Blanchard LeaderChat

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.

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?

In a recent webinar on 6 Keys to Creating Learning Experiences that Inspire and Engage, 76% of participants said that in their opinion, at least 60% of a person’s success on the job can be attributed to their ability to learn job specific skills. Yet only 9% identified that any company they had ever worked for used a mindful process when teaching people new skills.  For most of the webinar participants, learning a new skill was something they had to figure out for themselves while on the job.

If learning is important to success in today’s complex business environment, why don’t more organizations take the time to train people in the skills they need more effectively?

It’s because most managers and leaders are not trained how to teach according to Dr. Vicki Halsey, Vice President of Applied Learning at The Ken Blanchard Companies.   Most leaders are more accustomed to telling instead of teaching—and are often disappointed when they check back to see how people are doing with applying new skills.

If you want your people to pick up new skills more quickly, Halsey recommends addressing six areas when rolling out a new initiative.  Have you got a new program that you are getting ready to launch?  See if you you’ve covered these six basics to maximize learning and application.

1. Energize learners.  Set the context for learning before anyone steps into the classroom.  What can people do to get up-to-speed on this subject?  What can they read, or who can they talk with, to become as excited about this topic as you are?
2. Navigating the content.  Is the presentation learner friendly? Have you put together a good structure that includes breaking the content down into bite-sized chunks that people can easily digest?  Or have you designed this as a lecture type presentation where you will be doing all the talking and it will be a challenge just getting through the content—let alone actually retaining anything?
3. Generate meaning.  Have you connected the dots so people see why learning this new content is important?  People need to see why they should take the time to invest in learning new skills.  Your job as a leader is to provide that meaning.
4. Apply the learning.  What does this new skill look like in the real world?  Have you included some opportunities to practice the real life application of this new skill—or is that something you are leaving up to individual learners to figure out for themselves?
5. Gauge and celebrate.  How will you measure if people are really doing something different with the content?  Don’t be vague on this point.  What is the business metric you are looking to impact?  ROI is something you need address at the beginning of a new initiative—not after the fact.
6. Extend the learning.  How will you keep the initiative alive beyond the initial rollout?  New habits take time to develop and a lot of support in the early days.  What is your follow-up plan?  How will you ensure that skills learned in the classroom are applied back on the job?

A 2010 Bersin report shows that organizations that successfully create strong learning cultures are more likely to be strong innovators in their markets, more likely to get to market before competitors, and more likely to be a market-share leader.

Learning new skills is an important necessity in today’s work environment.  Don’t leave it to chance in your organization.  Take a proactive approach to teaching people new skills.

In a recent webinar for The Ken Blanchard Companies, WD-40 CEO Garry Ridge asked participants to assess their performance review system.  Over 400 people shared their thoughts in three key areas. Here are their responses to each question.  How would you have answered these same questions on behalf of your organization?

Our organization’s performance review system provides valuable feedback and direction to employees. 

•         Strongly agree               (24%)
•         Slightly agree                (54%)
•         Slightly disagree            (13%)
•         Strongly disagree          (  8%)

Employees don’t receive surprise feedback at the end of the year that they never received during the year. 

•         Strongly agree               (38%)
•         Slightly agree                (35%)
•         Slightly disagree            (19%)
•         Strongly disagree          (  6%)

Our performance review system builds trust between managers and their people. 

•         Strongly agree               (18%)
•         Slightly agree                (47%)
•         Slightly disagree            (22%)
•         Strongly disagree          (10%)

A good performance management system provides employees with feedback and direction that they can use throughout the course of the year to improve performance.  A poor one focuses solely on evaluation.  When that occurs, employees are often surprised by their year-end assessment with detrimental impact on trust and morale.  Don’t let that happen in your organization.  Find ways to help people win along the way by providing clear goals, day-to-day coaching, and frequent, informal feedback throughout the year.  

 To learn how Garry Ridge has created just such a system at WD-40, be sure to check out the on-demand recording of 3 Keys to Effective Performance Management.  You’ll hear about the results of the polling and Ridge’s prescription for success.

IBM recently surveyed 700 human resource executives to find out the key challenges they expect to face in the near future and their degree of readiness to meet those challenges successfully.  Nine different areas of concern were identified:

• Managing labor costs
• Sourcing and recruiting from outside the organization
• Evaluating workforce performance
• Efficiently allocating the workforce
• Retaining valued talent within the organization
• Enhancing workforce productivity
• Developing future leaders
• Developing workforce skills and capabilities
• Fostering collaboration and knowledge sharing

Next the researchers asked the human resource executives which of the nine challenges were the most important from their perspective and which did they feel least prepared to meet successfully.  Three of the nine challenges appeared on both lists

1. Developing Future Leaders—HR executives say the ability to develop future leaders will have the greatest impact on their organizations’ future success. Yet, only one in three believes they are prepared to do this effectively.
2. Developing Workforce Skills and Capabilities—Executives identified developing workforce capabilities as the second of their most important imperatives, but rated their effectiveness in this area among the bottom three as well.
3. Fostering Collaboration and Knowledge Sharing—HR executives also rated their organizations as least effective and least prepared in fostering collaboration and knowledge sharing.

How does this match up with your experience? Are these the same concerns you have for your organization?  While the IBM study does not provide specific solutions for addressing each of these areas of concern, it does present some questions that can get you thinking about these issues in your own organization.  To download a copy of the complete study (and also take a self-assessment in these key areas) visit the Insights from the 2010 IBM Global CHRO Study web page.

The Society for Human Resource Management just posted its annual look at the factors that drive employee satisfaction in the workplace.  One unique element of the SHRM research is that it looks at the factors from two perspectives—employees and HR professionals.  First time readers of the report will be surprised that the lists of what employees want from the workplace and the list of what HR professionals perceive they want do not match up exactly.  But in reality, it makes perfect sense, because each group perceives the environment a little differently depending on their experience.  Let’s take a look at the two rankings in this year’s report, identify the differences, and explore what it means for leaders in today’s organizations. Read more…

Last week I re-tweeted a blog post from Tom Peters, the best-selling business management guru.  In Appreciation! “Tool” No.1 Tom shares his own growing appreciation for a quote by the American psychologist, William James who said, “The deepest principle of human nature is the craving to be appreciated.”

Tom goes on to talk about the power of appreciation and his belief that bosses-managers-leaders (not to mention parents and teachers and spouses) should express appreciation more often.

So why don’t people recognize others more often?  That was a question Senior Consulting Partner Mark Paskowitz of The Ken Blanchard Companies asked 650 people who joined him for a webinar on Reward & Recognition on a Limited Budget earlier this week.  Mark asked participants to choose from among the five reasons he hears most often in his work with clients.  81% of the audience responded.  The rank ordering?

1. Lack of time (25%)
2. Not part of their personality style (20%)
3. Lack of awareness (15%)
4. Lack of skill/competence (15%)
5. Afraid of leaving someone out (6%)

The general sense is that recognizing and expressing appreciation can seem like a complicated process sometimes.  It doesn’t have to be.  A quick word of appreciation, a sincere thank you, and just noticing on a daily basis is all that is required in most cases.  For more ideas on how to get started, check out yesterday’s post on Don’t Overthink Recognition and Praise.  For a more complete look at the entire subject of reward and recognition, check out the recording of Mark’s webinar.

Catching People Doing Things Right Twitter Contest Winner!

Congratulations to Lance Dumigan, today’s winner in our Twitter contest to “catch people doing things right.”  Lance was recognized by Deborah Mourey.  Lance will be receiving a personally autographed copy of his choice of one of Ken Blanchard’s latest books.  Congratulations Lance—and good on Deborah for taking the time to recognize him!

A significant gap exists between the leadership skills organizations have now and the ones they will need in five years, according to new research from the Center for Creative Leadership (CCL).    

CCL surveyed 2,200 leaders from 15 companies for its Understanding the Leadership Gap study. Researchers asked executives and managers from an array of corporations and government agencies to consider a set of 20 leadership skills.

Respondents then ranked those skills in terms of how important they will be for success five years from now and how accomplished their colleagues are at them today.  The biggest gaps?  Executives in the U.S., India and Singapore identified the four most important leadership skills needing work as: 

1. Leading People–knowing how to hire, direct and motivate talented staff
2. Strategic Planning–translating vision into realistic business strategies
3. Inspiring Commitment–recognizing and rewarding employee accomplishments
4. Managing Change–dealing with resistance to change and involving colleagues in the design and implementation of change 

As you look into the future, what do you see?  Are these the biggest gaps for your organization?  More importantly, do you have a plan in place for addressing them?

In an online article for Human Resource Executive Online, Propping Up Employee Morale, author Lin Grensing-Pophal shares new research showing that engagement levels among high-performing employees have decreased at a higher rate than average performers during the recent downturn in the economy.

The 2009/2010 U.S. Strategic Rewards Survey by Watson Wyatt and WorldatWork found that “employee-engagement levels for all workers at the surveyed companies dropped 9 percent since last year — but the number was nearly 25 percent for top performers.”

In addition, “more than one-third (36 percent) of top performers said their employers’ situation had worsened during the past 12 months and the percentage who would recommend others accept jobs at their companies had declined by nearly 20 percent.”

Although HR leaders may be limited in what they can do financially, the article recommends getting creative in looking at other ways to help high performers feel valued.  While money is important, and high performers need to feel that they are being treated fairly in this area, there are other factors to consider including reward, recognition, and growth opportunities.

Ryan Johnson, vice president of research at Scottsdale, Ariz.-based WorldatWork, says that “one of the easiest things to do in an environment like this is to sit down with someone and have a discussion about their career development and where they’re headed in the organization.”

Johnson also suggests that, “simply letting high performers know that their performance is recognized and that they’re important to the company can be motivating.”

For more ideas on how you can let your high performers know that you care about them during tough economic times, be sure to check out the entire article.  For more information on other factors that lead to increased levels of engagement, also take a look at Employee Passion: The New Rules of Engagement on The Ken Blanchard Companies website.  Both of these resources can help you identify ways to build (or rebuild) engagement levels in your organization.