The Investment-Based Leader’s Toolbox

Screenshot 2014-06-23 21.43.39Leaders in any organization give a vigorous “me too” when they hear the adage “our people are our greatest asset.” It’s the right answer! Yes, we value our employees, want to see them succeed, and hope that they’re happy in their jobs. But often the reality is not so positive. Several surveys have been done in the past couple of yeas measuring employee engagement. The sobering truth is that employees are disengaged because what leaders say and what they do is in disalignment.

The good news is that

When trust, values and a purpose-driven mission exist to a statistically significant degree and guide leadership, decision-making and behavior, these “enablers” give rise to a highly inspired group of super-engaged employees. (Forbes, September 2012)

The question, then, is how do we communicate and develop trust, values and purpose?

The answer is by investing in your greatest asset; the cornerstone of your organization. The toolbox for investment-based leadership will get you on the right track.

Trust starts with sincerity. Employees sense when a manager is just going through the motions. So before you pull any of the tools out of the toolbox, it’s important to consider you motives and attitude. Do you really want to invest in your employees not just because it may lead to higher productivity, greater sales, or other bottom-line reasons, but because it’s the right thing to do? Yes, you can invest because of what you’ll get out of it, but you’re putting a cap on potential.

A true investment in your employees means you have more altruistic motivations. You want to see them succeed because you care about them as individuals. You want them to grow, find meaning and purpose in their work, and set their own goals because that’s what every human being wants. We have to stop viewing employees as a means to an end and see them for the unique souls that they are.

Once you’ve committed to a true investment in your employees, the following tools will assist you in building a workforce that is engaged, committed, and eager to help you succeed.

Transformational Mindset:

According to an article in Psychology Today, transformational leadership

Originally focused on leaders who “transform” groups or organizations, transformational leaders focus on followers, motivating them to high levels of performance, and in the process, help followers develop their own leadership potential.

I believe this is where leaders need to start. Transformational leadership is a mindset and an attitude that puts leaders in the right frame of mind to motivate followers. In the words of Ronald E. Riggio, Professor of Leadership and Organizational Psychology at Claremont McKenna College:

Transformational leaders hold positive expectations for followers, believing that they can do their best. As a result, they inspire, empower, and stimulate followers to exceed normal levels of performance. AND, transformational leaders focus on and care about followers and their personal needs and development.

Servant leadership takes transformational leadership to an even more altruistic level, emphasizing the leader’s obligation to serve followers simply because it’s the right thing to do, not for what outcomes can be generated by focusing on follower needs.

When a leader is able to focus on others and look for ways to develop and motivate them, engagement and productivity are sure to follow. It requires that a leader put their ego aside and not assume they have all the answers. Transformational leaders know that a better organization is built when individuals are empowered and have regular opportunities to engage their brains as well as their hearts.

Appreciative Inquiry:

It is said that words create worlds. The direction of our questions determines where our conversation goes, so what we ask questions about, how we phrase our questions, and what our purpose is in asking questions leads us in a certain direction.

For a leader, asking questions that lead toward positive outcomes and a thriving culture is a core responsibility. But because we are so habitually focused on problem solving and discovering what is broken, our organizational dialogue is mired in deficit-based language.

The Appreciative Inquiry 4-D cycle of Discover, Dream, Design, and Destiny provides a framework for leaders and organizations to direct the conversation toward more positive ends while tapping into the knowledge, strengths, and passions of the whole.

Start by reading Appreciative Leadership by Whitney, Rader & Trosten-Bloom. This is a practice guide to infusing your leadership with appreciative tools that draw out the best in your employees and organization to move you toward your desired future through collaboration and leveraging strengths.

Positive Deviance:

Positive Organizational Scholarship (POS) grew out of the positive psychology movement started by Martin Seligman. The central idea behind POS is to identify those characteristics and behaviors that enable organizations to thrive and build cultures that reinforce these positive traits. The University of Michigan Center for Positive Organizations is a great resource, providing white papers, research, and other tools.

Positive Deviance (PD) is a concept that fits into the POS frame, building on the idea that within any organization there are individuals and groups who, with essentially the same circumstances and resources, have found a way to succeed where others are stuck.

PD has been used for years in the nonprofit and healthcare sectors, but has been slow to catch on in the marketplace, where the need for control and predictability get in the way of allowing deviants – either positive or negative – to forge new paths to solve problems.

But a surge of entrepreneurship may make the marketplace more open to experimentation and renegade solutions. PD believes that the solutions are within the context of our organizations, it simply requires that we give people the freedom to pursue unproven or counter-culture methods to fix things that have so far proven unfixable.

Strengths Focus:

Finally, in my investment-based toolbox I want to focus on the strengths of each individual on my team. We have a tradition of looking for the weaknesses in ourselves and our direct reports so that we can improve those deficiencies. But research, primarily from Gallup and former Gallup researcher Marcus Buckingham, has shown that most of us will never be able to turn our weaknesses into strengths. Instead, we should focus on those things we do uncommonly well and make them even stronger.

Leaders need to help followers identify their strengths, either through one of the strengths assessments on the market, or through an organic process of observation and dialogue. Once you know the strengths of each team member you can look for ways to organize and structure your team and the work that they do.

To really get the most out of a strengths –based approach is to develop a more flexible approach to job descriptions and work assignments. According to Gallup, when employees have an opportunity to use their strengths every day they are more than six times more engaged in their work.

Making the Investment in People

There are certainly more tools that an investment-based leader should have in their toolbox, but the ones I’ve outlined above will get you started on the right path. One thing to remember when committing to an investment-based approach is that there is no formula; the key is in using the tools in the context of your organization and the makeup of your team.

It’s also important to understand that it takes time to allow your investment to grow. Your staff may be suspicious as you begin to incorporate new methods of leading, especially if you’re making drastic changes in your leadership style. It may require some trust-building and patience, including patience with yourself as you try out new approaches.

Read my previous post: Investment-Based Performance Improvement. It introduces the characteristics of an investment-based approach – humility, humor, harmony, and honor. Using these four characteristics with a transformational mindset, appreciative inquiry, positive deviance, and a strengths focus will demonstrate to your staff that you are committed to their success and value their collaboration.

      

 

OD-Jobs: Organizational Development is Everyone’s Job

building togetherWhat is Organizational Development?

Organizational Development, or OD, is hard to define. Ask a dozen people and you’ll get 15 answers! To most professionals, OD encompasses change management, organizational culture, leadership development, and organization structure. I’ve worked in organizations that use the term organizational development as an aggrandized term for training.

OD practitioners will argue that their work centers on planned change efforts intended to improve productivity through cultural initiatives such as employee engagement, process improvement and effective performance management. The international Organization Development Network defines OD as

an effort (1) planned, (2) organization-wide, and (3) managed from the top, to (4) increase organization effectiveness and health through (5) planned interventions in the organizations “processes,” using behavioral-science knowledge.

Matt Minahan, current board co-chair of ODN, defines the field a little more clearly…

“Organization Development is a body of knowledge and practice that enhances organizational performance and individual development, viewing the organization as a complex system of systems that exist within a larger system, each of which has its own attributes and degrees of alignment. OD interventions in these systems are inclusive methodologies and approaches to strategic planning, organization design, leadership development, change management, performance management, coaching, diversity, and work/life balance.”

Organizational Development is Everyone’s Job

When this list is viewed in light of the day-to-day operations within an organization, it is possible to see how everyone in the organization carries the responsibility of OD. Since we are all part of the complex system that makes up the organization, our role is to either maintain or influence to ensure forward momentum and effective operation.

As an individual contributor I participate in organizational development by either complying with processes or challenging them to ensure they are effective. I manage my performance, respond to coaching, and openly communicate ideas and concerns.

If I actively contribute and challenge in a sincere and positive manner, I expect to be heard and valued as a member of the system. This requires a management philosophy that not only seeks out staff participation, but is not threatened by unsolicited feedback that questions management decisions. This level of transparency and vulnerability is possible when humility permeates the organization. This, of course, is easier said than done, since we have a strong tendency to self-promotion and self-protection, both of which make it difficult to accept criticism without defensiveness.

Culture Shift is Happening

I believe organizations are gradually learning that there is a great benefit to employing the whole person, not just the part of the individual that aligns with the job description they were hired to fill. A whole-person mindset in an organization allows for full engagement, nurturing innovation, and sharing ownership of the organization’s success at all levels.

When individuals are fully engaged, they look for ways to improve, they lead change efforts rather than waiting to be told what to do, and they feel like what they are doing is significant. While I see things moving in this direction, I know it is a difficult transformation. The forces that are pushing for this type of change encounter resistance from the forces of power and control.

Organizational Development Utopia

I have identified a few things that an organization can do to build the type of full-engagement culture where everyone takes responsibility for organizational development.

First, I believe it takes a process of confession, forgiveness, and reconciliation. I know these concepts are not associated with corporate culture, but they should be. Management needs to come clean about how they have focused more on outcomes than people. Employees have been used, abused, and threatened into performance. At best, this has resulted in either mediocrity or short-lived peaks followed by valleys of burnout and performance rebellion. Employees must confess that they have often withheld their best thoughts and energy in response to their perceptions of management manipulation.

Second, organizations have to rethink processes, especially the conduits of communication. Ruts and grooves are formed over time as the same path is taken over and over again, but our desire for order and predictability may be leading us to a grave, not a garden of opportunity. We must regularly evaluate how we’re doing things and listen to voices of the processes, our people, and the customer and be open to rethinking our strategies.

Third, organizations must forego expediency for wisdom. Executives pride themselves on making quick decisions, believing that their experience and knowledge alone ensure their decisions are the best. But no amount of experience can take in the sage advice of stakeholders up and down stream. Sustainability and maturity come through listening and wisdom, not expeditious control.

Fourth, build on successes and use an asset-based mindset. We like to be seen as problem solvers. With hammers in hand, we hunt for nails that need to be pounded back into place, but maybe that’s not the most productive use of our time. Instead, perhaps the more beneficial approach is to take the time to look at the abundance we’ve created as an organization and focus our attention on harvesting more of that success. In other words, we can choose to see our workplaces as rife with fires to be extinguished, or places of great wealth that needs to be invested.

Finally, creating a fully-engaged workforce requires investment in developing skills, in expanding the world for team members. Tunnel vision occurs when we fail to look beyond our own workplace to see what is going on beyond our virtual walls. Employees should be actively involved in professional organizations and accountable for introducing new ideas into the organization.

I have labeled these five cultural imperatives as utopian because, as optimistic as I am, I know about human nature. When things are going well we will commit to a positive plan of action, building teams and putting money into developing people in our organizations. But as soon as challenges, like a major economic crisis, come our way, we throw development out the window and adopt a command and control management style.

Our half-hearted commitment to doing the right thing perpetuates mediocre organizational life where positive development and effective leadership are hit and miss. This inconsistency causes confusion, disillusionment, and self-limiting behaviors. We can’t afford this approach any more. As companies like Google, SAS, Zappos, QuickTrip, TD Industries and W.L. Gore have discovered, it’s possible to focus on people and profits at the same time. A concentration on one does not preclude the development of the other. It takes enlightened executives willing to forego business as usual to create a culture of full engagement and mutual ownership for organizational development.