Blog Archives

CEO Jobs are Dramatically Hard: Grow Leadership Talent from Within

CEO Jobs are Dramatically Hard: Grow Leadership Talent from Within

About 40 percent of CEOs disappoint within 18 months. These probabilities, plus demands placed on leaders, have caused a recession in senior executives who want the top position (from 50 to 35 percent in the last four years). Furthermore, CEO turnover is at a five-year high.

Who will lead companies in the future? This question has caused a leadership succession and development agitation. Boards are more apprehensive about finding executive talent wherever they can.

In his book Searching for a Corporate Savior, Rakesh Khurana, professor at Harvard University, proposes that looking outside for a CEO successor is part of a growing “irrational quest for charismatic chief executives” (selection of outside CEOs has gone from 6 to 50 percent in recent years). Fearing boards may be concentrating on the qualities of presence, personality, and media appeal rather than character and competence, he gives seven guidelines for finding successors:

  1. abandon hope for a corporate savior
  2. translate company strategy into operational terms
  3. identify skills required for key activities (activity/competency mapping)
  4. assess internal candidates
  5. search for external candidates
  6. test and choose from a short-list
  7. calibrate goals, milestones, and compensation to drivers of success.

'Searching for a Corporate Savior' by Rakesh Khurana (ISBN 0691120390) Khurana supports internal development of candidates, but admits that developing home-grown talent is not the only course.

After studying 276 companies that have decent track records at growing home-grown talent, The Corporate Leadership Counsel defined seven Hallmarks of Leadership Success:

  1. a culture of development
  2. enforcing development
  3. recruiting senior executives
  4. the power of meritocracy
  5. full business exposure for rising executives
  6. a focus on leadership skills in successor identification
  7. succession management.

Companies that are great at developing future leaders invest much time in fostering a candidate pool. As managers gain the essential training, coaching, on-the-job experience, they join an internal pool of high-potential candidates. But what divides the good processes from great ones is an emphasis on self-development.

'The Hero's Farewell' by Jeffrey Sonnenfeld (ISBN 0195065832) Jeffrey Sonnenfeld, former Dean of the Yale School of Management, calls this “an unrelenting drive for self-improvement.” You spot senior talent not just from their activities, but how they attain them. When great companies search for talent, they look for certain qualities.

In his book The Hero’s Farewell, Sonnenfeld classifies executives as Monarchs, Generals, Ambassadors, and Governors. Each has distinctive exit behavior related to the manner in which they identify with the title and role of CEO. Of these, three of the four classifications cause problems for incoming CEOs.

  1. Monarchs stay on the job until they die or are overthrown
  2. Generals leave reluctantly and look for ways to return to active service
  3. Ambassadors leave gracefully but maintain active, low-key relationships in the company
  4. Governors leave and go on to serve in other areas.

Monarchs suppress internal talent development because they can’t endure contest for their roles. Generals and ambassadors often restrict with or undermine incoming CEOs. Unluckily, boards tolerate monarch, general, and ambassador behavior.

All this leads me to conclude: Work harder on growing internal talent. You can improve your odds beyond 50:50 by doing the hard, but rewarding, work of developing more leaders internally.

While companies must often look outside for talent, having an effective process for developing leaders guarantees that you will have great candidates when the time comes to add or replace executive talent.

Tagged
Posted in Management and Leadership

Best Practices for Managing Remote Employees

Virtual Team Management

Virtual Team Management As managers seek ways to cut costs, increase revenue and spark innovation, and employees strive for a better work-life balance, a mutually beneficial solution—telecommuting—is on the rise. In the U.S. alone, there are 28 million telecommuters, expected to double to 50 million by 2005.

To benefit, remote workers need the right tools to connect with colleagues, applications, and information. When telecommuters feel isolated, they become disconnected from current priorities and miss opportunities to contribute to their highest potential.

Afore undergoing its last earthly transformation, the external covering of the virtual team management, from the moment of its conception as an virtual team, passes in turn, once more, through the phases of the several companies.

The solution that addresses the challenge is a virtual e-workplace that provides employees with access to information and a broad set of Internet-based collaborative technologies, such as e-meetings, e-learning, and instant messaging designed to make them more nimble.

Ways to Successfully Manage Virtual Teams

Ways to Successfully Manage Virtual Teams An e-workplace provides users with a single point of access for the right technology tools to immediately access information, collaborate with colleagues, and participate in online training courses to improve skills. Virtual employees can streamline work by accessing information customized for their roles. For example, a salesperson might need access to information on products, customers, and competitors and connect with people who can address customer issues, provide expertise, or share best practices.

Another example is eHR. Integrating eHR capabilities into your e-workplace enables remote workers to attend to personal needs, such as understanding their health care benefit options, without having to speak with an HR professional. An e-workplace bolsters efficiencies and provides more flexibility. When they have left the countries to which their doctrines were unacceptable, and established themselves in a remote corner of the earth, this is neither possible nor desirable.

Building and Managing Virtual Teams that Work

Building and Managing Virtual Teams that Work Many organizations have an intranet in place. Large businesses can have as many as 300 to 10,000 intranet pages, each with their own look and feel and navigational construct. In this case, employees lose productivity searching for information. By consolidating these pages into one e-workplace and integrating team-based technology solutions, productivity and the quality of communication can skyrocket.

With team-based technologies, users, and remote workers can instantly form virtual teams and collaborate on the fly right from the intranet to respond to market changes. For example, if your intranet includes a corporate directory with connections into team-based technologies, users can rapidly find colleagues with a certain expertise and see where they fit. Aware of this context, the user can initiate contact through appropriate channels. These are not questions of liberty, and are connected with that subject only by remote tendencies; but they are questions of development.

For example, the user can see if the expert is online, click on the expert’s name, and instantly contact him or her via an instant message or in an e-meeting. The user could also create a virtual team room and invite the expert to comment on documents created and posted within the team room. Without an integrated e-workplace program, employees must navigate on their own to find expertise.

By giving people access to the information and experts they need at their fingertips, an e-workplace enables remote workers to be more productive, maintain their competitive edge, and respond quickly and accurately to demands from customers and partners.

IBM, for example, has achieved big benefits from its e-workplace program. The intranet has helped us to cut costs, saving an average of $10,000 per employee who goes “mobile,” meaning they give up their dedicated office space. In addition, employees conduct more than 8,000 e-meetings per month, saving us about $50 million per year in reclaimed travel and productivity costs.

Must-Know Strategies for Managing Virtual Teams

Must-Know Strategies for Managing Virtual Teams e-Workplaces increase collaboration among virtual teams. IBM’s e-workplace allows me to bring in the right expertise, regardless of their location.

As a manager of a remote team, you need to measure people based on their accomplishments and deliverables. Support their activities by ensuring that they have what they need to succeed.

Here are four guidelines:

  • Establish a purpose. Ensure that each virtual team member has a defined purpose and objectives against which they will be measured. When remote workers have goals and incentives for reaching those goals, they are more motivated and productive. Create a training schedule for your e-learning program, so that people are learning new skills.
  • Measure the output, not the process. Virtual teams are more structured than teams located in the same office. Since face-to-face meetings are not practical, you must adopt other ways to communicate and seek approvals. Managers of virtual teams should create a culture of trust, be available through instant messaging for quick questions, hold conference calls to identify when a project is off track, and make use of instant messaging, e-meetings, and team workspaces. Focus on output, not hours.
  • Balance between virtual and face-to-face meetings. While e-meetings are great for keeping up with progress, they are not so great for team building. Face-to-face meetings, for example, are important for brainstorming sessions, building trust, and getting to know each other. Schedule face-to-face gatherings quarterly to foster team building, rapport, and communication among team members.
  • Use presence awareness to show your virtual office door is open. Presence awareness technology embedded in an e-workplace will let your reports know when you are available to discuss progress, answer a quick question, or to chat about their concerns. It can also alert your staff if you are online via a mobile phone, so they know to keep messages short or call on the phone.

Managing the Virtual Team

Managing the Virtual Team Virtual teaming and telecommuting are necessary responses to our global economy. People are able to grasp the strength of the emotion out of which alone such work, remote as it is from the immediate realities of life, can issue. With an e-workplace, people can interact with more colleagues, break down barriers, respond more rapidly to customers, make decisions faster, and be more productive.

By placing the desired behavior along the path of least resistance, we turn it into the behavior we’re most likely to repeat. And the more we repeat it, the more likely it is to become a habit, and the less and less we need it to lie along the path of least resistance.

Tagged
Posted in Education and Career Management and Leadership

The Intrapreneur’s Ten Commandments

'The Entrepreneurial Mindset' by Rita Gunther McGrath (ISBN 0875848346) Gifford Pinchot III, the creator of the word intrapreneur created 10 commandments:

  1. Come to work each day willing to be fired.
  2. Circumvent any orders aimed at stopping your dream.
  3. Do any job needed to make your project work, regardless of your job description.
  4. Find people to help you.
  5. Follow you intuition about the people you choose, and work only with the best.
  6. Work underground as long as you can – publicity triggers the corporate immune system.
  7. Never bet on a race unless you are running in it.
  8. Remember, it is easier to ask for forgiveness than permission.
  9. Be true to your goals, but be realistic about the ways to achieve them.
  10. Honor your sponsors.

Later Gifford Pinchot III added six more commandments,

  1. Ask for advice before asking for resources.
  2. Express gratitude.
  3. Build your team; intrapreneuring is not a solo activity.
  4. Share credit widely.
  5. Keep the best interests of the company and its customers in mind, especially when you have to bend the rules or circumvent the bureaucracy.
  6. Don’t ask to be fired; even as you bend the rules and act without permission, use all the political skill you and your sponsors can muster to move the project forward without making waves.

Gifford Pinchot - Intrapreneur's Ten Commandments Gifford Pinchot III is also the grandson of the first Chief of the United States Forest Service and the 28th Governor of Pennsylvania, Gifford Pinchot. The younger Pinchot has been distinguished for carrying on his grandfather’s work in environmentalism. In fact, Gifford Pinchot was an innovator of U.S. forestry and conservation and public official. With Theodore Roosevelt, Pinchot helped to found the Bull Moose Party in 1912. From 1923 to 1927 and from 1931 to 1935 he was governor of Pennsylvania. In his first term, he forced a restructuring of the state government and the establishment of a budget system. He settled a coal strike by mediation in 1923. Pinchot’s autobiography, Breaking New Ground, was published after his death in 1947.

Tagged
Posted in Education and Career Management and Leadership

How to Build Trust in a New Job

How to Build Trust in a New Job

Many leaders in transition often do things that damage their career success. Leaders are most vulnerable during this time because they are developing new relationships, trying to affect change, and feeling pressure to meet the high expectations of others.

To put these principles into action, leaders need a six-point agenda:

  • Get an early start. Before starting a new position, learn about the company’s history, culture, strategy, competitors, and learn the names and responsibilities of colleagues.
  • Meet and greet. Meet as many people as possible, especially the informal leaders or influencers. Tools such as email, voice mail, or the company newsletter are helpful, but should not replace face-to-face meetings. Many leaders get too caught up in pleasing the boss, or in solving problems, at the expense of those who will execute the changes. Making time to listen to even the most disgruntled employees will pay off in more trust and connection.
  • Learn the critical success factors. Identify areas where the most impact or improvement can be made. Focus on one or two, ask a lot of questions, get input from key opinion-makers, and when make recommendations, back them up. Also learn what is going well, and how to leverage those areas by building continuity from the old to the new.

Learn the critical success factors.

  • Set clear priorities. At the start of any new role, you need to decipher what is important, and what is not. And then constantly reassess the message. In developing your top priorities and vision, you will gain a dear focus, demonstrate credibility, and establish a clear cause for people below to rally behind. Make sure to involve key people, as they will offer more support for what they helped create.
  • Secure early wins. During the first 100 days, a leader wants people to feel that something is different, something good is happening. Celebrate some early successes to gain the confidence of followers. To secure early wins, first identify problems that can be tackled and solved quickly, and whose solutions will yield highly visible results. These few small wins will also demonstrate competence and consistency that provides the trust for larger initiatives.
  • Plant seeds for the future. The momentum that began with small wins must be leveraged to support your longer-range vision of the future. Small change is easy, but transformational change will require coalitions of support. By including a few key individuals in your planning, you will build “referent trust” that will cascade to a broader audience as you move forward.

Sure distrust is high, leaders need to build trust early in their tenure.

Tagged
Posted in Education and Career

Career Success Depends on Your Ability to Motivate Individuals and Teams to Get the Right Results

Nothing leaders do is more significant than getting results. But you can’t get many results by yourself—you need people to help you. And the best way to have others help you is by motivating them to accomplish results. The old paradigm, which says revenue growth and shareholder-value growth are interrelated, does not go far enough toward clarifying how the best companies produce value. Try using these three motivation principles.

Principle #1 of Motivation: Motivation is Material Accomplishment

Ways to Increase Employee Motivation “Motivation” has common roots with “motor,” “momentum,” “motion,” and “mobile.” These words represent movement and action. Motivation isn’t about what people think or feel but what they do. When motivating people to get results, challenge them to take those actions that will achieve desired results.

You will be more competitive when your people, instead of being ordered to go from point A to point B, want to go from point A to point B. They will “want to” when they believe in your leadership. This predisposition cannot be helped because of indispensable variances in the program designers’ backgrounds. But eventually, a single approach is too constricted. To design learning experiences that work, leadership training will have to integrate more meritoriously all four approaches into a solitary program. Consequently, leadership training has budged toward teaching managers and executives how to expect what is on their industry skyline and how to mobilize their organization to shape the future.

The first step in conscripting their belief in your leadership is for you believe in them and to value the work they do. Express your belief that they can get the results you are asking of them. Tell them how much you appreciate their hard work. For many companies, leadership training then basically befalls a quick-fix answer to greater problems.

But believing is not enough. Motivation means people take the precise actions they need to take to make happen what you want to have happen. Encourage people to write down three precise things that they need from you to help them get increased results.

Principle #2 of Motivation: Motivation is Propelled by Emotion

The Meaning of Motivation in Management Emotion and motion come from the same Latin root meaning “to move”. When you want to move people to take action, engage their emotions. People need a strong emotional commitment (motivation) to take action and realize the goal. The key is to visualize the future as having numerous possibilities and to develop intuition about relative probability by revealing ourselves to a wide gamut of successes and failures.

When I explained this to the chief marketing officer of a services company, he said, “Now I know why we’re not growing! We (senior leaders) established our marketing strategy in a bunker! He showed me his 40-page strategy document. The points were logical, consistent, and all-inclusive. It made perfect sense—to the senior leaders. But it did not make experiential sense to the people who had to carry it out. Since they had no input into the strategy, they disrupted the implementation in many innovative ways. Only when people are motivated—emotionally committed—to functioning the strategy, does it have a chance to succeed.

Principle #3 of Motivation: Inspiration is What Others Do to Themselves, Not What You Do to Them

You and I can’t motivate anybody to do anything. The people we want to motivate can only motivate themselves. The motivator and motivatee are always the same person. Leaders communicate, but individuals must motivate themselves. So, our “motivating” others to get results really entails our creating an atmosphere in which they can motivate themselves to get those results. On top of that, there is the very important role of setting direction and in communicating that direction.

Create the Right Climate to Motivate Employees For example, one leader almost encountered a mutiny when he presented next year’s goals—numbers much higher than the previous year’s goals. The staff went ballistic. “You expect us to get much higher numbers? No way!” He told me. “I know we can hit those numbers. I just have to get my people motivated!” I recommended that he create an environment in which his people could motivate themselves. So, he had them measure what activities got results. They discovered that they spent 60 percent of their time on work that had nothing to do with getting results. He then had them develop a plan to eliminate the pointless work. Once in charge of their own destiny, they got motivated! They established a great plan and started to get great results.

A good number of leadership programs have a half-life of a few days or weeks after the conferences close. Few have established passable transfer mechanisms to bring leadership skills back alive to the office, and most are captives of a single pedagogic method that imitates the teaching of their instructors.

Create the Right Climate to Motivate Employees

At the moment, there are adequate incentives for people to perform, based on the recognition that they accomplish what we thought they should to achieve. The point is that there are people to talk to who have an in-depth, long-term appreciation of the company and who know what is really going on.

Your career success depends on the ability of managers to motivate individuals and teams to get the results. The best ways to recognize others and celebrate accomplishments is best done by:

# setting high standards,

# discovering people doing things right,

# being innovative with rewards,

# acknowledging others in public, and

# personalizing rewards.

Tagged
Posted in Education and Career

Best Practices for Onboarding New Employees: Maximizing Success

Benefits of Employee Retention Strategies

Guide to Employee Onboarding Best Practices

Often new hires leave too early for an organization to enjoy a return on its recruiting investment. The relationship between manager and new hire is critical to retention and performance. Managers can unleash the energy of their new hires by engaging them in a series of structured, powerful conversations over the first few weeks. By focusing these conversations on six sources of power, managers can connect early and cultivate more productive, motivated, and committed workers. These are: power from relationships, passion, challenges, focus, balance, and intention.

New hires often come fully charged, excited about their new adventure, and filled with energy and potential. By tapping into that energy, knowledge and wisdom right from the start, you can maximize the new hire’s potential, extend the handshake, and fuel that energy well past the beginning of the employment cycle.

While recruitment continues to be one of the most costly human resource processes, its longer-term effectiveness is being eroded by high attrition. Hiring doesn’t stop with the job offer. Today re-recruiting your best people is as critical as hiring them in the first place.

Often new hires leave too early for an organization to enjoy a return on its recruiting investment. And if they stay, are they productive, engaged, loyal, and committed? Have they simply “checked in” or are they “tuned in” and “turned on” as well?

The relationship between manager and new hire is critical to retention and performance. To increase retention and build loyalty during that critical first year, start by building the relationship between new hires and their managers.

Unleashing the Energy: New Employee Onboarding

Unleashing the Energy: New Employee Onboarding Improving first-year retention, decreasing time-to-productivity, and building loyalty and commitment are directly related to how quickly managers develop quality relationships with new hires.

Managers can unleash the energy of their new hires by engaging them in a series of structured, powerful conversations over the first few weeks. By focusing these conversations on six sources of power, managers can connect early and cultivate more productive, motivated, and committed workers.

  • Power from Relationship. There is no greater predictor of retention and engagement than the quality of the relationship between new hires and their managers and colleagues. The closer these bonds, the more new hires trust management, the more they feel cared for and valued, and the greater their focus, productivity, and satisfaction.
  • Power from Passion. People are more passionate about their work when they use their talents and skills to work on tasks and projects that interest them in environments that are consistent with the ways they prefer to work. Managers need to recognize their new hires’ skills, honor their interests, and leverage their strengths.
  • Power from Challenge. People get excited about their jobs (and stay excited) when they learn and grow in ways that have meaning for them. Managers need to become better talent scouts, and recognize potential when they see it. They need to provide for continued development and challenge.
  • Power from Focus. People are more committed when they know what the organization is trying to achieve, and how they can contribute to those outcomes. Managers must help new hires learn to navigate; understand the purpose, mission, and objectives; and appreciate how their efforts serve those goals.
  • Power from Balance. People’s lives extend well beyond the workplace. They have families, friends, lovers, and children to care for. They have finances to manage and households to maintain. They want to stay vibrant and healthy. They want to play and have time for themselves. Managers must make room for new hires and their whole lives.
  • Power from Intention. Managers and their new hires must follow through to earn the commitment and loyalty they both want: What new skills will they develop the first year, and how? What new areas will they explore, and how? What relationships are important to establish? How will the manager or new hire flex to make the relationship work best? What results will new hires be responsible for? How will they be rewarded? What support will the manager provide? It takes more than talk-new hires need to see tangible progress.

Benefits of Employee Retention Strategies

Best Practices for Onboarding New Employees: Maximizing Success What does the organization get in return? Here are a few bottom-line results:

  • Improved first-year retention rates. Engaging new employees early in shaping their jobs, designing their development, and building relationships can decrease first-year attrition.
  • Decreased time-to-productivity. Encouraging managers to be clear about what exactly is expected, and discuss how well new employees are learning their responsibilities can decrease the time required for new hires to get “up to speed.” They will contribute more, and do so more rapidly.
  • Reduced recruiting costs. Convincing new hires that they made the right choice can result in an increase in recruits referred by recent hires. Some organizations attract 70 percent of their new hires from recent hire referrals, reducing recruiting costs significantly.
  • Increased productivity. Making it possible for people to do what they do best, allowing them to pursue their interests, and building meaningful relationships can lead to higher productivity, increased customer satisfaction, and enhanced profitability.
  • Brand development. The more your become known as a great place to work, as an organization that cares about its employees, the more easily you attract the best and the brightest.
Tagged
Posted in Education and Career Management and Leadership

Susan Decker Got an Internship Doing a Magic Card Trick

An noteworthy anecdote on Susan Decker from ‘Marissa Mayer and the Fight to Save Yahoo’ by Nicholas Carlson:

'Marissa Mayer and the Fight to Save Yahoo' by Nicholas Carlson (ISBN 1455556610) During her first year in graduate school at Harward Business School, Decker interviewed at a small investment bank called Donaldson, Lufkin & Jenrette.

Decker hadn’t held a full-time job between college and graduate school, so, on her resume, she listed some of the odd jobs she’d done for money. One of them was “professional magician.” It was a stretch. Decker had once performed for a bunch of six-year-olds and made a little money.

Of course, the DLJ interviewers asked her about her magic skills.

Decker was one of those shy people who force themselves to dive into uncomfortable situations because they know that’s the only way they are going to get what they want out oflife. Decker dove in. She said to her interviewers: “Would you like to see a trick?”

They took the bait. Decker said she had an invisible deck of cards in her pocket. She made a show of taking it out and handed it to one of the interviewers. She said: “Pick a card, any card.”

She said: “What’s the card?”

The interviewer played along, made up a card, and said, “It was the eight of hearts.”

Decker pulled out a real deck of cards from her pocket. She fanned out the cards-only ene was face down. Decker turned it over: the 8 of hearts.

She got the internship.

Susan Decker Got an Internship Doing a Magic Trick Susan Decker most famously became president of Yahoo! Inc. and was passed over many a time for the role of Yahoo’s CEO. During her stint at Yahoo, while reporting to a revolving door of CEOs, she defended Yahoo’s business model. At a keynote for the 2008 Advertising 2.0 New York conference, Decker remarked on the transformation in the advertising industry as well as the opportunities and solutions for advertisers, ad agencies, and publishers. Decker asserted that new advertising products, technologies and platforms will make it more efficient to reach consumers. Decker also talked about the importance of striking the right balance between monetization and the customer experience:

Yahoo! is helping to accelerate the transformation of how display advertising is both bought and sold … First, we are developing the technology, products and platforms that are designed to help advertisers find the right audiences and publishers find the right advertisers. Second, we are partnering with publishers to secure and monetize inventory that advertisers and agencies find desirable. And third, we are partnering with advertisers and agencies to channel demand to the right consumer.

Susan Decker holds independent directorships at Warren Buffett’s Berkshire Hathaway, Intel, Costco, and LegalZoom. Charlie Munger, Warren Buffett’s business partner is also on the board of directors at Berkshire Hathaway and Costco. Bill Gates is also on the board at Berkshire Hathaway. His father, William H. Gates Sr., is also on the board at Costco.

Tagged
Posted in Education and Career

Knowledge is Never Really Acquired

A portrait statue of Socrates The famous statement, “All I know is that I do not know,” is attributed-questionably, according to some scholars-to the ancient Greek philosopher Socrates (c. 470-399 BCE), based on two dialogues written by his disciple Plato (c. 424-c. 348 BCE).

In The Republic (c. 360 BCE), Socrates concludes a discussion with Thrasymachus on “justice” by saying, “the result of the discussion, as far as I’m concerned, is that I know nothing, for when I don’t know what justice is, I’ll hardly know whether it is a kind of virtue or not, or whether a person who has it is happy or unhappy.”

In The Apology (399 BCE), Socrates says of a well-respected politician that “he knows nothing, and thinks that he knows; I neither know nor think that I know.” The resulting slogan was adopted by later thinkers and incorporated into the tradition that became known as “Academic Skepticism.” Rather than believing that it is impossible to know anything, Academic Skeptics actually claim only that we can know very little about reality—namely, truths of logic and mathematics. This contrasts with Pyrrhonian skepticism, which involves an attitude of doubting every positive judgment, including logic and mathematics.

A serious problem with Socrates’s statements is that he seems committed to an incoherent position. If he truly does not know anything, then it is false that he knows that; but if he does know he does not know anything, then it is false that he does not know anything. Thus, the claim “I know that I do not know” is self-defeating (resulting in the statement also being known as the Socratic paradox). In response, many scholars argue that this is an uncharitable reading of Plato. They contend that Socrates’s claims are expressed in a particular context, referring only to specific concepts and not to knowledge generally (“Justice” in The Republic, and “beauty” and “goodness” in The Apology).

Tagged
Posted in Education and Career Philosophy and Wisdom

Talented People Work for More Than Pay

Reevaluate your compensation and rewards to create a performance culture

Reevaluate your compensation and rewards to create a performance culture Many companies are changing how they pay to keep the people they need. People who want to remain on a fast career track need to monitor what is happening to pay and rewards. Companies no longer just use options to get and keep the best people. And, when they move to cash compensation, this creates tax problems for key people.

  • Options underwater? Don’t hold your breath for re-pricing options. But companies are making major option grants to key people. You may not get options on your company stock at the current price for a long time. So, if you are up for pay negotiations, it may be a time for more options.
  • 'Fearless Salary Negotiation' by Josh Doody (ISBN 0692568689) 2020 incentives sparse? Many incentive plans are based on earnings growth for their dollars. And some companies missed their goals near the end of 2020. It is time to look at the measures your incentive plan has for 2021. Do they start where the missed 2020 goals left off? Do you have financial goals that are realistic and based on what your company can do in 2021?
  • Base pay adjustments? This will probably be a 4 percent budget year for most companies. So you need to focus on variable pay in the form of incentives and stock options. Companies set their plans at the start of the year, and even if things get better, they don’t change their budgeting processes easily.

Paying Smart: Time of Transition

Talented People Work for More Than Pay This year will be a watershed year for pay and rewards. The game is changing fast. Leaders will have some critical decisions to make, as companies are transitioning from a period of economic growth to a time of uncertainty. In recent years, everything we did with pay and rewards seemed to work. Now companies need a powerful business case for everything they do. Pay and rewards must add value to the business—good news for a change. But people need to be agile and adaptable.

Hiring is changing—from recruitment that placed a premium on all skills to a situation where hiring is more selective. Companies should build a performance culture employment model. Rather than designing rewards to attract and keep everyone, now they need rewards that are attractive to people who add value. As businesses offer incentives and equity lower in the workforce ranks, it is important to link rewards to what drives growth. Use rewards as the engine to make the company grow again. We now know that stock options are not the “secret sauce” of financial rewards. This gives us a chance to restart equity-sharing strategies.

You need to know how to deal with a workforce that is more “pay and reward savvy.” We will now see a return to basic design elements, including workforce involvement, alignment with business metrics, win-win for company and people, and simplicity.

'Designing Effective Incentive Compensation Plans' by Sal DiFonzo (ISBN 0692568689) Companies need pay and reward solutions that are more cost justified and based on contribution to the business. Talented people work for more than pay: total rewards in the form of providing a compelling and attractive future; individual growth so people continue to add value and adapt as they grow in economic value; a positive workplace where people want to do well; and total pay comprised of base pay, incentives, recognition, celebration and benefits.

Tagged
Posted in Business and Strategy

How to Create a Personal Leadership Brand

How to Create a Personal Leadership Brand The pressures of work are constant. In a world of discombobulated messaging, you can communicate with more impact and integrity by engendering a personal leadership brand. Personal branding can increment mindshare among audiences as much as branding for products can increment market share.

What rate of return do your speeches, interviews, and visits with customers and partners generate? What impact do these efforts have on your bottom line? A high Return on Communication means that with every interaction, you meet one or more strategic objectives, deliver clear messages that people understand and remember, and enhance your brand and the company’s brand. Executive branding ensures that the time and money you spend on communication translate into desired business outcomes.

Senior executives often communicate without making much of an impression. Either they don’t say anything memorable, or they are remembered for all the wrong reasons-a bad media quote, poor slides, annoying body language. Worst case: their communication is mistrusted and misinterpreted, achieving exactly the opposite of what they intend. High turnover rates and a paucity of effective leaders suggest either that there’s no correlation between studying leadership and leading or that the scientific approach could benefit from a bit more art.

Personal Branding Building a brand is about creating value for other people. The business reasons for executive branding are pellucid: the CEO’s reputation accounts for about a moiety of the reputation of the company; the CEO’s personal brand impacts employee allegiance and resilience; and a brand is the premium that shareholders are disposed to pay for the stock or the product. No bellwether can leave to chance the way that he or she is perceived.

While many leaders know how to brand companies and products, few know how to brand themselves. Why go to the trouble? Let’s look at what personal branding can do for you:

  • Differentiation: A personal brand differentiates you from others, enabling you to stand out and be memorable.
  • Consistency: A personal brand ensures that you are consistent-reliably the same in situations, which creates trust. People know what to expect of you, and you communicate from the same platform, whether announcing good news or bad news.
  • Clarity: When you have a brand, you stand for something. Your brand leverages the power of clear non-verbal messages, and helps determine the verbal messages you want to convey.
  • Authenticity: Personal branding allows you to speak with authenticity. Your brand communicates who you are. When leaders speak with sincerity, they are much more persuasive than when they speak the party line.

There’s been an increased interest in leadership presence over the last few years, perhaps because simply being present has become one of the chief executive obstacles in our highly distracting 24/7 culture. The spread of highly injuctively authorizing, even invasive, technologies is no doubt partly to inculpate. But many organizational cultures have in effect become toxic, which is a designator of pristinely human failure. If we can’t muster up the presence of mind to recognize this state of affairs, we have little chance of learning better leadership.

Tagged
Posted in Education and Career Philosophy and Wisdom