Blanchard LeaderChat

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.

Gallup’s latest report on The State of the Global Workplace 2011 identifies the levels of engagement and subsequent wellbeing of workers from over 120 countries.  It’s another great report from a pioneer in the field of employee engagement.  Overall the report shows that only 11% of workers are engaged, with 62% identified as disengaged, and 27% identified as actively disengaged. 

One item buried deep in the report was something that I hadn’t seen Gallup talk much about in the past.  In a section looking at implications for leaders, the report identified the two factors among the twelve that Gallup measures that are consistently among the lowest rated worldwide. Can you guess what they are?

I’ll give you a hint.  It’s something you can do personally and it won’t cost you a thing.

The two lowest rated items are, “In the past seven days, I have received recognition or praise for doing good work” and “In the past six months, someone at work has talked to me about my progress.”

In looking at why this might be occurring, Gallup researchers identified three possible causes

• Larger spans of control might be making it more difficult to give the kind of individualized attention required to ensure these needs are met.
• When it comes to jobs with a high degree of routine, feedback and recognition may be overlooked because managers do not differentiate individual contributions.
• It might just be that we are “…better wired to receive praise than to give it. We feel our own hunger more than we empathize with others around us.”

How are you doing with the praise and recognition of your people?  If you are a little rusty, here are three tips for getting started.

1. Make it timely.  Praisings are most effective when they are delivered as close to real time as powerful.  Don’t “save up” your praisings for a specified time.  Praise in the moment!
2. Give specific examples.  A general comment like, “You’re really doing good work,” is nice, but a praising that identifies a specific action is better.
3. Repeat often.  You really can’t overdo it—as long as you are specific and sincere in your praising.

For over 30 years, Ken Blanchard has asked audiences worldwide, “How many of you get too much praise at work?”  No one ever raises their hand.  We all have a deep-seated need to be recognized and appreciated.  Everyone enjoys a pat on the back.  Don’t be stingy with your praise.  Catch someone doing things right this week.  Guess what?  You’ll feel better too!

That’s the message Scott Blanchard shares with readers in his latest column for Fast Company magazine.  Drawing on exclusive, primary research that shows Growth as one of the lowest-rated employee work passion factors in today’s organizations, Blanchard shares what individuals, managers, and senior leaders can do to improve growth perceptions inside their organizations.

Individual Employees

For individual employees, Blanchard recommends first and foremost, to focus on doing a good job in your current role while you look for new opportunities inside the company.  As he explains, “Growth beyond your current job is a privilege usually reserved for people who perform in an exemplary fashion. When managers get requests for growth from people who are not performing at their best, it may feel to them like they are stepping on a treadmill with an employee who may never be satisfied in his or her current role.  Most managers will avoid this, because they suspect it will become a never-ending process.”

Managers

For managers, Blanchard advises facing growth conversations head-on—even when you don’t have traditional next steps up the corporate ladder to offer. As a manager, keep your eye out for new opportunities and new projects that may come up. Know which people on your team would consider it rewarding to get involved in a project that is different than their normal job.

This could potentially be a lateral move, or even a move to completely different part of the organization. Some of the greatest opportunities for growth are found in areas that integrate what’s happening between two departments. For example, a project following up on leads could bring the sales and marketing departments together, while refining and solving a business problem could integrate the engineering and sales departments.

Good managers look out for their people and think beyond the day-to-day. When they have someone who is really working hard for them, they go out of their way to help that person grow.

Senior Leaders

For senior leaders, Blanchard reminds executives that good people always have opportunities.  His recommendation?  Conduct an assessment to find out how employees view current growth opportunities in the organization. Make growth a priority. Your best people are not going to wait patiently for opportunities for advancement—even in a slow economy.  If you are not providing them with growth opportunities, they will go elsewhere and they will take what they learn from you and use that to build their career at another company.

You don’t want to be the person at a top employee’s exit interview who hears, “The headhunters seemed to care more about my career development and growth opportunities than this organization did.”

Learn More

Growth is just one of 12  important factors employees evaluate in their work environment. To see Blanchard’s latest research on the topic read Employee Work Passion Volume 3: Connecting the Dots.  To read more on Scott Blanchard’s specific strategies for creating an engaging work environment check out his other Fast Company articles.

Do Your People Really Know What You Expect From Them?

Feedback Usually Says More About the Giver than the Receiver

Managers: Set People Free to Promote Growth and Get Results

The Role Money Plays in Engaging Employees

The Just-Right Approach To Social Media And Transparency, And What It Says About Your Company

Maintain A Startup Attitude for a Passionate Office

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Wouldn’t it be great if management was as simple as assigning tasks and checking on progress?  The reality is that many times managers are faced with employees who seem able to take on a new project, but never quite get started.  Follow-up conversations identify a lot of reasons why action hasn’t occurred , but you still have a sense that you haven’t really surfaced the real issues.

If you find yourself with an employee who doesn’t seem enthused to take on a new project and you can’t quite figure out why, here are three areas to explore. First identified by Edward Deci and Richard Ryan in the 1970’s, these factors are being rediscovered as management theorists and practitioners look at the factors that create an engaging work environment. 

1. Autonomy.  Everyone has a need to exercise some level of control over their environment.  Is the new role or project that you are assigning promoting autonomy in your employee, or will working on it make them more dependent on you and your organization?  Employees will move toward projects and roles that increase their sense of autonomy and will retreat from environments that they feel decrease it.  What is your new role or project offering?
2. Relatedness.  People are social animals.  It’s important to create opportunities for people to work in a way that allows them to feel cared for by others, and to be able to give back to others.  Even for people who seemingly want to work in an isolated manner with little interaction, there is still a need to be seen, accepted, and validated by others.  Will the new project you are proposing lead to an increased sense of connectedness, or promote isolation?
3. Competence.  Everyone needs to feel that they are growing.  People will move toward assignments which provide growth opportunities, and they will avoid assignments which seem to be dead ends.  While routine work is a part of most jobs, keep in mind that a properly constructed role or task will include opportunities to learn new skills and increased competencies. How does this new task rate on that scale?

People have good reasons why they act on certain tasks and why they delay taking action on others.

Even when managers set clear goals, provide day-to-day coaching, and follow-up with proper amounts of direction and support, employees can still be slow to take action if these sometimes hidden drivers of behavior are not taken into account.

Is someone you know dragging their feet on an assignment?  Keep in mind their perceptions of Autonomy, Relatedness, and Competence.  Though often unspoken, they are always a part of an employee’s decision process.

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 PS: Would you like to learn more about creating an engaging environment for employees? 

Join The Ken Blanchard Companies for an Executive Briefing near you.  Upcoming cities include San Diego, Chicago, Atlanta, Dallas, and St. Louis. 

Learn more here.

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.

A recent survey conducted by Training magazine and The Ken Blanchard Companies asked more than 800 Training magazine readers to share their thoughts on the factors that create an engaging work environment.  Readers were asked to rank order 12 factors first identified by The Ken Blanchard Companies as a part of their ongoing research into what creates a motivating work environment.

The top three job factors that the respondents identified as most important were

• Meaningful Work
• Autonomy
• Task Variety

The top three organizational factors that respondents identified as most important were

• Procedural Justice (Fairness)
• Collaboration
• Performance Expectations

In a follow-up question, the respondents were asked who they felt had the primary responsibility for influencing and improving each of the factors. Surprisingly, respondents identified themselves as having the primary responsibility for several of the factors. The one exception was on the factor of Feedback, where 82 percent of the respondents saw the responsibility as primarily being in the hands of the supervisor.

To see the complete survey results, download Employee Work Passion: What’s important in creating a motivating work environment and whose job is it?

Think back to your best job—a time when you felt totally engaged in the work you were doing. What was it about that job that made it so special? What was happening in the work environment that caused you to feel that this was a place where you could grow and succeed?

Those are the questions that researchers at The Ken Blanchard Companies have been exploring in ongoing research into the factors that create Employee Work Passion. Their findings show that an engaging work environment is comprised of many different factors. And while the rankings and impact of each factor varies from individual to individual, all must be present to some degree for an employee to feel the sense of well-being that leads to higher levels of performance and satisfaction.

Read more…

A new white paper from The Ken Blanchard Companies establishes the link between environmental work factors, employee perceptions, and subsequent intentions to act positively or negatively at work.  The paper is the third in a series tracing Blanchard’s exploration into the factors that contribute to a passionate work environment and what leaders can do to influence that environment.

Entitled Employee Work Passion: Connecting the Dots the paper looks at how 12 environmental work factors influence five desired work intentions.

• Discretionary Effort—the extent to which the individual intends to expend his or her discretionary effort on behalf of the organization above and beyond agreed upon requirements
• Intent to Perform—the extent to which the individual intends to do his or her job well and work effectively to help the organization succeed
• Organizational Citizenship Behaviors—the extent to which the individual is committed to supporting fellow workers and behaving in ways that are respectful, considerate, and sensitive to others
• Employee Endorsement—the extent to which the individual readily endorses the organization to others as a good place to work and as a quality supplier of goods and services
• Intent to Remain—the extent to which the individual plans to stay with the organization

Read more…

There is a classic fable about a man who approaches three laborers breaking and shaping rocks. The man asks the first laborer what he is doing. “What does it look like I’m doing? I’m breaking rocks,” the laborer replies. The man asks the second laborer what he is doing and he responds that he is building a wall. The man then asks the third laborer what he is doing and the laborer responds, “I’m building a cathedral.” 

The three men are all doing the same work, but each with a different perception of its relative worth. Which man do you suppose is coming to work happier and more engaged?

The first man sees his work as a job, the second man sees his work as a task, but it’s the third man who sees his work as a worthy calling, because he is clear about the bigger picture and how his work connects and adds value.

And it is that man who, according to Blanchard employee work passion research, has more positive intentions about

• performing at an above-average level
• being a good organizational citizen
• using more discretionary effort on behalf of the organization
• remaining with the organization
• endorsing the organization and its leadership to others

In a new monthly column for Fast Company, Scott and Ken Blanchard look at the power of meaningful work and alignment. For leaders looking to rekindle a “cathedral” point of view in their people they suggest:

• First, remember why you got into business in the first place. Without an occasional reminder, sometimes it really can seem like the only reason the organization exists is to make money for shareholders.
• Second, connect the dots between an individual’s work and the organization’s overall goals. Make sure that individual tasks and roles are aligned to current initiatives by regularly reviewing what people are working on and how it is contributing to overall performance.

Helping people see and understand the meaningfulness of their work is one of the most powerful things you can do to create strong and powerfully motivated employees. To learn more about creating a sense of meaningful work in your organization, check out Scott and Ken’s new column at Fast Company here.  To learn more about Blanchard’s research into employee work passion, follow this link to Employee Passion: The New Rules of Engagement or From Engagement to Employee Work Passion: A Deeper Understanding of the Employee Work Passion Framework