Blanchard LeaderChat

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.

WD-40 CEO Garry Ridge and best-selling author Ken Blanchard got some eye-opening responses to questions they asked in a recent webinar.  They were sharing some of the key points from their book Helping People Win at Work, and as a part of their presentation they conducted a survey with their audience.  They wanted to find out how attendees felt about the performance management process in place at their organization and how it was impacting culture and performance.

To get at that, they shared five key questions from WD-40’s annual engagement survey and asked the audience how many of these statements they would personally agree and/or strongly agree with.  Here are the questions (and the percentages of positive responses.)  See how this stacks up with your experience.

In my organization/company…

1. I am treated with dignity and respect. (78% agree/strongly agree)
2. Employees work passionately toward the success of the organization. (52% agree/strongly agree)
3. I am allowed the freedom to openly discuss an alternative point of view concerning issues at our company/organization with my supervisor. (71% agree/strongly agree)
4. My supervisor respects me. (77% agree/strongly agree)
5. I know what results are expected of me. (68% agree/strongly agree)

Then Ken Blanchard asked one additional question to highlight the connection between performance management and culture.  After the initial results were shared, he asked, “Do you believe that you, as an employee, benefitted from your last review with your supervisor?”

Over 58% of the 500 people in attendance said “no”.

Blanchard and Ridge used this final question as a springboard to share their thoughts on what makes up a successful performance management system for employees.  They identified three key components.

1. Clear, agreed-upon goals.
2. Consistent day-to-day coaching designed to help people succeed.
3. No surprises at performance review.

The core of their message was that it’s all about trust and respect.  Organizations that treat people as valued team members by taking the time to structure jobs their properly, provide direction and support as needed, and focus more on helping people succeed instead of evaluating them, are the ones that create engaging work cultures that bring out the best in people.

What’s possible?

But does it work?  That’s where Garry Ridge’s experience at WD-40 really caught my attention.  After working at this for the past 10 years, Ridge answers, “absolutely” and he has the numbers to back it up.

Check out these responses from WD-40’s most recent survey on the same questions Ken Blanchard asked the audience.

1. At WD-40 Company I am treated with dignity and respect. (98.7% agree/strongly agree)
2. Employees at WD-40 Company work passionately towards the success of the organization. (98.6% agree/strongly agree)
3. I am allowed the freedom to openly discuss an alternative point of view concerning issues at WD-40 Company with my supervisor. (98.3% agree/strongly agree)
4. My supervisor respects me. (98.0% agree/strongly agree)
5. I know what results are expected of me. (97.7% agree/strongly agree)

The numbers at WD-40 are at least 20 points higher in all categories and an eye-popping 46-points above the audience survey response when it comes to question number two, “Employees at WD-40 Company work passionately towards the success of the organization.”

Ridge also has the bottom-line impact numbers you’d expect with the company experiencing consistent growth over the time period and record sales for the most recent fiscal year.

How about your organization?

Strong performance management is a basic key to success but its implementation is very uneven in today’s organizations.  Some companies have strong processes in place while others leave it up to the discretion of the individual manager. 

What’s your company’s approach to performance management?  How is it working? 

If you could use a more consistent, proven approach, check out the process that Blanchard and Ridge suggest in their book Helping People Win at Work.  It can be implemented at any level in an organization.  To see the complete presentation Blanchard and Ridge conducted check out the webinar recording posted up at Training Industry by clicking on this link.

Good performance management is a basic to better performance.  Don’t let an uneven approach create inconsistent results.  Your people deserve better.  Conduct a performance review of your performance management system today.

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

Wondering where to find the best “how-to” consultants on employee engagement? Look no further than your own company. Today, right now, inside your own organization are managers who consistently provide the right organizational environment that promotes well-being and generates high levels of engagement.  And they do it all while operating under the existing umbrella of your current organizational culture.

In a new article for the November issue of Blanchard’s Ignite newsletter, best-selling business author and consultant Scott Blanchard identifies five ways that organizations can find and learn from these best practice managers. 

Step 1: Survey your organization. Use a reputable employee engagement assessment to survey your organization. Make sure that the instrument is valid and reliable and that it will provide you with actionable data. Also, be sure to set the demographics up carefully. You need to protect anonymity to ensure candid responses while still obtaining the smaller unit data that you are looking for. In Blanchard’s experience, a review at the department or function level will usually get the job done.

Step 2: Identify your personal pockets of excellence. Once you get your survey results back, study your organization at the department or functional level. Identify your own personal pockets of excellence. Find out which teams and departments are scoring significantly above the organizational average. Contact leaders in these departments to set up interviews to learn more about what is happening in their specific unit.

Step 3: Focus your conversation where it counts the most. Blanchard research has identified 12 factors that create a passionate work environment and account for most of the variance in employee perceptions. (See Blanchard’s white paper, Employee Work Passion: Connecting the Dots, for more information on this.) These factors are broken down into five organizational factors, five job factors, and two moderating factors.

• Organizational Factors—Growth, Procedural Justice, Distributive Justice, Collaboration, and Performance Expectations
• Job Factors—Meaningful Work, Task Variety, Workload Balance, Autonomy, and Feedback
• Moderating Factors—Connectedness to Colleagues and Connectedness to Leader

Use these factors as a structure for your conversations with unit leaders. Find out how they approach meeting each of these components of a passionate work environment. Discover what they are doing differently from leaders in other departments.

Step 4: Don’t go overboard with prescriptions—Understand the process instead. As you listen and learn about how individual managers and teams address each of the 12 Employee Work Passion factors, listen for the underlying reasons why they engage in those behaviors. Don’t fall into the trap of just mimicking the behavior. The relationship between managers and direct reports is complex. What works for one manager in creating positive feelings of Connectedness and Collaboration may not work for another. Each manager needs to find his or her own individual approach.

Step 5: Share best practices with others and ask your leaders to do the same. Once you’ve identified all of the different ways that people in your organization are approaching employee work passion in the company, start to share some of those practices. Conduct forums, post tips on internal Web sites, and share success stories.

Get started today!

In any organization, at least 20%, and often as much as 30% of the people coming to work each day report high engagement levels.  Do you know who they are in your organization?  If not, you’re missing a very practical way to identify, celebrate, and learn from people who intimately understand how to create an engaging environment within your unique culture.

To read more of Blanchard’s thoughts on bringing out the best from your own organization check out Employee Work Passion: Seek out your pockets of excellence.  Also be sure to see the information about a free November 16 webinar that Blanchard will be conducting on Cultivating Employee Work Passion: The New Rules of Engagement

Leaders in today’s organizations need to continuously balance the expectations of three different groups of people—shareholders, customers, and employees. How these three groups are ranked within a company will largely determine the type of culture the organization has. A “shareholder first” organization is very different from a “customer first” or an “employee first” company.

In a recent article for Chief Learning Officer, best-selling author Ken Blanchard asks, “Who is customer number one in your organization? How is that impacting the return on investment, level of service, and levels of employee engagement in your company?”

 Using examples from several well known companies such as Southwest Airlines and WD-40 Company, Blanchard shows how companies that adopt an “employee first” mindset perform best.

But that’s only half the story, says Blanchard.  For best results, leaders need to combine a focus on people with a simultaneous focus on results.  It’s this one-two combination that delivers the greatest impact.

Investing in People

As Blanchard explains, “Leaders in ‘employee first’ organizations turn the traditional pyramid upside down so that the customer contact people are essentially at the top of the organization. In other words, the leaders work for the people who report to them.” This is the high investment in people part of the equation.

To illustrate this, Blanchard points to the philosophy of Garry Ridge, CEO of household-products manufacturer WD-40, who even goes so far as to remind managers of their mutual accountability to employees at performance review meetings. If a manager recommends that a person be let go—or “shared with the competition” as WD-40 calls it—the first question asked of the manager is: “What have you done to help your direct report succeed?” If the manager can’t show that he or she has coached and supported the direct report, the manager—not the direct report—might be “shared with the competition.”

Holding People Accountable

One of the benefits of this serious approach to mutual accountability is that it gives leaders permission to step in when tough love is called for—for example, when people engage in inappropriate behavior.

As an example, Blanchard points to Colleen Barrett, president emeritus of Southwest Airlines.  As Barrett explains, “We are very clear in telling our people what our expectations are. We hold them and ourselves accountable for meeting those expectations every day. Sometimes this means having a real heart-to-heart with people and reminding them what your values are. If you have been intentional and firm in explaining what your expectations are, that gives you the opportunity to point to specific examples where they haven’t exhibited the required behaviors.”

High Investment and High Expectations

As a leader, you need to be supportive and directive at the same time. It can seem like a lot of work, but it is necessary if you want to create the high-investment, high-expectations culture that makes all the difference. When people know that leadership not only expects the best from them, but is also backing them up, they feel safe, prepared and ready to step out to serve the customer in ways that unsupported employees just won’t risk.

What’s your organization’s approach to employee support and accountability? 

Do you use a high-investment, high-expectations approach to talent management? To read more of Ken Blanchard’s thoughts on this topic, check out The Upside-Down Pyramid here.

Everyone loves a bump in pay, extra time off, or other form of reward or recognition.  The problem is when managers start to rely on these types of extrinsic motivators too much and stop looking for the deeper intrinsic motivators that lead to long-term satisfaction and well-being at work.

Alfie Kohn first wrote about this in his book, Punished by Rewards: The Trouble with Gold Stars, Incentive Plans, A’s, Praise, and Other Bribes.  Daniel Pink picked up the banner most recently in his 2009 book, Drive: The Surprising Truth About What Motivates Us. 

In both cases, the author’s point to social science research conducted over the past 50 years which shows that money and other extrinsic rewards can actually reduce motivation and ultimately performance if not used properly. 

(For a great introduction into some of this social science research, check out Why We Do What We Do: Understanding Self-Motivation which summarizes the work of Edward Deci and Richard Ryan, two long-time researchers in this field.)

Three warning signs

Are you falling into the “if-then” trap as a manager?  Here are three warning signs:

1. Instead of trying to understand what really motivates your direct reports, you increasingly rely on a carrot approach where you dangle incentives in front of employees to get them to engage in desired behaviors.

2. Instead of taking the time to fine tune job roles and responsibilities, you take an approach of, “We pay you a fair day’s wage and we expect a fair day’s work in return.”

3. Instead of helping people connect their work to a higher purpose, you instead insist that they stay focused on their own task and leave the big picture thinking to senior management.

With this type of thinking, it’s easy to fall into a transactional mindset as a manager.  Now work becomes mostly about getting the next raise, bonus, or other prize.  Don’t let incentives and compensation become the de facto manager in your organization.  Go beyond “if-then” thinking to discover what truly motivates your people. It’s time well-spent that will pay long-term benefits!

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PS: Interested in learning more about creating a motivating work environment?  Check out these upcoming executive briefing presentations!

Creating an Engaging Work Environment: The Leader’s Role

The New Paradigm of Motivation: How to Make It Work

“One of the big challenges for new managers is learning to recognize and appreciate that not everyone approaches work the same way that they do. Some of the most dangerous words for a leader to use are, ‘Well, if it were me, this is what I would do.’ When we do that, it keeps us from understanding, embracing, and working successfully with other people’s behavior,” says Ann Phillips, a senior consulting partner with The Ken Blanchard Companies.

In a recent article entitled Top Challenges for New Managers, Phillips explains that many people are promoted into managerial positions because they were great individual contributors. Because they had so much success with a certain way of working—be it strong planning or attention to detail or great execution skills—they may have a difficult time understanding that other people don’t necessarily work that way.

For these managers (and others who may be new to leading others) Phillips identifies three additional challenges:

Doing the work yourself. It’s not easy for new managers to let go and trust that the work will get done without their direct intervention. When things don’t work out as planned—or are taking longer than expected, new managers tend to step in and do the work themselves rather than work through the process and learn how to let others run with the ball.

Not setting clear roles and goals. This is especially challenging for new managers who have been promoted from a group of their peers.

“Managers need to walk a fine line,” explains Phillips. “You want to maintain the relationship, but you have to separate yourself so people see you no longer as a peer, but instead in your new role as a manager.

“All good performance begins with clear goals and all good relationships begin with clear roles. If a manager is promoted out of their peer group, they need to sit down with their former coworkers and talk about how their roles have changed. ‘Here is how I am going to behave differently and here is what I expect in return.’ Otherwise there are always misunderstandings and surprises.”

Balancing accountability and caring. Sometimes new managers think you have to choose between people and performance.  Phillips recommends that new managers balance high expectations with equally high levels of support and caring.

“People need to know that you have their best interests in mind, that you are setting them up to win, and that you mean them no harm. Things are always going to come up. When people know that you truly care, that can cover a lot of situations and people will forgive your mistakes and continue to follow you.”

To learn more about Phillips’ advice for new managers, read Top Challenges for New Managers here.  Also, check out a free webinar that Phillips is conducting on September 22, A Primer for New Managers: Respect, Trust, and Accountability. It’s a free event courtesy of Cisco WebEx and The Ken Blanchard Companies.

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.

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

Some organizations do a great job helping employees get started in a new role. In other companies, people don’t even have clear job descriptions, so the on-boarding process is a little bit like being thrown into a salad spinner.

In a recent article entitled Three Keys to Effective On-Boarding, Madeleine Homan-Blanchard, cofounder of Coaching Services at The Ken Blanchard Companies identifies three ways managers can help new employees (or existing ones in new roles) get off to a fast start.

• Explain the local culture. There are many subcultures at play in any organization, and it’s the manager’s responsibility to explain how this particular team operates. Whether managers share it formally or informally, the existing culture and values need to be made extremely clear to new people.
• Share expectations.  A second strategy that Homan-Blanchard recommends to speed up the individual on-boarding process is for managers to spell out very clearly what the expectations are for the new employee. This gives new people a sense of safety because they know exactly what they are dealing with and what they will be evaluated on.
• Map relationships. Finally, Homan-Blanchard recommends that managers help people understand who the people are inside and outside of the department that they can go to for help if they need it. As she explains, “Many times this won’t be obvious on the organizational chart so it is very beneficial for a manager to say, ‘It might look like these three people are the ones to go to for that type of question—but if you really want to get this done here’s the person you want to talk to.’”

With a little extra time at the beginning of the process, managers can help eliminate some of the “deer in the headlight” hesitancy and confusion that trips up a lot of people when they first start a new role.

To learn more about Homan-Blanchard’s advice for getting people off to a fast start in your organization read Three Keys to Effective On-Boarding.  Also check out a free webinar that Homan-Blanchard will be conducting on August 17, On-Boarding: How to Shorten Ramp-up Times for Employees