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One of the most overlooked gaps in well-meaning organizations is recognizing the need to treat internal customers even BETTER than external customers—at least initially.  Within an organization, it’s easy to fall into the trap of thinking of your fellow employee as your family that you can treat however you want because “they have to love me, they’re family,” when in reality, they are your most important customer.  Why?  Because how we treat each other within the organization is a reflection of how we are going to treat our external customers in the long term.

One of the first things to think about then, as we look at creating a culture of service, is how well do we ask for and listen to feedback from teammates on how we are serving them.  Let me give you a great example I heard just this past week to illustrate this point.

I have a very good friend who is a professional golfer on the PGA Tour. My husband and I had dinner with him last week and he shared with us how he meets with his team at the beginning of each year to set goals for the season.  I was surprised to hear that in addition to his caddy, he has a personal trainer, a swing coach to help him with his golf swing, a short game coach to help him with his short game, and his agent.  While in their meeting, my friend gave his swing coach some feedback about how he would like to see him out on the golf course more to be able to better analyze his swing and offer suggestions.  The swing coach did not like the feedback his team member (as well as his boss!) gave him, and became very defensive about the feedback and was clearly not open to hearing it.  The end result was that my friend hired a new swing coach who was committed to delivering on the service my friend was looking for.

Good service begins at home

Just because we work for the same company doesn’t mean we should treat our fellow employees as second class citizens. On the contrary, we need to listen to them and thank them for their feedback the same way we would to an external customer.  My friend’s swing coach didn’t understand the idea of “serving the golfer” to help him get better and it cost him his job.

Ideally, this internal customer focus will start at the top of the organization with senior leaders recognizing the importance of consistently providing both the positive and constructive feedback to employees about what is expected of them, praising them for what they do well, and giving them ideas where they can improve.  Next, individual department leaders should continue the process by encouraging team members to ask for feedback from each other, as well as from other departments on how well they are serving them.

Learn from the positive and the negative

One important note about negative feedback.  When someone complains about your service, or shares some unpleasant feedback with you, remember they must care enough about you to share it and want you to improve, so thank them for the feedback!  If my friend’s swing coach had done that, he probably would still have his job!!!

About the author:

Kathy Cuff is one of the principal authors—together  with Vicki Halsey–of The Ken Blanchard Companies’ Legendary Service training program.  Their customer service focused posts appear on the first and third Thursday of each month.

The New Year is almost upon us. This time of year is one of hope and positivity. Regardless of whether you feel you had a great year or a down year, there should be excitement that the New Year will be more prosperous than the one that preceded it. So as 2011 comes to a close, here are three simple steps to put you in a positive frame of mind to kick off 2012 on the right foot.

The Three R’s of New Year’s

1. Revolutions – Circle back and review the resolutions you set for yourself last year. Furthermore, circle back and review any other important non-resolution goals you set for yourself last year. And while you’re at it, circle back and review any other big accomplishments from the past year – include wins AND losses that provided vital learning opportunities.
2. Revelations – Celebrate your successes! So often we get hung up on not fully achieving our resolutions and goals that we fail to realize just how much positive progress we’ve actually made towards them. This is especially true of resolutions which, for most people, tend to be extreme stretch goals. Don’t forget, they’re called “stretch” goals for a reason. For example, if last year you set out to lose 20 pounds but ended up only losing 10 pounds, you’ve still made positive progress worth celebrating. Be proud of the progress you’ve made toward your goals and celebrate what you have achieved, don’t dwell on what you haven’t achieved.
3. Resolutions – Now that you’ve reviewed and celebrated, it’s time to reset. Build off of what you’ve learned from reviewing the past year to determine how you can improve your approach and move closer to achieving (or fully achieve) your goals. When crafting your resolutions for the coming year, make sure that they’re authentic and meaningful to you. There’s a great post on this over at the PsychCentral blog offering 9 Tips for Setting Authentic New Year’s Resolutions.

As the year draws to a close, make sure not to skip steps 1 and 2 before crafting your resolutions. It’s important to review all of the valuable lessons you’ve learned and to celebrate all of your successes. You’ll be amazed at the great year you might not have realized you had! These two additional steps will put you in a positive state of mind and help set the tone for you to develop more meaningful, authentic, AND attainable resolutions.

Congratulations on all that you accomplished in 2011, and best wishes for an even more prosperous 2012!

Adam Morris is a featured blogger at Why Lead Now, one of LeaderChat’s sister blogs, focusing on the next generation of leaders. Follow Adam on Twitter @adammorris21.

The average organization is losing an amount equal to $1 million dollars each year that better leadership practices could prevent according to recent white paper from The Ken Blanchard Companies.   So why isn’t there a greater sense of urgency to change things?  Of course, it’s different in different organizations, but here is one of the most overlooked reasons why organizational practices don’t change—even when there is evidence that it could have a strong financial benefit.

Sometimes knowing can seem like doing.

According to authors Jeffrey Pfeffer and Bob Sutton, organizational inaction can often be traced to a basic human propensity: the willingness to let talk substitute for action.  In their classic Harvard Business Review article, The Smart-Talk Trap authors Pfeffer and Sutton explain that in business, “When confronted with a problem, people act as if discussing it, formulating decisions, and hashing out plans for action are the same as actually fixing it.”

But the results can be disastrous for a company.  As Pfeffer and Sutton point out, “Brought to a standstill by inertia, their problems fester, their opportunities for growth are lost, and their best employees become frustrated and leave. If the inactivity continues, customers and investors react accordingly and take their money elsewhere.”

So how do companies get past this inertia?  In studying companies with a strong propensity for action, Pfeffer and Sutton have found five common characteristics:

• “They have leaders who know and do the work.”  Leaders in these organizations have either grown-up in the business or spend a good portion of their time managing by wandering around.
• “They have a bias for plain language and simple concepts.” Leaders focus their efforts on a few, straightforward concepts.  They consider “common sense” a compliment rather than an insult.
• “They frame the questions by asking ‘how’, not just ‘why’.” Leaders look for ways to get things done instead of looking for ammunition for assigning fault.
• “They have strong mechanisms for closing the loop.” Leaders make sure ideas turn into action.
• “They believe that experience is the best teacher ever.” Prototyping, testing, and feedback is encouraged.  People are expected to take risks, occasionally make mistakes, and keep learning.

How would you score your organization in these five areas?  Is your corporate culture more “talking” or “doing” by nature?  If it seems a little conversation-heavy, develop an attitude of action.  Understanding, planning, and deciding are just the first step.  Doing is what counts.  Take action today!

Ready to get started?  Join us for a webinar this Wednesday!

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The High Cost of Poor Leadership: The three performance gaps you have to address Wednesday, December 7, 2011, 9:00 a.m. Pacific, 12:00 p.m. Eastern, 5:00 p.m. UK and GMT

Poor leadership practices cost companies millions of dollars each year by negatively impacting employee retention, customer satisfaction, and overall employee productivity. In this Webinar, Blanchard Program Director David Witt helps you take a closer look at the effect that leadership has in each of these three areas and what you can do to improve performance.

You’ll learn that

• Less-than-optimal leadership practices cost the typical organization an amount equal to as much as 7% of their total annual sales
• At least 9% and possibly as much as 32% of an organization’s voluntary turnover can be avoided through better leadership skills
• Better leadership can generate a 3 to 4% improvement in customer satisfaction scores and a corresponding 1.5% increase in revenue growth
• Most organizations are operating with a 5 to 10% productivity drag that better leadership practices could eliminate

Drawing on proprietary original research, you’ll learn which management techniques generate the best results and also look at some of the common cultural roadblocks that keep companies from implementing them. You’ll also learn how to overcome these obstacles and make the shift from knowing to doing.

Organizations need to make sure that they are getting the best out of their people by providing strong, consistent, and inspiring leadership. Don’t miss this opportunity to learn how to evaluate and improve leadership practices throughout your organization.

Register today! http://www.webex.com/webinars/The-High-Cost-of-Poor-Leadership-The-three-performance-gaps-you-have-to-address

Over the past 30 years, renowned marriage counselor John Gottman has been able to predict with 90% accuracy which newlyweds he works with will stay married versus getting divorced after watching just 15 minutes of their interactions on videotape. 

The key factor that Gottman looks for is the ratio of positive to negative reinforcement that couples give to each other.  When the ratio is 5 to 1 positive, the couples report the overall relationship as positive.  Anything less than 4 to 1 and the relationship is perceived as negative. 

Why does it have to be slanted so heavily in the positive direction?  The answer is emotion.  The emotional response surrounding each praising or criticism amplifies its impact.  For most people, criticism is stinging and leaves a far larger emotional footprint than positive praising. 

Leaders can promote healthy relationships with the people who report to them by praising and reprimanding effectively.  Here are three tips.

1. Be timely. Nobody likes to deliver negative feedback.  But some managers have trouble delivering positive praising also.  Uncomfortable with the whole situation, these managers believe that by not communicating, at least they are doing no harm.  But the reality is that “not communicating” is sending a message.  If your boss never communicated with you about your work, how would it make you feel?  What message would it send to you?  People want to matter and they want to be noticed.  As a manager, it is your job to make sure that you are paying attention to your people.
2. Be specific. Feedback is best when it is specific.  A general praising of, “You’re doing a great job!” is nice, but a more specific praising of, “The way you ran that meeting today was fantastic.  You really did a good job of having all of the background information ready and also redirecting the discussion when it was getting off track,” is better.  When it comes to negative feedback, it is even more important to be specific.  Consider how damaging a comment like, “You really don’t seem to understand how we do things around here,” is.  Instead be more specific.  Say, “We have a very specific process for approving email that needs to be followed.  Anytime something new is created, please make sure I see it first and have a chance to review it before sending it out.”  This turns criticism into redirection—which is what you’re looking for.  Even though it will still hurt, you want to keep the focus on the behavior that needs to change.  If you don’t, the recipient will only remember how you made them feel and the necessary change will be an afterthought. 
3. Be aware of your emotional impact. Remember that negative feedback is serious business and carries five times the emotional weight as positive feedback.  Anytime that you find yourself having to deliver a reprimand, make sure that you follow it up with a reaffirmation of the person and their abilities.  This doesn’t mean that you backtrack or soften the reality of what needs to change, it just means a reconfirmation of your faith in the direct report to do better and your belief that they can change. 

By mastering the art of positive and negative feedback, managers can strengthen their relationships with direct reports.  Keep in mind both the quantity and the quality of the messages you deliver.  It’s an important skill that will keep people engaged and performing at their best.

Join The Ken Blanchard Companies for a complimentary webinar and online chat beginning today at 9:00 a.m. Pacific Time (12:00 noon Eastern).

Madeleine Homan-Blanchard, coauthor of Coaching in Organizations and Leading at a Higher Level will be discussing three strategies for getting people off to a fast start in a new role in a special presentation of On-Boarding: How to Shorten Ramp-up Times for Employees.

The webinar is free and seats are still available if you would like to join over 600 people expected to participate. Immediately after the webinar, Madeleine will be answering follow-up questions over at our sister blog, The Coaching Source for about 30 minutes.

We hope you can join us later today for this special complimentary event courtesy of Cisco WebEx and The Ken Blanchard Companies.

8/22/11 update: Recording of this event is now available online. To learn more, visit On-Boarding: How to Shorten Ramp-up Times for Employees

Join best-selling author and consultant Ken Blanchard for a complimentary webinar and online chat beginning today at 9:00 a.m. Pacific Time (12:00 noon Eastern).  Ken will be discussing strategies for leaders in a special presentation on Healing the Wounded Organization: Rebuilding Trust, Commitment, and Morale. The webinar is free and seats are still available if you would like to join over 800 people expected to participate.

Immediately after the webinar, Ken will be answering follow-up questions here at LeaderChat for about 30 minutes.  To participate in the follow-up discussion, use these simple instructions.

Instructions for Participating in the Online Chat

• Click on the LEAVE A COMMENT link above
• Type in your question
• Push SUBMIT COMMENT

It’s as easy as that!  Ken will answer as many questions as possible in the order they are received.  Be sure to press F5 to refresh your screen occasionally to see the latest responses.

We hope you can join us later today for this special complimentary event courtesy of Cisco WebEx and The Ken Blanchard Companies.  Click here for more information on participating.

The title of this post comes from a conversation I had with my wife a couple of years ago.  One of those conversations that can only be understood by others who have been in a close relationship with another person for 20+ years. 

It was about this time a couple of years ago and I was working on getting in shape.  I had bought a couple of books on nutrition, some new running shoes and workout clothes, and I had printed off some recommended exercise routines with space to chart my progress.   With every purchase I made, I explained to my wife how this book would help me eat better, how this exercise would impact this certain muscle group, and how this equipment would speed up the process. All through January I studied and read and researched my subject until I knew exactly what I needed to do to get back in shape. 

Once I had learned everything, it was time to put all that information into action.  I wasn’t quite as gung ho about this part of the process.  In February I only went to the gym a couple of times and by March I was going only once a week (if it worked out with my schedule.)

My wife was good natured about all of this until we were visiting my parents toward the end of the month.  My dad and I were talking about health and exercise when the topic of yoga came up.  I explained to my dad that I was incorporating yoga into my exercise routine.  My dad shared that he got great benefit from alternate nostril breathing and practicing the cobra position while watching TV.  As my wife watched the two of us drinking beer, eating chips, and talking about the benefits of yoga she had finally had enough.  She asked both of us to lift our shirts so she could see the results of all of our yoga training.  Considering that we were both about 20 pounds overweight at the time and with most of it settled into generous spare tires around our midsections, we looked at each other sheepishly and politely declined.    It was a good reminder that knowing and doing are two different things.

Since then, “Lift up your shirt,” has been a fun reminder in our family to move beyond talking to actually doing something different.  Knowing what to do is an important first step, but actually changing your behavior is where you need to get to.

Are you ready to get started on putting your good intentions to work?  Here are three tips to help you along the way:

1. Decide on what you want.  This all about goal setting.  Since this is a leadership focused blog, let’s use a leadership skill example.  Listening is a skill many executives want to get better at.  Find a good model and stick with it.  In this case, we can use the EAR model—explore what the other person is saying, acknowledge you heard what they said by paraphrasing, and then respond in your normal fashion.
2. Put it into practice. In as many conversations as possible, start to use and practice the new skill you want to develop.  At this stage remember to be easy on yourself. Maintain your humor and esteem while learning.
3. Emotionalize only the good.  You are going to have good days and bad days.  The key is to “catch yourself doing things right” as often as possible while you are developing your new skill.

Changing behavior is difficult.  But if you focus on a couple of key things, practice them on a regular basis, and are easy on yourself along the way, you’ll be amazed at what you can accomplish.

Are you ready for Open Leadership? That’s the question that Charlene Li asks in her book, Open Leadership: How social technology can transform the way you lead. A major theme in the book is that leadership is about relationships, and because social technologies are changing relationships, leadership also needs to change. And while most executives understand the importance of listening and drawing out the best from their people, a majority of leaders are still focused on maintaining control.

One of the biggest reasons why open leadership is feared and avoided is a concern that open leadership may lead to a lack of control. But in her book, Li explains that openness and control are not an either/or proposition. In fact, it requires a leader be both open and in command.

To help leaders get started with this, Li recommends evaluating where you stand on two important dimensions; Optimism versus Pessimism; and Individuality versus Collaboration. By assessing yourself in these two areas you can begin to understand your starting point on the journey to being a more open leader.

Optimism vs. Pessimism

The first dimension is optimism versus pessimism.  On this scale, Li asks leaders to evaluate their basic assumptions about people. In Li’s model, pessimistic leaders tend to see people as needing to be controlled because people can be harmful, negative, and untrustworthy with information. Optimists, on the other hand, believe that if given the opportunity, people will be positive and constructive, will do the right thing, and can be trusted with confidential information.

Key question: Where do you stand on this first important dimension?

Individually Focused vs. Collaboratively Focused

The second dimension is whether a leader is more individually or collaboratively focused. Individually focused leaders will believe in involving fewer, more knowledgeable people, and in relying on personal initiative—both in themselves and others. These leaders prefer to limit decision-making authority to people who have the knowledge and responsibility for that function in the organization. Collaborative leaders will believe more in the collective wisdom of the group, will tend to depend on others when times are tough, and will personally point to collaboration with others as a key reason for their own success.

Key question: Where would you put yourself on this continuum?

Changing your mindset

An open leadership strategy requires you and your organization’s leadership to be more open and collaborative. But transforming existing mindsets requires time, patience, and repeated small successes to build confidence. To help you get started, Li recommends four strategies: 

• Develop guidelines around the sharing of information. When you share information or push down decision-making, what are your expectations about what will be done with this power? What responsibilities do you want employees to take on? 
• Partner with others who are optimistic and collaborative. Seek out other leaders in your organization whom you regard as an optimistic and open leader. Sit down with this person understand his or her perspective and outlook on the world. What does this person do to ensure being in control while opening up? How does this person make openness work in your organization? 
• Examine your beliefs. As Li explains, “Your mindset is developed through crucial personal experiences, so talk with people who know you well on a personal level. Every person harbors some optimism, so turn to the people whom you trust to help you find that starting point where you will feel comfortable engaging with people.” 
• Start small and build.  Personal change is difficult and old habits die hard. You can’t simply announce, “From today forward I will be collaborative; I will be optimistic.”  It takes time to shift the mindset, and it happens only with repeated successes.

For leaders looking to be more open, Li recommends taking it one step at a time.  In doing so, you can build confidence in sharing information and collaborative decision-making with an ever widening circle of people.  To learn more about Charlene Li and her thoughts on open leadership, check out her book here, or visit www.charleneli.com.  You’ll find a host of great resources that can help you in your journey.

No, the coach didn’t actually die, but if you perform a “leadership autopsy” on the recent firing of Rich Rodriquez, the former University of Michigan head football coach, I think you’ll find that the ultimate cause of his demise was that he was killed by the culture because he didn’t build trust.

As a college football fan (and in the spirit of full disclosure, a rabid University of Michigan fan), and a student of leadership, I’ve found the Rich Rodriquez era at UM an interesting case study of how a recognized expert in his field, with a winning track record, could experience such turmoil and discord in 3 years that would lead to the loss of his job. His experience is a lesson for those of us in any type of leadership position. My conclusion: he was never a fit for the culture from the very beginning.

Some of that was by design. After 13 years of steady, yet mostly unspectacular success under Coach Lloyd Carr (save one shared national title in 1997), there was a move afoot by school leadership to shake things up and create a more dynamic and electrifying brand of football. Usher in Rich Rodriquez and his high-scoring spread offense, a system heretofore unseen in Michigan. So some of the blame of this failed venture falls directly on the shoulders of school leadership.

However, Rodriquez underestimated two factors (among many others!) that led to his downfall. The first was the power of the culture to kill his efforts to implement such a drastic change in philosophy. Stan Slap, an organizational consultant, calls this failure to recognize the power of the culture the “original sin” of a strategic implementation. Coach Rodriquez committed many cultural missteps when he joined Michigan. He said and did things that showed he didn’t understand or appreciate the longstanding traditions of the winningest program in college football history. When leaders implement a large organizational change, they have to remember that most people view change as a “loss.” People often lose perspective when change occurs so we have to remind them about what isn’t changing so they can have security in some form of consistency. Rapid organizational change rarely succeeds.

A second lesson that we can learn from the downfall of Rich Rodriquez is the importance of building trust. When it comes to building trust, there are four elements that need to be present: ability, believability, connectedness, and dependability. Rodriquez had ability in spades. Before coming to Michigan he was the head coach at West Virginia where he compiled a record of 60-26, four Big East titles, and six consecutive bowl game bids. But ability will only take you so far when it comes to building trust.

Rodriquez’s believability was damaged when NCAA infractions came to light during his second season. For a University who had never suffered any NCAA sanctions, this severely damaged the perceptions of his honesty and values. He also eroded trust through his lack of dependability. Dependability involves being organized and accountable in following through on commitments. Anyone who saw the repeated mistakes and disorganization of the Michigan defense this season can attest to this fact! But most of all, Rodriquez failed to build trust by connecting with folks. He didn’t show the aptitude for communicating well and building relationships. There were times he threw his players under the bus in press conferences and he seemed to be perpetually unhappy and angry over the state of affairs. Perhaps this is all a case of misjudgment, but when it comes to building trust, perception is reality.

By all accounts Coach Rodriquez was an earnest, hard working man who took pride in his efforts. We can learn from his experiences to help us in our own leadership journeys. We have to deftly manage organizational change and respect the power of the culture to work against our efforts, and we can leverage the power of the culture by building trust. Building trust in relationships is the key to success, whether we’re on the playing field or in the board room.

It’s that time of year when many of us pause, look back, and reflect on the past twelve months.  One of the most powerful ways you can improve the performance of your company is by evaluating the quality of your leadership.  What can you do for this coming year?  Here’s some advice for leaders from bestselling author and management guru Ken Blanchard.

How can a leader reinvent himself or herself? 

A. I think a leader reinvents himself or herself by constantly wanting to learn.  When you stop learning, you might as well lie down because you’re dead. I think every leader ought to set a personal goal each year about what will they be able to put on their resume next year that they didn’t have last year.  It might be learning a new language.  It could be learning a new computer program.  Constantly put yourself in a learning mode.

What does it take to be a good leader?

A. The biggest thing it takes to be a good leader is humility.  People with humility don’t think less of themselves—they just think about themselves less.  I think Rick Warren said it well in his book, The Purpose Driven Life.  The first sentence of that book is a whole leadership training program.  He said, “It’s not about you.”  We can accomplish that if we can get leaders to realize that they are there for the mission, for their clients, for their people, and not for themselves.

Can a leader also be a good coach?

 A. Yes, coaching is a definite part of leadership.  There are two parts of leadership.  One is the visionary direction part of leadership which is, “Where are we going?” and “What are we trying to accomplish?”  That has to be the responsibility of the traditional hierarchy.  It doesn’t mean that you don’t involve other people, but people look to the president, department chairman, and other traditional leaders to make sure that everybody knows where they are going.

The second part of leadership is implementation, which is “How do we live according to the vision, direction, and values that we have established?”  With that you have to turn the traditional hierarchy upside down.  So now the leaders who played a major role in setting the vision are at the bottom cheerleading, supporting, and coaching.

This is where the coaching process comes in because in developing your people there are three parts: Performance Planning where you are setting the goals and objectives; Day-to-Day Coaching when you are helping people win and accomplish their goals; and then there is Performance Evaluation.

In most companies, the majority of time is spent on performance evaluation with managers focused on judging people’s behavior.  Some companies do a pretty good job of goal setting but then they file the goals away until somebody says it is performance review time and then they run around looking for the goals. The thing that is least done is the day-to-day coaching, so coaching is a very important part of leadership.

What can you do from a personal leadership perspective to help your people and your organization perform at a higher level in 2011? 

Successful leaders recognize that profit is the applause you get for taking care of your customers and creating a motivating environment for your people.  What can you do to create that type of environment within your organization? The New Year is a great time to start!

PS: Ken Blanchard will be conducting a free webinar with Colleen Barrett, president emeritus of Southwest Airlines, on January 26.  It’s based on their new book, Lead with LUV.  To learn more, or to register, visit Lead with LUV: A Different Way to Create Real Success at the Blanchard website.