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John Paul Kotter and Psychological Contract

The celebrated leadership authority and educator John Paul Kotter argued in opposition to the anthropomorphizing of the organization, insisting that it was not organizations which embraced perceptions but rather individuals within those organizations.

'Leading Change' by John Kotter (ISBN 1422186431) Kotter discussed the psychological contract as a coordinating of expectations, where matched expectations lead to higher employee contentment and less turnover. He explained misaligned expectations in terms of a “psychological contract.” He described this as “an implicit contract between an individual and the organization which specifies what each expects to give and receive from each other in a relationship.”

The notion of the psychological contract refers to the perceptions of reciprocal obligations to each other held by the two parties in the employment relationship—the organization and the employee. Such discernments may be the result of proper contracts, or they may be suggested by the hopes and beliefs which each holds of the other and which are communicated in a variety of subtle or not-so-subtle ways.

Allstate Insurance’s Written ‘Psychological Contract’

Allstate Insurance's Psychological Contract for Employment Relationship Some employers, such as Allstate Insurance have created official statements delineating what employee and employer can expect from each other. They believe employee loyalty develops when the company and employees unambiguously know what is expected.

Terms of from Allstate’s Psychological Contract to the Employee

  • Offer work that is meaningful and challenging.
  • Promote an environment that encourages open and constructive dialogue.
  • Advise the employee of performance through regular feedback.
  • Create learning opportunities through education and job assignments.

Terms of from the Employee’s Psychological Contract to Allstate

  • Perform at levels that significantly increase the company’s ability to outperform the competition.
  • Take on assignments critical to meeting business objectives.
  • Willingly listen to and act upon feedback.
  • Take personal responsibility for each transaction with customers and for fostering their trust.

Psychological Contract and Open Communication

The psychological contract changes over time as the expectations of the employee and the organization change. With each change in expectations, open communication assists to keep both parties in alignment, or may lead to a common concurrence to renegotiate or break the contract.

The concept of the psychological contract has lately achieved significant notoriety in popular managerial texts in human resources discourse. This is for the reason that it offers an narrative of the reasons for the difficulties in the employment relationship presently being experienced by many organizations.

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Posted in Management and Leadership

Six Attitudes of Change

To let an old identity die requires clarity about what has to change, candor about the need for change, and courage to make the change happen. When people internalize a new change, they take ownership for it. It becomes part of who they are. To make the shift from actions to patterns, from actions to individuality, or from checklists to leadership transformation, you need to learn and apply six attitudes:

  1. Focus,
  2. Explore,
  3. Claim,
  4. Decide,
  5. Act, and
  6. Learn.

Leaders observe events, see patterns, think critically and creatively about problems, are self-aware about strengths and weaknesses, try new things, and adjust and improve what they do and how they do it. These six leadership attitudes help you move from the tyranny of to-do lists, events, and programs to the absorption of a new identity.

Culture’s Critical Role in Change Management

Culture's Critical Role in Change Management In recent years, I have lost a lot of weight. People ask me how. Most assume that the weight loss, or change, is tied to a diet and that I will return to my former size. In addition, it means choosing to embark on an enormously costly venture, before a crisis makes it necessary.

Most changes, even those that we know are good and right, do not endure. Best intentions to change performance fall short when diets or programs that we depend on to cause change are not assimilated. Persistent change requires a new identity.

Leaders bow to an innumerable of short-term pressures: intense demands for quarterly earnings, risk aversion, discomfort with ambiguity, and resistance to change, linear extrapolation from experience, and leadership unwillingness to cannibalize established businesses.

We need to change the way we think about change. Sustained change may begin with actions, checklists, and tools, but must evolve to adopting a different identity and assimilating a new way of thinking and acting. Assimilation requires a shift in thoughts and behaving. It becomes a new identity where being and acting occur without thinking.

Making change, an identity shift is simple but not easy. It is simple to say “we have to lose weight” and we need to eat less, eat right, and exercise more. However, it is not easy to do it. To assure sustained change, weight loss must come from a change in identity-letting go of an old identity, admitting personal ownership for the new identity, and turning the actions into patterns, routines, and habits.

To let an old identity die requires leadership clarity about what has to change, candor about the need for change, and courage to make the change happen. When people internalize a new change, they take ownership for it. It becomes part of who they are. Identity shift means that we internalize new attitudes and associated practices so that actions come naturally. Back in 2009, Jim Collins warned in How the Mighty Fall that the greatest risk to companies was no longer complacency but overreach; frenetic, undisciplined change that goes beyond what leaders can manage effectively.

To make the shift from events to patterns, from actions to identity, or from checklists to leadership transformation, you need to learn and apply six attitudes. Each one aligns with a question you need to ask of yourself and your team:

Attitude #1: Focus—Question 1: What do I want?

Focus on Change Management Focus on the desired new identity. A focus sorts, prioritizes, and highlights what matters most. In change, not everything worth doing is worth doing well. Some things that are important to do may simply not be priorities. Some things are so important to do they are worth doing poorly. Having a focus requires that a leader may only have limited priorities that they personally champion; they can sponsor others, but can only own one or two. The key is training. The key understands how to think and look for solutions. It is better to do a few things well than try to do too many things and do them poorly. Good is the enemy of great. Leaders need to address conundrums; they will not always make hard decisions correctly. Moving up in leadership denotes moving on, trusting others to do the detail leadership work, culling the right priorities, and fixating on what distributes the most value.

To determine the focus or priority, ask the simple question, “What do I want?” Knowing what is wanted requires reflecting on what could be done, but then getting clear about what is wanted in the situation. You pass the focus test by reflecting on these questions: Do I know what matters most to: investors, customers, and employees? Can I define what matters most to me? Do I communicate the same priorities in leadership public presentations and my private conversations? Do the agendas I follow for meetings reflect those priorities? Am I clear about what I can do that no one else can do? Am I clear about what I want to be known for? What percent of my time do I spend on things that matter most? Am I easily distracted? Without focus, you try to be all things to all people. Then what matters most happens least.

Attitude #2: Explore—Question #2: What are my options?

Once you know what is wanted, you need to figure out options to get it done. Exploring options means looking for alternatives; seeking people who have counter-intuitive ideas; having forums for dialogue, innovation, and breakthrough thinking; not being locked into conventional ways; exploring what others have done; and investigating with new ideas and learning from those experiments.

Adopt the mantra: Cerebrate sizably voluminous, start minuscule, fail expeditious, learn always. Explore the options for engendering that incipient leadership identity and examining each option.

These questions will help you to explore options: Have I looked inside and outside my industry for best practices and new ideas? Have I tapped into the expertise to accomplish what I desire? Have I assigned creative and talented people to explore leadership options that might work and given them resources and support to generate ideas?

With focus and exploration, you know what you want and explore alternative paths to make it happen.

Attitude #3: Claim—Question #3: What do I think?

Some leaders get lost in the options game. They can see so many ways to do a project that they never get around to doing it. They do not claim a choice or decide on a solution. At some point, leaders need to claim the option that will achieve the focus. Leaders stake, claim, own, and are accountable for their culls. They agnize things that could be done, but claim the unique amalgamation that works best. They take a stand and become kenned for something. The way inhibiting credences kept sales clerks in one industry from engendering incipient leads. They talk publicly and privately about the direction they are headed and the path to get there; they put energy and passion into these paths; they monitor leadership progress; and they gain or lose credibility by the extent to which they accomplish their claim. With a focus, options, and ownership, leaders pass a calendar test of their time, an emotional test of their passion and energy, and a resource test of the investments required to deliver on the option.

To pass these tests, leaders should ensure that the option is congruent with personal values. They must explain not only why the company wants to do something, but also why they personally want to do it.

To claim an option requires personalizing the change and answering the question, “What do I think?” This leadership question internalizes an identity. It makes the identity something that the leader petitions and claims. Ponder these questions: Am I dear about the path I will take to reach my goals? Have I passed the calendar test? Have I dedicated 20 percent of my time in the next 90 days on the option I have chosen? Have I passed the rhetoric test? In every speech, do I find ways to talk about the option and imbue the message with new metaphors, symbols, and images? Have I passed the passion test? Do I put my energy into the path I have chosen? Is my leadership direction and path consistent with what I believe? Do I feel passion for it?

When leaders assert their desires with a focus, explore their options with insight, and claim their path with boldness, they lead. They set an agenda, define a path, and engage others. They forge a new identity for themselves and their organization.

Attitude #4: Decide—Question #4: What decisions do I need to make?

Clarity of Decisions The leader must now decide to make things happen. Clarity of decisions leads to lucent actions, while ambiguity leads to delayed or random acts.

In the absence of decision, clarity, and rigor, actions may be delayed or misguided. A pattern of decisions shapes an identity. A leader chooses how to spend time, who to spend time with, what information to process, what meetings to hold, and what issues to address. Through this pattern of decisions, she creates an identity.

Being clear about decisions and protocols enables leaders to shape an identity. Decisions protocols also turn a direction and path into a set of choices. Just as leadership is a choice, so is the identity that follows from what and how leaders make decisions.

Not all the transmutation that you estimated turned out to be great—meaning every vicissitude did not result in an ecstatic ending. Thoughtful bellwethers ask four questions:

  1. What decisions do I need to make? Leaders focus on the few key decisions they need to make.
  2. Who will make the decision—and who is accountable for the decision?
  3. When will the decision be made? Work expands to fill the time provided. Deadlines generate commitment to action.
  4. How will we make a good decision? This involves knowing the quality level the decision requires, accessing the right information, asking the right people for input, finding out what others have done, testing alternatives, and involving key people.

When people feel heard, they more likely accept the decision. When people know the why they accept the what. However, most other changes later in life had external dependencies. Discretion is an imperative.

As you follow this protocol, you pass the decisiveness and decision test. You not only know what you want, you know the options, which leadership option works best, and the key decisions that will move the change along and shape a new pattern or identity.

Attitude #5: Act—Question #5: What actions do I need to take?

An incipient identity requires incipient actions. We often judge ourselves by our intent, but others judge our identity by our actions. Make actions part of the new identity.

  • Start small. Seek small, first steps. Look for lead customers who might engage in a new project. Look for early adopters of a new idea. Seek many people making small changes.
  • Let go. New identity requires letting go of old actions consistent with an old identity. As old actions are replaced with new ones, others begin to expect the new identity and its actions. As actions accumulate, they become patterns, and a new identity is forged.
  • Involve others. Change requires a social support network. Leaders who act to sustain change will need to surround themselves with those who model the desired changes.

Sustained Change Takes Time

Sustained Change Takes Time Once new directions and opportunities make sense, have the team participate in creating or revising their vision, goals, and milestones, so everyone knows how they connect to the mission. Try this “four 3s” methodology:

  1. 3 hours: What can I do in the next three hours to make progress?
  2. 3 days: What can I do in the next three days to make progress?
  3. 3 weeks: What can I do in the next three weeks to sustain progress?
  4. 3 months: What can I do in the next three months to show progress?

In three months, old patterns may be replaced by new patterns.

Attitude #6: Learn—Question #6: How will I know and grow?

Sustained change requires follow-up, monitoring, and learning. Without indicators to track progress, learning cannot occur. You must weigh in and figure out what helps or hinders your goal. In change, you should probe for early denotements of prosperity by identifying lead designators of what is or is not working. The tracking indicators should lead to insights, improvements, and upgrades.

Leaders observe events, see patterns, think critically and creatively about problems, are self-aware about strengths and weaknesses, try new things, and adapt and improve what they do and how they do it.

Thorough cultural diagnostics can assess organizational readiness to change, bring major problems to the surface, identify conflicts, and define factors that can recognize and influence sources of leadership and resistance.

Six Attitudes of Change

Six Attitudes of Change Management These six attitudes and questions help you move from the tyranny of to-do lists, events, and programs to the leadership assimilation of a new identity.

Trying to execute faster and struggling with the reality that change takes time. Our techniques are too often informed by what worked in the engineering age. We treat humans like machines and expect things to work properly if we just engineer the change properly. The problem, of course, is that people are not machines. More of what you have suggested is necessary for helping people move through the very human process of change.

A worthwhile challenge can be prodigiously incentivizing, as long as it is a veracious description of the leadership situation.

Make use of management techniques that have been shown to reduce threats during tough times, when boardroom conflicts are more likely to arise because of differing perspectives.

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Posted in Management and Leadership

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.
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Posted in Education and Career Management and Leadership

100 Best Business Books of All Time

Following years of reading, appraising, and retailing business books, 800-CEO-READ creator Jack Covert, ex-president Todd Sattersten, and present general manager Sally Haldorson have selected and appraised the one hundred greatest business titles of all time—the ones that dispense the biggest payoff for today’s occupied readers. It’s a great list, and in the vein of all lists, bound by argument and long-windedness about what is and isn’t contained in this list. Each book gets a couple of pages of outline handling.

Best Business Books on Improving Your Life

Best Business Books on Leadership

Best Business Books on Strategy

Best Business Books on Sales and Marketing

Best Business Books on Economics and Metrics

Best Business Books on Management

Best Business Biographies

Best Business Books on Entrepreneurship

Best Narratives of Fortune and Failure

Best Business Books on Innovation and Creativity

Best Books on Big Ideas About the Future of Business

Best Business Books on Management and Leadership Lessons

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Posted in Business and Strategy Leaders and Innovators Management and Leadership Mental Models and Psychology Philosophy and Wisdom

Create Partners, Not Employees or Followers

People want to succeed. The vast majority want to feel good about themselves and their work. Nevertheless, sometimes, it is tremendously difficult to balance day-to-day duties with the emotional needs of your employees.

There are no quick fixes or simple formulas for generating a culture that unleashes the competency of people. It occasionally requires intervention into a number of dimensions of organizational life: challenging management philosophy and practices, communicating and aligning everyone to the business strategy, cultivating processes and systems, providing training in social and business skills, etc.

Whom would you rather have at your side in a tough spot? A partner who shares full responsibility for decisions and their outcomes? Alternatively, a subordinate who does just what you say and shuts up about ideas he has that may be better.

Rationally, you want the former; emotionally, you may choose the latter. Leaders bow to a multitude of short-term pressures: severe demands for quarterly earnings, risk aversion, distress with uncertainty, resistance to change, linear extrapolation from past experience, and reluctance to cannibalize established businesses.

'It's Okay to Be the Boss' by Bruce Tulgan (ISBN 0061121363) Reflect on your career. Have you ever kept quiet when superiors were creating problems? What caused you to withhold your counsel?

I guarantee you they were being “the boss.” Everything about their tone, body language, verbal language, and behavior was indicating you that they were the boss and you were the subordinate. Chances are you learned from them what a boss looks and sounds like. Whether you admired their style or not, some of it rubbed off on you.

When you act as a superior, you will have subordinates. Act as a partner, and you will have partners. Yes, you may be the senior partner, but they are still partners, not underlings, or subordinates.

One key dissimilarity between the behavior of a “boss” and a “partner” is the way you talk. You talk differently to partners. It is not just what you say, but how you say it. To a subordinate, you might say, “This client wants his order fulfilled now. Make it happen.”

What is the message? It is not just “Get the order done now,” but it is also “I’m the boss; this is what I want—and there could be outcomes if I don’t get it.” It does not require a dramatic act to make the point that the receiver is your subordinate. Are you aware of how often and in how many ways you send similar messages?

This is not how you would talk to a partner. You might be just as clear about what you want and when; however, your delivery would create partnership, not subservience. You might ask, “How can we do that?” Alternatively, “Can you make it happen?” You would seek the individual’s knowledge, responsibility, and mutual obligation. When employees are seen as partners, they will understand that their leaders do not simply see them as the means to achieve their own personal targets.

You talk differently to folks below you than to folks across from or above you. So what? The higher you go, the less direct experience you have of customers, stakeholders, and problems. It is harder to get a real feel for what is happening. You become more reliant on on good information and insight from those who are in touch. So, they need to feel invited to tell you the reality they see, especially when it differs from the one you believe is out there.

You likely think that you already extend this encouragement, but you may discourage people from giving you inconvenient information. Unless you make an effort to discover in what ways you do this, you will continue to do so.

Create Partners with Your Subordinates

Create Partners with Your Subordinates

To create partners and have your employees’ best interests in mind, try this exercise:

  • Start every meeting with a question: “Is there anything I’m not getting about this issue that you think I should?”
  • Whatever the answer, respond with interest and ask, “Can you tell me more about that or give an example to help me understand it better?”
  • Ask questions until you have clarity on the points. Do not argue. Do not cross-examine—just clarify.
  • Thank the individual or group making these points.
  • Incorporate what makes sense into the decisions.
  • If no one spoke up, after the meeting ask the individual who is likely to be forthright, “What am I doing that keeps everyone from talking?”
  • If this individual gives you insight into how you dissuade feedback, convey your gratefulness. Find a way to reward the honesty.
  • Invite this truth-teller to sit in on more meetings and after each one gives you feedback on anything you did that made others act as subordinates.

Simple Ways to Build Trust With Your Employees

Build Trust with Your Employees

Trust is established when even the newest rookie, a part-timer, or the lowest paid employee feels important and part of the team. This begins with management not being reserved, as well as getting out and meeting the troops.

'The 27 Challenges Managers Face' by Bruce Tulgan (ISBN 111872559X) By doing this you will have the self-awareness to create partners. You will also have earned their trust. They will give you their best advice and devotedly support decisions that are based on reality.

By creating this environment where your employees are treated as partners working toward a shared purpose, you will foster in your employees a sense of ownership not simply to their job, but to the whole process. This will inspire not only partnership between the company’s divisions/teams, but it will also help nurture innovation as employees are stimulated to look beyond what they usually work on or how they approach their job.

Good partners invest time and energy in making cognizant judgments about who their leaders are and what they espouse. Then they take the appropriate action.

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Posted in Management and Leadership

How to Create a Great, Happy, Satisfied Workplace

How to Create a Great Workplace

How does any company, small or large, gain competitive advantage in a crowded and highly competitive marketplace? Instinct tells us to watch what our competitors do and try to the same things better. But, because competitors are also trying to get better, you won’t gain much from that approach. Though counterintuitive and less comfortable, a more productive approach is to be different. By taking that tack, your activities are less likely to end up as commodities, differentiated only by price.

Several companies have taken their basic assets and by rearranging them, have created unique business propositions and a distinctive presence. These companies have made specialization decisions that enabled them to align their assets and activities differently.

First, there is Southwest Airlines. Their strategy is to compete with the automobile as a means of intercity transportation. To that end, they serve short routes with frequent departures. To keep costs low, they limit themselves to one type of aircraft—the Boeing 737. Because they have the industry’s largest 737 fleet, they buy or lease on very attractive terms. Further, they serve no meals, offer no seat assignments, and do not transfer baggage to other airlines. They avoid airports with high landing fees or frequent delays. This enables them to make quicker turns and fly more legs each day, resulting in lower fares. Today they are profitable.

Second, Enterprise Rent-A-Car has shot from relative anonymity to become a leader among car rental companies. They achieved this not by copying Hertz and Avis, but by specializing in a different market. Instead of competing for airport rentals, they aimed at the insurance and car repair markets. They cultivated both by giving superior service and tailoring their activities to individuals who have lost the use of their cars for a period. No one else was doing that.

Edward Jones experience was shaped by just few factors. The first was the insights Ted Jones. Unlike his father, Edward D. Jones Sr., whose vision was to be a department store of finance, offering every product and service, Ted saw a vast underserved market of serious, long-term investors. Instead of offering everything in one market, he wanted to distribute a limited range of highly reliable long-term investments in many markets. His vision was different.

The second factor was the decision in the early 1970s to codify Edward Jones’s beliefs and strategy. Edward Jones had a successful business model with 120 representatives, but also had only $1,005,000 of capital in a business that was based on capital. Edward Jones had to specialize in areas that were not capital intensive.

The thinking of Peter Drucker guided Edward Jones. He teaches that every business must answer three questions:

  1. What is our business?
  2. Who is our customer?
  3. What does the customer consider value?

With so little capital, Edward Jones couldn’t compete for the highly profitable institutional or underwriting business. Knowing it was impossible to do it well, Edward Jones chose not to do it at all. Edward Jones were making trade-offs to align its resources to serve one customer one way. As Michael Porter points out, you define trade-offs not in terms of what you choose to do, but what you choose not to do. At that point, Edward Jones had begun to make ourselves different.

Edward Jones

How to Create a Great Workplace

Here are 10 trade-offs made by Edward Jones. None made was unique. None suggests moral superiority. However, each makes that company a little different and together, they make us so different that few competitors even want to emulate Edward Jones.

  1. Edward Jones’s initial decisions addressed the Drucker questions. Edward Jones were in the securities industry serving the serious, long-term “buy-and-keep” investor. The value Edward Jones sought to add was to help our customers achieve their financial goals through sound advice and a face-to-face personal relationship. In doing so, Edward Jones chose not to serve large institutions, or frequent traders because few, if any, traders are consistently successful over time. Edward Jones chose to forego these markets, one promising large commissions and the other, and frequent commissions. However, they were realistic decisions, knowing that others were not lining up to offer personal service to smaller investors.
  2. If Edward Jones were to serve one customer, Edward Jones felt they should focus on one profit center—the investment representative (IR) who directly serves the customer. They wanted to closely align their activities with their customers’ interest. That notion prohibited profit centers in their trading and syndicate departments. One profit center also meant no manager would get an override commission from the work of their investment representatives. Each of these decisions was at odds with industry practice.
  3. Edward Jones chose not to manufacture its own products. As distributors of a number of mutual funds, it would have been possible to start selling Edward Jones’s own funds. By offering house brands, they would capture the manufacturer’s profit. However, by concentrating on the products offered by preferred vendors, Edward Jones still had the best investment managers working for customers.
  4. Rather than try to lure licensed and trained IRs from competitors, Edward Jones chose to grow its own. Since Edward Jones couldn’t pay competitors’ brokers a bonus to come work for them, Edward Jones dedicated ourselves to on-going training to prepare IRs to serve one type of customer—the individual investor, one way—with sound long-term investments, and in one format—a community-based office. This was and is Edward Jones’s only business. For training Edward Jones were eager to invest capital. Today, using specialized materials and customized facilities, Edward Jones prepares 200 new IR candidates each month. Edward Jones also provides ongoing training to all 7,500 IRs and office administrators. All training is aligned to serve the needs of one customer. Training is the company’s main investment.
  5. Compliance with regulatory and industry standards is the foundation upon which all else rests. Again, alignment helps Edward Jones with their task. They see IRs as artists. Each is given a canvas and a palette of paints. The canvas is compliance. One may not stray beyond its boundaries. Here, the power of technology and the judgment of associates are applied exhaustively to oversee and monitor all activity. The IR’ s palette, meanwhile, contains the products and service Edward Jones want to offer and excludes those they don’t. Within those boundaries they create their masterpieces. The most important aspect of compliance, however, is the sense of responsibility built into the local nature of Edward Jones’s business and the face-to-face relationship. When an IR meets a customer at church, the club, at scout meetings, or in the grocery store, the customers are real people. In seeking alignment with the needs of the serious individual investor, Edward Jones closes off potentially profitable options. But, by specializing, Edward Jones increase its leverage, offering tailored services to the one market they choose to serve. Also, by avoiding compromises they sharpen our image, which is our brand.
  6. To reduce internal competition, Edward Jones ties all bonuses to the firm’s success. Every IR has a direct financial incentive to help, rather than compete with, fellow IRs. Since this model attracts high-achievers, if Edward Jones were to set up incentives that rewarded them for outperforming one another, the resulting conflicts would be destructive. So, Edward Jones never reward the top 10 percent or top 100. All incentives are inclusive. If you achieve, your reward never comes at the expense of a colleague.
  7. Since none of Edward Jones’s products or services is tangible, nearly every associate at our firm is a knowledge worker. Their screens could contain calculus or video games. The only thing that matters is results. Because knowledge work defines the worker’s identity, the reputation of the company and its work style are crucial. Both contribute to the worker’s self-image and self-worth. Since most knowledge workers live to work, not work to live, they aspire to provide a collegial workplace. Edward Jones retain a dress code. They expect civility. They also respect the contribution of each associate.
  8. Edward Jones loves technology. Technology enables Edward Jones to deliver excellent service to more than 7,000 locations in 50 states, Canada, and the UK. For some financial services firms, the Internet presented a dilemma—should they offer online trading? For Edward Jones the decision was easy. In society, about 15 percent of the population likes to do it themselves. Since our value added is the IR-customer relationship, Edward Jones chose not to establish channel that would compete directly with IRs. Instead, Edward Jones’s internet site supports the IR-customer relationship.
  9. Edward Jones have always had heroes. Peter Drucker teaches Edward Jones how to respect the dignity and contribution of each worker. Michael Porter affirms that it’s crucial to be different, to sustain competitive advantage. John Kotter teaches that a growing organization requires many leaders. Warren Buffett shows us the power of principles and discipline in investing. Southwest Airlines shows that enormous potential exists in markets that others reject. Wal-Mart proves that you can grow without compromising service or profit margins.
  10. Edward Jones chose to remain a partnership. It will only become a corporation if they have a compelling need to do so. Because Edward Jones started with so little capital, it created a model that minimizes the need for capital-intensive items, such as bricks and mortar, product manufacture, large inventories, or proprietary trading. Edward Jones limits spending. Thus, as a partnership, Edward Jones have funded our expansion internally.

You need to find way to set yourself apart, even if those differences seem minor. Align your activities so customers and prospects can recognize your unique business proposition. By striving to be better at what you already are the best at doing, unlimited growth is possible.

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The Wonderful Benefits Intergenerational Coaching

The Wonderful Benefits Intergenerational Coaching

All generations have similar values. Many deliberate that there are such differences between generations but in reality, all feel that family is the value chosen most commonly by people of all generations. Others embrace truthfulness, love, aptitude, happiness, self-respect, knowledge, etc. So why do people at work think the ethics between generations are so different?

'Unlocking Generational Codes' by Anna Liotta (ISBN 1935586424) The public declaration of these hymns reveals how applause, pain, and politics interface within a historical setting of Roman oppression. Because even though the values are the same, the behaviors that go along with those values may be different. In addition to the standing of not snubbing the supposed stereotypes of employees, we should also not overlook undercurrents that occur in work groups. The diverse knowledge base that junior employees can present is a benefit that can be taken advantage of.

  • Give More Feedback: Animators at Disney generously pronounce how painful it can be to have directors plussing their ideas until the tiniest details, say a sliver of hair, seems just precise. We are probably unaware that people would like to know how to improve, and they merit to know it. It is their right. Besides the rewards of intergenerational learning for individuals, benefits of this learning process can also be found for corporations. Intergenerational learning leads to a higher level of social capital. This increased level of social capital has in turn the potential to enhance knowledge flows between workers in an organizational context. The negative feedback is often buried and not very specific.
  • Boost Flexibility: Literature provides a choice of concepts that are directly related to those of familiarity demand and supply. Employees working in the service sector, salaried employees, employees in executive positions, and employees with higher wages have better access to conventional flextime than other groups. The Cleveland Clinic hiring as many as two millennial doctors to replenish each retiree, as young MOs demand more work life balance. Business is concerned with productivity and profits. People are an progressively valuable resource, which management is becoming more affected to manage effectively. Attaining operative knowledge management integration is an eminent challenge facing both general management and project managers.
  • Lavish Praise for Intergenerational Workplace Lavish Praise: After considering the observations in light of extant research, we present a multi-stage process model that describes the central dynamics at work in the business experience. Over the following decade, the centers presented new communication and educational tools and maintained a wide variety of cultural events including exhibitions, forums, exchanges, and publications. The support provided to individuals and organizations proved instrumental and contributed to an added visibility of the region. The results of the analysis are deduced in the business context in order to show how communication research may impact to the analysis of intergenerational learning in a specific business. The company’s polished performances balance cheery explorations of humanity with serious concerns ranging from death, aging, and solitude to immigration, beauty, and fairy tales.
  • Adorn the Office: Apple plans to spend $1 billion to revamp a chief corporate campus with a focus on new technology and shared spaces. Foster abilities that cannot be automated away: timeless talents like critical thinking, playing nice and effective writing. Moreover, do not be afraid to skip around to understand relevant skills. This assertion also resonates with the experience of the Watsons of I.B.M. fame. In his 1990 autobiography, Tom Watson Jr. recollects how his early years were overwhelmed by a sense of inadequacy vis-à-vis his father’s expectations that he take over IBM. Obfuscating the mix further were what amounted to ‘staged’ career achievements, such as when young Tom was assigned a coveted sales territory in downtown Manhattan that allowed him to meet his sales quota in just one day.

'When Generations Collide' by Lynne Lancaster, David Stillman (ISBN 0066621070) While generational issues do need to be discussed and resolved, I am troubled about making too big an issue out of them. We do not want to draw a line between two generations of managers and involuntarily disaffect them from each other. Instead, we need to learn to work together as we seek to help librarianship advance with the times to serve the needs of the public. Each manager, new or experienced, old or young, brings respected experiences, perceptions, skills, and ideas to the profession. We need to find a way to concede those assets and put them to trustworthy use.

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How to Reduce Conflict at Work

Fierce battles over decisions, finances, resources, power, and authority are fought daily, and combatants often inflict lasting damage, when the personal interests of ambitious managers take precedence over organizational goals.

Competition can cause managers to backstab one another, hoard information, focus on personal needs, and ignore facts that don’t support their views.

Functions that operate as silos create turf wars. And the costs are high. Creativity is lost, reputations damaged. Frustrated, some executives leave for more collegial settings. Here are ways to reduce conflict:

  • Hold retreats to build camaraderie. Put people through a process to build conflict resolution and interpersonal skills co-operationely to achieve goals.
  • Reward cooperative behavior. If you talk about collaboration yet reward individual achievement, you get the behavior you positively reinforce.
  • Encourage innovation. Process routine may minimize errors and cut costs, but it can close people’s eyes and ears to better ways to do things. Innovation can increase efficiencies.
  • Create a culture of collaboration. Open communications in person, on paper, and online can lead to shared information, trust across disciplines, and reduced turf battles.
  • Clarify responsibilities. Help your people know their roles and the roles of others. Everyone’s key task is to delight customers and gain market share.
  • Seek cross-functional initiatives. Encourage teams from different areas to work together in cross functional initiatives. Invite managers from other areas to visit your team meetings when working together.
  • Enter white spaces cautiously. Certain open areas represent opportunities for revenue generation, but rather than enter them without notifying others, meet with them to gain their buy-in or agree to leverage the space together.
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How to Use Power Positively

How to Use Power Positively

Power is often a dirty word, as in “power corrupts.” Yet, without the power to make things happen, managers can’t build organizations.

Managers need to understand the dynamics of power in four arenas and harness and direct energies in ways that are not just effective and efficient, but also deeply satisfying and empowering of self and the others who lend their energy toward goals.

Power has two primary components: a vision—a goal to achieve—and energy—the impetus or force needed to bring the vision into reality. This offers an equation: Vision multiplied by energy produces the power to accomplish goals! However, opposing energies can vitiate even a great vision supported by enormous energy.

Here, then, is a more realistic equation for power:


Power = Vision
  • Energy/Resistance

    Applying this simple equation is not so simple. Once being powerful was a perquisite of managers. People did what their managers wanted them to do. Wages were provided in return for obedient labor.

    Today, managers need new ways to generate power and influence if they are to harness and focus the energy of their people into power sufficient for excellence and continued success.

    Finite and Infinite Perspectives

    I see two basic views of power:

    • The finite perspective says that power is scarce, limited, and finite—that there is not enough to go around, that someone will win, and someone must lose. This limited view of power limits the power we might accrue. A win/lose perspective of power actually creates resistance, as those who believe they will lose if you win, will fight aggressively and passively to turn the tables.
    • The infinite view sees power as abundant, unlimited, and infinite. In this view, power is accrued through partnering with and learning from others-including those who might resist. The quantity and quality of available power from this perspective is potentially infinite, facilitating great energy.

    Harnessing infinite power depends on mastering six principles:

    1. Focus your energy—focusing, releasing, and managing the energy of your thoughts, emotions, and behaviors to achieve your goals.
    2. Think systemically—seeing that every thing and every action exists within some system of other things and actions, and that every thing and action within a system impacts and is impacted by every other thing and action with that system.
    3. Learn from differences—using differences to accrue knowledge and skill, not to foster contention or conformity.
    4. Seek sound and current data—operating from accurate, up-to-date information rather than from opinion, interpretation, assumption, or speculation.
    5. Empower others—supporting self and others to identify and resolve their issues and discover their excellence.
    6. Use support systems—developing and using a diverse group of supporters who contribute to achieving. Support systems achieve their goals as they reach critical mass.
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    Adapting to Change and Managing the Transition Successfully

    Life is about adapting to change and ever-increasing demands. William Bridges was right: “It’s not the changes that do you in. Ifs the transitions.”

    Organizations must continually change. The question is “how?” The leader’s task is to make change work by helping others through transition.

    A successful transition …

    • Explains what is and what isn’t over. Some things never change: You will continue to serve customers and produce products. What changes is not what you do but how you do it. Help people identify what is and is not over.
    • Respects the past. The practices that frustrate you today were someone’s innovative solutions of the past. Do not criticize widely accepted practices. Accept them as right for that time while recognizing that times change.
    • Ensures the “important stuff” continues. What is the important stuff to you? Service? Ethics? Whatever it is, it must continue. Involve others in defining the “important stuff” and ensure that the change does not disregard them. This increases support for the change.
    • Sets the stage for the future. Today’s change will open your eyes to new opportunities. As you evolve, set goals for what you want to achieve. Measure and evaluate progress. And, show others how the change will move them toward a positive future.
    • Recognizes its day will end. Don’t assume that today’s solution will work forever. And don’t think that this will be the last change.

    Long-term success depends on anticipating and responding to change and making the transition.

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