The Greatest Revenue Opportunity

 

Nate Dvorak and Ryan Pendell at Gallup published a paper that claims selecting top-talent managers will improve revenue per employee by 27%. In addition, selecting top-talent employees will add another 6% to revenue per employee; for a net gain of 33%. When selecting a manager, the most telling criteria are the results achieved in previous assignments. But, where can you probe during an interview to verify what’s listed on the resume? These are my top three attributes to look for while selecting managers.

Developing Relationships:   Managers need to recruit employees to be on their team and often need to get them interested in doing something they might not be inclined to do. Positive body language and the ability to engage with employees to understand their strengths are good indicators for a top management candidate. A history of keeping trusting relationships intact during stressful times and moments of disagreement is also an important indicator.

Critical Thinking:  I believe that this is the most exercised skill for effective managers. This skill is first used to align the direction and goals of the department to those of the greater organization. Then critical thinking is used to break projects down to work assignments and then tasks and the skills required to complete the task.  An effective interview strategy might be to ask for an example of a key project or an order was completed on-time. Or, ask for an example of project where the delegation strategy accounted for employee strengths and weaknesses.

A Manageable Ego:  There are times a manager needs to be loud and proud with ego on full display and times when selflessness and a muted ego are more appropriate. This is a delicate balancing act between self-confidence and building the confidence of others.  Managers that control their ego effectively will be perceived as both innovative and approachable by employees. An interview strategy might be to ask for examples of a time when their coaching skills developed an employee to produce significantly better results.

The Gotcha: To select and hire top-talent managers, you need to be a top-talent, too. All the skills required to be a top manager can be learned if you are willing to practice.  I am teaching a course called “Managing for Better Engagement and Results” beginning September 17th that is a group experience tuned to give instruction and opportunities to practice key skills to become that top talent. If you want more information, follow this link.

 

Developing Your Successor

Whether the issue is preparing a business for sale or enabling the next generation to take over, managers increasingly find themselves wondering where the future leadership for an organization will come from. They may wonder, “When will Jim finally step up and take some leadership around here?” or “Will Susan be willing and able to assume control when I’m ready to retire six years from now?” The more appropriate question is, “When will this manager execute a plan to prepare new leadership to take over this company?” It is ironic that for a leader to find a successor, they must take the lead in developing leaders.

The reasons for employees not pursuing leadership are fairly predictable. These reasons are based on preconceptions regarding their ability to do the job or perceived satisfaction of taking on such a job. The list of reasons can include:

  • Complacency – liking things just the way they are
  • Lack recognition of the key skills necessary for leadership
  • Lack of confidence
  • Intimidated with how the culture treats leaders
  • Do not see incentives for taking on additional responsibility

All of these reasons will require the employee to undergo personal, positive change before they can be ready to lead. For this change to happen in a timely fashion, four elements need to be present in the management culture: Goals, Rewards, Instruction, and Process. To remember them, I refer to them as GRIP; as in “get a grip”.

 

Goals: An effective goal set is multi-dimensional. They address both long and short terms and both tangible and intangible changes. To grow leaders, there needs to be a clear link between organizational and individual goals and management needs to teach members to hold themselves accountable for their goal success.

Rewards: The best rewards are win-win. A win for the company is a reward that gains the desired result without stunting the growth of the company. A win for the employee is being able to achieve the goal and receive a reward that supports a valued, personal goal. Win-win rewards are far more effective than cash rewards.

Instruction: To grow leadership, instruction and coaching need to be available to develop the key soft skills of communication, persuasion, time management, and productivity.

Process: The owner of a small business often personally directs how work is to be done. Businesses take a leap forward when they document roles and process. When members clearly understand how the operation operates, there is hope they will step up and lead the operation.

Many business owners need to undergo their own changes before they can get a GRIP. Change can be sped up with a good guide that understands their challenges. Please talk to me if you would like to explore how I might be able to support the development of your organization.

 

Succeeding in a Fake News World

 

Regardless of political persuasion, television news is full of upset these days. Deliberate misinformation is dishonest and meant to disorient perceptions of others and the truth. My strategy is to read the news from reliable news sources and take my time identifying the facts. Misinformation was not invented in Washington D.C, however. The business world is full of colorful characters that confuse what they want you to believe with the facts.  Failure to identify these players quickly can be detrimental to one’s career.

Deception in the workplace is always a matter of scale. In his works on Transaction Analysis, Eric Berne observed that whenever we receive communication that calls for a response, we make a choice to respond honestly or dishonestly. Most of the time, deceptions are small in nature and designed to avoid some behavior or to duck accountability. But in a stressed environment, the stakes can become large. I recall early in my career going to work for a troubled private company where stakeholders were positioning the company for sale. The entire executive team was fearful of being terminated with a stain on their career. This was the first time in my career that I became aware that managers were flat-out lying to me with the hope that I would somehow indict one of their peers to get them fired before they were. Over the next nine months, I learned much about maintaining integrity in a toxic work environment.

These are the key lessons I took away:

  • Make clear goals and set your intention before every meeting. Act on opportunities to move closer to your goal and resist attempts to be distracted. Don’t give up on your goal!
  • Make it a practice to separate facts from beliefs and opinions. Facts are observable. When I read the paper these days, I look for direct quotes and observed actions. Beliefs are the “I think”, “he should”, and all the other interpretations of what happened.
  • Monitor your thoughts and separate facts from beliefs there, too. We are all emotional creatures with the tendency to act on our emotions. When your emotions are stirred up, take a minute to identify the belief that caused the upset. Note that facts do not solicit an emotional response; missed expectations do.
  • Verify your source. If something feels a little incredible, find someone else that can report the facts.

The epilogue is that the company was acquired and I was promoted by the acquiring company.  I have found that it’s good to live by Robert Schuller’s quote, “Tough times never last, tough people do.” I have always observed that good companies fix bad management.  Feel free to share your experiences with a difficult culture and remember that Accelerated Achievement can help managers committed to fixing their organizations.