6 Strategies to Develop a Loyal Workforce

When we ask managers how they know that certain employees are not loyal to them, we are sometimes intrigued–and dismayed–with their definition of loyalty.

For some managers, if an employee questions what the manager is doing or trying to accomplish, the manager sees that questioning as obvious evidence of a lack of loyalty. For other managers, if the employee speaks the truth, and the truth is not what the manager cares to promote throughout the organization, the manager perceives that honest communication as showing a lack of loyalty. In another instance, a manager is actually asking employees to lie. The employees who would not lie were described as not being team players. Other managers try to instill fear or use threats in their attempts to breed a loyal workforce. In still another instance, a manager was perplexed that the employee was not loyal because the employee had been given “gifts” along with a promotion and a “big” raise.

From the other side, we encountered employees who stated that their managers told them that associating with certain individuals or departments in the organization was showing a lack of loyalty to their own manager.

In each of these instances, we know one thing for certain. Asking employees to demonstrate loyalty through actions that are wrong or clearly inappropriate will not build loyalty. Instead, it is likely to erode the relationship between the manager and the employee.

If we go back to our basic definition of leadership (“leaders are those who people willingly follow”), then using the types of strategies we mentioned results in a leadership foundation built on quicksand. As the outside pressures increase, these managers find their leadership foundation crumbling…and washing out to sea.

If these strategies are ineffective, what will work to develop employees who become increasingly loyal to their leader? We must begin by defining loyalty. According to Webster’s Dictionary, loyalty means “unswerving in allegiance; faithful to a cause, ideal, person, or custom.” The United States Marines define loyalty as “the love of the Corps at all costs.”

Ultimately, true loyalty from an employee comes when the manager is able to build a relationship with the employee based upon deep trust. This means that a manager may perceive that he or she has loyalty, but without the employee feeling a bond of trust, the two of them will never have true loyalty.

We have seen great leaders utilize these following six strategies to develop a loyal workforce.

1. Clarify your values. As a manager, what do you value? Do you value honesty? Or, do you prefer employees who will be deceptive or dishonest if that is what it takes to make you look good in the eyes of others? When managers endorse an employee’s loyalty over true honesty, it is obvious that the manager is operating on a self-centered value system. This value system is geared to the individual’s success rather than to the best for the employees in the organization.

2. Trust your people. When managers do not trust their subordinates, they send out all sorts of signals. Not passing along significant responsibilities and withholding important information from employees are two signals that convey a lack of confidence in and commitment to your employees. When this occurs, employees perceive that they are not meaningful to the success of the department. They sense that their manager is not to be trusted. Without trust, there can be no true loyalty.

3. Encourage people to question or challenge you. When employees care enough to ask managers tough questions, it provides managers with an opportunity to provide honest feedback. Ask employees questions. Ask them about their understanding of the topic being discussed. For example, a manager might ask an employee, “What happens if we do change? And, what will happen if we do not change?” Managers who dislike being challenged are managers who lack confidence in their ability to do the job. Managers who enjoy challenges from employees recognize that working through the difficulties and questions presents opportunities to develop employees who are even more loyal than employees who never question anything.

4. Care about the employee first as an individual, then as an employee. Great leaders know that when they care about employees as people first, then as employees, many positive things happen. One of them is a loyal workforce. A manager sent an employee home who was not feeling well on a day when the entire office was swamped with projects and deadlines. The employee did not want to place a heavier burden on the other remaining employees by going home. But the manager stated, “The most important thing is your health. We can figure out how to accomplish everything else.” This sent out a clear message that the individual was more important than the department’s immediate workload.

5. Value the employee as a “gift” rather than as a “commodity.” When an employee knows that he or she is really valued, and that you believe the employee makes a positive difference, you will find stronger bonds of loyalty. In contrast, if employees sense that you only care that a warm body fills a particular position, that it does not matter who does the work, they will feel like a commodity. Leaders who value each employee and who also recognize each one as contributing a unique “gift” evoke stronger bonds of loyalty from employees.

6. Be honest. Being honest builds the trust level between manager and employee, especially when it costs the manager something to be honest. For example, a manager tells the team that the company is talking about a pending layoff due to lack of business. Having the courage to deliver this unwelcome news demonstrates an attitude of genuine caring. “I care enough about you to be honest and to give you what information I currently have regarding company decisions.” Managers who are consistently honest with employees, even when it costs them something to be honest, will build a team of loyal employees.

Being a manager today is tougher than ever before. Today’s managers are faced with challenges unheard of fifty years ago. To doubt the loyalty of those you supervise doesn’t need to be added to your list of pressures.

Implement these six strategies to build a loyal team. And then, as you lead, your team will be there with you, willingly offering their support and their contributions–and their loyalty.

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What Separates the Best-of-the-Best Organizations From the Worst-of-the-Worst?

For 20 years, Peter Barron Stark Companies has been a leader in conducting annual employee opinion surveys. We have surveyed over 250 organizations, and our PBS Best-of-the-Best benchmarks (those who rank in the top 25 percent in our employee opinion surveys) are based on nearly 100,000 employees’ opinions. In a recent statistical correlation study, we made some exciting discoveries we are proud to report for the first time. We have identified the specific areas you need to focus on to achieve the same standard of excellence as the Best-of-the-Best organizations—and we have learned the one thing that all organizations in the lowest quartile, the Worst-of-the Worst, have in common—the one area in which your organization must never compromise: Supervision. The higher quality of supervisor or leader that you have, the higher your organizational results and engagement scores will be. (See the Eleven Stupid Things that Managers Do to Mess Up Workplace Excellence.) Although the Best-of-the-Best companies score better on almost every question of the survey, the following categories were unique and statistically significant.

COMMUNICATION

The PBS Best-of-the-Best companies have better communication— in both quantity and quality. This increased communication creates a stronger relationship between the management team and employees, who perceive that management is honest with them. Our research shows the top companies are better at communicating in the areas of purpose, strategic direction, expectations and corporate goals. The communication in each of these organizations focuses on ensuring that employees have the information they need to do their jobs, help the company achieve its goals, and understand what the organization has accomplished in relationship to its goals.

COMMITMENT TO QUALITY AND SERVICE

The second category in which the Best-of-the-Best companies excel is their commitment to producing high-quality products and delivering exceptional customer service. Successful companies focus on continuous improvement and are skilled at identifying problems and handling them in the early stages. In these organizations, employees are encouraged to take the initiative to improve the quality of their products and services. Nearly every one of the organizations in the PBS Best-of-the- Best benchmark does some type of ongoing customer satisfaction survey to measure the company’s quality and service from the customers’ perspective. Research actually demonstrates that there is a greater opportunity to build customer loyalty when a customer has a problem that is resolved than if the customer never had a problem to begin with. Service and product problems are not the real issue. How an organization responds to problems is what makes the great service providers stand out.

PERFORMANCE MANAGEMENT

Finally, the Best-of-the-Best organizations separate themselves from the rest by managing performance and holding people accountable. The top companies are better at setting clear expectations for employees.When an employee fails to meet expectations, they are better at coaching that employee; putting a performance management plan in place; providing training if needed; and conducting thorough, accurate, on-time performance reviews. If none of these techniques works, the Best-of-the-Best are quick to share the low-performing employee with a competitor—and allow that employee to actively undermine the competitor’s strategic plan!

Failing to actively manage performance and hold all employees accountable leads to low morale. In our training programs, we love to ask the question, “Can nice leaders have departments with low morale?” The answer is, Absolutely! In fact, many “nice” leaders shy away from performance problems because they do not want to be perceived as too harsh. So they do nothing and simply hope that the problem employee’s performance will improve. The reality is that an employee’s performance seldom improves without some type of intervention. When an employee is not doing what he or she is supposed to do and the manager does not quickly deal with the issue, morale plummets and everyone on the team loses respect for the manager.

UNIQUE QUALITY OF THE WORST-OF-THE-WORST: POOR SUPERVISION

The only category that is truly unique to each of the companies in the lowest quartile of the PBS benchmark is low scores for supervisors. If there was ever a reason to train supervisors and hold them accountable for building a solid relationship with employees and achieving corporate results, the desire to stay out of the Worst-of-the-Worst category should be it!

If you are a CEO or a human resources leader, you have probably experienced organizational problems caused by a poor manager. One week you are trying to get this manager to complete the department’s performance reviews or document an employee’s poor performance. Another week you find yourself refereeing a dispute between the same manager and a peer in your organization. You regularly get complaints from employees that this person does not communicate respectfully with others. And he or she always has an excuse for failing to meet company goals. The result is a department with low productivity, low morale and high turnover.

Remember, employees may join your organization simply because they want a job or you have offered them more money, but they leave your company because they are unhappy with their immediate supervisor. The learning point: It is difficult to be one of the Best-of-the-Best organizations if you don’t have strong supervisors who are accountable for their performance.

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This blog entry has been adapted from the June issue of The Quest for Workplace Excellence (sign up here)

As a leader, you have the ultimate responsibility for your behavior. You are the role model for your team. You are the only person who decides if you will act ethically. When it comes to honesty, respect, fairness, and especially safety, there is no off season.

Being ethical (or unethical) is reflected in everything we do. As a leader, our choices affect not only ourselves, but those working around us as well. It’s easy to make excuses for ourselves and be blinded by our own biases, but our customers, employees and peers are trusting that we are honest and fair individuals. There is no better time than now to re-examine habits and make sure that they are in alignment with this vision.

Let’s start with a mini-self assessment. In the past year, have I:

• Failed to admit a mistake I made?
• Let someone else take responsibility for my mistake?
• Accomplished personal business on company time?
• Used company tools or resources for my personal needs?
• Engaged in talking negatively about the company or management?
• Gossiped?
• Violated someone’s confidentiality?
• Sent emails to a coworker that would be an embarrassment if the boss found out?
• Ignored a company policy?
• Told a degrading joke about race, culture or gender?
• Failed to share information that another team member needed?
• Been less than completely truthful on an expense account, mileage report or time sheet?
• Accepted a gift that violated company policy?
• Knowingly delivered an inferior product to make a sale or meet a deadline?
• Manipulated the truth to complete a goal?

Self-evaluation is the first step. Taking action is the second. So, what are the guidelines for always making ethical decisions and doing the right thing?

Respect Everyone

Begin with respect. Respect for everyone, whether they’re your manager, your peer, your employee, your customer or your vendor. Treating everyone with the same degree of dignity, regardless of their position, speaks volumes about your character. If ever questioned regarding an action taken or a decision made, you will benefit from the support and allegiance of those whom you have treated respectfully over the years.

Accept Full Responsibility

Take complete ownership of your actions. Hold yourself accountable for the quality within your area of influence and for using resources legally, efficiently and properly for business purposes. Ensure that you are pulling your fair share of the workload. Taking responsibility isn’t just the ethical thing to do, it’s also best for the bottom line.

Expect Ethical Outcomes

While conducting a goal setting seminar, we instructed participants that the key to goal setting success is to do whatever it takes to achieve the desired outcome. An attorney in the group corrected us by saying, “Do whatever it takes, legally, ethically and morally to achieve the result.” We agree. Obviously, you are expected to achieve results; however, in your quest you must never jeopardize your integrity or compromise your company by making an unethical decision. Rationalizing that “the end justifies the means” cannot be an excuse for being unethical.

Quit Blaming Others

There is no “perfect” organization. Things go wrong. Sometimes things go very wrong. Assigning blame to others is counterproductive; it creates a culture of defensiveness. When things go awry, muster the courage to say, “What went wrong?” “How are we going to fix it?” “What will we do differently next time?” Keep the focus on solving the immediate crisis and proceeding proactively to assure the problem is not repeated.

By eliminating blame, you do not resort to using excuses which amount to taking the easy way out. Here are some of the most common:

• It’s policy, but no one follows policy
• Who cares? I’ll just do it this one time
• It’s a huge potential sale. What they don’t know won’t hurt them
• Everyone does it here
• My boss just looks the other way
• It’s a huge company. They’ll never miss it
• I work long hours and don’t get paid overtime. Doing personal business on company time compensates me for my time
• We don’t have the time to make it right. Send it anyway

As you know, making the right decision isn’t always easy. One CEO who knows and demonstrates the importance of making ethical decisions is Jeff Bezos, CEO of Amazon. He issued the following apology after Amazon automatically deleted copies of the novel 1984 that were illegally sold on the Kindle:

Notice that he did not give an apology along the lines of, “I’m sorry that [insert name of employee, executive or other scapegoat here] did this, I had no idea.” He took the blame even though he may or may not have been the one to initiate the automatic deletion of the novels. It doesn’t matter who made that decision. The leader handled it gracefully and the response was positive. We highly suggest taking a look at the responses to his apology: people were very understanding and also very surprised at his sincerity.

Take a minute to reflect on your role as an ethical leader. Congratulate yourself for walking the talk when you have done so. On those occasions where you have been less than a stellar example, commit to having the courage to being above reproach the next time.

Finally, if you still have questions about what is or isn’t ethical, we provide one last assessment: How would I feel if everyone at my company knew I’d done (or not done) this?

1. Is what I am doing legal?
2. Am I following company policy?
3. How would I feel if someone did this to me?
4. What would Mom think if she knew I’d done this?
5. What is my conscience telling me about my behavior?
6. Would I want to read about my actions in the newspaper?
7. What would Mother Theresa, Abraham Lincoln or Ghandi think about my actions?

These practical tests can help you determine the rightness or wrongness of your actions. Remember, making ethical decisions is part of everything you do, everyday, every time. As Albert Einstein said, “Relativity applies to physics, not ethics.”

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The text below is taken from SHRM’s blog entry, Employee Engagement Marathon – Monday Recap, written by David Bowles

A San Diego local, Peter has an impressive resume and clearly lots of experience. He is also a talented and funny speaker who had a full house in the palm of his hands.

His speech was based on what appears to be his proprietary database of 250 companies employing 100,000 people, and which he leverages to make statements about the top 10 factors which bring about employee engagement. He does this by analyzing the top 25% of his database to see what secrets he can wring out of the data.

He started out by looking at the leader vs. manager question, something which our Wednesday speaker, Marcus Buckingham, has also done. Peter doesn’t take the Buckingham approach of splitting these jobs into quite different categories, he sees leaders as a higher level of manager whose qualities lead people to follow them, that being the crucial difference.

His database yielded a list of engagement factors which is very familiar to those of us who have worked in this business but worth repeating:

• Creating a vision with clear goals. One that comes form the heart, is unique to the organization and is radical and competitive.
• Communication (especially the hard things like goals)
• Seeking the right people for the right jobs
• Cross-department teamwork (not just within department, that’s too easy)
• Recognizing and rewarding excellence
• Making accountability and performance count (the need for honest reviews)
• Making sure very employee can learn and grow
• Problems are no problem! (an attitude that says “we can handle things”)
• Making it “all about the customer”

It’s a good list…and he had an interesting saying from John Maxwell: “if you think your job’s purpose is to make you happy, you should be a clown”. Not sure all the “happiness at work” fans would agree!

Peter was solid in his findings, though, and well worth the time spent.

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At the SHRM 2010 Annual Conference & Exposition, Peter and Mary Ellen Slaytor of SmartBrief on Workforce, discuss ways to increase employee engagement which will improve morale, productivity, motivation and retention.

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Tackling Podium Panic

In your quest for workplace excellence, you will undoubtedly be called upon to make presentations. Whether they are for your work team, or for the CEO, we want to position you for success.

In an early episode of Seinfeld, Jerry states, “Surveys show that the #1 fear of Americans is public speaking. #2 is death. Death is #2. That means that at a funeral, the average American would rather be in the casket than doing the eulogy.” It is clear that the fear of presenting before a group can be intimidating and upon occasion, actually cause physical stress. If you have experienced butterflies in your stomach, sweaty palms, weak knees or lost sleep for a week before your scheduled presentation, read on.

First, you must understand that in areas of your life where you have deep- seated confidence, you’ve been there before, again and again. In areas where you excel, you’ve had considerable practice. For example, if you are an IT whiz, you’ve spent years honing your craft. You didn’t just show up on the scene with a high level of expertise and confidence. Bit by bit, you built a solid skill set. As the skill set was building, so was your confidence.

Speaking is no different. You’ve got to do it over and over again to increase both your level of confidence and competence. In becoming a confident public speaker, we know of no short cuts to excellence. Here are a few tips that we want to pass on to you to help ensure your success when presenting in front of groups, whether they be as small as five or as large as 500:

1. Practice positive self-talk
   In the words of Henry Ford, “If you think you can, or you think you can’t, you’re probably right.” As you think about your presentation in the time leading up to your delivery, it is critical that you practice positive self-talk. Go for what you want, not what you don’t want. In other words, “I’m going to get nervous and forget what I want to say” becomes, “I’m prepared. I’ve practiced. My presentation is going to go great today.”

   Changing what you say to yourself related to your ability to confidently deliver a presentation has a huge impact on your level of confidence. Each time the negatives creep in, change them to positives and focus on what you can do to control your level of anxiety. Remember, the brain has a hard time disassociating the negatives. If you think you’ll get nervous and forget, chances are good you won’t disappoint yourself.

2. Don’t think about yourself as a public speaker
   Think about yourself as a subject matter expert who has important information to tell your audience. View yourself as confidently sharing your expertise with your audience, who wants to know more about your topic. As you talk with your audience, don’t expect yourself to be perfect. In real life, as you converse casually with acquaintances, you occasionally forget your train of thought or have to back up and rephrase something for clarity. It’s the same when making presentations. You don’t have to be perfect. In fact, being so rehearsed that you come across as robotic is not your goal. Lighten up and where appropriate, use humor to both relax yourself and your audience. Don’t take yourself too seriously. Some of the best advice we ever got early in our career as speakers was, “Just go out there and have some fun!”

3. Clearly identify your purpose and goals early on
   Before you begin your presentation, have a tight mental outline as to why you are making the presentation, what you want to say in the presentation and your template for presenting the information. The clearer you are about your purpose and approach, the more confident you will be when you present. Keep your message simple. Plan to tell your audience what you’re going to tell them. Then, tell them. Finally, briefly tell them what you’ve told them, and what they should remember. A simple message delivered in a structured format does two things. It helps you reduce your anxiety because you have a clear mental outline of where you’re going. It also helps your attain your goal of having the audience retain the information.

4. Expect the unexpected
   No matter how well you have prepared, sometimes things don’t go as planned. It is important to acknowledge that you can’t control everything. Expect the unexpected and understand that no matter what happens, your audience wants you to succeed. They are just as uncomfortable as you when things are not going as they should. Typically when the PowerPoint won’t cooperate, the microphone doesn’t work and you’ve lost your place in your notes, the only thing that will work is humor. Make light of the challenges and your audience will laugh with you. It’s not the end of the world . . . it just seems that way.

5. Practice, practice, practice
   No matter what else you do to calm the butterflies, to really tackle podium panic, you’ve got to practice. Once you’ve got your outline, start rehearsing sections. Make several “dry runs” before the actual presentation. Rehearse in front of a mirror. Video tape your presentation and critique your efforts. Make changes to segments that don’t flow. Have a friend, co-worker or family member listen and give you feedback. Finally, make sure you get plenty of rest the night before your event.

In reality, the butterflies may never totally leave you, but hopefully our tips will help your get them flying in formation in the right direction!

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Hint: It’s Not Money

Slowly but surely, the job market is beginning to improve and unhappy employees will be able to execute their exit strategies soon, if they have not done so already. If your focus over the past few stressful years has shifted from employee engagement to the bottom line, realize that you are not alone and that you can still get back on track.

To get back in the game, you need to take the time to find out what your employees want from their jobs and from you – and it’s usually NOT more money.

In our experience, employees have told us what matters most to them, is the ability to:

• Learn and grow in their jobs
• Do work that is challenging and meaningful
• Work with good people
• Feel like they are a valued team member
• Work with good bosses
• Be recognized for their contributions
• Be autonomous and feel in control of the work
• Have flexibility in their hours and dress

Consistently coming in towards the bottom of employee-ranked lists is “fair pay and benefits.” What’s exciting about this list is that while we may have little control over their pay, we have a high degree of control over what employees say really matters and will keep them on the job.

1. Make Retention an Organizational Commitment
   Employee retention is critical to your organization’s success. Know your employees and their values. Don’t just assume you know. Ask and listen carefully to the responses. If you’re not sure, conduct a survey. Once you’ve identified important retention factors, take actions as a management team that support your employees, both professionally and personally.

2. Create an Exciting Environment
   Focus on keeping the tempo up. Get to know what work excites them. Give more opportunities to do challenging work. Delegate something meaningful. Provide training. Get people involved in determining the team’s vision and setting goals. Be both the coach and cheerleader!

3. Remember, People Come First
   Today’s workforce values a balance between work and life. Acknowledge people as unique contributors and value their time away from work. Entertain flex schedules and allow for telecommuting. When possible, provide comp time after an extensive project. Try to promote a happy, productive, stress-free environment that acknowledges people have a life beyond work.

4. Spend More Time Leading and Less Time Managing
   Demonstrate your trust by giving employees more opportunities to direct their own time and work. Be open to creative approaches for accomplishing work. Listen to your team and use their input. Serve as a mentor. Model what you want to see. Praise and recognize work and behavior that you want.

Most leaders know what to do, but often become too busy to focus on what employees say matters. But…if you are too busy now to focus on creating an environment that keeps employees, how will you find the time to replace people when they leave?

What matters to your employees?

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Common Manifestations of Employees’ Anticipation of the Unknown

The past few years have brought many changes to companies, good and bad. Although the economy seems to be turning around, many organizations will still be facing major changes to come, mostly for the best. As a leader, realize that employees react to organizational changes in a variety of ways—some positive and some negative. It is important for managers and supervisors to understand that these reactions are simply a normal part of the process employees go through during periods of change. The following are some typical responses to be aware of:

1. “Not me!”
   When employees are asked to do a different job or change the way they currently do a particular job, they may respond by saying, “Not me!” They may suggest that someone else is better suited for the job, or deny that they themselves are capable of making the proposed change. This initial reaction is a result of the satisfaction these employees have with the status quo, and their fear of the unknown.

2. “What will this do to my job security?”
   It is natural for employees to view change first from the perspective of their own job security, and second from the needs of the organization. Employees can’t help but wonder what will happen to their jobs if technological advances are introduced or if downsizing creates organizational restructuring. Will the changes result in less work for them, or even do away with their jobs altogether? Employees are also concerned about what financial impact the changes will have on them.

3. Anger
   Some employees are so resistant to change that they become frustrated and angry. Their anger may be repressed, causing an increased stress level; or overt, resulting in emotional outbursts. Whether repressed or overt, anger is a typical reaction when employees feel a loss of control over their work environment, or worry that their job security is being threatened.

4. Gossip
   Gossip, always an organizational challenge, often escalates during periods of change. Employees who feel a loss of power and control may respond with frustration, anger and disbelief—and resort to vicious gossip or “back-stabbing” activities. Unfortunately, this gossip is detrimental to a positive forward thrust during change.

5. “Who’s in charge here?”
   When a company is restructuring, it is natural for employees to question leadership. Employees who will be working for a new supervisor when the change is implemented may experience difficulty changing their allegiance from one leader to another. And when employees have not been kept in the communication loop and thus do not see the positive results of the changes, they are likely to question the wisdom of the new leadership.

6. Panic!
   Some employees, finding comfort in a predictable routine, panic at the mere mention of change. They worry about changes in the way they normally proceed with their jobs. They may resist, not out of stubbornness, but out of fear about how the changes will impact them personally. They may be too plagued with panic to deal rationally with the “new regime,” and some may actually become physically ill.

7. “I quit!”
   There may be employees who elect to quit rather than make the needed changes. Unfortunately, changes going on in one organization are typical of those going on in other organizations. Electing to stand on one’s principles and fight change by quitting often makes the point, but usually at a cost to the employee, not the organization.

The following positive responses to change usually come from employees who feel a high degree of self-esteem, personal competence and self-confidence. These employees typically have the ability to remain open-minded in response to change, and to view it as a positive thing—for them personally and for the organization. When in alignment with their supervisors, employees with this positive attitude can help support and sell organizational change to other employees. Here are some typical positive responses:

8. “This is a challenge!”
   Some employees view change as a challenge, but are sure they can rise to the occasion, since they feel they have what it takes to be contributing team players when the change affects their work world. They remain open to new ideas, ask questions and feel confident in their ability to acquire the knowledge needed to complete the task. They exhibit a “can do” attitude in their approach to change. They may admit that the task is difficult, the procedure a bit cloudy, and the outcome unknown or questionable, but they are committed to rising to the challenge!

9. Enthusiasm
   Some employees naturally approach life and challenges more enthusiastically than others. Enthusiastic employees embrace change. Instead of trying to pick apart a proposed change and find all the ways it won’t work, they see it as a natural part of an organization’s evolution. Supervisors lucky enough to have enthusiastic employees need to support and nurture them, because their enthusiasm can infect other employees and help make the implementation of change much more palatable for everyone.

10. “Maybe I could adjust to this change . . . .”
    Not all employees embrace change enthusiastically or jump out of their seats ready to accept the challenge. Some watch from the sidelines–but remain open-minded. After a period of observation, they may agree to give the change a chance. While they may not be eager participants in the change process initially, they at least acknowledge the possibility of adjusting to the change. They express a willingness to learn new techniques and procedures and do not sabotage change activities.

11. Positive Vision
    Finally, there are employees who look at the bigger picture and visualize the possibilities. Their positive attitude toward change is based on a broader awareness of the marketplace, the specific industry and their competitive position in it; and an absolute trust in their company’s leadership. Because they feel positive about the company’s future, these employees generate a positive vision to their coworkers and encourage them to have trust during times of change and confusion.

As a leader, what are some other responses that you’ve seen employees have to an organizational change? How did you help them cope?

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Revisiting the Performance Appraisal Process

Performance appraisals can be an organization’s greatest leadership tool. So why are performance appraisals often “the job nobody wants”? This is because of the way the appraisal process is designed and implemented. Organizations that establish their strategic objectives and values, design their appraisal system to specifically measure progress toward these objectives, and involve their employees in the process report substantial increases in productivity and morale, and outperform organizations without performance management systems in almost every measurable financial and productivity category.

Many of the organizations we work with have experienced dramatic changes in both the way people work and the actual outcomes of the work when they developed a different approach to their appraisal system. Their new system clearly outlines individual performance objectives, provides employees with feedback about areas of success and areas needing improvement, and recognizes employees for their contributions to the organization.

We are often asked to help organizations looking for a boost in productivity and morale. What we find are employees who frequently express the same concern…“It doesn’t matter how hard I work or how much value I add to the organization, I get the same recognition and reward as my co-workers who contribute substantially less.” In these organizations, performance management centers on unclear statements of business objectives, and feedback is reduced to uncomfortable discussions of personality traits. Even worse, rewards are seen as either whimsical, bearing no relation to performance, or as ironclad entitlements that follow cycles as predictable as the seasons. In either case, there is no motivation for employees to improve their performance.

Our Employee Opinion Survey Benchmark of the top twenty-five percent of the companies that we have surveyed clearly demonstrates that in organizations where managers provide employees with constructive feedback and timely performance appraisals, employees report better teamwork, higher morale, and an increased ability to accept and implement constructive feedback. Organizations with structured performance appraisal systems also boast of organizational growth beyond the projected measurements.

To capture these benefits, be sure that your performance appraisal system addresses the following ten key elements:

1. Align individual performance expectations with the organization’s vision and values

   A successful performance appraisal system always starts with a clear definition of the organization’s vision, strategic objectives, goals, and values. After this is established, align performance expectations for each position with the organization’s strategic objectives by clearly defining what is expected for each position, and ensuring that each performance measure directly supports the organization’s strategic objectives and goals.

2. Measure key results and competencies

   Key results define what is to be accomplished, or the job’s end result, for example, the number of parts to be manufactured or the amount of sales. Competencies reflect the organization’s values and describe what the organization feels is important in regards to how the work is to be accomplished, e.g., teamwork, initiative, communication. Measuring both key results and competencies is critical to an effective performance appraisal process.

3. Appraise clearly defined performance expectations

   Employees must know exactly what they are to accomplish if they are truly expected to add value to the organization. Performance expectations should be objective and data-oriented, and should be designed to allow employees to count, rank, or rate their progress on a regular basis so that they can make adjustments as needed. Employees should be able to accurately evaluate their own performance and should not be “taken by surprise” at the annual performance appraisal meeting.

4. Work together to develop performance expectations

   Employees who have a role in developing their own performance expectations are more likely to view the goals as achievable and to make a greater commitment to accomplishing the goals. Individuals who help develop their objectives have a greater understanding about the link between their job and the organization’s larger purpose. Employees who clearly see their role in the organization’s success are substantially more motivated.

5. Provide frequent and timely feedback

   Measures alone will have little impact on performance if they are not translated into feedback or rewards. Feedback should be frequent and provided at regular intervals throughout the appraisal period. Feedback must be timely enough to allow employees an opportunity to make appropriate adjustments. A simple way to frustrate employees is to withhold feedback until the annual appraisal when it is too late for the employee to do anything to improve.

6. Conduct performance appraisals as scheduled

   Managers and supervisors who conduct performance appraisals on time send a message loud and clear to their employees that says, “I care about you. Your performance and success is important to me and the organization.” By contrast, managers who delay performance evaluations also send a clear message that employees interpret as, “I expect you to meet your goals, but I’m not really interested in you or your success.” The appraisal should be representative of performance throughout the entire appraisal period not just the week before the appraisal meeting.

7. Encourage employees to conduct a self-appraisal

   Organizations that promote self-appraisal as part of the annual appraisal process report increased productivity and greater rapport between supervisor and employees. Employees that participate in the appraisal are more familiar with their standards of performance, work harder to exceed the standards, and come to the appraisal meeting prepared to identify ways to improve rather than passively wait for their supervisor to “pass judgment” on them.

8. Evaluate employee performance against established performance standards

   Performance should be compared against standards of acceptable performance for the position, not to a co-worker’s on-the-job performance. A system that compares employees to each other, requires managers to rank order employees, or evaluates performance on a curve, is a sure way to undermine teamwork, communication, and morale.

9. Schedule training on the appraisal process

   Successful implementation of the appraisal process is the responsibility of every employee. The organization’s responsibility is to provide adequate training for every employee to ensure that the program is implemented successfully at every level. In addition, it is important to provide managers and supervisors with training on coaching, providing constructive feedback, and effectively dealing with performance problems and difficult employees.

10. Demonstrate management commitment

    A successful performance appraisal system starts at the top of the organization. Senior managers must be committed to the program. Commitment is best demonstrated by managers who work with their employees to define performance expectations, help them develop skills to meet the expectations, and conduct performance appraisals on time.

When managers and supervisors view performance appraisals as part of an ongoing process which can positively lead to improved employee performance, there are far-reaching benefits not only for the individual, but also for the organization as a whole. Managers with that perspective no longer view conducting performance appraisals as “the job nobody wants.” Instead, they recognize the valuable treasure of this leadership tool.

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Handling talented, but toxic, employees

May 2010 Quest for Workplace Excellence

When you think of the driving force behind the choices of leaders when coaching employees, what emotion comes to mind? Is it appreciation? How about passion? Optimism? For many managers it is those. For some managers, unfortunately, the driving force is fear. Fear of what an employee will say or do if things do not go their way.

These employees who are causing fear in leaders are typically the employees who are the top performers, obtaining great results, but are still managing to leave a path of destruction behind them. They are not pleasant to work with. They throw fits. They threaten to quit. Never are they accountable for their actions, and if they are held accountable, giving the manager the cold shoulder is a common response. However, because of extensive knowledge, experience, etc., they are, or at least they convince others that they are, indispensable. This gives them leverage, and they use their talents to drive fear into their managers by holding them hostage.

If you have an employee like this, but still manage to find yourself thinking, “I don’t know what I would do without them,” you may be in treacherous waters. It could be the employee that strolls in late everyday, but is the contact person for your major accounts and seems to know all the customer needs to a “T.” Or maybe it’s the intelligent, but easily angered, employee who has knowledge of complex systems within the company that no one else knows. You are right when you say that you don’t know what you would do without them, because being without them is a scary thought. But it is possible. These employees hold you hostage on purpose and threaten to make you walk the proverbial plank if you do not comply.

It is important to remember what we have said time and time again: the difference between a leader and a manager lies in one word: power. Managers get their power from a title that is based on an organizational chart. Based on a manager’s position, they have the power to tell a certain group of people what to do. A leader may or may not have a formal title and/or position of authority, but they have a relationship with people where others make the decision to follow them. A great question to ask is: if you left your current organization and became a manager in a new organization, would your direct reports follow? Would they still follow you if the salary was the same or a little less? If no one is following you, you are merely taking a walk.

When you don’t do what you should do to hold your direct reports accountable, and you avoid doing so out of fear, you are neither a leader nor a manager: you are a HOSTAGE!

To be a leader, you need to be respected. When an employee holds you hostage, they are showing that they don’t respect you, even though the employee doesn’t come and tell you to your face. A bigger problem is that everyone on your team sees that you don’t hold the deviant employee liable and the rest of the team may begin to lose respect for you.

Here are 10 tips to release your hostage bonds and start down the path to re-claim your position of manager and relationship status of leader.

1. Lean in and get closer to the employee. Employees who hold their managers hostage effectively do so because they know their manager is hesitant or lacks the confidence to talk to them about the issue. When employees exhibit behaviors that undermine the success of the organization, team or manager, these behaviors need to be addressed in a timely manner.

2. Don’t manage by hope and hint. When an employee does something they are not supposed to do, tell them exactly what you need them to do differently and when you need them to do it in order to be a successful member of the team.

3. Utilize the strategy, “notify now, meet later.” If you have let the employee know about the importance of arriving to work on time, the next time they come to work late, say something like, “John, we need to talk about your contributions to the team. I don’t have the time right at the moment but I want to meet with you at 4:00 pm today.” This accomplishes two things. First, it immediately lets the employee know that the behavior is a problem for you. Second, it lets the employee think about the meeting during the day and that, most likely, is a good thing. Last, it allows you time as the manager to carefully think about what you want to say, or the questions you want to ask, in order to gain agreement that there is a problem.

4. Clear your strategy with your boss and HR. What you don’t want is for the employee to go around you, to your boss and have your boss side with the employee over fear of what the employee might do. When the employee says, “I am going to HR or your boss,” if you have reviewed your strategy and both HR and your boss are on the same page with you, you can look the employee in the eye and say, “Going to HR and/or my boss is a great idea. Would you like me to help you get the meetings set up?”

5. Follow up. During your meeting to discuss your employee’s accountability, set up the next meeting to review their progress. To ensure that the meeting will happen, be sure to put it into both of your calendars.

6. Expect the J Curve. When you begin to hold people accountable who resent the fact you are asking them to change their behaviors, many times the relationship gets worse before it improves. For example, prior to meeting with an employee, he communicated with me very little about the progress of his projects (the end of the small curve on the letter J). After I met with him about turning his projects in complete and on time, he stopped communicating with me altogether. (The relationship gets worse – moves into the lower part of the J curve). As we worked through the problems and he turned in his projects on time, he felt better about his performance and the relationship rose much higher up the stem of the letter J than before. Knowing the J curve, when the relationship declines, you can say, “I thought that might happen,” and you shouldn’t let it bother you.

7. Remember the truth. Employees who threaten to quit over being held accountable, very seldom actually follow through on their threat. The reason that most employees don’t quit is because when they think about having to find a new job, they quickly remember that any new employer is not going to put up with their attitude. They will have to change even more for a new employer than they would when correcting the problem you are currently discussing with them.

8. Cross-train others. This is suggested not only for employees that hold you hostage, but also for any employee that has specific knowledge or skills in your organization that no one else has. When this knowledge is shared with at least one other person, the threat of the employee leaving is greatly decreased, because, when and if they leave, you won’t be up the creek without a paddle.

9. Document. It is also important to record all processes and procedures so that this knowledge is accessible and preserved. Be sure to inform all employees of this practice and let them know that this is a priority. They key with this is to follow up to ensure that processes and procedures are recorded.

10. Have the guts to take big action! If the employee is not going to change, then you need to regain your leadership title the old fashion way. Coach them. Counsel them. Train them. Document your process with HR’s help. When all this does not work, SHARE THEM WITH YOUR BEST COMPETITOR. There is no greater strategic planning action than to take the employee who causes you the greatest grief, and give them to your competitor to screw up their business plan.

    When interviewing to fill their position, ask candidates, “How do you feel about helping out in the ______ department?” The employees’ responses will give you insight as to whether you have another prima donna on your hands or a great new team member who will be eager to help colleagues, resulting in shared knowledge. When you begin to work on cool stuff with your new employee, your competitor will be thinking, “How did I even get into this hostage situation?”

When you can finally remove the word Hostage from your business cards, you will once again be able to say, “I love my job!”

Have you had any experience with being held “hostage” by one of your employees? How did you change things to ensure it never happened again?

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You may also like:

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