The New Year “New” Resolution for 2012

As we all recover from a holiday weekend and bemoan the excesses of extreme socialization, the thoughts of many now are focusing on the “New Year.”  

A tradition many executives have is to make their “resolution list.”  The promises they make to themselves to be adhered to “absolutely.”

I was with a CEO recently who was showing me his list.  I noted that it was dated 1999 and with multiple write over…when the obvious question was asked, the response was “still haven’t finished.”

As the intensity of the global recession recedes, and a collective cautious breath is taken in the hopes that the worst may be over, DPC thought it would be helpful to do a quick “Pulse Survey” of CEO’s regarding their commercial resolutions for 2012.

We had over 20 responses and there are emerging trends the top 5 of which are herein listed.

1. Understand Social Media - Many CEO’s acknowledge they do not understand nor appreciate this phenomenon.  This lack of awareness prompted expressions ranging from, “it makes me feel out of touch” to “old.” 
2. Increase External Awareness – Many CEO’s have felt that during the recession they were “too heads down,” and “unaware of what’s new.”  One CEO stated regarding external trends  “unless it was on CNBC I missed it.”  The desire to end the information hibernation was expressed.
3. Global Mindset – The refrain communicated most was “It is hard to keep track of the dynamics.”  There were specific references to the Euro crisis by domestic CEO’s and the “political crisis” in the US by rest of world executives.  The objective of those sampled was to “understand better” to be “less reactive.”
4. Accountability – CEOs indicated that “shared accountability” has suffered during the recession due to “competitiveness” and “paranoia.” One CEO stated the desire “I want to put a stop to the mentality of ‘for someone to win, someone has to lose.’”
5. Pace – This observation was DPC’s biggest surprise.   The focus on pace of life and work, and the desire for more balance were credited to the “new worker.”  “They have the right idea1”  A number of CEOs communicated that the need for enterprise flexibility in dealing with Succession and Continuity Planning is “high on the list.”

Our expectation is that the 2012 list will not be the 2022 list!

The above list is symptomatic of the reflection we have seen in our clients during the year promoting the mentality of “not only do I need to do things well, I need to think about life beyond my office” as well as “a different way of working inside.”

On behalf of Discussion Partner Collaborative and our Affiliates, our best wishes for a prosperous 2012!

Board or Bored?

As Baby Boomers contemplate retirement there is the inevitable question being contemplated: “What do I do next?”

A recent CNBC segment referred to 2012 retirement planning as the “no huddle offense.” Essentially there is a need to accelerate not only the economic preparation for retirement: but also the determinants as to how one would spend their time.

Tammy Erickson’s books on Shifting Demographics forcefully remind us that traditional perspectives regarding retirement are outmoded.  In point of fact Boomers are likely to remain active by engaging in multiple activities.

A recent Pulse Survey of over 2000 executives conducted by Discussion Partner Collaborative  posed 2 questions. “How far evolved are your retirement plans” and  “how will you spend your retirement time?”

 The overall answer on preparation was of concern as it indicated that while there had been some time spent “thinking” there was an absence of “planning.”

 The top 4 answers on “time commitment” were as follows:

1. Generate income through part time employment
2. Spend time with the family
3. Focus on physical well-being primarily by playing golf
4. Seek Board opportunities

The focus while clear was not supported by disciplined thinking regarding the “how” other than playing sufficient “golf” in the pursuit of lowering ones handicap.

This was particularly true regarding affiliation as a Board member.  The survey participants while clear on what they could offer as a Board member were less clear as to how to go about securing positions.

The good news is that Boards are valuing the talents of Boomers as an example the October 2011 edition of HBR suggests the rules are being broken in respect to the age of Board Members whereas in 1987 only 3% were age 60, now 30% are 64 or above indicative of both the shifting demographics and enterprise desire for the preservation of institutional memory.

However, for those whom have never been a Board member, it is not analogous to a Field of Dreams “if they know I am available they will come”!

Based upon our experience we would recommend for both NGO and/or Commercial Board opportunities the following steps:

• Proactive networking with all in your “Rolodex”
• Establishment of relationships with entities which match Board needs with aspirants capabilities
• Explore Social Networking sites on NGO’s with the “assumption” that a need exists for advisory support
• Play a lot of Golf while you are securing the opportunityJ!

Avoid the “It Could Be Me” Feeling

One pundit stated recently that blogs are “drivel with punctuation.”

As many blogs are written by consultants it is often our sector that struggles with making salient points in a compelling way.

The rule of thumb is to make your points as if they were “sound bytes”. 

In the recent past there has been an intersection of Discussion Partner research with a phenomenon that lends itself to these iterations.

During a recent survey of over 2000 senior executives regarding level of non-financial planning in advance of retirement:

Over 70% of the executives indicated they have some overall ideas: but lack a concrete plan.

When DPC research indicates an interesting finding we test it with selected clients.

Suffice it to say that the findings were supported by the input from clients replete with anecdotes:

• “One executive did not realize he was retired…he kept coming to work to socialize”
• “An executive told me that the implementation of his plans only took him to 10:30 AM every day”
• “One executive became a serial board member to the point he forgot which meeting he was attending”
• “The concentration on lowering his golf handicap led him to AA”
• “His wife got so sick of feeding him she boycotted the kitchen”
• “Her husband was pleasantly surprised to realize how in shape she could be in post retirement and joined a gym himself”
• “The female executive became much more aware of her husbands fascination with Big Screen TV’s”

When we met with executives whom were still working we identified three escalating levels of sentiment when dealing with retired colleagues:

• Poor Guy-I hope he finds something meaningful
• I don’t have time-seeing the guy repeatedly is now a distraction
• Self-Awareness-uttering the words “it could be me”

 Now that I have your attention another sound byte from the research-82% stipulated that if they neared retirement without a disciplined plan, their engagement level would go down and their distraction level would go up.

Punctuation aside, the intent of this blog is straightforward, whether you are the executive or enterprise you should assiduously avoid the mantra “it could be X”!

Coaching for Peru

(The following is a recent interview of Tom Casey by the Peru American Chamber of Commerce on the topic of Coaching for Peru.)

 Tom Casey is an expert in the development of organizational transformation strategies for rapidly growing multinational or transitioning corporations. He has consulted in over 20 countries and virtually every economic sector. Moreover, he is the founder and Managing Principal of Discussion Partner Collaborative, an Executive Advisory firm with over 200 consultants in 19 locations.

 While on one of his many visits to Peru, he shared with us his point of view on how much our country has changed during the last few years, as well as the positive impact its economic boom has had on its professional management level. From his experience in Latin America, he applauds the good performance standards from Peruvian high executives, as he has personally worked with many of them, from sectors as diverse as banking, services, manufacturing, and construction. Although he tries not to compare directly, probably because of the evident different contexts, he cannot help but indicate that  Peru has much going  for it in comparison to other countries in South America like Venezuela where he has lived and worked. Truth be told, AMCHAM has to agree that for any American interested in international affairs (this probably goes for anybody from outside this region for that matter), Latin America is a perfect example of opportunities, tensions and extremes.  Tom indicated for him and his U.S. colleagues that after working in Latin America everywhere else seems boring!

Nevertheless, it comes clear to Tom what advantages Peru has in order to be regarded as a successful economic and business model for emerging countries. First of all, he points out that Peru enjoys the right strategy and vision to develop and prosper, thanks to highly skilled managers continuing to reach decision-making positions. A lot of Peruvians have correctly invested in themselves during the past couple of decades; evidence of this is the appropriate leadership style that Peru has adopted to improve both its international image, as much as the “system’s” image to common folk in most parts of the country.  Tom ventured that since 1994 when he first began consulting in Peru there has been tremendous change in how leaders position themselves to compete globally

Of course, one cannot talk about Peru without mentioning its tremendous potential with regards to its raw materials and acute financial services, as well as its wonderful tourist attractions, ancient history and renowned cuisine. Peru’s sheer size is a plus, both geographically and demographically: unlike many other emerging economies, Peru has the right population density, growth and age segmentation, in other words, we have the right amount of eligible young work force. What is more, and thanks to the economic sprint, the earnings potential vis-à-vis our country size has greatly improved (not to mention our per capita consumption figures have started to attract important investments, as more and more companies open offices as they see Peru is good business).

Notwithstanding, it is not all cheers and glory for us, as we do face many challenges with regards to our top executive human capital. Despite all the improvements, Tom does sense Peruvians have to work on a number of managerial skills. For instance, he has seen good project management skills, but they could certainly be better; and a person’s performance may not always be duly recognized, nor bad performance sanctioned. Women’s talent is not fully exploited, as seen on the percentage of those with university and advanced  degrees (one of the lowest in the region). Last but not least (and most countries in the region can relate to this), the never-ending accountability issue (the lack of a Spanish word for it does not help either)…which may also explain our unpunctuality.

Tom stated that the biggest change he has observed is his enthusiasm whereby managers are now aggressively challenging their strategies, business models, subordinates, and themselves to ensure that our tremendous opportunities are exploited. 

When asked for suggestions for Peruvian managers, Tom had a number of them: “Think globally as Peru is clearly a player in the regional and world economy; continue to assertively develop talent inclusive of expanding opportunities for female executives; reinforce the need for managers to hold themselves accountable for achieving expectations; and finally to reinforce motivation, by differentiating the reward strategies allocating the monies to those who have performed the best.”

Beware of Executive Coaches

In the spirit of truth in advertising the notification of “Beware of Dog” should also apply to Executive Coaching.

 The domain of Executive is growing rapidly for 2 incongruent reasons. Foremost it has been well researched and documented that the use of external coaches is the most impactful leadership development vehicle.  Secondly, with the displacement of so many executives, there has been a proliferation those who now carry the career title of Executive Coach.

 The more cynical of us remember the late 90’s when a displaced executive was going to “start a dot.com.” That aspiration has now been supplanted by well-intentioned but unprepared advisors whom are now “coaches.”

 It is doubtful one would feel comfortable being represented by a lawyer who hadn’t been to law school, or treated by a doctor who didn’t attend medical school…essentially the baseline criteria.  So why should any executive feel more sanguine being advised by someone just because they are now a “coach?”

 The above is further complicated by the “industry” lacking any regulatory oversight. 

 This dilemma prompted Discussion Partners to do a Pulse Survey of our relationships reformatting the standard question, “to be an effective leader, what skills do you need to possess,” to “to be impactful what are the top 5 critical skills needed by an Executive Coach.” 

Top 5 Responses

1. Strong Business Fundamentals – There is a need to be clear.  Many coaches focus on advising on strategy and operations as well there are those who focus on leadership effectiveness.  The response had more to do with the third area in that even when advising on the quality of a leadership bench, or correcting some less then attractive behaviors there is a need for the coach to know enough about business to be credible with their client.
2. Sensei Tendencies – The ability of the coach to weave in “war stories” or “lessons learned” from the coaches experience.  At Discussion Partners we refer to this as Illustration Advisory an intervention whereby we can share an example.  There is of course the need to resist the temptation pontificate “when I was a young manager”. 
3. Willingness to Confront – The desire to avoid offending to preserve economic security can be taken too far in a relationship.  There can be diplomatic ways to articulate “what the hell were you thinking”? 
4. Intellectual Curiosity – This attribute surprised those of us at DPC, and therefore shame on us!  It is only  logical that a client is entitled to expect that their advisor is staying current.  Although the John Boudreaus, Noel Tichys, David Ulrichs, Jim Collins’s and Michael Porters are in a class by themselves, the reputation of the coach can be enhanced if they share insights from others, and their own documented point of view. 
5. Willingness to Admit Failure – Staying in a bad marriage is counterproductive if not counterintuitive.  The same logic applies to a coaching relationship.  If it isn’t working the coach should be the initiator of the relationship separation.  Anything less is suboptimal for the client and candidly an unfair position for an enterprise sponsor. 

 You will note that there is a presumption of a methodology and highly-attuned interactive skills!  Both are considered Threshold Attributes by the prospective client.

 Given the proliferation of those calling themselves Executive Coaches, the above is offered as a point of view to assist you in what DPC refers to as QQ (Qualification/Quality).

 

The Three Ls of Talent Readiness

By Tim Donahue

Perfecting the Talent Readiness formula for “Right People, Right Place, Right Time” involves many complexities, from shifting global demographics to the role of rapidly-evolving technology. But the business case boils down to the Three Ls – Leadership, Leverage and Legacy.

Leadership

The ever-shifting competitive landscape means that with leadership, mastery is a long-term goal. A colleague of mine once said: “As a leader, you will often be called upon to demonstrate leadership when you feel least ready to provide it.” Inevitably, all eyes and ears will turn to you, the leader, for the answer. As President Harry Truman put it, “The buck stops here.”

There is a particularly urgent link between leadership and safeguarding an organization’s future. This can mean everything from helping capable managers transition to leadership roles to shaping succession plans.

Of particular importance is Generation X, the smallest of the three predominant age groups in the U.S. workforce. The bulk of that segment – mid-30s to early 40s – is the traditional feeder pool for the leadership pipeline. Yet that same segment is the only age group that will shrink in the coming decade. The leadership pipeline may very well become a trickle.

 This demographic phenomenon is one key reason why leaders need to model effective leadership as well as extend a helping hand to show this next generation the way.

Leverage

Leadership means many things. When it comes to talent readiness, it means finding ways to increase the capabilities and impact of those who occupy spots in the org chart. If you doubt the strategic importance of leaders leveraging the abilities of those who work for them, consider the following:

•  The Adecco Group North America’s latest Workplace Insights Survey released in September 2009 showed that slightly more than three-quarters of employees surveyed were not satisfied with their career growth opportunities at their companies.
•  Recent research by Bersin Associates revealed that nearly 40% of line managers do not feel they have the training and skills to effectively manage employee performance. Yet when companies have highly effective talent management strategies, their average revenue per employees is 26% higher, Bersin’s research shows.

In short, what leaders need to do is what their people want them to do: Help them grow.

When leaders make talent development a key strategic priority – when they personally invest in developing the talent around them – they build organizational capabilities and leverage the full potential of their human capital.

This raises an important question: Do your leaders have what they need to help others grow?

Legacy

Leaders who commit to self-development as well as the growth of their people make an investment that yields a long-lasting dividend: a legacy.

Developing tomorrow’s talent is a job that must begin today. There are no quick fixes or silver bullets – no substitutes for the hard work and commitment necessary for passing knowledge and expertise from one generation of leaders to the next.

If this recession does prompt many Baby Boomers to delay their retirements, there may be a silver lining: Additional time to engage younger employees, transfer knowledge and groom successors.

To appreciate what’s at stake, consider the following:

• In an era rife with downsizing, it is sobering to consider recent research findings that 30% of companies retain knowledge poorly or not at all when workers depart
•  A June 2009 study by the Sloan Center on Aging and Work showed that since the recession, employee engagement decreased among Generation X and Y employees – yet hardly changed at all for employees in their 50s and 60s
•  In her 2008 book “Retire Retirement,” Tamara Erickson says the idealism of the Baby Boomer generation will motivate many Boomers to make a positive difference in the later chapters of their careers – which can include leaving a legacy in one’s organization

Perhaps Newsweek columnist Anna Quindlen said it best in her farewell column, “Stepping Aside,” published earlier this year. “John F. Kennedy (said) that the torch had been passed to a new generation,” Quindlen wrote. “But torches don’t really get passed very much because people love to hold on to them.”

Are your leaders holding onto their torches, or preparing to pass them? Is your next generation ready to pick up the torches?

Following the three Ls of Talent Readiness will help you do right by your leaders, your employees and ultimately your organization.

Talent Practices: Leveraging the Power of Collaboration

  One of my favorite quotes comes from Rob Cross in his book The Hidden Power of Social Networks, ” Research has consistently shown that whom you know has a significant impact on what you come to know, because relationships are critical for obtaining information, solving problems, and learning how to do your work.”  That, is a powerful statement about social networking . . .echoed in this comic selection from “Zits.” As I said in my earlier post, we have just finished a piece of research designed to explore in what ways can organizations leverage the power of collaboration across the talent processes.  Social networking itself is not new, what is new is the impact of Web 2.0 technology on collaborative behavior.  In this post, I wanted to offer just an ‘appetizer’ of insight from that research and talk about it in the context of the current economic issues.

We surveyed over 75 organizations, and overall we found that:

• Social networks are an important component of an organization’s core talent processes . . . While social networking was important to the successful execution of all talent processes, they are considered critical for engagement, on-boarding — transitioning — and off-boarding, and leadership development. 
• Furthermore, respondents believe that networking is important for all levels of the organization, but particularly so for senior executives.  As Michael Watkins so often points out in this book, The First 90 Days, no leader, no matter how capable, can do it all.  Leaders need networks that are constantly being refreshed and renewed to be successful.
• Finally, despite the fact that social networking is not a new behavior pattern, our respondents indicated that they don’t think they are as effective as they could be at leveraging the power of collaboration.  Their organizations may be leveraging the technique and/or tools in selective ways or within functions — creating pockets of excellence.  But overall, many organizations are still experimenting with collaboration tools. 

So, in what ways are companies leveraging the power of social networking across the talent processes?  Let me share just a sampling of what we’ve learned:

• Recruitment: Of all the talent processes, this is the area that has seen the most visible change as a result of social networking and web 2.0 tools.  While I find networking sites like LinkedIn and Facebook interesting, I am far more intrigued by sites like “Beyond.com” and “Jibe.”  Before the recession we were seeing the emergence of ‘talent brokerage.’  But the recession has accelerated a new approach to employment –’gigonomics,’ the act of being employed on a ‘gig’ basis.  Social networking tools allow active communities to form around project based work creating a new type of long term employment experience.  Social networking sites like Jibe, on the other hand, is interesting in that it uses social networking to create transparency around an organization’s culture, allowing potential employees to find a ‘great fit.’ 
• On-boarding/Transitions/Off-boarding: As the recession deepens and we see talent moved in/out/ and around the organization, effectively managing the employee life cycle becomes more important.  Social networking can become a key tool to enabling that process.  Given the short tenure of senior leaders these days, robust on-boarding and transition management becomes a strategic intervention with real impact on organizational performance.  What if you can speed time to effective performance by 3 to 6 months for a Senior Leader through accelerated on-boarding? In a tough economy where performance runways are short, time matters.  Finally, many of us have had to say ‘good-by’ to talented people as organizations are reforming themselves.  Off-boarding with care and keeping connected through social networks is an effective way to ‘keep your talent close’ in anticipation of future opportunities.  Over time, more of our talent will move in and out of our organization on a project or ‘gig’ basis.  Keeping talent networked with us through their employee life cycle, will be an important enabler for organizational agility.  So who does this well?  Look to companies like Baxter,  Capital One, and Johnson & Johnson who have Leaders Transition Programs.  Consulting firms, not surprisingly, have the most interesting approach to employee life cycle management by leveraging 2.0 tools to keep alumni connected — E & Y and Deloitte, for example. 
• Employee Engagement: At any time, particularly in tough economic times, employee engagement is a key enabler to organizational performance, now and in the future.  As organizations have cut their way to survival, they may have already lost their most important asset — employee hearts, minds, and hands.  An effective internal social network is the glue that binds the organization together, keep talent engaged, and facilitates transformation.  As organizations fight for precious customer revenue, engaged employees can provide that point of competitive advantage.  My favorite example of good old fashioned social networking comes from Ford Motor Company . . .clearly a company fighting for survival.  As they introduced the new product line-up for this year, they invited all of their HQ employees down to ‘test drive’ the products . . . hoping that they would ‘activate the purchasing power of their social networks.’  What a simple but powerful way to engage, inspire, and enable employees. 
• Training and Development:  As I prepare my my thoughts for the Winter Professional Development Consortium this week, I am convinced that social networking will have the most profound impact on this talent process.  New social tools will change the fundamental role of the CLO.  We will transition from being ‘content enablers to context enablers’.  These tools will enable employees to access the information they need when and where it is needed — through instant messaging tools, blogs, wiki’s, expertise locators, and so on.  Employees will be able to zero in on the specific information they need to solve problems, perform specific tasks, or quickly update skills.  Our role will be less about creating information/skill content, and more about enabling the context for employess to access information/skill when and where they need it . . . pulling it together quickly and easily to create knowledge. . . experimenting with it. . .creating repeatable transparent processes.  Responsibility for learning will shift to where it belongs . . . with the employee. 

Social networking is real work.  It is not unusual for leaders to think of social networking as a supplemental acticity, something that augments ‘real work’ or ‘personal development.’  For those organizations that actively use social networking and associated tools to share information, cooperatively develop insights or event collectively create product(s) it has become a fundamental work process that adds value to the organization. 

As your organization takes its own unique journey, where do you think it will engage first?  How is your organization harnessing the power of collaboration?

Talent Practices: Making the Business Case for Social Networking

The Agile Organization

Several weeks ago I posted a blog on the ” The Agile Organization.” I used the content from that blog to create this word cloud in wordle.  Can you feel the change commin’. . . . . . Enjoy!

Talent Practices for a Tough Economy

11/09/08

In the course of my normal early on-line shopping for the holidays, I ordered shoes from Zappos.  Being curious, I followed the CEO on Twitter.  For those looking for a great example of how to talk about tough issues with employees check out the CEO blog at Zappos.  This is a company known for developing an exquisite culture of customer delight that extends back inside the company.  They have just had their first lay-off in 9 years and it hurts.  But they’ve done a beautiful job of articulating (inside and out) why they are taking this action now, their financial condition and what they expect in the near future, and how they are going to treat their employees.  Most notably, the are: (1) providing higher than normal severance for ‘short-term’ employees, and (2) assisting with COBRA benefit payments for those impacted employees.  Equally important, they are encouraging people to ‘talk’ or in this case ‘twitter’ about the situation inside and out of the company.  I was struck by the outpouring of care for impacted employees that was coming from the loyal customer base.  As I have said before, as employees, we can deal with tough issues if (1) we understand the logic behind the decision, and (2) believe impacted employees are being dealt with in a caring and compassionate way.  I look forward to continuing our relationship Zappos . . . I’m impressed. 

8/28/08  Update

When I wrote this blog, I thought I had a very nice array of talent practices.  After posting it, I’ve continued to come across some interesting talent practices, so I have continued to ‘update’ as information comes across my ‘virtual desk.’  I’ve chosen to group the new information under the original post so that you can see how the ideas have developed.  Interestingly, the most active searches by readers have been in the compensation space . . . so I’ve added some examples as the financial performance information has evolved through the back end of this year.

Jim Borgman’s cartoon in the Chicago Tribune last week was priceless . . . because it spoke volumes.  Set aside the question of are “we really in recession or just how bad is it,” the current US economy presents some significant challenges for organizations.  So what are some of the interesting ways organizations are responding:

Recruiting Previously Unavailable Talent: Seizing an opportunity is easier said than done.  But for financial institutions, this is the time to recruit top talent . . . talent you could not touch before. And none know this better than the Chicago financial market.  Wall Street talent who would never have considered career opportunities in Chicago are now finding the comfort of a steady security and commodity market attractive.  Seizing opportunity is not just about sourcing talent from organizations in distress.  Employees impacted by rising cost issues and unrealistic organizational demands are evaluating their current employment propositions very carefully and making strategic choices about their future.  Gas prices and long commutes give way to considering attractive opportunities to work closer to home or even in the home.  Even the most resilient of road warriors are looking for relief from the grind of tough air travel while suffering the burden of over restrictive cost cutting travel policies.  Indeed, this is the time to put your unique employee proposition to work in the recruitment of talented employees.  This is a great time to strategically up-skill the organization.  Likewise, internally it’s a time to make sure that you are not eroding what is important about your employee proposition as your own organization responds to tight economic times — your ability to recruit and keep top talent is most certainly at risk. 

Changing the nature of work: Law firms are not known for their innovation, particularly when it comes to a very traditional career path . . . but even that is changing.   In tough times, organizations tend to farm out project based or seasonal work more aggressively rather than hire regular employees to manage through what appears to be a limited engagement.  But leveraging consulting from traditional legal firms can be quite expensive.  Enter a new kind of law firm — Axiom, Outside GC LLC and Phillips & Reiter PLLC are examples of legal organizations who act more like talent brokers than law firms.  What’s different?  Well at Axiom, lawyers are employed full time and receive benefits, but no pay between assignments.  According to the Wall Street Journal, the cost to clients is about 50% less than traditional law firms.   So what’s attractive from an employee point of view?  Some people are in transition.  But even more people are thinking about alternative work arrangements wanting a break from the pressure of traditional large organization career.  Others are ‘slash workers’ and want project based opportunities while they pursue a variety of different work experiences.  Others simply want more family time.  And some are Gen Y’s right out of law school who are looking for engaging opportunities right out of the box.  I think we will continue to see more ‘talent brokerage’ with high end niche knowledge workers as a way to flex talent pools in general and as a way to tap into top talent who are in transition in a cost effective way.  This is, of course, a type of workforce in transition . . .meaning, most hiring managers have not yet caught up to the real nature of the talent opportunity and are still thinking of ‘brokered talent’ as low level temps. And time will certainly tell, but I think we are seeing an important talent trend emerging. 

Offering Flexible Work Place Practices:  Tough economic issues have offered flexibility advocates a golden opportunity to push new work place practices into place in ways that demographic challenges of the talent pipeline have not.  Helping employees squeeze more out of a tight family budget have prompted a whole range of flexible workplace practices.  Examples include . . . “4 day work weeks” or other forms of compressed work weeks and regular telecommuting or “work from home Fridays,” or van pools.  Talk about taking work at home to the next level, at Write2Market, an Atlanta based marketing firm, employees must ask permission to ‘drive into the office’ for work.  There are even novel programs like “bring your child to work.”  While I certainly applaud flexibility, there some challenges.  Woe to the manager who uses this as an excuse to abuse employees . . . disengagement will certainly follow.  Thank you Jim for your comic reminder.  Likewise, flexible practices can be great solutions when they are not imposed.  Bringing your child to work is not appropriate for every environment . . even in the same organization.  And requiring all employees to work from home on Friday’s without thought to customer needs, is not an effective long term business response.  ‘Rigid workplace flexibility’ becomes an burden when it is not driven by real employee need and does not effectively facilitate the requirements of the business.  Flexible workplace practices are just that . . . they are supposed to be flexible and they do require a plan . . . a plan that serves both the organization and it’s employees.  And finally, managers often need help understanding how to effectively manage in flexible arrangements. 

Changing the Compensation Game: Need to put a bit more skin in the game to accelerate growth in a tough market . . . well, Skyline Construction, Inc.  offered managers an opportunity to pick their own salaries with in a range.  The deal?  The lower the salary, the bigger the shot at a large bonus.  What’s different? Skyline let their managers put a portion of their salary at risk.  The idea has proven popular . . . now in its second year, 12 of 15 managers choose lower salaries this year, increasing their personal motivation to succeed. 

A while back Best Buy, started an experiment in performance management called ROWE (results oriented work place).   No more fixed schedules, no mandatory meetings, no impression-management or forced face time . . . Best Buy reshaped it’s work place practices to focus performance on output instead of hours worked.  Putting employees in charge of their own work — time, place, and results – places responsibility where it belongs.  Yes, it means managers need to be crisp and focused when developing performance objectives, and that’s not a simple task.  But look at the results — productivity is up 35%, average voluntary turnover has dropped dramatically, and employee engagement is up.  What started as an experiment is now becoming the norm. 

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Broadening the Benefit Portfolio:  Not a surprise, in an effort to keep top talent who may be challenged by difficult commuting conditions, organizations like Grossbard & Associates are offering just a little extra in the paycheck to offset rising gas prices.  Some companies are increasing their mileage rates in reimbursement policies while others are offering higher cost of living raises.  EFC International is being even more proactive by subsidizing employee fuel costs on a ‘miles commuted’ basis.  Maritz, on the other hand, decided to offer employees a discount on Sam’s Club memberships as a way to help employees access lower prices at the pump.  Finally, TransitCenter, Inc. helps employees use pre-tax dollars to pay for parking and public transportation needs. 

In some cases, simply having access to benefits is important . . . especially for an employee population who may impacted by downsizing.  Companies like Starbucks and Border’s who offer benefits to part-timers fill a very important employment niche.  Paying attention to employees well being in tough times pays off.  They tend to be more committed and engaged.

“Off-boarding” with Care:  Sometimes the business is such that we need to say good-by, even to valued employees.   I am convinced that how we transition people out of the organization speaks volumes to those impacted — those who are left inside as well as those who are leaving us.  One of my clients has changed their HR job to include ‘on-boarding and off-boarding.’  Putting the same amount of care into helping people transition in and out of the organization can pay large dividends in your ability to attract and keep top talent over the long haul.  And who knows, today’s internal talent may be tomorrows key client.  Off-boarding with care, also keeps current talent engaged.  We can handle tough news . . . if we think it’s fair (meaning we understand the logic behind the decision)  and it is handled with compassion.  It’s important to remember, whether employees continue with us or leave us, they will always be alumni of our organization.  And those alumni can be valuable long term assets for the organization.

Finally, when we change the composition of our workforce, let’s remember to also think about the impact of the re-structuring on the work of the organization.  This is where I put the plug in for all of those who are left absorbing additional work when we loose valued colleagues.  Doing more with less?  Not really . . .there’s a limit to what any organization can do with resource constraints. So when re-structuring think not just about those who leave, also think deeply about the impact to those who stay.  Remember to also take work out of the system. 

As culture expert Edgar Schein reminds us, what leaders do in ‘tough times’ often speaks more loudly about the character of the organization than what leaders do in ‘good times.’  And employees do listen . . . very carefully . . . and take action on what they see. 

What is your company doing in these tough times?  In what ways are you seeing companies respond to the challenges of this economic climate?

08/11/08 Addition: Listening to What Employees Think

A survey in USA Today’s weekend addition asked: Should employers help workers with surging gas prices? Interestingly the responses were . . . 66% with a “no” response, 32% with a “yes” response, and “2%” don’t know.  What do you think?

08/12/08 Addition:  Changing the Compensation Game

Today’s Wall Street Journal reports more changes in compensation.  Given the economic and company performance turndown, one would expect that bonuses would follow.  Not so . . . according to Mercer and Hewitt. In an effort to keep top talent and employees engaged,  companies are still offering large bonuses.  In fact, the number of companies who offer one time bonuses has increased.  So, what’s changed?  Well, employers are starting to use their dollars more wisely, reserving the bigger payouts for higher performing talent.  Instead of rewarding the broader population with the usual average ‘feel good’ bonus, companies are going for ‘higher highs’ and ‘lower lows’ to distinguish and drive increased performance in tight economic times.  For example, highest rated workers may see upwards of 14%, while average workers may see 3.5 to 3.8%.  For the average workers, inflation, gas, and grocery increases may simply eat up any gain in the paycheck.  What’s your company doing?  What are you seeing and hearing in the area of performance management?

8/15/08 Addition:  Changing the Structure of the Organization

Doing more with fewer staff?  Very interesting article in the Wall Street Journal again today.  Dana Mattioli reports on a new ‘tough times job trend.’  Companies are not eliminating jobs altogether . . . they are creating what I call “job mash-ups.” In this case, they are combining job levels and types into new mash-ups. . . and yes, you guessed right. . . at lower salaries.  In an effort to stretch their assets, companies are combining jobs vertically . . .and horizontally.   

Not a surprise, tough economic times prompt us re-think the fundamentals . . . and one of those fundamentals is how the organization is structured.  It’s the moment to confirm what is core to the organization and what should be left behind.  It’s an opportunity to reinvent the what and how of work . . .to eliminate the redundancies . . . or streamline.  What’s interesting about the trend is the blurring of functions and roles . . . offering people an opportunity to develop cross functionally by moving into white spaces or to seize more senior roles based on capability or appetite.  Job mash-ups have real appeal from a development point of view.  And sometimes, job mash-ups propel us into finding new growth engines for the organization. . . opportunities we could not have imagined until we see what could be combined.

Having said that, what is disconcerting about the trend is the potential for abuse.  Jobs poorly combined don’t help the individual or the organization.  Pushing employees far beyond their capabilities leads to burn-out, turnover, and taint your ability to recruit top talent.  Can one experienced professional do the work of a team — not without changing performance expectations or the fundamental nature of the work itself.  So my challenge to HR is to act as that ‘voice of reason’ for those who don’t have a voice in this conversation. . .make sure ‘mash-ups’ make sense for everyone.

8/20/08 Addition:  Creating Employee Engagement: A Reason to Believe in the future

“Ford Offers Workers a Ride” . . .  interesting article in the Chicago Tribune today.   One of the toughest ‘sells’ we make is not to customers but to our own employees, particularly in tough times.  And Ford is certainly weathering some tough times.  The hard part of the ‘sell’ to employees is creating confidence in the future . . . as Rosabeth Moss Kanter says, when you are in the middle of a turnaround, everything looks like a failure . . . (and I’ll add my own thoughts here) because you aren’t close enough to the future to touch and feel it.  So Ford is doing just that!  It’s giving employees a reason to believe in the future.  In an effort to engage employees, they are letting them drive their new vehicles around the test track.  Pulling 4,000 of their workers from their Dearborn HQ desks to the test track, Ford hopes to show employees that their new models are going to put them on the road to success.  Engaging employees by letting them ‘touch, feel, and drive’ the new 2009 to 2010 vehicles, Ford hopes that they will then ‘talk up’ the vehicles to others . . . engaging their social network as a potential growth engine.  Giving people evidence of a positive future serves to reinforce confidence which can become a powerful platform for positive performance.  And as Kanter says, confidence can become infectious!

8/26/08 Addition:  Paying Attention to Employee Mental Health

Today’s Wall Street Journal article on health by Elizabeth Bernstein was a good reminder that in tough economic times people get worried . . .and that fear will work its way into the organization in unexpected ways.  As the economy continues to tighten, people worry about job security for themselves and other family members, their ability to pay the mortgage or other loans, the cost of gas and just plain living expenses. . .never mind worrying about the value of their homes and their ability to pay for college in the future, and so on.  Not everyone can handle stress effectively and we may see it in general morale, illness or absenteeism, productivity, or disengagement.  This is the time to pay attention to the subtle and not so subtle changes in those around you.  HR can take the lead.  Look for the warning signs that something might be wrong and offer access to the various policies and program available inside the organization . . . options might run from expressing concern to changes in workload, vacation, fitness programs, unpaid time off, employee assistance programs, and so on.  If you are tempted to ignore it . . . remember, morale issues are contagious. 

8/27/08  Addition:  Workforce Planning

What have you done to protect your talent today?  In general US companies are not giving much thought to workforce planning according to a new Watson Wyatt study, referenced on Workforce Management.  Meaning, they are not giving much thought to protecting their talent should the economy worsen . . . protecting key talent when times are bad, you say.  Indeed, this is not about restructuring or downsizing the organization.  This is about identifying critical constituencies (those essential to the core of the business) and putting contingency plans in place to make sure you don’t loose them . . . period.  And a lack of planning puts US firms at a disadvantage to their global counterparts.  Asian counterparts for example have been dealing with this issue for some time . . . currency crises, coups, or just plain competition for the same key talent across Asia Pac.  According to the same study,  84% of employers in Asia-Pacific and 80% of employers in Europe have workforce contingency plans in place.  Do you?  If you don’t do workforce planning in the tough times, when the good times come again you will be at a distinct disadvantage . . .chasing top talent paying premium dollars.  When you loose top talent, you have also lost the seeds of your future growth.  So, I ask again . . . what’s your organization doing?

8/28/08 Addition: Senior Leader Compensation

Finally, some interesting compensation information on the senior leader front as challenging financial results continue to pour in through the back half of the year.  We are starting to see more interesting compensation plays . . . ones that are more closely tied to performance . . . ones that are giving higher highs and lower lows . . . ones that are extending senior leader time horizons beyond the quarter or year in an effort to drive effective long term performance.

Starbucks just announced that it will slash bonuses for senior leaders this year as it continues its reassignment program in an effort to increase profit.  According to the WSJ, Chief Executive Howard Schultz will not get a salary increase this year . . . nor will any US employees Vice President and above given year-to-date performance.   Moving lower in the organization, eligible district managers, store managers and most coffee-roasting plant workers in the US will get a 3.5% annual pay increase.  For all employees in the US, the plan calls for a 2% flat salary increase for those whose performance is at the meet or exceeds level.  This excludes store baristias who are on a separate compensation plan that adjusts salaries on a 6-month basis.  Now that’s a statement. 

Might I add as we move toward year end, the company to watch on the Senior Leader front will be American Express.  You may remember Amex received well deserved praise for their CEO compensation play at the beginning of the year.  They have given CEO Ken Chenault an options bonus schedule based on clear aggressive financial metrics over a 6 year time horizon.  The financial hurdles as laid out are quite high for EPS, revenue and ROE, and a lesser performance will only give him a fraction of the total grant.  Furthermore, the total return to shareholders must be at least 2.5% above the S&P 500 average — so he cannot simply ride the market.  A senior leader compensation play clearly tied to performance over time – what a concept. 

8/28/08 Addition: Off-Boarding with Care

Earlier I wrote about the importance of ‘off-boarding’ with care.   There are times when we need to say goodbye to valued employees . . for a variety of reasons.  In those cases, it’s our hope that at some time down the road, our paths will cross again. 

The best examples of off-boarding come from companies trying to keep top talent . . . in the hopes of their return.  Deloitte and Touche (USA) makes it easier for employees to return after career breaks of up to five years, whether family or education related, by offering a range of benefits like . . . access to the company intranet, subsidized training to keep skills current, access to a mentor or career coach.  Cost effective, the program costs a fraction of the cost to recruit and develop a new employee.   Likewise, Gensler welcomes talent back via a return program . . . symbolically welcoming talent back with a ‘boomerang.’  Other companies keep in touch with previous employees through formal alumni networks using vendors like Select Minds. . .while others leverage grassroots social networks that spring up when companies are forced to downsize groups.

Increasingly we need to be comfortable with the fact that talent is unlikely to stay with us for their entire careers . . . there will be a series of ‘on and off ramps’ for a variety of reasons . . . some company driven others will be driven by individual needs and wants.  Keeping in touch with great talent can be a source of long term competitive advantage.  Whether employees continue with us or leave us, they will always be alumni of our organization.  And those alumni can be valuable long term assets for the organization.

9/13/2008 Addition: When Times get Tough, Increase the Travel Budget

I just returned from the Network Roundtable meeting and had an opportunity to listen to Larry Prusak talk about the power of culture and networks.  A colleague asked Larry a question . . .”in tough economic times, what would be your #1 recommendation for the organization.”  His reply . . . increase the travel budget.  Interesting . . .certainly not what most organizations do.  First thing to go is the travel budget.  His point, if knowledge is truly the driver in your growth engine, why would you cut the travel budget ?  Knowledge is massed in networks where people share trust, perspective, and a culture over time.  Knowledge is a social thing . . . not an individual thing . . . which requires care and feeding.  The cost of knowledge is the ability to create shared experiences so that people can share . . .absorb . . .and build anew.  Can technology do this for us . . . yes, to an extent. . . it can certainly accelerate information sharing and even knowledge development.  But ‘being together’ is key at critical points is key to a network’s ability to develop trust . . . enable collaboration . . . create knowledge . . . to drive innovation.  It’s hard to create a shared culture of ‘asking for information and sharing knowledge’ when you are physically isolated. 

Ok, so who really does that in tough times . . . well MWH Global did.  In fact, they rearranged the travel budget . . . they decreased executive travel and increased travel at the mid-level in the organization where the dollars could have the greatest impact.  And the outcome . . . a measurable increase in organizational capacity and ultimately revenue.  Interesting indeed.  What do you think? 

10/28/08 Addition: Leveraging the lull to develop skills and spark innovation

Like many of our organizations, Toyota is facing a significant lull in manufacturing for a significant portion of their workforce.  With a tight economy and changing gas prices, Toyota like the other car makers is experiencing the same challenges as the other auto makers.  Their response to that challenge is what makes them unique.  Rather than send workers home like the other auto makers, Toyota is keeping their workers on the line to sharpen their skills and look for innovation opportunities.  And they are already seeing the potential cost savings benefits to keeping employees engaged in processes they have redesigned.   What a concept . . . use short-term idle time to keep employees engaged, trained, and looking for incremental productivity savings and innovation opportunities.