Leadership

Employee Turnover is Not a Problem

Don’t get me wrong, I understand and appreciate that turnover creates challenges. Employee turnover causes a decrease in productivity, lower profits, inconsistent quality, and certainly creates work overload.

But here’s the question: Is employee turnover a problem or a symptom?

Turnover is a symptom.

But what is turnover a symptom of? You might argue that turnover is a symptom of unmotivated people, apathy or a labor shortage. But most often, turnover is a symptom of poor leadership. Turnover occurs because poor leaders lack purpose, lack integrity, lack a plan for developing people, have poor communication skills, and treat people like things instead of like people.

Have you ever worked for someone who lacked integrity? Someone who would say one thing and do another? Someone who promised to do something but never did it? Someone who took the credit and placed the blame? Unfortunately, I’d have to guess that each of us has had that kind of boss at one time or another.

When you were in that situation, did you continue to do your work? Of course you did. Was your work accurate and correct? Of course it was. Did you take the initiative on new projects for the benefit of the company? Maybe not. Go the extra mile to make a difference? Hmmm… Did you leave the company at the first opportunity? Point made. When an individual or a company lacks integrity, turnover occurs.

Have you ever worked at a company where the prospect of advancement was nonexistent? Someplace where you knew that you weren’t going anywhere? Did you stay very long? That’s my point. Without opportunity for growth and expanded responsibility, people leave.

Have you ever worked at a company where major changes were “sprung” on you? Where work was assigned to you and after you completed it, you found out you had done the wrong thing? What happens when people don’t communicate effectively? Poor communication leads to misunderstanding, conflict, de-motivation, and stress. What does misunderstanding, conflict, de-motivation and stress lead to? You got it – turnover.

And then comes the most insidious issue of them all – treating people like things rather than like people.

How does someone treat people like “things”? They do it in several ways. They do it when they’re insensitive to them and interact with people as if they have no feelings. They treat people like things when they ignore the fact that everyone has hopes and dreams and fears and stress. They treat people like things when they relate to people as if their own goals and aspirations are more important than the goals and aspirations of the other person. And they treat people like things when they don’t show respect for people or value their contributions and efforts.

When someone treats a person like a thing, it sends the message that they are unimportant and that they just don’t care about them. And when people sense a leader doesn’t care about them, they start not to care about that leader. When the company tolerates leaders who don’t care about people, people tend not to care about the company. When a leader treats people like things, turnover occurs.

In contrast, an effective leader understands that people’s hopes, dreams, fears, and stresses are real and matter to them. An effective leader inspires people. An effective leader interacts with people as people, helping them to be their best. And an effective leader helps people achieve their goals.

When a leader and an organization have a clearly defined purpose, they attract and retain the talent they need. When a leader and an organization have integrity, it builds trust and loyalty. When a leader and an organization are committed to developing people, people become the best they can be. When a leader and an organization communicate effectively, conflict and tension diminish, and cooperation increases. When a leader and an organization treat people as people, they appreciate it and reciprocate.

Turnover isn’t a problem – it’s a symptom caused by leadership problems. Fortunately, these problems can be resolved, and you have the power to make that difference. Strive to become the best leader you can be.

Successor Insights: The Need for a Sounding Board

There’s no question that a successful business owner knows his or her business better than anyone else. And as a consequence, there’s no one better to help a successor learn the business. But there are potentially several problems that occur when an owner is the only one to help a successor develop.

The first issue pertains to leadership. Learning the mechanics of a business doesn’t really help hone leadership skills. Although people generally do respect a leader’s knowledge and technical skills, that degree of respect only goes so far.

For people to fully trust and respect a leader, that leader needs to earn that trust and respect. Trust and respect aren’t automatically given because of someone’s title.

In order for a leader to earn trust, he or she needs to demonstrate that they have integrity. In other words, they do what they say they’re going to do and are the kind of person they claim to be. And, in order for a leader to earn respect, he or she needs to treat people with respect in both word and action. For example, a leader needs to treat people like people rather than like things. And they need to treat adults like adults instead of like children.

The second issue pertains to strategic thinking. Knowing how to do things really well simply means a successor has mastered the mechanics – the systems and tactics – of the business. If they don’t learn to think strategically, then several things tend to happen.

One result of not thinking strategically is that improvements will tend to be small, resulting in only modest gains. A second consequence is that a successor will tend to develop tactics that they feel are “strategies”. This also produces results that are mediocre. But the third consequence is the one that is most detrimental. They will develop strategies to address symptoms rather than underlying problems. The result of addressing symptoms instead of problems is that it almost always creates more challenges that cause a decline in revenues and profits.

The third issue pertains to blind spots. If a successor only gets guidance from an owner, they tend to end up with “group think” along with the blind spots that accompany it. Group think is what happens when people think “this is the way we do it around here”. The problem with having blind spots is that a successor can’t see what he or she is missing. Regardless of experience, intelligence or education, we all have these blind spots.

Typically, the only way to eliminate blind spots is to get outside perspective. Someone needs to point them out to us. If we don’t get past our blind spots, we miss opportunities and make poor decisions.

The solution to improving leadership competence, enhancing strategic thinking and eliminating blind spots is to have an unbiased sounding board. Someone who can offer outside perspective and help develop the needed competencies.

Company Culture by Design or Default

I’ve had some interesting conversations recently with a couple of clients regarding their company’s culture.

With the first client, someone I was helping to groom as the owner’s successor, he told me how much they value their culture. Not only that, but they felt very strongly about “hiring to their culture”. In other words, they made certain that every new hire understood how important the company’s culture was.

As an executive coach focused on developing successors, these statements were music to my ears! I naturally asked him, “So, what IS your company’s culture?” AND HE HAD NO ANSWER! It turns out, when they speak to new hires about culture, they simply tell them that their culture was important to them but offered no guidance as to what that was or meant. I was confident that he understood what their culture consisted of in general terms, so I sent him off to try to better define their culture and reduce it to a handful of statements.

In our next coaching session, we discussed the list of values and behaviors the company strove to live by. We spent that session refining and clarifying the list so he could better express to employees what mattered to the company and so he could better hold them accountable to those values and behaviors.

With the second client, the president of his company, we had a very different conversation. This client had very clearly defined their culture and like the other client, made sure that new hires were aligned to it. But there was a problem. In fact, it was a major problem.

Most people think that a company’s culture is defined by the values and behaviors a company aspires to. That sounds great and makes sense. Except it’s not true.

A company’s culture is defined by the values and behaviors the company tolerates.

And who does that tolerating? The leaders do. The values and behaviors that the leaders tolerate become the company’s culture. But it doesn’t end there. It gets worse. When a leader professes to value one behavior but acts in a manner at odds with it, it demonstrates a lack of integrity. And when a leader is seen to lack integrity, people lose respect for them. And when people lose respect for a leader, engagement and productivity suffer.

And that’s EXACTLY what was happening at this client’s company. My client was as guilty as anyone in the company, acting at odds with the stated culture. But nevertheless, he couldn’t understand why they had so much trouble making progress and holding people accountable. Consequently, we began strategizing about how to change his behavior and the behavior of others.

So, here’s the bottom line:

A company’s culture needs to be defined. A culture that exists by default is always inferior and leads to lower engagement.
Although a defined culture is good (and important), the true culture is really defined by the values and behaviors the leaders tolerate.
If you want to drive a positive culture, the leaders (and everyone throughout the organization) need to strive to live those values and behaviors and hold one another accountable to them.

A positive, well-defined culture that people live by results in better engagement, higher productivity, and improved profitability.

The Three Leadership Competencies That Matter Most in Times of Crisis

In times of crisis and uncertainty, people experience the gamut of emotions. Some are afraid (of both the known and the unknown). Some people get angry, others are frustrated. Some get depressed and some feel lonely. The list goes on…

It’s because of this wide range of negative emotions that leaders need to step up and play an important role. Leaders need to de-escalate anxiety and fear, and they need to offer hope for the future.

Although there are many traits and competencies a good leader must possess, three stand out as critical in times of crisis – Executive Presence, Empathy, and Effective Communication.

EXECUTIVE PRESENCE
Having executive presence is the ability to project mature self-confidence, to project a sense of being able to take control of difficult situations, and to project the ability to make tough decisions. There’s no one thing that gives a leader executive presence. Instead, it’s a combination of a number of factors:

Confidence: Especially during a crisis, a leader must display a strong level of confidence without being overly confident. It’s OK not to have all the answers. And it’s OK for people to know a leader doesn’t have all the answers. In fact, being open (transparent) and honest (vulnerable) act to build trust and respect. Be confident, but not casual or over-confident, in order to have executive presence.
Decisiveness: In business, postponing a decision until more facts are revealed or the future becomes clearer can be a smart course of action. But often, leaders must make decisions without all the facts and without certainty about the future. Even though the future may be cloudy, a leader with executive presence must make decisions in the face of that uncertainty.
Authoritative: How a leader leads should vary with circumstances (situational leadership). Under normal circumstances, it might be most effective to lead by getting buy-in for an idea or by coming to a decision by consensus. But in times of crisis, a leader must be strong and act in an authoritative manner in order to have executive presence.
Body Language: Our body language communicates a large amount of information. Body language includes how we hold ourselves when we sit, stand and walk. How a leader carries him or herself reflects their state of mind, so it’s important to sit and stand in a manner that projects and instills confidence. In addition, facial expressions matter. People often read others by their facial expressions. A leader’s expression shouldn’t reflect casualness, anger or fear if their intent is to instill confidence. A leader with executive presence is mindful of his or her body language.
Emotional Control: For leaders to instill confidence, earn trust and earn respect, they must stay in control of their emotions. Emotional outbursts are seen as a loss of control and people know that a leader who loses control is feeling overwhelmed. An overwhelmed leader lacks executive presence. Be mindful of emotions and the expression of those emotions in order to have executive presence.

In times of crisis, it’s important to have a strong executive presence.

EMPATHY
A leader who has empathy understands the feelings, needs and concerns of others. He or she is able to define, understand, and react to the concerns and needs that underlie people’s emotional responses and reactions.

The issue here is the importance of treating people like people rather than like “things”. When a leader regards people as people, he or she acknowledges that everyone – regardless of position or tenure – has hopes and dreams, fears and stresses.

Although it’s never productive to treat people like “assets” or “resources”, it’s especially true in times of crisis. If a leader communicates and deals with people as if they were “things”, it demonstrates that the leader doesn’t care about them. And a leader who doesn’t care about the people he or she leads loses the respect and trust of those people.

It’s not that a leader with empathy accepts mediocrity or doesn’t hold people accountable. Instead, having empathy is about HOW they hold people accountable and how they bring out the best in people. Most people want to do a good job – especially in times of crisis. By being understanding and helping people be productive given their specific circumstances, a leader will get more engagement, better results, and earn their loyalty.

In times of crisis, it’s important to have empathy and treat people like people.

EFFECTIVE COMMUNICATION
Especially in times of crisis, how and what we say can have an enormous impact on people. People are quick to interpret (or misinterpret) messages. People are more sensitive to tone and languaging. And people are looking for reassurance and hope.

In times of uncertainty, it is essential for a leader to choose his or her words carefully. Leaders must make sure they say exactly what they mean to say. Read and then re-read each note and/or message. Try to read it from the point of view of the reader to ensure the message can’t be misconstrued. Make sure the wording has the right emotional “feel” as well. Remember, the reader can’t hear inflections or emphasis when they read the note.

Along those lines, often a phone call, conference call or video call/meeting can be a better solution for addressing issues than written communication. People can hear a leader’s tone and sincerity in their voice. If video is added to the equation, people also get to see a leader’s body language.

In times of crisis, it’s important to take time to craft each message and how it’s delivered.

If you’d like help with any of this, reach out to us. We specialize in helping leaders become more effective and help them bring out the best in people.

Compliance vs. Commitment

A successor who is only marginally effective will get compliance from his or her team (in contrast to an effective leader, who will get commitment). But a workforce filled with people who are compliant will only produce mediocre results. When someone is compliant, they simply obey – doing what’s asked of them but no more. Typically, they’re doing just enough to keep their job.

On the other hand, if the goal is to achieve excellent results, a committed workforce is required. Someone who is committed will spend time and effort outside of normal business hours thinking about work and solving problems, finding better ways to get the job done, seeking out new insights, and then acting on them.

How does a successor create a committed team?
There are generally two drivers of commitment.

The first driver relates to trust and respect. A motivated, committed person will soon become unhappy if their boss is someone they don’t trust and respect. Trust is earned or lost depending on a leader’s integrity. I’m not talking about honesty (although being an honest person is absolutely essential), but rather about a leader doing what they say they will do and being the kind of person they say they are. Mistrust grows when a successor doesn’t follow through on commitments. Trust grows when they do follow through. Mistrust grows when a successor claims to embrace certain values but acts in a manner at odds with them. And trust grows as a successor consistently acts in alignment with the values he or she says matter to them.

Respect is earned by showing respect for others. A successor demonstrates they respect people when they listen to their ideas and interact with them in a respectful manner. Of course, a leader can’t claim trust and respect from others. Trust and respect have to be earned, which takes consistency of word and action over time.

The second driver of commitment involves the initiatives undertaken by the company, the department, or the team. An initiative without a reason is simply a goal, and goals by themselves are cold, unemotional targets, lacking any purpose other than to make the person who set the goal look good. If an initiative is to drive commitment, there needs to be a “why” to go along with the goal. People become engaged and committed when they believe in what they’re doing and feel they are making a difference.

Not only does a successor need to develop initiatives that matter, but he or she must gain buy-in for those initiatives by effectively communicating why they matter. In order to do this, a successor must learn to be influential and persuasive.

If you want a committed workforce, a successor must hone his or her leadership skills, strategic thinking, and influence abilities. If you’d like our help with this, please give us a call. We specialize in developing leaders, and can help your successor and your organization reach their full potential.

Leadership

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