Business Record - Iowa Biz

Tough Times Bring Awareness

We are in a period of history when times are getting tough - real tough.  The reality is setting in and all of a sudden there is an awakening happening.  People and organizations are looking at their situation with a new awareness.  An awareness that is pure and not clouded with ego.

Yes, I said ego.  That little voice in our heads that says you are immune to what goes on around you, that you can justify everything you do, and that paints a reality that is not real.  The ego allows us to float through life and disregard what we know is wrong.  The responsibility of what is wrong can be blamed on others when the ego is in control.

When the ego is set aside, then awareness flourishes and new ways of thinking are welcomed, explored and even accepted.  With awareness, organizations and their leaders can start to face the long-term implications of overpaid employees, retirement obligations, lack of benefits, debt and the horrific lack of concern that permeates today's work environment.

No one likes tough times, but I believe these natural rhythms in life are a necessary part of keeping balance, perspective and opportunities for change.  As tough as it may get - and who really knows how tough it will get - open your eyes, hearts and minds to new ways to view your business, your people and how it all fits together.  It is your choice how you view our world today, I view it as a great way to start making a positive difference!

The Power Of Engagement

A new page has turned with the election of Barack Obama as our new president.  Old barriers have been torn down and we are all anxious to see what the future holds with his leadership.

I have discussed in many posts the value of engaging your employees.  You have to admit that Barack Obama engaged people, and that was the power to his success.  He changed the history of how states traditionally voted, he engaged the younger generation, and he rallied a voter turn out as should be expected in a democracy.  When was last time a presidential candidate drew crowds of 50,000 or more. He did.  Now do you believe me when I tout that engaging your employees will get you bottom line results?

Barack tapped into the emotions of America to drive success.  You to can tap into the emotions of your employees and then drive that success with facts, financial information, and some type of ownership.  As humans we thrive on emotion not logic.  The power of love, hate, hope, faith, and fear have changed the face of the world a million times - some to the good, some to the bad.

When someone (new employee, customer, vendor, et cetera) walks into your company, what emotion will they experience?  Is it fear, hate, loathing, envy, or maybe nothing at all OR... is it love, kindness, concern, hope, pride, and a sense of welcome.  Maybe it is time for you to change the face of your company as you look to the challenges of the future.

Systems are Not a Guaranteed Lock for Success

The company makes a big announcement that a new system will drive performance and make the company a better place to work.  I am sure you are familiar with the systems - lean, six sigma, theory of constraints, just in time inventory, open book management, the latest performance appraisal system, employee ownership, touching toes, et cetera.

In many cases the systems are implemented, and in a month, year or even years down the road, things go back to the way they were.  There may have been some financial gains for a while, but soon the embedded cultural memory sucks them back out.  The initial wow and energy fades, and once again people are working in the same old company with the same old problems - nothing really changed.

Why?  Because the systems are not implemented within a framework that engages the employees.  The systems are implemented without any input from the employees that will be impacted by the systems.  There is no clear alignment of how these systems will improve communications, build teamwork, encourage the adult to adult relationship, create opportunities for employee growth, or improve leadership in the company.

The surveys by Gallop show that over 70 percent of workers are not fully engaged.  Systems are valuable, but if you implement them without a focus on employees you are doomed to failure.  Remember that if you involve someone in a decision, their follow through on the results of the decision will dramatically improve.  Implementing systems within a context that engages employees is the ticket for lasting success!

Take The Leap

Life is boring, work is boring, you are stuck in a rut and need some new excitement.  This is when it may be time to take a flying leap into unknown territory. Quit thinking and do it.

I am sure you have heard at work that it is time for change, yet nothing really ever changes.   If you want to see significant change in your organization, then get started with action.  Getting employees doing vs. thinking, will create quicker change. I am a big believer in planning and thinking things through, but do not get the "analysis paralysis" disease or in simple terms "all talk and no show".  Getting employees involved in the change that will impact their work days will get you much higher buy in and less skepticism.

No matter what area you want to change in your business - get your employees involved will produce better results.  Please remember to be patient, give them ample time, and be the cheerleader not the impatient leader of old.

Be the leader that takes the leap first, gives the tools to the organization to do the same, and then gets out of the way of the tsunami of creativity and energy that will be unleashed.

The Purposeful Company

The business world gets crazier every day - stock markets going nuts, banks on the brink of closing, wondering if our 401k accounts will be around for retirement and politicians worrying about lipstick on a pig!  It causes one to reflect on life and examine why do we do the things we do.

Since we spend most of lives at work, does it not make sense that we find purpose and meaning at work.  Even better, that the company we are employed at is purposeful in its business.  Yes, that purpose has more meaning than the all mighty dollar (with the understanding that business success comes from a profit - I think we all know this).

I just recently heard my good friend Kim Jordan, the founder and CEO of New Belgium Brewing (Fat Tire Beer), once again speak to the fact that purposeful organizations do exist.  New Belgium is based on three fundamental issues that center on purpose:

• Stewardship of the environment
• Promoting beer culture
• Having fun

There is much more to the purpose based beliefs of New Belgium, but Kim boiled them down to these three.  In just 19 years it has become the third largest craft brewer in the U.S.

This is a company of 300 employee owners that twice a year participates in the strategic planning process (a fact - I attended one several years ago), ownership is shared with the employees and ideas are encouraged and acted upon.  They have instilled a higher purpose for business and in doing so, have created a place where individuals can pursue a higher purpose through the work environment.

There are other companies that have done the same or more.  The key is that they are engaging their employees in running a business for a purpose bigger than the founder, the CEO or the managers.  By focusing on a higher purpose it takes away the stigma of working for "the man" and gives meaning to work.

I know it works; I was a part of a company that did the same.  I encourage you to ponder the thought of running a purposeful company instead of business.  Good luck!

Plan for Business Succession

Business succession is a part of the natural business cycle.  If it is done right, a huge influx of new energy and ideas can be created.  The unfortunate facts are that far too many owners/businesses are not ready for the succession process and this leaves many employees holding their heads pondering an uncertain future.

Many owners and CEOs of businesses are wrapped up in the identity of the business to the point that if they leave, there becomes a serious personal identity crisis.  They have given their all to the business and there are strong emotions that play into their leaving the business.  This is one of the key barriers to any conversation that pertains to a business transition. It is more powerful than getting their money, who will replace them, or even the future of the business.

It is never to early to start the discussion of business succession.  The planning and preparation can take years and the more it is discussed openly the easier it is on everyone.  Do not wait for the bus to run you over - start the discussions today, put it on paper and make it legally binding so the process does not get put off.  If you can not do it yourself or internally, then find resources that can help you through the process.  Remember that you have a lot of employees counting on you to do it right so they can continue to have a bright future in the business.

Death by Committee

Many companies utilize committees to involve employees in giving input or making decisions about the business.  Unfortunately, it is to prevalent that these committees produce few results and a lot of frustration. 

I would recommend that you ask yourself "Why create a committee?".  I believe it boils to a few key points.                                                                        

• Increased profits/stock value
• Supports strategic thinking                                                 
  
• Reinforces the culture you have or want to create
• Opportunity for personal/professional growth
• Allows top leadership/management to focus on critical business functions

Focusing on these key points will give a clearer purpose for any committee and potentially get better results.  I say potentially for three reasons.  First, leadership must fully support the committees.  Second, there needs to be a high level of organizational trust.  Third, be sure the members of the committees have been trained in running a meeting (at minimum the committee leader).

When creating committees, take the time needed to create success.  One last comment - once they are up and running be sure that you have a system in place to measure results.

Document, Document, Document

Companies with employee-friendly cultures have mastered the art of documentation.  This may sound odd, but documentation is a counter balance to human emotion and the abuses of power.  Sound odd, read on.

Have you ever been told that you do a great job, are important to the company, et cetera. and then when it comes to a pay increase you get a pittance.  Without documentation of performance and how it relates to pay, there is no proof and it is tough to argue for that raise.

The problem employee that disrupts the workplace and lowers productivity.  They should be gone, you want them gone, and finally with a red face and high blood pressure they are terminated.  In a couple of days you are notified of lawsuit.  Without documentation of how you handled this employee's performance, the opposing attorney is going to eat your lunch.

Your excited about your new job.  The potential for growth, money, and power has you giddy!  When the honeymoon is over and you start to ask why these things are not happening you get hollow promises and are told to be patient.  Without a documented employee agreement, you will be waiting for what may never happen.

The employees moral is low, business is suffering, and gossip abounds.  The daily grind of work and the potential of layoffs and job elimination is aging you like being in bottle of vinegar.  Without documentation of how the company will handle a down cycle in business, you will loose your star employees, take years to recover, and potentially close your doors.

No one likes surprises and that is why documentation is critical to profitable business and an employee friendly culture.  Documentation is the road map that will get you where you want to be.

Open The Books - The Minds Will Open

In far to many instances companies drive performance through emotional and subjective processes, reviews, and management. 

There is nothing worse than being told you are not performing as expected and when you ask why there is no valid reason.

Smart companies have recognized that using open book management helps eliminate the emotional and subjective conversations.  Open book management is based on the numbers - the facts (unless the organization is so corrupt it cooks its books).  Business is about numbers - sales, expenses, inventory, profits, cash, stock value and more.

The fundamental purpose of a company is to offer a service that makes money.  If your employees do not understand how their every day actions contribute to the bottom line, I will venture to say that you have a lot of unresolved issues in your company that drive you nuts.

Many owners, CEO's, and management people fear that sharing numbers will destroy their business.  There are thousands of ways to practice open book management and you have to evaluate which way works best for your company.  Start today before your competition beats you to it.  It will give you a competitive advantage!

 

Apathy

Why should I care what happens at this company?  I do my job, keep my mouth shut, and go home.  I have no influence, no power, and no one cares about me.  Just leave me alone and everything will be fine.  Nothing will change no matter what I do.

If these thoughts ring true for your company, you have an infestation of apathy.  This may well be the number one killer of motivation, creativity, and efficiency.

Apathy is a clear sign that there is no linkage between what a person does and some higher purpose - a better world, bonuses, profits, stock value, work-life balance, etc. I guarantee that employees who are infected with apathy will never take the extra step, the extra minute to finish something, worry about equipment, and they may even border on the fringe of sabotage.

Take a minute and reflect back on your own career and I am sure you will recall your own periods of apathy - not a pretty picture.  This is the picture that may well be the center of your company's culture.  You should also take note of how many of your people in leadership positions have the apathy bug.  These leaders are like an incubator and increase the level of apathy infestation.

Apathy can be defeated by sharing financial information, involving people in decisions that affect them, creating a sense of pride about your company, and providing opportunities to learn.  The opposite of apathy is engagement and successful companies have made engaged employees a priority.

Today's business environment is too competitive to ignore the issue of apathy.  Do not let apathy become your company's eulogy.

Flickr photo by apathy_obsession