business drivers, and logically laid out the reasons for change, they did not connect to the emotional reasons for change.

In addition to identifying the financial and market drivers behind an initiative, leaders also need to connect to the values behind the change and communicate these values to the organization in addition to just providing pure financial facts and figures. While they support the reason for change, facts and figures by themselves are also boring. While they may show the logic behind the change, they do not inspire change in and of themselves. To connect on the emotional level, leaders must also learn how to communicate their values and their vision. This is what motivates and inspires people to change.

There is a real need for leaders to create a vision for change, not just providing the the bottom line numbers that are driving change. In talking about vision, Kotter states that "...the real power of vision is unleashed only when most of those involved in an enterprise or activity have a common understanding of its goal and direction. That shared sense of desirable future can help motivate and coordinate the kinds of actions that create transformations" Kotter, 1996, p. 85). Leaders must be prepared to clearly communicate this vision in order to unleash the team's full potential and to sustain change over the long term. This type of communication has potential to help ensure that during a change initiative there is not a steep drop in performance by motivating the team behind the project.

Furthermore, this communication cannot just be a one time event. One of the most common mistakes by change leaders is not communicating enough about the change. Without this constant reminder, employees loose focus and do not remain inspired and motivated to change. Most leaders underestimate the amount of communication needed. They feel that giving a resounding kick-off to a project is enough. If teams are to understand the importance of the change project, the manager must communicate the project and keep it front in the minds and hearts of their employees. This means not just communicating once, but constantly reminding and updating the team about the project and how the team is doing. It also means linking these messages to a vision and core values that resonate with the team.

Communication cannot be seen as a one off. Indeed, it is likely when the communications stop and the focus shifts to other projects that the team interprets that the change project is over and they can focus their attention elsewhere. Articulating a vision, linked to values and communicating about the process continues throughout an initiative and is strengthened if communication about the process are more frequent than not.

Leaders should remember as they articulate their message to their teams, that it is not important that they have all the answers. Leaders are part of the change effort just like everyone else in the organization. They may not have all the answers, and it is OK to admit it. They may need to learn as the team moves forward, just like the team members. More important than knowing all of the answers, with all of the supportive facts and figures is that leaders provide a vision of the project linked to a team value, and plan a way to communicate it to the team, effectively and often. As Gary Yukl points out, "It is seldom necessary to present an elaborate plan with detailed action steps. The leader should not pretend to know all the answers about how to achieve the vision, but instead should inform followers that they will have a vital role in discovering what specific actions are necessary" (Yukl, 2006, p. 275).

It is important that the leader engages the team in a way that motivates them and inspires them to move forward. Too often, leaders think facts and figures will do this. Unfortunately, facts and figures alone will rarely motivate and inspire change. In order to truly motivate action, leaders must first examine the values of the team and the vision of where they want to go and find ways to communicate these visions and values often in order to help drive the team forward.

The Need to Train Managers in Leading Teams

2010-01-30T14:04:00.000-08:00

Because of the rapid pace of change in today's work environment, more needs to be done to train an assist leaders of organizations gain the practical skills that will assist them lead change efforts. These skills may be different than managerial skills most leaders have been exposed to in other types of leadership functions. It would be beneficial to companies to address the basic skills needed by managers at all levels of the organization to best implement organizational change. To be effective, this training needs to deal with the issues that cause organizations to fail in many change efforts. This training must help leaders understand and recognize the attitudes, reasons for resistance and challenges of implementing the overall change project.

As a training consultant, I have worked with dozens of organizations all around the world to implement change. During this time, I have also been an avid student and observer of effective leadership. In my book, Magnify Change Leadership: A Practical Guide for Leading Teams in Times of Change, I build upon change leadership research and practical work experience, in order to offer a model of change leadership which, while driven by leadership, also democratically engages employees at all levels of the organization in order to decrease resistance and shorten the time needed to improve success during times of change. The behaviors needed are presented in a practical model that can be used in leadership development in order to assist the effectiveness of managers in leading their teams to more effectively implement change.

The amount of change placed on managers by their organizations has grown at an amazing rate over the last several years. Unfortunately, few expect that this rate of change is likely to decrease anytime in the foreseeable future. In a survey conducted by the Gallop Organization of 400 executives from Fortune 1000 companies, 79 percent of executives described "the pace of change at their companies as 'rapid' or 'extremely rapid' and 61 percent believed the pace will pick up in the future." As organizations are being forced to deal with the pressures of the global marketplace, the pace of change is likely to increase, as executives look to outsource, downsize, right-size, merge, re-align or look for any way possible to remain competitive and increase earnings. Through all these efforts "the basic goal has been the same: to make fundamental changes in how business is conducted in order to help cope with a new, more challenging environment" (Kotter, 2000, p. 59).

However, while top executives look at change efforts as opportunities to strengthen their companies and increase their influence, for employees "change is neither sought after nor welcomed" but rather seen as "disruptive" and "intrusive" (Strebel, 1996, p. 88). Employee resistance is likely compounded by the fact that the great majority of corporate change efforts are not successful. "While senior managers understand the necessity of change to cope with new competitive realities, they often misunderstand what it takes to bring it about" (Beer et al, 2000, p. 158), leading to many efforts not reaching the level of success as hoped and planned for. Over time and after passing through repeated failed episodes of change "the troops" go through so many of these programs that they become "skeptical" (Duck, 1993, p. 111). Hence, "companies today are full of 'change survivors,' cynical people who have learned how to live through change programs without really changing at all" (p. 112).

While leaders of the corporation may understand the reason for change and put great effort in planning and implementing the change, they often fail because of the lack of support from the vast majority of the employees (Strebel, 1996, p. 88-89). This contributes to a disappointingly large number of change efforts which end in failure. "In too many situations the improvements have been disappointing and the carnage has been appalling, with wasted resources and burned-out, scared, or frustrated employees" (Kotter, 1996, p. 4).

A more complete understanding of the principles of change leadership and team effectiveness which could be taught to managers in order to help them move their organizations successfully through change efforts could greatly improve the organizations' overall success rate at implementing changes, as well as improve the overall experience of employees and managers forced to implement the changes.

Learn our approach by ordering our book or workshop: Magnify Change Leadership: A Practical Guide for Leading Teams in Times of Change.

Eight Steps to Leading Teams Effectively in Times of Change

2009-11-17T15:46:00.000-08:00

Mark Twain once said, "The only person who likes a change is a baby in a wet diaper" (Hersey et al, 2001, p. 376). From my experience, even babies sometimes don't want to change their diaper! Individuals are naturally prone to resist change. During times of organizational change this tendency to resist may be magnified even further if employees feel the organization has broken or will break their commitment to them as individuals.

In today's environment of constant upheaval caused by cost saving efforts, realignments, outsourcing, etc., a change effort will bring many questions into the minds of employees, including; whether their position will be eliminated; if they will have a cut in pay, bonus, benefits, pensions; if they will need to produce more or do with less resources; if they will be relocated; or if they will face a multitude of other negative consequences because of what the company is proposing. With apprehension about the change, rumors swell and the minds of employees are diverted because of trepidations concerning the upcoming change. As a result, energy and efforts are dampened or diverted elsewhere, and performance suffers.

At a corporate level it may be easy to chart on paper the projected improvements a change will have on performance, raising results from point A to point B, through a number of steps, to help the company arrive at the desired outcome. The increased performance outcomes of a change effort can be measured in financial and production outcomes, improved products or service, improved customer or employee satisfaction or other measures. However, growth toward the desired outcome is not likely to come in a smooth straight line upward due to the fact that employee performance is likely to drop as new changes are begun due to resistance, fear, confusion, distractions, lack of motivation, etc.

The consequences of a drop in performance during change can have negative consequences for individuals (less bonus, loss of pride, future impact on review ratings, spiral negativity which could worsen results further, etc), on the team leaders (not making targets, less bonus, lack of ability to maintain team motivation, etc), and for the larger organization (slower time in implementing change, not reaching target outcomes, etc). Perhaps for this reason there are statistics which show that success rates for change efforts in Fortune 1000 companies are less than 50% and even could be as low as 20% (Harvard Business Review, 1998, p. 140). Team leaders can apply a process to help lessen the dip in performance and shorten the time to implement the change and regain
performance, benefiting the organization, the manager and the individual employees. This process includes the following 8 steps:

1. Build an environment of trust with the employees in order to create an environment where employees are more open to ideas and more willing to discuss possibilities and problems associated with change.

2. Link the change effort to a common team value in order to help employees feel they can relate to the change effort at a personal level. This increases the desire and motivation to change.

3. Articulate and communicate a clear message about why the change effort is needed and will help the team. This links the facts and figures supporting the change to the team value. Communication should frequent throughout the effort.

4. Establish a vision with the employees regarding the possible advantages of making the change in order to help the team define for themselves where the change will take them.

5. Collaborate for solutions with team members so that employees have the opportunity to identify the driving and restraining forces in the change effort and identify action steps for implementing steps to implement the change and overcome the restraining forces.

6. Establish and celebrate wins along the way. The leader should actively orchestrate wins and celebrations so employees can see that the change effort is important and see that changes in behavior will lead to positive outcomes.

7. The leader must manage performance around the change. This includes coaching those who need support with the change, disciplining or removing those who continually resist the change or have decided to fight against it, rewarding positive changes, hiring employees who have the new capabilities needed in the change effort, etc...

8. Constantly monitor the process and the results to ensure that the change effort is on track.

The Carrot and the Stick: Awards and Punishment

2009-10-21T09:26:00.000-07:00

Managers can rely on the carrot or the stick to reward or punish employees. Unfortunately, most managers don't give much thought about how they reward or punish. In dozens of management development courses I have delivered, I have asked managers, what they use to motivate their employees. Most say money. When asked to think deeper about employee motivations they often realize that they have not really given much thought about what motivates employees, much less given much thought about how they as managers do it.

Few have given much thought to the fact that the wrong type of reward can in fact have the opposite effect. I always share with them the story of the top sales representative at a large pharmaceutical company where I used to work. He was the best the company had. Not only did they reward him with bonuses, but they also had many award trips that representatives could win on a quarterly, semester and yearly basis. He practically won them all! He was winning trips to exotic locations and exciting cities all over the country. I was working in a sales operations position at the time. I visited with him to learn more about his success. During our visit I was shocked when he told me how unhappy he was with the company and how he was thinking of leaving!

I soon learned why. He had a large territory and was constantly "on the road". He also had several small children. While he realized that he had to travel to be successful, he did not appreciate the fact that almost every 3 or 4 months the company expected him to go on these fancy trips, which took him away from his family even more. He asked, why couldn't they just give him the money or award him with prize points, rather than force him away from his family! Management had never considered if the type of rewards we were offering was really motivating those who received them. The same is true, if not more so, when it comes to punishment. When working on case studies dealing with difficult employees, attendees at my leadership development programs usually respond first by saying simply "fire them". They also talk about putting them on "performance improvement plans" or other types of punishment. Few have given serious thought about the type of punishment or the manner in which they deliver the punishment and whether it has impact on improving behavior in promoting the desired type of organizational conduct in the future.

In a study designed to discover if the way managers deliver punishment has a positive impact on behavior within organizations, Ball, Revino and Sims showed that "punishment can positively influence subordinates' subsequent behaviors (and prevent negative behaviors) if the punishment is conducted in a particular way" (1994, p. 314). They found that positive results occurred when punishment was perceived by the employee to be just and "matching the infraction" they committed and "consistent with what others have received" for similar violations (p. 315). They also found that employees felt the punishment was more fair and consistent, if they had some input into process (p. 315). Just as the representative in my example above wanted input into how he was rewarded, employees feel more motivated by punishment if they are involved in the decision making process regarding punishment. It may seem unreasonable to involve an employee in this discussion; after all, they are being punished. However, their study shows that "individuals with a strong belief in a just world saw punishment as more constructive and as providing them with more control" (p. 316).
Furthermore, individuals who perceive the world as unjust and where they have little control over events "perceived the punishment process as less constructive and as providing them with less control, and they perceived the imposed punishment as harsher" (p. 316). By involving the employee in the discussion about the reasons for the punishment and the standards of said punishment, the manager is building an environment that the employee feels is just and fair and where he/she is involved in the process.

The implications of this study are important. Just as giving a reward is designed to motivate or encourage positive behavior; punishment's end goal is to change or discourage negative behavior. Therefore, a manager must consider the results of this study to be truly effective when delivering punishment. First, the punishment must be seen as just and fair. To be seen as just, there must be consistency in who is punished and why throughout the organization. Also, the proposed punishment must be consistent with punishment given in the past and not disproportionate to the infraction. Next, the employee must feel that he/she has some control over what is happening to them. Therefore, they must be engaged in a conversation regarding the action and the punishment. The manager should take extra time to ensure that they "influence the subordinate's interpretation of the event by highlighting its positive and constructive features and by clearly explaining and justifying the imposed punishment" (p. 316).

This engages the employee and helps them perceive that they have control over their future if they change certain behaviors. All of this helps ensure that punishment is done in a way that improves organizational behavior and citizenship and not be perceived as a "big stick" in the hand of a tyrannical manager.

References:

Ball, G.A., Trevino, L.K., and Sims, H.P., (1994). Just and unjust punishment: Influences on subordinate performance and citizenship. Academy of Management Journal. Vol. 37, No. 2, 299 - 322.

What My '74 Pinto Teaches Us About Ethical Decision Making

2009-08-31T14:19:00.001-07:00

Since my first car was a Ford Pinto, I have always been interested in the case study of the Ford Pinto. For those of you not old enough to remember, the Pinto had a slight defect in the design of the gas tank, causing it to explode when the car was involved in even small rear end collisions! The case provides an interesting study into approaches to ethical decision making.

There are three possible approaches to make when making ethical decisions; a consequentialist approach, a deontological approach and a psychological approach. In a consequentialist approach, the decision maker would base their decision by focusing attention on the consequences of their action (Trevino and Nelson, 2005, p. 89). In the deontological approach, the decision maker would base their decision by focusing on what is right or wrong based on common values and rights of individuals and/or groups (p. 91). A decision maker basing their action on a psychological approach may vary their actions based on the level of their of cognitive moral development (p. 115).
In the Ford Pinto case, an individual who took a consequentialist approach could easily make the decision which Ford did and produce the car despite the possibility of having the gas tank explode on low speed rear-end collisions. Furthermore, they would likely agree with Ford that the car did not need to be recalled once it was on the market. A decision maker using the consequentialist approach would look at the consequences for the broadest number of individual and groups as possible and make their decision based on doing the least harm and the most amount of good to all. Since the data showed that there were no more accidents with the Pinto than with other vehicles and the company's stakeholders would greatly benefit from keeping the costs low and bringing the car to market as fast as possible; they easily could have decided that the most benefit would come from going ahead with the design since there would be many who would benefit and likely no more than what existing standards permitted would be harmed. This is what Ford did despite numerous explosions and deaths.
On the other hand, a decision maker using the deontological approach would easily have decided not to move ahead with production and/or to recall the car once it was on the market since this individual would base their decision on a set of moral values and/or the a code of individual rights. They would likely argue that the car should not be produced because it would be ethical wrong to knowingly hurt defenceless individuals or because a small group of people harmed or killed. Unless the rights of these individuals could be protected, the decision would be not to produce the car, or if it was already on the market, the decision would be to recall the car and make the necessary repairs.

The results of a decision of an individual following a psychological approach could vary depending on several influencers. An individual, for example, may have agreed to move forward with the sale of the Pinto and/or not to recall it from the market because they may have been highly influenced by others in the company. Because of this influence they may have feared punishment from management or they may have hoped that by supporting the majority opinion that they would have been rewarded in some way. Even if the individual wanted to strive for the best possible behavior for themselves and the company, they might still not have decided to redesign the Pinto's tank because they could have been highly influenced by the majority of decision makers in the company and not felt strong enough to go against their will. There are others who may have felt strong pressure to follow the "letter of the law," which Ford was complying with. Therefore, they would have felt no legal reason for making the design change. Only if they had a highly developed feeling of moral obligation might they have felt the need to go against the trend within the company in order to uphold the rights of the minority "regardless of the majority opinion (p. 115).

A closer review of our own approach to ethical decisions is important for individuals and for companies in order to avoid other similar personal and organizational disasters.

By the way, I survived my 1974 Ford Pinto! I was never rear-ended!

Call for Ideas, Activities, Tools to Leading Change: 8 Steps to Improving Performance During Change

2009-07-30T10:26:00.000-07:00

I am asking for your input and your ideas related to Change Leadership!

I am about ready to publish my first book: Magnify Change Leadership: A guide for First Line Management. This will be a practical guide to help first line managers lead their teams through 8 important steps to improve their team's success during times of change. These steps include:

1. Establish Trust
2. Discover and Link to Team Values
3. Articulate a Clear Message About the Change
4. Create a Shared Vision with the Team
5. Collaborate with the Team for Solutions
6. Maintain Focus Over Time by Celebrating Wins
7. Empower Performance Through Coaching
8. Monitor the Process and the Results

The book will include a tool kit with over 32 ideas, activities, actions and tools that managers can use to improve their success in managing change. I would like to add your ideas to this list and site you as a reference in the book. Please share your ideas of activities, actions or tools that you have seen are particularly effective in developing these 9 steps during times of change. Send your ideas to me via email at: james.gehrke@magnifyleadership.com or post your ideas on this blog.

With your permission, over the next few months I will share your ideas with others in our newsletter and add the best submissions to the toolkit we publish. Of course we will site you as the reference in the book and we will be happy to send you a free copy when the book is published.

See the article below to learn more about each of the steps.

Thanks in advance for your participation!

Please forward this to others who may be interested in contributing or joining our monthly newsletter.

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Mark Twain once said, "The only person who likes a change is a baby in a wet diaper."

Individuals are naturally prone to resist change. During times of organizational change this tendency to resist may be magnified even further if employees feel the organization has broken or will break their commitment to them as individuals.

In today's environment of constant upheaval caused by cost saving efforts, realignments, outsourcing, etc., a change effort will bring many questions into the minds of employees, including; whether their position will be eliminated; if they will have a cut in pay, bonus, benefits, pensions; if they will need to produce more or do with less resources; if they will be relocated; or if they will face a multitude of other negative consequences because of what the company is proposing. With apprehension about the change, rumors swell and the minds of employees are diverted because of trepidations concerning the upcoming change. As a result, energy and efforts are dampened or diverted elsewhere, and performance suffers.

At a corporate level it may be easy to chart on paper the projected improvements a change will have on performance, raising results from point A to point B, through a number of steps, to help the company arrive at the desired outcome. The increased performance outcomes of a change effort can be measured in financial and production outcomes, improved products or service, improved customer or employee satisfaction or other measures. However, growth toward the desired outcome is not likely to come in a smooth straight line upward due to the fact that employee performance is likely to drop as new changes are begun due to resistance, fear, confusion, distractions, lack of motivation, etc.

The consequences of a drop in performance during change can have negative consequences for individuals (less bonus, loss of pride, future impact on review ratings, spiral negativity which could worsen results further, etc), on the team leaders (not making targets, less bonus, lack of ability to maintain team motivation, etc), and for the larger organization (slower time in implementing change, not reaching target outcomes, etc). Perhaps for this reason there are statistics which show that success rates for change efforts in Fortune 1000 companies are less than 50% and even could be as low as 20% (Harvard Business Review, 1998, p. 140).

Team leaders can apply a process to help lessen the dip in performance and shorten the time to implement the change and regain performance, benefiting the organization, the manager and the individual employees. This process includes the following 8 steps:

1. Build an environment of trust with the employees in order to create an environment where employees are more open to ideas and more willing to discuss possibilities and problems associated with change.

2. Link the change effort to a common team value in order to help employees feel they can relate to the change effort at a personal level. This increases the desire and motivation to change.

3. Articulate and communicate a clear message about why the change effort is needed and will help the team. This links the facts and figures supporting the change to the team value. Communication should frequent throughout the effort.

4. Establish a vision with the employees regarding the possible advantages of making the change in order to help the team define for themselves where the change will take them.

5. Collaborate for solutions with team members so that employees have the opportunity to identify the driving and restraining forces in the change effort and identify action steps for implementing steps to implement the change and overcome the restraining forces.

6. Establish and celebrate wins along the way. The leader should actively orchestrate wins and celebrations so employees can see that the change effort is important and see that changes in behavior will lead to positive outcomes.

7. The leader must manage performance around the change. This includes coaching those who need support with the change, disciplining or removing those who continually resist the change or have decided to fight against it, rewarding positive changes, hiring employees who have the new capabilities needed in the change effort, etc...

8. Constantly monitor the process and the results to ensure that the change effort is on track.

The Difference Between Leaders and Managers

2009-07-08T04:13:00.000-07:00

Kotter argues that leadership and management are complimentary yet different. He believes that organizations that develop and promote leadership skills will out perform those who emphasize management skills since organizations with leaders will be able to adapt to the changing market place.

My multinational business experience in Europe confirms that organizations who emphasize leadership skills are greatly valued. The Turkish organization, while a less developed organization than others in Europe, was known as a breading ground of global leaders. The country manager gave young managers the opportunity to lead teams, then laterally moved them to other departments in order to broaden their exposure and experience in developing strong leadership skills rather than deep departmental skills.

This example demonstrates the value of leadership skills. Still, leadership is only one role that a manager plays and not a completely separate skill set. I disagree that "people cannot manage and lead." While the leadership role may be growing in importance, the other management roles are also important. Without balance a leader/manager may not fully benefit the organization. For example, long term planning certainly needs the vision of a leader, but management skills must also be used to organize the teams in ways to meet that vision. Furthermore, a leader/manager must have the communication and motivation skills to align and motivate, as well as the organizational and team building skills to ensure the team is organized and developed in ways to meet future challenges.

6 Steps for Ethical Leadership in Today's Organization

2009-05-27T15:02:00.000-07:00

Perhaps no other issue can so dramatically define the difference between management and leadership, than the attention the individual gives to ethics.

A manager must focus on the on the day-to-day aspects of keeping the department, team or organization running smoothly. This includes making sure the department is staffed appropriately, that the company is on target for sales, that production is on target, etc. A leader, on the other hand, must be able to set goals and aspirations for the team, set the tone of the organization, motivate and inspire the group, etc. Realistically, managers must be able to do both. They must inspire and motivate and they must ensure that the company operates effectively. Setting the ethical tone of the organization is a leadership function. The challenge for most managers is to spend enough time focusing on leadership functions without becoming totally consumed by the day-to-day operations of the team. Because business ethics are every bit as important to the success of any business relationship, giving them the attention and care they deserve is crucial to an organization's success. I suggest six steps for a manager to take to lead ethically.

1. Reflect on Values. To focus the appropriate attention on the ethical tone of the organization, a leader must be able to recognize lessons from and draw from their own fundamental values and capabilities in order to optimize their leadership potential. To do this, leaders must find time to reflect and identify their own personal moral compass as well as to ask themselves what are the key ethical questions and dilemmas facing their organizations. Just as a manager must take time to understand their market, budgets, production timelines, etc., an ethical leader must take time to understand his/her own personal values, the values of the team, what the value statements of the organization should be and identify the gaps that exist in aspired goals and current behavior within the organization.

2. Establish Trust. Build an environment of trust with employees in order to create an environment where employees feel free to discuss ethical dilemmas and issue with management.

3. Establish a Shared Ethical Vision. To ensure buy-in and commitment from the organization, include members from various levels of the team to help create a "Code of Conduct" that is aligned with the Ethical Vision of the organization.

4. Communicate the Ethical Vision and Code of Conduct. A leader must ensure that the vision and code is communicated to everyone within the organization. This can be done through policy manuals, training events, one-on-one and team coaching, newsletters, team meetings, etc... Communicating the program frequently is another important success factor, as is establishing a way for employees to communicate their concerns back to management in a safe and confidential manner.

5. Act. To be effective, the leader must show that all the organization is serious about ethical behavior. All reports of unethical behavior must be investigated thoroughly. Furthermore, all violators of ethical standards must be punished equally and justly throughout the organization, irregardless if the perpetrator is a senior executive or first line hire. In addition to punishing negative behavior, effort should be made to reward and recognize positive ethical behavior. Just as a good manager knows that rewarding employees for reaching goals is important, the ethical leader will recognize that equal importance must be given to recognize those who exemplify ethical behavior within the organization. Acting also means leading by example by letting ethical behavior guide the actions of the leaders at all times. Doing so will help establish and sustain a culture of ethical behavior.

6. Monitor and Sustain Ethical Behavior. The leader must consider ethical leadership a key aspect of their role as a manager. It cannot be seen as a passing organizational fad. Effort must be made to gather feedback through surveys, focus groups, one-on-one interviews, etc., to identify employee concerns regarding the ethical environment where they work. This should be a continuous improvement process to identify concerns and to improve the overall ethical environment.

There are at least seven benefits for a manager to focus on being an ethical leader, including; improved public image of the organization, restoration or enhancement of investor confidence, prevention and reduction of criminal penalties, preventing civil lawsuits of employees who could not have their grievances met satisfactorily inside the company, improved employee retention, market leadership through by improved customer satisfaction and setting the example for others in the market.

2009-04-27T15:55:00.001-07:00

I had a great opportunity this month to work closely with a country manager of multinational pharmaceutical company in South America. I was there to assist with a needs analysis of their sales organization. The country manager is relatively new in this position, yet is an experienced leader. He contracted our team to conduct the needs analysis in order to build a case for making some important changes in the sales organization.

This leader did not rely on his position power to make changes happen, even though he has a vision of what he would like to accomplish. He contracted a sales force analysis in order to identify the key areas that needed to be addressed and then either applied his expertise in addressing those needs or in helping his directors find the resources needed to address the issues. Without all three of these sources of power, he would not have been effective.

The three most important sources of power for a leader in an organization that can best be used to increase the effectiveness of an organization while enhancing empowerment and a sense of control of the employees are legitimate, referent and expert power.
Most organizations are hierarchical in nature. If the title of the leader reveals a higher level in the organization it is very likely that the employee will be greatly impacted by the comments and/or opinions of this leader. It would be a rare individual and perhaps one with a short career in an organization which would not pay any attention to the direction and or ideas of a legitimate leader in business organization today. In fact, legitimate power helps maintain order, the chain of command, and direction for the organization. Without it there would be chaos and diminished effectiveness.
However, legitimate power alone does not necessarily mean employees with maximize effectiveness or feel empowered. Legitimate power only helps to direct individuals to people in the organization who have been identified as those in power. However, legitimate power without referent and/or expert power is of limited help in empowering employees.

Referent power is needed to provide the sense of support and commitment the leader has to the individual and expert power as needed for those employees who need direction in their tasks. This helps to give team member the knowledge of where to go for resources, budget, ideas, materials etc... Without this ability a leader only using legitimate power is useless to team members and their effectiveness suffers. Expert power is the knowledge, experience and skills a leader brings to the team. By demonstrating knowledge in task of the teams the team develops stronger confidence in the leader's ability to teach and delegate tasks that the team needs to accomplish.

Imagine for a moment a leader who is lacking any one of these three sources of power. They cannot be truly effective without all three. Leaders would be wise to recognize that their position in the organization (legitimate power) is only the place where they start to exert influence. Legitimate power only provides the opportunity to utilize referent and expert power to fully empower employees, helping them feel integrated and valued members of the team.

2009-03-26T12:09:00.000-07:00

Effective Organizational Communications

Chris Argyris argues that the needs of a traditional formal organization and those of healthy adults creates conflict resulting in an unhealthy dependent relationship between subordinates and their leaders. He states that "job enlargement and... democratic or participative leadership are elements which... can go a long way toward ameliorating the situation".

The key elements of a communication strategy to effectively meet the needs of the members of the organization would include; communication of the purpose and vision of the organization, team alignment to the overall vision, and involvement of teams that would set employee work standards, goals and norms.

A company must define and communicate its overall vision to each department and member of the organization in order for individuals to understand and appreciate their role in the organization. Without this effort, individuals feel disconnected from the larger organization.

Communicating vision helps to enlarge the viewpoint of individuals to help them understand how their contributions are linked to the overall purpose and success of the company. Next teams must be given the opportunity to understand and define how their work links to and provides value to the vision of the organization. If teams are given the opportunity to participate in defining and setting their own roles, goals, standards and norms, they will be empowered to put into action the answers to how they can help the overall company meet its vision.

These communication strategies will then give individuals the opportunity to expand beyond the basic task of their individual job requirements, giving them the opportunity to express and develop more independently while still meeting the needs of the overall organization, and decrease dependency and conflict.

Comment on our Feb. Newsletter Article!

2009-02-19T08:21:00.000-08:00

During a recent workshop I asked sales leaders to prepare a quick "elevator speech" that explains the compelling reasons for their strategic imperatives. Overwhelmingly, the individuals laid out the facts and figures that supported their reasoning. While technically correct, most all of these speeches lacked something. While they identified the key business drivers, and logically laid out the reasons for change, they did not connect to the emotional reasons for change.

In addition to identifying the financial and market drivers behind an initiative, leaders also need to connect to the values behind the change and communicate these values to the organization in addition to just providing pure financial numbers and facts figures. While they support the reason for change, facts and figures by themselves are also boring. They show the logic behind the change while values and vision communicate on the emotional level. They motivate and inspire people to change.

There is a real need for leaders to create a vision for change, not just providing the the bottom line numbers that are driving change. In talking about vision, Kotter states that "...the real power of vision is unleashed only when most of those involved in an enterprise or activity have a common understanding of its goal and direction. That shared sense of desirable future can help motivate and coordinate the kinds of actions that create transformations" Kotter, 1996, p. 85). The same is true in communicating the link project and value to the team. This is the opportunity the leader has to remind the team of the purpose of the project, what it means to the team and to the individuals. This type of communication has potential to help ensure that during a change initiative there is not a steep drop in performance by motivating the team behind the project.

Kotter also points out that one of the most common mistakes by change leaders is not communicating enough about the change. He tells us that "Without credible communication, and a lot of it, employee's hearts and minds are never captured" (Kotter, 1996, p. 9). Most leaders underestimate the amount of communication needed. They feel that giving a resounding kick-off to a project is enough. For this reason Kotter feels that leaders actually "under communicate by a factor of ten, or one hundred or even one thousand" (Kotter, 1996, p. 9). If teams are to understand the importance of the change project, the manager must communicate the project and keep it front in the minds and hearts of their employees. This means not just communicating once, but constantly reminding and updating the team about the project and how the team is doing. It also means linking these messages to a vision and core values that resonate with the team.

Communication cannot be seen as a one off. Indeed, it is likely when the communications stop and the focus shifts to other projects that the team interprets that the change project is over and they can focus their attention elsewhere. Articulating a vision, linked to values and communicating about the process continues throughout an initiative and is strengthened if communication about the process are more frequent than not.
Leaders should remember as they articulate their message to their teams, that it is not important that they have all the answers. Leaders are part of the change effort just like everyone else in the organization. They may not have all the answers, and it is OK to admit it. They may need to learn as the team moves forward, just like the team members. More important than knowing all of the answers, with all of the supportive facts and figures is that leaders provide a vision of the project linked to a team value, and plan a way to communicate it to the team, effectively and often. As Gary Yukl points out, "It is seldom necessary to present an elaborate plan with detailed action steps. The leader should not pretend to know all the answers about how to achieve the vision, but instead should inform followers that they will have a vital role in discovering what specific actions are necessary" (Yukl, 2006, p. 275).

It is important that the leader engages the team in a way that motivates them and inspires them to move forward. Too often, leaders think facts and figures will do this. Unfortunately, facts and figures alone will rarely motivate and inspire change. In order to truly motivate action, leaders must first examine the values of the team and the vision of where they want to go and find ways to communicate these visions and values often in order to help drive the team forward.