Monday, November 15, 2010

Information is Knowing a Tomato is a Fruit…

…Knowledge is Knowing not to put it in a Fruit Salad.

In a previous edition, we discussed the relationship between Information (organized data) and Knowledge (information in context). I bring it up again not to highlight the contents of a fruit salad, but to highlight a much more crucial issue for leaders – timely decision-making. In my work with leaders, we describe the first two steps in the decision-making process as 1) Identify the Issue and 2) Gather and Analyze Information. The decision-maker must properly define the scope of the problem, situation or challenge in enough detail to create tangible alternatives. They must also gather the right amount of the right information to make a knowledgeable decision. (click here to continue reading)

Information overload is not a new challenge. Lucius Annaeus Seneca was a Senator and Adviser under Nero in the early part of his reign. Seneca was a prolific letter writer whose thoughts, insights and convictions were well read throughout the literate Roman Empire. Even in his day, he noted the issue with connectedness by observing “the danger of allowing others – not just friends and colleagues, but the masses – to exert too much influence on one’s thinking”. Without mentioning these words were written around the time of Christ, you could easily assume it was written recently.

To the decision-maker, it is no longer just a task to find the relevant information to use, but to weed out and discard the unnecessary information and do it at the speed of competition. No easy task when the amount of information available to us doubles every 9 – 10 minutes (depending on which study you read). The proliferation of Twitter, blogs, Facebook and texting contributes to this informational tsunami. They also create a greater challenge analyzing the volume of information as messages become shorter and cryptic (Twitter reports over 2 billion tweets a month) at the same time ensuring they are factually correct. We now get billions of messages just to tell us someone, somewhere created a message earmarked for us to read. Last month, AT&T sent 1 billion such messages over its network up from 400 million a month 11 months ago.

As I look at the impact this phenomenon has on our decision-making process as leaders, I see less contingency planning due to the instantaneous nature of technology and less reflection on the meaning of information to create sustainable knowledge. I recently observed a customer in a local Subway sandwich shop dictating multiple orders to the person making the sandwiches. After each order he went back to his phone for the next order. I wondered to myself if that person were in a business environment and had to remember multiple facts, would that be his way of managing information?

Seneca wrote “Elite, literate Romans were discovering the great paradox of information: the more of it that is available, the harder it is to be truly knowledgeable. It was impossible to process it all in a thoughtful way.” As leaders striving to make effective knowledgeable decisions about your business, how many tomatoes are in your fruit salad?

Lead Well!

Monday, November 8, 2010

Workers Distracted by Email and Phone Calls suffer a fall in IQ…

…More than Twice that found in Marijuana Smokers!

These are the conclusions of a 2005 study funded by Hewlett Packard and conducted by the University of London Institute of Psychiatry. It also sets the stage for this month’s topic on multitasking. Many leaders today pride themselves in being able to multitask, in some cases the more multi- the better. They also expect their teams to be able to multitask falsely believing it to be a sign of efficiency. In fact, it is quite the opposite of the truth. (click here to continue reading)

While it is true the brain can simultaneously manage multiple tasks like controlling your heartbeat while you listen to music, leaders are most focused on is the ability to pay attention to multiple tasks and do them well. In this scenario the brain is working in a sequential fashion. No matter it appears someone is doing multiple activities at one time, the brain is really task-switching one after the other very fast. In truth, the more we ask the brain to do at any given time the less our ability to pay attention any of those activities. The most visible examples of this phenomenon are driving and performing other activities at the same time (talking on the phone, texting, applying make-up etc.) drawing attention to the serious safety issues.

But what of workplace productivity? Is it such a big deal that we try to do many things simultaneously? In a practical sense, when we interrupt what we are currently focused on to take a call on our smart-phone or respond to an email on our computer, the brain has to shift gears to provide new focus on a new topic. This means quickly shifting our subconscious rule sets for to determine how we handle this new task. When we are finished answering/responding to the interruption, we shift again and once more re-establish focus on the original activity (how often do we say “Where was I?”) Unless you have well-established working memory, this can result in a complete restart of the original task. A University of California study found it took office workers 25 minutes on average to return to their original tasks after being interrupted by phone calls and emails. How many times are you interrupted in a day? Do you set aside blocks of time during your most productive time of the day to work on your high priority work? What happens to productivity when you lose nearly a half hour every time you are interrupted? In 2007 it was estimated extreme multitasking and information overload annually costs the U.S. economy $650 Billion in lost productivity.

Another important question for leaders is how many times a day are they the interruption? Leaders espouse the benefits of productivity and efficiency, but are they aware of how many times they are interrupting their teams and staffs for low priority reasons? Are they creating a climate of poor productivity due to their own challenges with time management and productivity? In my experience, the best way to answer these questions is to take two weeks and track what you and your staff are doing with their time. If you notice they are doing something different every 15 minutes it is a sure sign they are trying to multitask and may be struggling to focus on more important things. How are the most productive staff members managing their time? In every opportunity I had to conduct these time-use studies with my teams we created improvement programs that more than paid for themselves in increased productivity!

The idea behind this topic is not that we don’t have the ability to do multiple things at one time (Millennials will debate they can do this all day long!). It is whether we can produce desired results by doing multiple things at one time. To achieve your desired results, are you relying on employees who are less productive than marijuana smokers?

Lead Well!

Thursday, September 2, 2010

Leadership Lessons…

…From Running Triathlons.

Several weeks ago I ran a Sprint Triathlon in our hometown, something I’ve done for the last four years. However, what made this year special is I ran it with my youngest son who was running the race for the first time. Since it was his first race and our plan was to run it together, our motto for the race became “Start Steady, Finish Strong”. Undoubtedly, most of you reading this have heard of the famous Ironman Triathlon in Hawaii. The Sprint Triathlon is the shortest of the four official distances but still involves the same three events – swimming, biking and running in that order. So as I reflected on the race, it occurred to me the parallels between training and running triathlons with the leadership coaching I do as part of my practice.

When I first began competing in triathlons, I viewed them as separate events in which to train. I was a competitive swimmer and runner in both high school and college so it was natural for me to train in each event as I had before. This is no different when we find ourselves approaching new professional and personal challenges by relying on the skills and knowledge we developed from our past. Even when we set goals for ourselves to improve in an individual endeavor, it is still the past that governs our execution unless we consciously make a change. And as I realized my training regimen wasn’t enough, I needed to make a change - in my attitude regarding the race itself!

I had to change my mental approach to the race to ultimately achieve my goal. I actually made two changes. First, I changed my mental approach to the race from three individual events back-to-back-to-back to one race with five aligned competitive pieces. I say five because the transitions between events are really mini-events in and by themselves as the clock continues to tick during the swim-bike and bike-run transitions. Secondly, I realized I could not do this solely based on my own experience. I reached out to accomplished tri-athletes and read blogs from others who were also trying to optimize their triathlon experience. These two changes helped me align my actions to accomplish my overall goal.

So what does this have to do with leadership? How much are we relying on the experiences of the past to deal with today’s challenges? Are we going about change alone or are we reaching out to others to help us develop new leadership attitudes? Is our business a series of disparate, misaligned goals preventing us from achieving our ultimate objective? These are questions all leaders should regularly ask themselves.

I recently read a quote from Fred Lebow, founder of the New York City Marathon, a race I’ve run twice who said, “In running, it doesn’t matter whether you come in first, in the middle of the pack or last. You can say ‘I have finished’. There is a lot of satisfaction in that”. As my son and I completed the triathlon, I had no idea where in the pack we finished but I do know we Started Steady and we definitely Finished Strong! Are your goals aligned for a strong finish?

Lead Well!

Rick Lochner

Tuesday, August 3, 2010

We Need 100%...

...From 100%

As a leader in corporate organizations, the military and small businesses, this was a frequent reminder to my organization we all have a role to play in our organization’s success. It also reminded them of the importance of showing up every day with everything they have to give, not just show up. Said differently, I was promoting full employee engagement by everyone in the organization. As we reviewed the four key elements of the Total Leadership Model these previous four months, it all centers on the level of engagement by employees, associates and volunteers who create the moments of truth and points of connection between the organization and those who bring you business.

Last month I referenced the results of a recent Gallup Poll survey indicating in average performing organizations, only 33% of employees are engaged in the business. This compared to world-class organizations where the exact opposite is true and 67% of the organization engaged in the business. In addition, in average performing organizations, 18% of employees were actively disengaged. This means that only a third of the organization cares about the activities contributing directly to employee retention, productivity, customer satisfaction/engagement, safety and profitability; all measurable dimensions of organizational success. Improving employee engagement has a direct effect on customer loyalty. Last month I mentioned even a 5% increase in customer loyalty can improve profits by 25% up to 85% depending on industry.

But what if you are a small or medium sized business with few employees? Does this matter? How engaged are the employees of your larger customers, especially the ones who implement your services, purchase your products and pay your invoices? If they don’t care beyond the minimum, how does that affect your business? Employee engagement impacts every business, large or small!

And it all starts with leadership. Jack Welch, former CEO of General Electric once said, “Any company trying to compete…must figure out how to engage the mind of every employee.” We define organizational culture as the shared values, beliefs and actions that develop within an organization guiding the behavior of its members. Employee attitude is where it starts for leaders because it is attitude that drives behavior and it is behavior that drives the ability to achieve the desired results of the organization. The behavior observed by your customers, suppliers and other employees forms the ongoing perception of your organization and your business. As you understand the market’s perception of your business, are you getting 100% out of 100%?

Lead Well!

Tuesday, July 6, 2010

Customer Satisfaction is Worthless...

…Customer Loyalty is Priceless.

This often quoted title from Jeffrey Gitomer’s book sets the stage for the fourth and final component of the Total Leadership Model. In a previous edition (11/09) of this newsletter, I introduced some general differences between satisfied customers and loyal customers. However, the real question becomes “How is Customer Loyalty a competitive advantage?”

Customers generate revenue, loyal customers generate profit. When I was leading corporate organizations, our customer and sales support teams worked closely alongside our sales teams. It was a relationship not always obvious or easy to manage, but one I always insisted on nonetheless. You see, while I was interested in the initial sale to a new client, I was even more interested in the second, third, fourth, nth sales. Why? Because I knew how important the follow-on sales were to profitability and creating emotional relationships with our customers. In industries where the core products and services are commodities, it was the power of points of connection, or “Moments of Truth” that drove ongoing loyalty within our customer base. Studies show as little as a 5% increase in customer loyalty can drive an increase in profits from 25% to over 80%. To highlight the power of moments of truth, another study showed that if an organization’s employees were 100% engaged, they would see a 70% increase in customer loyalty. Why is this significant? A recent Gallup Poll showed an average employee engagement level of 30%. Said differently, 70% of employees are disengaged creating an untenable gap in the ability to create powerful points of connection with their customer base and causing a direct drain on profits!

But who or what are we loyal to? We know when we engage in the Buying/Selling process, buyers look to buy you first before they look at your company or your products. They are looking to establish the first of the three components necessary to developing customer loyalty – trust. Whether it is you, the entrepreneur, you the corporate leader or you the member of a non-profit team, prospective customers and donors are first and foremost looking to see if they trust you! What is their first impression of you, your brand, your office or your website? What are others saying about you? These moments of truth become the catalyst to creating a consistent experience creating the second component of loyalty – a strong emotional tie with the customer. The third component of customer loyalty is the use of empathy to continuously and consistently meet or exceed an ever-increasing level of expectation in today’s business environment and strengthen the overall customer relationship.

It is the customer’s experience with you that counts. Peter Drucker once said “Quality in a Service or Product is not what you put into it. It is what the Client or Customer gets out of it.” Is what your customers are getting out of your products or services worthless or priceless?

Lead Well!

Tuesday, June 1, 2010

If You Can’t Describe What You Do as a Process...

…You Don’t Know What You Are Doing.

These words from W. Edwards Deming, considered the godfather of organizational process improvement, are a great way to introduce the third element of the Total Leadership Model. To put it in perspective, we previously introduced Strategy as the foundation of the model and last month discussed Leadership Development as one of the two key supporting elements of the model. This month we look at Operational Improvement, the Process side of Total Leadership, as the other supporting element crucial to being an effective leader in today’s business environment.

Everything we do in our organization be it public, private, non-profit, large or small is a process. Everything we do has inherent interdependencies with what happens before during and after each task and function we execute. And because each task and function we execute has an outcome, it becomes a point in which we can measure the desired results of that task or function. In Dr. H. James Harrington’s book, Business Process Improvement he puts it this way:

• “Measurements are key.
• If you cannot measure it, you cannot control it.
• If you cannot control it, you cannot manage it.
• If you cannot manage it, you cannot improve it.
• It is as simple as that.”

At this point, there may be those of you who may be thinking this is great, but I don’t operate in the plant or in operations where our products are made. In truth more than half of the Operational Improvement opportunities are in the traditional “front office” functions such as Sales, Marketing, Finance and Human Resources. Or there may be those entrepreneurs who run small businesses who think this is great for larger companies, but does not apply to small businesses. In fact, missing these opportunities for Operational Improvement likely has a much greater financial impact as a percentage of revenue than in the larger companies. It’s akin to thinking gravity does not apply to you because you weigh less than twenty pounds. All processes have very real financial impacts if not producing their desired results!

Today’s leaders see this as an opportunity to truly understand what they do in the context of a global business environment constantly evolving through regulatory, economic and socio-cultural changes. As a leader it’s not enough to merely invest in people in the organization if you are not also willing to ensure the processes they use are optimized for success. So, describe what you do again?

Lead Well!

Friday, May 7, 2010

Lead, Follow…

…or Get Out Of The Way.

This well-known quote from Thomas Paine serves as the basis for the second segment of the Total Leadership Process. Thomas Paine has been called the Voice of the Common Man and as such serves as a backdrop for the People aspect of Total Leadership. Last month, we established Purpose as the foundation of Total Leadership revealing itself through the organization’s Vision and Strategy. This month we invoke the People aspect of Total Leadership as we look at organizational development processes organizations use to determine who can communicate the strategic objectives, execute those strategic objectives and provide feedback on progress made on the strategic objectives. In other words, how are organizations developing leaders at all levels of the organization? (click here to continue reading)

In today’s competitive and turbulent, fast-moving economy developing the right leaders becomes an imperative for survival of the business, whether for-profit or not-for-profit. In much the same context as my comments last month where previous strategic assumptions are likely not to work in our current economy, so too are the attitudes and methods traditionally used to develop leaders called into question. We can no longer assume leadership is about possessing certain personal characteristics but rather about the ability to set goals and achieve desired results.

So what does this mean exactly? It means we have to get beyond the development process that assumes if you grow certain leadership qualities in people then somehow this will positively impact operational results. Too much time, money and energy is wasted creating a yardstick of designated leadership characteristics only to find they are yesterday’s news based on the fact changing external and internal forces for change all organizations face. It becomes a journey of hope that is no more effective in today’s market than the “Field of Dreams” (build it and they will come) business strategy.

The solution is all about defining and justifying leadership development on the tangible outcomes it is intended to produce. It drives a strategy focused on the desired results and then grows and develops the people (and processes) to realize those results. As Peter Drucker so aptly stated, “Leadership is all about the Results”.

The challenge with this solution is it assumes the People development process throughout any organization is aligned to its Purpose. This is true regardless of the size of the business or non-profit organization. Is the Leadership Development process in your organization linked tight enough to the Vision and Strategy so when the Strategy changes to adjust to the post-recession economy your organization automatically adjusts the leadership development to develop new skills to deliver new results? If not, are these leaders really leading or are they just in the way?

Lead Well!

Sunday, March 28, 2010

You Cannot Control The Wind…

…But You Can Adjust The Sails.

These words to the Ricky Skaggs song Can’t Control The Wind are a great entrĂ©e into the first of four monthly segments on the Total Leadership Process. These particular words came to mind as I was reading a recent Fortune article about Larry Ellison and the BMW Oracle Racing Team returning the America’s Cup Trophy back to the United States after a fifteen-year absence. His thoughts on the victory centered on the right combination of technology, sailing skills and strategy.

Strategy is the focus of this segment as it forms the foundation of the Total Leadership Process and reflects the Purpose of the organization. In actuality, the organizational Purpose is a combination of Vision, Values, Mission and Strategy but it is the Strategy that determines how the organization will compete in its current market and industry. Understanding the importance of this definition is crucial as the competitive landscape and assumptions in every industry are changing.

What strategic assumptions worked when economic and industry growth rates were 10% - 15% before the recession will be different in the 2% - 3% growth economy of the next several years. Likewise, targeting double-digit growth rates will require different strategic assumptions than in previous years where that level of growth was not the norm. A strategy setting a path to 12% growth year-over-year sounds good at face value. However, if the industry is growing 15%, the strategy loses market share.

Like the wind challenges sailors, we may have difficulty totally understanding and reacting to the competitive landscape. Some events we can see well in advance. The recent healthcare reform legislation was announced well in advance, enabling organizations to think through various contingency plans on how to react to the final version. In effect for less than a week, several large companies already announced changes as a direct result of the new law.

Other competitive events are not well known, yet must be anticipated in order to put forth a reasonable strategy for success. Most of us cannot accurately predict the future. But the issue is not to predict the future; it is to prepare for the future. Successful leaders continuously run scenarios for their market or industry helping them adapt quickly to their changing competitive landscape.

With so many changes happening at an ever-increasing rate, do you have a means to capture what your market is telling your organization every day in a way that is meaningful to the contingency scenarios relevant to your strategy? Ask yourself how much time your organization spends managing the past versus navigating towards the future. If we drove our cars the same way how much progress would we make?

When the wind changes direction, which way will your crew be facing?

Lead Well!

Wednesday, March 3, 2010

We Can Learn a Lot about Purpose Driven Leadership…

From the Super Bowl Champion New Orleans Saints.

Now this may seem like a strange way for me to discuss leadership as those who know me know I am a lifelong Colts fan. However, I did spend half my military career in Louisiana and Mississippi only hours from New Orleans and the French Quarter. It is during these times we came to appreciate the food, music and culture of the city. I do know what it feels like to have to evacuate in front of an oncoming hurricane and if nothing else, Sean Payton, the Saints coach is from our hometown of Naperville, IL. So it is with some attachment I use their recent Super Bowl victory as a backdrop for Purpose Driven Leadership.

Purpose Driven Leadership supposes, in spite of all the talk of the recession, jobs, expenses and profits, people want more. This translates through the organization’s Vision and Values. Organizations (public, private and non-profit alike) who have a clear Vision of what they want to become have a distinct and clear advantage over their competitors over the long haul, especially when dealing with change. These same organizations have and live a set of Values embraced by all in the organization and reinforced daily by their leadership. The Saints had a purpose that transcended what happened on the football field earlier this month. They played to not only win the Super Bowl but to provide a sense of higher belief in a home city still rebuilding both physically and culturally. What makes the ideal even more important in my mind is by staying true to their purpose, leaders must take risks to achieve the desired results. The Saints certainly made that point clear with several risky plays including the now famous on-side kick to begin the second half of the game.

Earlier this week I had the opportunity to hear from another member of a Super Bowl team, Jim Covert from the 1985 Chicago Bears. In his speech on leadership he highlighted the idea of Values. As the President and CEO of The Institute for Transfusion Medicine he sees his purpose as creating fundamental and sustainable change through leadership. In doing so, he identified three Values he uses to achieve his Purpose:

➢ Honesty and Integrity – Lead By Example
➢ Set Expectations – Use Effective Goal Setting
➢ Accountability – For You and Those Around You

A story he relayed was of Mike Ditka, the Bears coach at the time, setting a goal to win the Super Bowl at the beginning of the 1983 training camp. What stood out is he also said half of the assembled players would likely not be there, which turned out to be true two years later when they did win the Super Bowl.

So what is the Purpose of your team and is everyone on board to help you win your Super Bowl?

Lead Well.

Wednesday, February 3, 2010

We Will Do That For You…

…Followed by a Firm Handshake.

One of my favorite gifts this past Christmas was a sculpture of a handshake, a gift from my sons. They know the handshake holds high value to me as a symbol of the right kind of leader to be. It is not an accident it is part of the RPC Leadership Associates brand. While difficult to trace the exact origin of the handshake, we can easily trace its origins back as far as medieval times when knights and royalty would shake as a gesture to let the other know there were no weapons present. In other words, it was a sign of trust. It is trust, which we as a culture continue to struggle with today.

We seldom go a day without seeing a headline or a story related to trust, typically a displayed lack of it. Whether in business, politics or sports names like Madoff, Blagojevich and Woods conjure up images of a broken trust between them and the relationships with the people who helped them succeed in the first place. So I believe it is here we should begin our discussion of trust by looking at what it means to have a meaningful relationship as a leader.

If we look at the buying process used by many in business for making a value based decision, we find it begins with the first thing people buy – you! It is through the strength of the relationship that starts the trust building process. Building trust is much like saving money in a piggy bank. Every moment of truth, every interaction with another person and every transaction in a relationship helps build the trust bank account. I heard it described recently as “we add trust to a relationship a nickel at a time, but we lose trust in that same relationship a dollar at a time”. If leaders are looking for trust in the relationships with their teams the first place they need to look is in the mirror. Are you the type of leader who is trustworthy? I spoke last month of the importance of self-awareness as the authentic leader’s greatest tool. This is crucial as it helps a leader’s ability to leverage candor and empathy as crucial elements to building trust. If people in an organization trust their leader as a person, they stand a much better chance of trusting their organization as a whole. A recent Gallup poll suggests only 30% of employees are fully engaged in their organization. What organization in this day and age can afford to have 30% engagement? Yet by disregarding the very elements that build trust within the culture of their organization, they may as well hang a sign outside their door stating “Employee Engagement Doesn’t Matter Here”.

Finally, a fitting quote from David Armistead I often use, “Trust each other again and again. When the trust level gets high enough, people transcend apparent limits, discovering new and awesome abilities for which they were previously unaware”. Are the trust levels in your organization high enough? Are you ready to discover new abilities to which you are now unaware? We will help you get there. Can we shake on that?

Lead Well.

Rick Lochner