Blanchard LeaderChat

27% of workers worldwide are actively disengaged according to the latest survey conducted by the Gallup Organization.  In their latest report, The State of the Global Workplace, Gallup breaks down engagement figures for 50 different countries.  Re-energizing and re-invigorating today’s employees remains a key concern for leaders at companies everywhere.

Last week over 5,000 people joined The Ken Blanchard Companies for a Quit and Stayed Leadership Livecast looking at strategies for reducing the number of people who have mentally and emotionally “checked out” from their organization.  What can you do to improve engagement levels in your organization?  Plenty—depending on your role in the organization.  Here are some recommendations if you are a senior leader, frontline manager, or an individual contributor.

Senior leaders.

From senior leaders, the biggest need is two-fold.  1. Recognize the issue exists. 2.  Put a plan in place to reconnect people to the organization’s mission, vision, and values.  Legendary CEO of Herman Miller, Max De Pree, once likened leadership to being a 3^rd-grade teacher.  You have to say it again and again, until people get it right, right, right.  As focused as organization have become on grinding it out in recent years, it’s easy to fall into a mentality of “same as last year—but 10% more.”  That might be the reality, but it’s not going to inspire anyone.  People come to work for a variety of reasons beyond taking home a paycheck.   (For example, opportunities to learn and exercise new skills, work together with others toward a common goal, and to be a part of something bigger than themselves.)  Examine your organization.  Has it become one-dimensional?  If you meet only a part of people’s needs, you will receive only a portion of their effort in return.  If you want people to be fully engaged at work, you have to meet all of their reasons for being there.

Frontline managers.

Take the time to notice what is going on in your specific area of the organization.  You have tremendous impact on an employee’s perceptions of their work environment by the ways that you operationalize company policies and strategies.  How are you encouraging or discouraging people to act?  What message are you sending?  Also, where are you at personally with getting your needs met at work?  Your experience translates into your people’s experience.  Are you portraying work as dull drudgery that has to be accomplished?  Are you telling people a story of doing more with less—with little hope for any change in the near future?  If that’s your attitude, what’s the experience your people are having?  Change your internal environment and change the environment for the people who report to you.  See a brighter future for yourself and others.

Individual contributors.

Don’t stand back and wait for someone else to motivate you.  Yes, senior leadership, company policies, and your immediate manager all play a role in creating your work environment, but ultimately it is your choice whether you are going to be motivated or not.  In any organization, working under the same exact conditions, a certain percentage of people are thriving, while others are merely surviving.  It’s easy to see yourself as a victim of your circumstances—but you have more choice than that.  Even during difficult times, some people thrive and shine.  Be one of those people.  To the best of your abilities, create the environment you need to succeed.  Look for ways to contribute.  Standing back with your arms crossed and a chip on your shoulder is not going to create new opportunities for you.  Be the person you want others to see you as.

Don’t miss your future

The economy is picking up.  Things are starting to improve.  Don’t let a tired attitude keep you–or your company–from taking advantage of new opportunities.  Review where you are at;  Can you see a bigger vision?  Do you see where you fit in?  Do you know what your next step is?  How can you help yourself and others get there?  Depending on where you sit in the organization, take action today!

The Gallup Organization estimates that 27% of workers worldwide are actively disengaged at work.  This is a state of mind where an employee is so discouraged at work that they essentially quit and stay—doing only what is marginally required of them to keep their job, but little more.  In some extreme cases it can be even worse with disengaged workers actively working against an organization’s goals and spreading their discontent to other workers.  In the U.S. alone, this level of disengagement is estimated to cost employers over $300 billion dollars a year in lost productivity.

While some of the factors that contribute to disengagement need to be addressed at an organizational level, there is one action that managers at all levels can take that will help the situation.  Talking about it.  Staying quiet on the subject and hoping that it gets better on its own never works out.  In fact, usually, things will get worse.

As the late great business author Peter Drucker pointed out, “Only three things happen naturally in organizations: friction, confusion, and underperformance. Everything else requires leadership.”

First Steps

Having a conversation with someone who has fallen into a state of disengagement can be a challenge.  There is usually some history that has to be dealt with, as well as some shared responsibility for the situation.  As a leader though, you have to address the situation squarely. That means setting up some time to have a conversation.

It will also be important to put some structure around that conversation.  One great framework that you can use are the 12 employee work passion factors identified by Blanchard as the factors which most impact employee intentions to perform at high levels, actively endorse the organization, and be a good corporate citizen.   Some thinking on your part, and some gentle inquiry around these areas in your first conversation, will help to provide that structure.

It’s also important to keep things positive and assume the best intentions.  Even though things may be in a difficult spot currently, it’s important to remember that very few people want to go into work to see what they can screw up.  That’s almost always a long term reaction to the environment.

Don’t wait and hope for things to get better.  Take some action today.  Most people, if given the chance, want to be magnificent.  What can you do to help bring out that magnificence in your people?  You’ll never know unless you ask.

PS: Interested in learning more?  Don’t miss this special online event!

On January 25, over 40 thought leaders from a wide variety of organizations will be getting together to share their ideas on how to address the quit and stayed phenomenon in a unique Leadership Livecast.  This is a free online event being hosted by The Ken Blanchard Companies and over 5,000 people have already registered to hear how to address the problem from an individual, team, or organization-wide point of view.

To learn more—or to participate in this complimentary online event, check out the information on the Quit and Stayed Leadership Livecast here.

Work used to be a lot more fun. Companies were looking up and looking out. There was a lot more growth and a lot more opportunities inside and outside of organizations. But today’s economic situation has created a long-term change in the work environment and some resulting resentment and control issues among employees that will require extra attention and new ideas on the part of leaders.

This passive-aggressive behavior is popularly known as “quitting and staying” and it happens anytime you combine a large number of employees with limited opportunities together with unresponsive management. On the surface, everything seems to be going along okay, but underneath, tensions and emotions are anything but tranquil. It’s a difficult situation for leaders because it is hard to get a handle on. People are not overtly working against company goals and initiatives—they just aren’t working as hard toward them.

It’s a normal reaction, but that doesn’t mean it can be left unaddressed, says Scott Blanchard, consultant, author, and EVP at The Ken Blanchard Companies.  In an interview for Blanchard’s Ignite newsletter, he explains that it’s not healthy to have people working just for a paycheck. Leaders need to take direct action to identify where people are feeling disaffected and work hard to reenergize the passion and motivation that still exists.

Otherwise, the impact on the work environment can be predicted almost every time.

As an example, Blanchard points back to an experience he had working as a consultant to a client in the automotive industry.

“When I used to work in the automotive industry there was a principle that said, ‘You get the union that you deserve.’ And what that basically meant was that if you had a respectful relationship with the union and you didn’t break promises and you sat at the table together and shared what was happening in the business, relationships improved and things got better. And the same is true with your company—you get the environment that you deserve.

“If you do not make any attempts to make lemonade out of lemons and if you’re not working to bring people together and engage in good practices, you’ll get what you deserve as a result of that.

“One of the things that the late, great management consultant Peter Drucker said years ago, that is still true today, is that the only things that happen naturally in organizations are the creation of fear, frustration, inefficiency, friction, and political mayhem.

“And what Drucker went on to say is that positive things  happen in a company only when leaders identify  a purposeful, unified direction, shared operating rules that everyone holds sacred, and a tenacity to make good things happen.”

Take a proactive approach

It may seem like a large problem to tackle, explains Blanchard, especially if these issues haven’t been addressed in a long time. Still, Blanchard recommends getting started as soon as possible.

“It may feel hard to do at this point, but the best companies are the ones that are making efforts to work together,” says Blanchard. “Everyone is in the same boat. If you don’t create a positive environment where people are encouraged to work together productively, you are going to end up with a lot of people thinking only of themselves.

To address the situation, Blanchard recommends that leaders look at 12 employee work passion factors that impact employee perceptions of their work environment.  By addressing what can be done on an individual, managerial, and organizational level, leaders can positively impact the work environment going forward.

As he explains, “You have to be proactive. Taking the approach of, ‘There’s nothing we can do!’ and throwing your hands up is a strategy that will predict a marginalized workforce, guaranteed! If you are just doing nothing, it’s not going to get the results that you want.”

To read more about Blanchard’s thinking, check out the January issue of Ignite.  Also, be sure to see the information about a special Leadership Livecast coming up on January 25.  Over 40 different business thought leaders will be addressing the phenomenon of “quitting and staying” in today’s organizations.  It’s a free event and over 3,000 people are currently registered.

The average organization is losing an amount equal to 7% of their annual sales because of poor leadership practices. That’s the surprisingly large amount of money identified by companies who completed the Blanchard Cost-of-Doing-Nothing online calculator. 

In the December issue of the Blanchard Companies Ignite newsletter, I discussed some of the initial findings from an analysis of the 200+ companies that shared their current and desired levels for customer satisfaction, employee retention, and employee productivity in their organizations.

That analysis found a 14-point customer satisfaction gap, a 16-point employee productivity gap, and a 45-point employee retention gap which translates into over $1 million dollars for the average organization.

The role of leadership

Strong leadership and management practices can close the gap in all three of these areas.  Academic research has established a strong correlation between employee satisfaction scores and subsequent customer satisfaction scores and in both cases these have been tied back to leadership practices. The bottom line is that leadership practices matter. Companies that have good leadership practices outperform companies that don’t.

Organizations that do not address leadership practices suffer a persistent drag on performance that keeps results down. When times are good, this drag on performance can be manageable, but when times are tough, it’s critically important that everyone perform at their best—especially in terms of creativity, innovation, and breakthrough thinking.

Join me for a webinar on December 7

On December 7, I am going to be presenting a more in-depth look at the Cost of Doing Nothing analysis and sharing some strategies for addressing it.  This is free webinar courtesy of Cisco WebEx and The Ken Blanchard Companies.  Over 500 people are registered and I hope you’ll join us also. You’ll see some information about the webinar below.

PS: If you would like to read more of the Blanchard article, Don’t Underestimate the High Cost of Poor Leadership, just click here.  (You’ll see my recommendation for a first step that all leaders can take right away.)

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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

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).

Best-selling author and consultant Scott Blanchard will be sharing the results of five years of primary research which uncovers the motivational factors that bring out the natural motivation inherent in people, get employees up-to-speed quickly in new roles, and remove roadblocks to performance.
 

The webinar is free and seats are still available if you would like to join over 1,100 people expected to participate. Immediately after the webinar, Scott 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! Scott 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 to watch complete recording.

Only 20% of people say that they are truly passionate about their work according to a recent survey from Deloitte.  The vast majority of workers are disengaged, with an estimated 23 million “actively disengaged” in the U.S. alone according to Gallup. 

The lingering economic slowdown has created a real motivational problem for today’s leaders.  A shortage of resources has limited the ability of organizations to provide raises, promotions, and other perks. It’s been just as bad for employees as the widespread scope of the problem has left them with few alternatives beyond their present organization.

The result has been a perfect storm where millions of workers have resigned themselves to their jobs and effectively “quit and stayed.”  These workers show up and do their job at a basic level, but they are sullen and unmotivated in a quiet way that is hard to get at. 

It’s not so much what these workers do, as much as it is what they don’t do.

Here are the five intentions that passionate employees embrace.  Wondering if your people have “quit and stayed?”  Ask yourself to what degree your people:

1. Actively endorse the organization as a good place to work?
2. Go above and beyond the basic requirements of the job in terms of performance?
3. Think beyond themselves and strive for win/win solutions?
4. Go the extra mile when it is necessary to get the job done?
5. Intend to stay with the organization long term?

If you can’t answer YES confidently to these five questions, here are a couple of additional questions to ask yourself to get at the cause of the problem. A lack of passion is usually caused by negative perceptions at a job, organizational, or relationship level.  Probe a little bit in each of these areas and you will likely find the problem area. 

• Job Factors: Do your employees see the importance of their work?  Are people empowered to make decisions about their work and tasks? Are workloads reasonably proportioned for the time people have to accomplish them?
• Organizational Factors: Does the organization still seem committed to growth? Have clear goals been set? Are decisions about resources being made fairly?
• Relationship Factors: Do people feel connected? Do employees have a supportive professional relationship with their leader? Are leaders checking in and providing feedback regarding employee performance?

No one wants to be the type of person who quits and stays, but sometimes people fall into that trap.  Help people up.  Open up a dialogue around these issues.  Just taking the time and asking how things are going in each of these areas will show people that you’re noticing, that you’re willing to help, and that you care.

PS: Do you have a “quit and stay” solution to share?

On January 25, The Ken Blanchard Companies will be hosting a Leadership Livecast on the problem of Quitting and Staying.  Have you successfully addressed quitting and staying in your organization? Can you share it in five minutes or less?  Videotape yourself and send it to us.  You could be a featured speaker!  Click here for details.

A new white paper from The Ken Blanchard Companies shows that poor leadership is costing the average company an amount equal to 7% of their annual revenue. That’s over a million dollars a year for any organization with $15 million dollars or more in annual sales.

 The three big culprits? 

1. Employee turnover.  Poor leadership is responsible for up to 30% of the reasons why people leave their organizations according to exit interviews conducted by The Saratoga Institute.
2. Customer turnover. Poor leadership negatively impacts employee satisfaction, which in turn negatively impacts customer satisfaction and retention. Research published in Harvard Business Review calculated that every 5 point change in employee satisfaction scores caused a 1.3 point change in customer satisfaction scores.
3. Employee productivity.  Poor leadership leads to poor employee productivity.  Research from Blanchard shows that direct report productivity can be improved 5-12% through better management practices. 

Most senior executives instinctively know that leadership impacts the bottom line, but quantifying that impact has been a challenge in the past.  This new white paper (and the free online calculator that the information is drawn from) is a great way for leaders to put some facts behind their suspicions. 

You can download a copy of this new white paper, Making the Business Case for Leadership Development: The 7% Differential here.  If you are interested in calculating what poor leadership practices might be costing your organization, also check out Blanchard’s free online Cost of Doing Nothing Calculator.  This is the same free online calculator used by survey respondents in the white paper.

One of the biggest challenges HR professionals face when they propose new leadership development initiatives is convincing CEOs of the financial impact of the proposed initiative.  Without a clear sense of the positive financial impact, it’s easy to write-off a new proposal as too expensive, or that now is not the right time.  The lack of urgency to improve performance is based on the idea that that the current level of leadership skill in the organization is good enough.  But is it?  A look at most companies has shown that the typical organization is leaving millions of dollars in untapped potential lying on the table through less-than-optimal leadership practices. 

If you’re looking for some help in making the business case for a leadership development initiative in your organization, here are three resources that can help. Just click on the heading and you can access the information right away.

1. Whitepaper–The Leadership-Profit Chain 

In 2006, researchers from The Ken Blanchard Companies conducted a year-long study to identify the connections between leadership effectiveness, employee passion, customer devotion, and overall organizational vitality.  This resulting whitepaper identifies several correlations: 

• Effective operational leadership directly predicts positive employee passion
• Positive employee passion directly predicts customer devotion
• Customer devotion directly predicts organizational vitality 

2. Whitepaper–The High Cost of Doing Nothing 

In this white paper you’ll see why “good isn’t good enough” when it comes to the impact that leadership practices have on employee turnover, customer satisfaction, and employee productivity.  You’ll discover what your cost-of-doing nothing is in today’s dollars.  More importantly, you’ll learn a couple of ideas for identifying ways to recoup some of that untapped potential in your organization. 

3. Online Cost-of-Doing-Nothing Calculator 

This online calculator uses a couple of pieces of information—number of employees, annual sales, current turnover rate, and combines it with desired targets for customer satisfaction and employee productivity to generate a “cost of doing nothing” dollar amount.  It’s a great tool for identifying the impact of better leadership in an organization and also making the business case for a training initiative—especially leadership development.

Most executives instinctively know that strong leadership is essential for overall organizational success. However, in most organizations, there is a lack of urgency to improve leadership skills driven by a belief that an organization’s current leadership capacity—and subsequent performance—is good enough. 

But is it? 

A new white paper entitled The High Cost of Doing Nothing: Quantifying the Impact of Leadership, shows that this is a misguided assumption.  According to Blanchard research, most organizations are operating with a million dollar drag on performance that better leadership can resolve.  As organizations look for ways to improve engagement, productivity, and satisfaction, it is important to remember the pivotal role that day-to-day leadership plays. 

Here are the three areas that the paper looks at along with some initial ideas on what managers can do to improve the situation. Think about your own organization as you review the three areas identified in the new white paper. 

Employee Productivity—Consistently identified as the largest financial drain in most organizations, poor leadership costs the average company 5-10% of potential performance. When employees do not receive the direction and support they need to accomplish their key tasks successfully, the result is wasted time, substandard results, and costly rework. 

Leaders can make the situation better by asking questions.  Does the employee understand the goal and have a clear plan for accomplishing it?  Do they have the knowledge and skill set to be able to perform this task without a lot of supervision or direction?  What is their motivation to work on this?  If managers ask the right questions up front, they can find out very quickly what a direct report needs. 

Customer Satisfaction—Even with all of the recent emphasis on having a customer focus, most organizations still only achieve a 75% satisfaction rating according to national customer service indexes. This translates into hundreds of thousands of dollars in lost revenue growth for the typical company.  How does leadership impact customer service?  By making sure that everyone in the organization is focused in the right direction—towards the customer.  In too many organizations, employees are looking up the organizational chart instead of in the direction of the customer.  Leaders can redirect this attention toward the customer by asking, “What can I do to help you in your job so that you, in turn, can better serve our customers?” 

Employee Retention—A third area where organizations typically see a drain on performance is through the loss of high potential employees. While today’s economic slowdown has dramatically reduced voluntary turnover in most organizations, it’s important that organizations not become complacent. Just because people can’t switch jobs right now doesn’t mean you can neglect people—especially high performers. Good people are always in demand, and you want your best people to know that you value them and want them to work for you.  Leaders can reduce unwanted turnover by 10-30% by checking in with high performers on a regular basis, expressing appreciation, and providing growth opportunities. 

Leadership makes a difference. In the average organization, this translates into over $1 million dollars of bottom-line impact on an annual basis.  As you look for ways to improve performance in your own company, don’t underestimate the impact that day-to-day leadership has on productivity, customer satisfaction, and retention. 

To access a copy of the complete paper, click here. 

If you’d like to try the calculator that the paper is based on, it is also available online at www.costofdoingnothing.com  It’s free, it only takes a few minutes to complete, and you get access to a complete personalized report immediately.

Join The Ken Blanchard Companies’ Kathy Cuff and David Witt for a live, online chat today at 10:05 a.m. Pacific Time. Cuff and Witt will be answering questions immediately after their webinar on The High Cost of Doing Nothing: Quantifying the Impact of Leadership on the Bottom Line.  Cuff and Witt will be exploring how leadership impacts employee productivity, turnover, and customer satisfaction levels. The webinar is free and is a part of The Ken Blanchard Companies monthly webinar series co-sponsored with Cisco Webex.

To participate in the online discussion, stop by www.leaderchat.org  beginning at 10:05 a.m. Pacific Time.

Instructions for Participating in the Online Chat

If you have a question that you would like to ask Kathy Cuff or David Witt, just click on the COMMENTS link above.  Then post your question and push SUBMIT COMMENT.  Kathy and Dave will answer as many questions as possible during the 30-minute online Q&A.  (Be sure to press F5 to refresh your screen occasionally to see the latest responses.)

If you can’t stay for the entire 30-minute chat, but would like to see all of the questions and responses, you can always stop by later.  You can also click on the RSS FEED button in the right-hand column to receive updates automatically through email.