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.
Tuesday, November 17, 2009
Wednesday, October 21, 2009
The Carrot and the Stick: Awards and Punishment
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.
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.
Monday, August 31, 2009
What My '74 Pinto Teaches Us About Ethical Decision Making
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!
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!
Thursday, July 30, 2009
Call for Ideas, Activities, Tools to Leading Change: 8 Steps to Improving Performance During Change
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.
____________________________________________________________________
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.
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.
____________________________________________________________________
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.
Wednesday, July 8, 2009
The Difference Between Leaders and Managers
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.
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.
Wednesday, May 27, 2009
6 Steps for Ethical Leadership in Today's Organization
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.
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.
Monday, April 27, 2009
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.
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.
Thursday, March 26, 2009
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.
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.
Thursday, February 19, 2009
Comment on our Feb. Newsletter Article!
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.
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.
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