By Dale Partridge PEOPLE MATTER Copyright © 2015 Dale Partridge, Inc. 1 By Dale Partridge PEOPLE MATTER I find it shocking how quickly we forget the value, power, and importance of our fellow humans. Selfishness shoves its neck into our minds and we actually believe that we’re more important than another. As a leader or entrepreneur, this lapse of emotional intelligence becomes an incredible liability. I read a lot. Books, magazines, and blogs. I listen to podcasts, watch video presentations, and even meet face-to-face with renown thought leaders. At the core, I’m addicted to knowledge. But even more, I’m as competitive as they come. I’m always looking for shortcuts and identifying blindspots that can propel me ahead of the crowd. Interestingly, while on my journey of searching for the newest tactics or strategies for leading a great company, I found the true solutions were told to me over 20 years prior. While I was only in grade school, it was these timeless lessons of honesty, kindness, empathy, and love that have now become my most powerful weapons in creating a successful business. It’s my hope that you may recognize our employees are not parts but people. That you might comprehend that every human life is worth exactly the same. It’s this mindset that will allow you to trailblaze the competition. Below I have listed the seven key attitudes that boost company culture, performance, and profit. 1 Above The Standard • Compensation particular business considers its people to be its most valuable pieces. What would you identify as your company’s most valued asset? The usual answers to that question would include product, brand, physical space, R&D, etc. Not often would you hear (at least not with sincerity) that a The Container Store is different. Not only does the retail company believe the hype, it acts in accordance. CEO Kip Tindell, author of the fittingly-titled new book Uncontainable, recently discussed how Copyright © 2015 Dale Partridge, Inc. 2 By Dale Partridge PEOPLE MATTER investing in employees helped make The Container Store such a success. Tindell explains that The Container Store is founded on seven guiding principles. One of those principles is that one great person can be at least as productive as three good people. This belief has the company hold out for only the best possible hires to join its team. Prospective employees go through an arduous eight-part interview process that focuses on identifying the most productive and innovative workers possible. When found, those people get paid. to be easily replaceable. In fact, maintaining consistency in its workforce offers the company a valuable line of continuity that benefits all invested parties. Tindell made this statement: “People join The Container Store and they never leave. I mean our turnover is single digit in an industry that averages triple digit, and pay is part of that... The average fulltime sales person in the store makes about $48,000, which is not an enormous amount of money but it’s a lot of money, it’s a whole lot of money for a retail sales position...” In an era when income inequality and stagnant wages have become major national issues, it’s a breath of fresh air to see a company pay many of its low-level workers so well. Fortune Magazine agrees, as The Container Store has been named one of its “100 Best Companies to Work For” a whopping 15 years in a row. Four of those years saw the company ranked in the top 2, a fact of which Tindell is quite proud: The company operates as an inverted pyramid. Tindell, as CEO, makes “substantially less than industry average.” Meanwhile, employees who interact most with customers make “well above industry average,” as much as 50-100% higher depending on the region. And unlike many companies, The Container Store doesn’t consider the low heads on its totem pole “You’re getting three times the productivity at only 50 to 100 percent higher labor costs. So the employee wins because she’s getting paid 50 percent more than somebody else would likely pay her, the company wins because it’s getting three times the productivity at only 50 percent higher cost, and the customer wins because they’re getting this engaged, great employee.” “When you go in the stores the people that wait on you have been there for four years or eight years or even 12 years, they love their jobs and they’re truly interested in your storage and organization problem. So, we’re not advocates of paying mediocre people well, we enjoy excellence, we insist on a meritocracy and we Copyright © 2015 Dale Partridge, Inc. 3 By Dale Partridge PEOPLE MATTER Greed, in the end... fails even the greedy. #PeopleOverProfit Copyright © 2015 Dale Partridge, Inc. 4 By Dale Partridge PEOPLE MATTER really believe in paying great people well; we give much bigger than usual annual increases. I’ll look forward to the day when we have people on the sales floor making $100,000 a year.” The Container Store’s employees are well-qualified, well-trained, and wellcompensated. This results in both elevated productivity and a collective sense of pride. Tindell explains that the company’s stern meritocracy communicates to employees that windows of opportunity and advancement are always open. It’s these feelings of pride and hope, as well as a desire to work hard and find solutions, that are but the surface results of the company’s firm investment in the quality of its workforce. The question then rises: Are you valuing your best workers as you should? Are you paying your people well? 2 It’s About The Feeling • Empathy The traditional view of management is to drive results at all costs. Be hard on employees and they will perform. Many leaders believe that employees’ personal lives don’t matter, as they have nothing to do with work. Yet we know today that employees’ personal and professional lives do collide. Today’s workplace environment calls for an evolved way of management and of leadership. Today’s managers need to tap into other motivators to get results and inspire the best performance from employees. Employees are first human beings. And we need managers to acknowledge and incorporate the social emotions essential to performance. One such emotion we need to see more of in our workplaces is empathy. Brené Brown explains empathy as a driver of connection. It is a bonding agent that strengthens relationships. It is one human being connecting with another, acknowledging a person’s circumstance without diminishing or rationalizing it. Empathy is an acknowledgement without judgment. Empathy is confidence. Empathy is humanistic. Empathetic managers disregard the traditional view of management and want to relate with employees to inspire and motivate. Three key elements fuel the empathetic leader. Connection Empathetic leaders recognize the human drive to bond is a workplace motivator. It Copyright © 2015 Dale Partridge, Inc. 5 By Dale Partridge PEOPLE MATTER is a leader’s upmost responsibility to create a work environment that helps employees believe they are wanted, that they belong to the group. Researcher, author and psychologist Matthew Lieberman wrote, “We all have a need to belong. Signs that others like, admire, and love us are central to our well-being.” Lieberman identifies in his book “Social: The Factors That Help Create Connection” that belonging, well-being, cooperation, positive social regard, and even fairness are critical. Consider each of these and what emerges are inputs that encourage us to want to know more about others. The curiosity drives connection. Imagine these five factors present in your team. How much more productive would your team be? How much ownership of results would your team claim? Connection is fueled by empathy. Consider this for a moment. Would you feel a sense of belonging if your peers and your manager were willing to learn from your perspective? Imagine how this leads to cooperation and how a sense of belonging and cooperation can improve your well-being. Connection is vital. An empathetic leader can help be a cause for connection to be present in their team. Remember, not much is more powerful than a servant leader who helps others bring their best selves to the table. Empathy thrives in an environment where managers use these factors to help employees unlock their best performance and best selves. Empathy is a contributor to workplace optimism. Empathy and leadership are powerful together and necessary for today’s workplaces and teams. On a scale of 1-10, how would you rate yourself in the empathy department? 3 The Upside Of The Inside • Perks During a trip to California last fall, I stopped in to visit a friend of mine who works at Dropbox. He zipped over to the reception area to fetch me on a Razor scooter, provided to employees to make getting around the office faster (and cooler), took me past the morning yoga class currently in session, the fresh squeezed juice station and granola wall, and the made-to-order stir fry bar, to the plush music room, equipped with instruments and big soft couches arranged in a lounge/ bar atmosphere. Copyright © 2015 Dale Partridge, Inc. 6 By Dale Partridge PEOPLE MATTER How you make others feel about themselves, says a lot about you. #PeopleOverProfit Copyright © 2015 Dale Partridge, Inc. 7 By Dale Partridge PEOPLE MATTER At the time, I was struggling to raise another round for my start-up, and was packing my own lunch for the plane to save money. It was as if I had walked into a physical representation of the opportunity costs of running my own company — and it was painful. games (e.g., pool, darts, and foosball) as well as arcade games. Some companies took the definition of “play space” to the next level. For example, killerinfographics.com recently added a “climbing wall and 2 kegerators with locally brewed beer” for employees to enjoy at any time. I have never really lusted after material things, and while rumors of free ondemand massages at the Google offices always made me smile, the allure of corporate perks was never enough to lure me. But this trip to Dropbox got me wondering. For companies that have cash to burn who are trying to attract and retain young powerful talent, what benefits are best? Cost aside, I asked tech employees to offer up their list of favorites, and got over 150 responses in less than two hours. Employers want their employees to have fun, which raises commitment and creativity levels, but bosses also feel that their companies get a lot more out of having game dens. As Jay Graves, CTO of Double Encore (a mobile design and development agency) explains, “I like these types of things because they bring people together who might not normally interact on a day-to-day basis. Foosball, darts, and video games are games that people play in pairs, teams, or groups. Spending time together, both while working and ‘off the clock,’ are key to (creating) a company’s culture – especially one that depends largely on collaborative efforts.” His company just added Marvel vs. Capcom to their “game corridor”. In addition to all of the traditional perks like 401K matching funds and free medical and dental benefits, employers are becoming more innovative — and employees love it! Based on my sample, here are some of the most interesting and popular perks. Game Rooms What appeals to twenty-something techies? Games. Not surprisingly, a lot of companies have game rooms with classic Good Eats Free food is always appreciated, and is popular at every scale. Smaller companies offer special weekly treats like the Doughnut Day Thursdays at shopkeep.com or Pizza Fridays at overit.com. “Every Friday our company buys various kinds of pizza to share with our employees,” says Overit employee Alison Copyright © 2015 Dale Partridge, Inc. 8 By Dale Partridge PEOPLE MATTER Krawczyk. “Although this may sound like a simple idea, compared with start-ups who offer retreats to faraway places, this treat is not just about food. It gives us a chance for all of the different departments to come together, socialize and celebrate the end of the week. At a small company with lots of work to do, we spend most of our lunches at our desks. Pizza Fridays allow everyone to take a break away from the screens, and connect over something good to eat.” Other companies have opted for more of the all-you-can-eat style goodies. Moz.com has a never-ending cereal bar and apartmentlist. com has a 24-7 on-tap keg to keep employees happy. But for companies that can afford it, free catered breakfasts and lunches are definitely in vogue. ONTRAPORT offers its employees their choice of two daily breakfasts, including a breakfast burrito bar, daily lunch including a salad bar and free daily “Worksnax” including press juiced from Ah Juice in Santa Barbara. Some companies have figured out how to get more bang for their perk buck by making sponsored lunches media-worthy events. For example, for the last 2 years every Thursday has been Theme Day and Lunch at goodbyecrutches.com. Themes have included Jimmy Buffet Day, Smurf Day, and Pirate Day. “For a 5 minute picture and a 15 minute lunch, it’s got the best ROI of anything we do. It is a great team building exercise that’s affordable, evergreen and easy. Our lunches are great content for social media (all the weekly pictures get posted and shared) and it helps us build relationships with both vendors and customers,” owner Tom Schwab told me. “These lunches are also a good recruiting tool for the company. Those that like the culture are drawn to us.” And the company takes it a step further by turning these culinary adventures into end-of-year gifts, too. “At the end of the year, we give everyone a Snap Fish ‘Year Book’ of photos from the lunches we’ve had. It’s a prized gift.” Talk about getting bang for their buck! Physical Health While gym memberships or gym subsidies are the most common health perk, many companies are now bringing fitness into the office by sponsoring yoga, pilates or crossfit. Some companies, like Practice Fusion, have given each employee a fitbit tracking device to help them keep on top of their progress. BTC Revolutions made it even more social by giving their employees UP Bands and creating a team online where they can share workout successes and motivate each other. Social exercise is not just for the wealthy high tech companies. Gravity Payments has a Copyright © 2015 Dale Partridge, Inc. 9 By Dale Partridge PEOPLE MATTER Change begins with where you are, with what you have, and who you’re with. #PeopleOverProfit Copyright © 2015 Dale Partridge, Inc. 10 By Dale Partridge PEOPLE MATTER weekly running club, where team members can be excused from their work for an hour to go on an organized run around the neighborhood. ”We find this helps clear people’s minds, provide a mental break, and increases camaraderie among employees,” reports employee Ryan Pirkle. WizeHive UX designer Avi Zuber told me his company promotes regular exercise challenges. “These get us up from our desks and moving our bodies at least once a day. It’s not all that competitive and it gives us all a great breather.” These ideas cost little to implement and are perfect for new companies trying to prioritize employee health and increase loyalty and cohesion along with fitness. While not nearly as common, some companies are encouraging fitness by subsidizing employee enrolment fees in races and other fitness challenges. For example, last year Kount’s Marketing Program Manager Jennifer Howard and VP of Operations Rich Stuppy participated in the Boise Dirty Dash on the company’s dime. Mental Health Health perks are not just limited to the physical realm. Employees at Medallia in Palo Alto, Calif., are given cash to “seek out and overcome their fears with a therapist, whether business-related or personal.” Some have taken professional boxing courses, others singing or dancing lessons, and one employee who “never felt he was funny and didn’t like public speaking” learned to do a stand-up comedy routine and gave a performance at the company which his wife and kids attended. Time Off Interestingly, most of the employees today get more than the traditional two weeks paid vacation. A growing number of companies offer unlimited vacation days (modeled off Netflix and Hubspot), while others, like Moz, give employees an additional incentive to take the days they are entitled to. “Our biggest (and in my opinion, best) perk is our paid vacation policy,” one Moz employee told me. “To encourage the staff to use their vacation time (21 days is standard for all employees), the company gives us a bonus $3,000 in vacation reimbursements for food, lodging, entertainment, and transportation. Our team has gone everywhere from Iceland to India using that bonus!” The CEO believes these perks are essential to keeping amazing people on his team. A number of companies are now following the 4-day work week model. Jacques Bastien, the young CEO of Boogie, is trying out a 4-day work week / 2 hour lunch combo with his team of eight. “In most cases, we Copyright © 2015 Dale Partridge, Inc. 11 By Dale Partridge PEOPLE MATTER work from 8AM – 1PM, take a two hour lunch break, then start back at 3:00PM. We then work from 3:00PM – 7PM. This means we work 9 hours a day and 36 hours a week. We close the office on Wednesday so we don’t work for more than 2 days consecutively. With this new schedule, we all have more time to handle our personal lives, and we get an extra 52 vacation days a year (technically speaking). Paid maternity/paternity leave is another important benefit for employees. Paul Hibler, Founder of start-up American Gonzo Food Corporation, gives all managers 1 extra week’s paid time off when they have a child or adopt (separate from disability or FMLA). Paid sabbaticals also appear to be on the rise. For example, Capterra offers a five-week, fullypaid sabbatical every five years to each of its employees. The CEO pointed out that cost to the company is five weeks of productivity or “10% of their work in the year that they take their sabbatical but only 2% over the course of their fiveyear employment.” He thinks the benefit to the company and the employee’s health and personal growth is well worth the cost. Finally, I was pleased to see that many companies offer paid leave for community service projects. Some organize office service days, and many will match charitable donations to the community up to a certain amount. Company Retreats Company outings range all over the map from happy hours to full celebratory vacations. According to Tarek Pertew (whose company focuses on connecting talent with young, hiring companies), Expensify represents one extreme. They bring their employees on annual monthlong company trips to an exotic location. 2013’s destination was Dubrovnik. While a month of travels sounds like fun, for families with kids you have to wonder if this would really be a manageable perk. Tarek also told me about AirBnB’s “local destinations”, which sounded like fun, too. Seemingly, AirBNB has built “mini cultural destinations” throughout their SF office. “So if your team wanted to go to Bali for a week, they would book that trip and simply go the 3rd floor, where an entire area has been designed to feel like an AirBNB location in Bali.” Freebies Most companies offer their employees free or at-cost versions of whatever they sell (e.g., memberships, furniture, courses, cars, etc.), and that is definitely nice if you happen to like or need whatever the company you work for is offering. A lot of Copyright © 2015 Dale Partridge, Inc. 12 By Dale Partridge PEOPLE MATTER companies offer other one off perks or freebies as well, including: • Netflix subscriptions • Magazine subscriptions • Tickets to sporting games and movies • Customized shoes (usually Nikes or Converse) • Free make-up or spa services • Babysitting • Petsitting • Technology products (MacBook Airs, iPads, iPhones, iPods, and LED Monitors were the most popular) Summary While the companies above battle to keep employees happy with increasingly elaborate perks, owners like Patrick Lynch from The Frontier Group and I are living in a different reality. “I would like to offer a somewhat different perk that is incredibly important but not quite as sexy: continued employment. There are countless small business owners like myself that sacrifice personal compensation for the sake of keeping their team in place — not having to downsize during tough times, not having to reduce hours. This may not be as cool as a juice bar or foosball table, but it shows employees that their CEO cares and values them. I think that is awesome.” I have to agree. 4 Driving People • Motivation In the early 1900’s, the practice of scientific management was born. The brainchild of Fredrick Winslow Taylor, scientific management was based on the premise that all work consisted largely of simple, uninteresting tasks, and that the only viable method to get people to undertake these tasks was to incentivize them properly and monitor them carefully. Put simply, in order to get as much productivity out of your workers as possible, you must reward the behavior you seek, and punish the behavior you discourage – otherwise known as the carrot-and-stick approach. This theory assumes that the main drive which powers human behavior is the drive to respond to rewards and punishments in our environment. As Daniel Pink notes in his book Drive, this suggests “human beings aren’t much different from horses – that the way to get us moving in the right direction is by dangling a crunchier carrot or wielding a sharper stick.” However, scientists began to encounter situations during their experiments where the reward-punishment drive wasn’t producing the expected performance results. This led to the discovery of a possible third Copyright © 2015 Dale Partridge, Inc. 13 By Dale Partridge PEOPLE MATTER If your actions inspire others to dream more, learn more, do more and become more, you are a leader. #PeopleOverProfit Copyright © 2015 Dale Partridge, Inc. 14 By Dale Partridge PEOPLE MATTER drive for human behavior. The Third Drive Scientists have long known that two main drives power human behavior – the biological drive including hunger, thirst and sex and the reward-punishment drive already discussed. However in 1949, Harry F. Harlow a professor of Psychology at the University of Wisconsin, argued for a third drive – intrinsic motivation – the joy of the task itself. His theory was based on studies of primate behavior when solving puzzles. Harlow found that when presented with a puzzle, monkeys seemed to enjoy solving the puzzles without the presence or expectation of rewards. He found these monkeys, driven by intrinsic motivation, solved the puzzles quicker and more accurately than monkeys who received food rewards. Edward Deci, a university psychology graduate student, went on to replicate these findings with humans in 1969, concluding that human beings have an “inherent tendency to seek out novelty and challenges, to extend and exercise their capabilities, to explore, and to learn.” Why the Carrot-and-Stick Approach Doesn’t Always Work Studies such as the ones mentioned previously demonstrated that the carrot-andstick approach was flawed. It worked well for some tasks, but not others. Why? The carrot-and-stick approach worked well for typical tasks of the early 20th century – routine, unchallenging and highly controlled. For these tasks, where the process is straightforward and lateral thinking is not required, rewards can provide a small motivational boost without any harmful side effects. But jobs in the 21st century have changed dramatically. They have become more complex, more interesting and more selfdirected, and this is where the carrot-andstick approach has become unstuck. Pink’s book demonstrates that with the complex and more creative style of 21st century jobs, traditional rewards can actually lead to less of what is wanted and more of what is not wanted. He provides ample evidence to support the notion that this traditional approach can result in: • Diminished intrinsic motivation (the third drive); • Lower performance; • Less creativity; Copyright © 2015 Dale Partridge, Inc. 15 By Dale Partridge PEOPLE MATTER • “Crowding out” of good behavior; • Unethical behavior; • Addictions; and • Short-term thinking. There are a number of studies cited in the book, and it makes for interesting reading if you can spare a few hours to read the book, but let me use one example to illustrate his claim about rewards leading to reduced performance and creativity. Organizations should focus on these drives when managing their team by creating environments which focus on our innate need to direct our own lives (autonomy), to learn and create new things (mastery), and to do better by ourselves and our world (purpose). Here are a few initiatives that fit with Pink’s revised motivation theory which will assist your organization in motivating its employees in the correct way: Autonomy Provide employees with autonomy over some (or all) of the four main aspects of work: • When they do it (time): Consider switching to a ROWE (results-only work environment) which focuses more on the output (result) rather than the time/schedule, allowing employees to have flexibility over when they complete tasks. • How they do it (technique): Don’t dictate how employees should complete their tasks. Provide initial guidance and then allow them to tackle the project in the way they see fit rather than having to follow a strict procedure. • Whom they do it with (team): Although this can be the hardest form of autonomy to embrace, allow employees some choice over who they work with. If it would be inappropriate to involve them in the recruitment/selection process, instead allow employees to work on open-source projects where they have the ability to assemble their own teams. • What they do (task): Allow employees to have regular ‘creative’ days where they can work on any project/ problem they wish – there is empirical evidence which shows that many new initiatives are often generated during this ‘creative free time’. Mastery Allow employees to become better at something that matters to them: Provide “Goldilocks tasks” – Pink uses the term “Goldilocks tasks” to describe those Copyright © 2015 Dale Partridge, Inc. 16 By Dale Partridge PEOPLE MATTER tasks which are neither overly difficult nor overly simple – these tasks allow employees to extend themselves and develop their skills further. The risk of providing tasks that fall short of an employee’s capabilities is boredom, and the risk of providing tasks that exceed their capabilities is anxiety. Create an environment where mastery is possible – to foster an environment of learning and development, four essentials are required – autonomy, clear goals, immediate feedback and Goldilocks tasks. Purpose Take steps to fulfil employees’ natural desire to contribute to a cause greater and more enduring than themselves: • Communicate the purpose: Make sure employees know and understand the organization’s purpose goals not just its profit goals. Employees who understand the purpose and vision of their organization and how their individual roles contribute to this purpose are more likely to be satisfied in their work. • Place equal emphasis on purpose maximization as you do on profit maximization: Research shows that the attainment of profit goals has no impact on a person’s well-being and actually contributes to their ill-being. Organizational and individual goals should focus on purpose as well as profit. Many successful companies are now using profit as the catalyst to pursuing purpose, rather than the objective. • Use purpose-oriented words: Talk about the organization as a united team by using words such as “us” and “we”, this will inspire employees to talk about the organization in the same way and feel a part of the greater cause. 5 I Found My People • Culture Company culture has become a huge buzzword in the business and entrepreneurial spaces lately. Some experts advocate free lunches and dry cleaning as a way to boost morale, while others say this just puts pressure on employees to work longer hours. Some think the open office floor plan is the best thing since sliced bread; others say it’s slowly killing your workers. Creating a great company culture can feel like a minefield, but everywhere you turn are warnings of what happens when a company culture goes awry. There’s a reason the oft-cited Gallup survey discovered 70% of American workers are Copyright © 2015 Dale Partridge, Inc. 17 By Dale Partridge PEOPLE MATTER Customers will never love a company until its employees love it first. #PeopleOverProfit Copyright © 2015 Dale Partridge, Inc. 18 By Dale Partridge PEOPLE MATTER disengaged on the job. Companies can easily get caught up in the day-to-day struggles and forget the importance of creating an unbelievable culture for employees. This is especially important for entrepreneurs and small businesses to keep in mind. You don’t need to be a Fortune 500 company to develop and implement a great company culture. You don’t need Facebook’s money, Zappos’s popularity, or even an office slide to build the culture you want. Bells and whistles are great, and no one is about to turn down a free lunch, but sometimes these perks that really feel like culture can distract leadership from doing the hard work of building it from scratch. Here are just a few ways to build a great company culture from the ground up, and they can work for your company whether it’s staffed with 10 or 1,000 people: Make It Personal One of the most important aspects of developing a brand voice is to keep it consistently authentic. A good company culture should strive for the same authenticity, and this voice should come from the founder in the case of a startup, or the leadership team in the case of a larger organization. Your culture needs to be an extension of your own consistently held and demonstrated beliefs, along with a clear mission that goes beyond dollars and cents. In other words, how are you going to change the world? There’s nothing more personal than creating meaning in one’s work, and life. You should be personally invested in the fate of your company; after all, it’s your baby. Therefore, your fingerprints should be clearly visible on everything in your company, and its culture should be a reflection of who you are as a person and what you care about. This is the best way to ensure authenticity, and therefore stickiness. Ask yourself why you wanted to create this company, what you want to give back to the world, and what your vision for the future entails. Most importantly, build a company that you would want to be a part of and that will, in some way, change the world for the better. Keep in mind you’re not just building a company, you’re also building a place to work that you believe will be the greatest place to work in the history of the world, bar none. Find A Way To Communicate Your Vision Communication is key, whether it’s selling your idea to investors or selling your company culture to employees. Yet communication is one place many leaders Copyright © 2015 Dale Partridge, Inc. 19 By Dale Partridge PEOPLE MATTER fall down on the job, especially when it comes to company culture. According to a study by SIS International Research, 70% of small to midsize businesses claim ineffective communication is their primary problem. If a founder is a great communicator, it’s pretty easy early on to get the culture moving in the right direction. However, not every founder is gifted with a silver tongue and the ability to easily motivate a team, small or large. If so, you’ll need to find some ways to share the vision of the company outside of your personal communication style. There are plenty of ways to communicate company culture, including visually through your organization’s physical spaces. If you want to build a collaborative culture, for example, make collaboration an important part of every workday. You can do this by holding frequent brainstorming meetings and creating open spaces in the office where creativity can occur. Hang up whiteboards, schedule innovation retreats, and hire people with creativity baked into their DNA. Put People First I fundamentally believe we have it backwards in the U.S.—we build our lives around our jobs instead of the other way around. This leads to stress and unhappiness, which in turn leads to poor productivity and poor outcomes at work. Americans are seriously stressed; a study from NPR, the Robert Wood Johnson Foundation, and the Harvard School of Public Health found almost half of all Americans had experienced a great deal of stress in the past year. In the top three most stressful events, under serious illness and death of a loved one, was workplace stress. We need to start treating people like human beings, not like cogs in a productivity machine. Look at the individual first and their role second and relate to employees on a more human level. When employees feel cared about as people, I’ve found they do their best work. They also stay longer, work harder, and produce more, which makes caring an amazing rate of increase. It’s a win-win for everyone. This attitude also trickles down into customer service, since relating to others on a human level should be so wholly baked into company culture. You can’t create a company without great people, and you can’t create a good company culture without recognizing the humanity in your employees. Copyright © 2015 Dale Partridge, Inc. 20 By Dale Partridge PEOPLE MATTER Be kind, for everyone you meet is fighting a hard battle. #PeopleOverProfit Copyright © 2015 Dale Partridge, Inc. 21 By Dale Partridge PEOPLE MATTER You don’t need an unlimited budget or fancy perks to create a great culture with the ability to scale with your company. You just need to be authentic, communicate your vision, and care about your growing workforce. 6 I Didn’t See That Coming • Expectations Managing expectations is a vastly underutilized skill, in my opinion. Not everyone does it, but maybe if more did, we could avoid a lot of the day-to-day drama that goes on in every office. Folks who know how to manage expectations are able to more seamlessly navigate the choppy waters of their business. Why? Because they know how to communicate, organize, and direct conversations around things getting done. Follow these four practical tips to improve your own ability to manage expectations. Make No Assumptions People often get into hot water when they assume a co-worker, vendor, or supervisor knows what they expect or even what they’re talking about. My first piece of advice is making sure you get context. Don’t fall into the trap of assuming someone has the same understanding of a situation, project, deadline, or task that you do. You can avoid this pitfall by having a conversation in which you openly discuss what’s expected, how it might be accomplished, and how success will be measured. Remember to leave plenty of opportunities for questions. This is also the time to agree and commit to what will be delivered, when. When something is going to be completed is one of the most common points of miscommunication. Which leads me to my next tip... Communicate, Communicate, & Communicate One of the best ways to manage expectations is to make sure you communicate with everyone on a frequent basis. In the early stages of a new project or as a key milestone or deadline approaches, you may want to even overcommunicate. Sure, it might be more work on your part, but it’s especially important if you have a new team that isn’t used to working together, or new leadership that may not have developed a level of trust in the team’s ability to deliver. Better safe than sorry. By holding frequent check-ins throughout the course of a project, you also have the chance to provide real-time status updates and manage any delays, risks, or blockers. When you’re proactively honest and transparent in your Copyright © 2015 Dale Partridge, Inc. 22 By Dale Partridge PEOPLE MATTER communication, you have room to put a Plan B in place, if needed, or the flexibility of making new decisions as you move toward the finish line. Being honest about a delay is a thousand times better than promising to deliver and then missing your deadline. Pushing Back is OK A huge piece of managing expectations is the actual expectation, right? You have to be comfortable that the expectations are realistic and achievable. If they’re not, you can – and should – push back. The key here is pushing back in a way that balances the organization’s needs and the team’s abilities. Being open about what can be delivered and what the plan is to bring in the rest can go a long way in instilling confidence and getting the go-ahead. If you can nail the fine art of pushback, you’ve won half the battle of managing expectations successfully. Don’t Over-Manage Expectations Despite all this emphasis on managing expectations, it’s important to be relaxed about the process. We are dealing with the greatest variable ever – human beings – so if you are seeking a perfect understanding of what people expect, you will forever be frustrated. Needs change. Markets evolve. People wake up in the morning wanting something different from the night before. If you attempt to anticipate all of this you will drive yourself crazy. All you need to do is know enough and explain enough to keep employees happy, or keep your email list or blog growing, or meet whatever goal you have. There is always room for improvement, so know what is “enough” for your own needs. In other words, manage your own expectations before you begin managing those of others. 7 Thanks For Saying That • Appreciation In case your direct reports didn’t send you enough subtle reminders, Employee Appreciation Day was last week. Just kidding. But while it’s great to have a day dedicated to giving your employees a little extra love, we think of it kind of like we think of Valentine’s Day: Shouldn’t you be telling the ones you appreciate how much they mean to you every day? OK, every single day might be a little excessive—but making sure your employees know how much they mean to you should be far more frequent than a once-a-year affair. Copyright © 2015 Dale Partridge, Inc. 23 By Dale Partridge PEOPLE MATTER Managing expectations is the most important thing a leader will ever do. #PeopleOverProfit Copyright © 2015 Dale Partridge, Inc. 24 By Dale Partridge PEOPLE MATTER Not sure where to start? Here are eight simple things you can give your employees that will show how much you appreciate what they do every day. Your Ear Set up casual, one-on-one coffee meetings with each of your direct reports, but instead of spending the time talking about their performance, take some time to ask them a little more about their careers, hopes, and dreams. Ask them what their goals are, and think about how you can help them. Get their thoughts on how their jobs are going, and see if there’s anything you can do to help them work better. Give them an opportunity to give you feedback. By spending some time listening to what your employees want (and then, to the best of your abilities, following through or at least following up to let them know you’re doing your best to help), they’ll understand that you’re not just there to make them do work, you want to help them succeed. Very Specific Compliments Sure, you know giving your employees compliments is a good thing. But do you know what kind of compliments are the most valuable? One management expert Katie Douthwaite suggests that it’s important to be super specific with your compliments: For example, let’s say you had an employee who went the extra mile to land a new client: Good: “Thanks for your hard work, Cathy!” Better: “Thanks for putting in so much hard work to win over that new client, Cathy!” Best: “Cathy, I can’t tell you how much I appreciate your hard work to land the new Smith account. We’ve been after that account for several months, so you really stepped up to close an important deal. This is a huge win for you, our team, and the entire company.” In this example, the “good” version is just too general—that compliment could be aimed at any person or task. “Better” mentions the specific accomplishment, which is an improvement, but “best” is the obvious winner. Not only does it mention the particular achievement, but it explains why it was so important and who benefited from it. Opportunities Finding opportunities for your employees is a great way to show that you’ve really got their backs. From the fun (attending cool industry events in your place, letting them use your office with a view for the afternoon) to the seriously career-boosting (getting them company tickets to a conference, setting up Copyright © 2015 Dale Partridge, Inc. 25 By Dale Partridge PEOPLE MATTER a meeting with a higher-up) your employees will appreciate that you’re doing what you can to help them grow and get the most out of their jobs. Trust Showing employees that you trust them is always a huge compliment. It means that you think their work quality is high enough that you don’t feel the need to worry about them. And the easiest way to show trust in the workplace? Give your team members a little extra ownership over something. Whether it’s a task they no longer need to run by you (“I think you’re ready to send the client emails without me looking at them moving forward”) or a new project or process you can hand over (“I want to pass the responsibility of managing freelancers over to you—I think you’ll do a stellar job!”), try and think of something you can entrust your top employees with. as important as proving you appreciate them as employees. And a great way to do that is to chat with them sometimes about things going on outside of work. Try leaving your door open (and maybe putting a candy jar on your desk to entice people to come in) and casually chatting with people as they pass by. Ask about their families, their hobbies, and the like. Getting to know your employees—and remembering some of the details to ask about again later— will show that you know they’re more than just workhorses. A quick disclaimer here: If they already have too much on their plates, shifting work to them without talking about what they can deprioritize might leave your employees feeling a little less than appreciated. Outside Feedback Depending on your employees’ positions in the company, they may not get to hear the fantastic feedback from customers or higher-ups that pass through your desk on the regular. So, make it habit of forwarding these things along. Did your boss particularly enjoy Joe’s latest presentation? Tell him! Did a customer write in raving about her experience with Sarah? She’ll love hearing about it! An Open Door It’s easy to get stuck in the daily grind and never really interact with your employees outside of asking when you’re going to get that report you assigned. But showing your staffers you appreciate them as people can be almost Another way to do this is to foster positive feedback among your team. Try to create easy venues for your employees to recognize each other. Maybe at the weekly meeting, everyone has to share an example of when they noticed someone going above and beyond. Or, as Copyright © 2015 Dale Partridge, Inc. 26 By Dale Partridge PEOPLE MATTER A person who feels appreciated will always do more than what is expected. #PeopleOverProfit Copyright © 2015 Dale Partridge, Inc. 27 By Dale Partridge PEOPLE MATTER Douthwaite suggests, you could put up a public whiteboard as a wall of recognition, where employees can jot down their coworkers’ accomplishments for the rest of the team to see. (Start by writing a few of your own to get people going!) Worksheet: Please complete the next page by rating yourself in each of the People Matter Attitudes. Content Supported By: S1: http://bigthink.com/think-tank/it-pays-to-pay-your-employes-wellwith-ceo-kip-tindell S:2 http://switchandshift.com/empathy-and-good-managers A Treat This one is kind of obvious, but an easy way to appreciate your team members is by getting them a little treat. Surprise everyone with some mid-afternoon donuts and coffee, order in lunch for the group today, or get a happy hour with your employees on the calendar (and make sure they know you’re footing the bill). S3: http://www.forbes.com/sites/kateharrison/2014/02/19/the-mostpopular-employee-perks-of-2014/ S4: https://checkside.wordpress.com/2012/01/20/motivation-revampeda-summary-of-daniel-h-pinks-new-theory-of-what-motivates-us/ S5: http://www.fastcompany.com/3034782/the-future-of-work/3-stepsto-build-a-company-culture-that-makes-everyone-happy S:6 http://www.inc.com/kimberly-weisul/four-strategies-to-raise-profitsby-paying-employees-more.html Thanks Sometimes, just saying a hearty “Thank you!” is all your employees really need to hear today. It shows you’re paying attention to the work they’re doing and that you know how much it matters to the company. Summary Creating a successful organization comes from a heart for people. Our people are our engine, our fuel, and the very fight we have in the competition. I challenge you to rethink your leadership style to incorporate all 7 of the People Matter Attitudes in hopes you might create an unstoppable enterprise. Copyright © 2015 Dale Partridge, Inc. 28 By Dale Partridge PEOPLE MATTER Where do you rate yourself or your company in each of the 7 People Matter Attitudes? 1. Providing Generous Compensation 1 2 3 4 5 6 7 8 9 10 9 10 2. Offering Empathy 1 2 3 4 5 6 7 8 3. Being Generous With Perks 1 2 3 4 5 6 7 8 9 10 9 10 9 10 4. Motivating People 1 2 3 4 5 6 7 8 5. Creating Culture 1 2 3 4 5 6 7 8 6. Managing Expectation 1 2 3 4 5 6 7 8 9 10 9 10 7. Giving Appreciation 1 2 3 4 5 6 7 8 Copyright © 2015 Dale Partridge, Inc. 29
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