How to Avoid Being “That Boss”

Time to Watch: 3:16

Whether you call yourself a Boss, Leader, or Owner, there’s a very fine line between setting the pace and driving the pace, and knowing the difference is critical to the health of your team. It’s easy to fall into the trap of “Boss think” on this one and it can be detrimental to the health and productivity of your team. Here’s how to effectively set the pace as a leader, no matter what stage your business is at.

What we’re talking about here is your effect on the team in terms of your behaviour around implementation and execution. It can be easy to fall into the trap of thinking that you aren’t held to account in the same way that your people are, but to echo a sometimes-overused phrase, you really do need to lead by example to get the results you want.

You can’t create separate standards for yourself and your team, because the difference will be stark, and the result will be the creation of an “us vs. them” culture which does nothing to promote, ingenuity, motivation or retention—all cornerstones of a successful business.

If you’re looking to be a team and work as a team, then you need to actively participate as one of the team, regardless of how you view yourself in the culture of the business.

What are your biggest challenge jumping into the trenches? Let us know in the comments below.

And if you watch this and think: “If there’s no ‘I’ in team, why am I doing all the work?” This read is for you.

Get out there and have fun with it, and if you’ve hit a stumbling block, we can help. Reach out and let us know what you need.

Cheers,

 

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If This Is How You Handle Employee Performance, You May Be Doing it Wrong

The Employee Performance Problem

Ask any well-meaning manager what an employee performance appraisal should accomplish, and you’ll usually hear answers along the lines of: “to categorize the organization, improve employee performance and boost motivation.”

While these are all critical aims for an organization if the answer to how they currently accomplish this is through an annual performance review—then there are problems with the system. Namely, those annual performance appraisals generally only serve one of the three purposes listed above—and it isn’t performance or motivation.

So, How Did We Get Here?

The long and short of employee performance reviews is that they are derived from military practice, were never designed to foster improvement, and have long been used as a tool to cull an organization of their bottom performers. According to the Harvard Business Review, they also serve to punish past behaviour at the expense of achieving the desired future performance that is critical for organizational survival.

So, the question begs: If employees hate them, managers don’t see their value and an organization isn’t benefiting from them—why not ditch them all together?

The Elimination Problem

Well, while I was going to title this post “The Stone Age Called and They Want Their Appraisal Back,” that wouldn’t be entirely accurate, as ditching the yearly recap isn’t always the best solution either. So many initiatives are tied to it, including, planning and compensation. However, the employment landscape over the last few decades has made it clear that the conversation needs to shift away from the metrical to the malleable.

Anyone familiar with the psychological principle of Maslow’s Hierarchy of Needs knows that motivation comes in various levels: from the basic (like food, shelter, and wages), to psychological (belonging, achievement, respect of others, etc.) and finally to self-actualization (morality, problem-solving, creativity, etc.)

Although this theory has its critics, the basic premise is that human beings are striving for self-worth and acknowledgment—and if you aren’t creating an environment where this (and the resulting performance growth) can occur—your employees are going to look to another organization to fill those needs.

The take-home is it’s no longer realistic to rank an employee with performance metrics once per year, give them either a raise or a performance improvement plan, and expect that the basic needs you do satisfy (like a regular paycheque) will be enough to sustain them and motivate them to perform to a level that will grow your organization.

So Where Do We Go from Here?

It’s no secret that supported, engaged employees do better—and when they do better, you do better. The goal of employee performance is to elicit behaviour that supports the organization’s bottom line while fulfilling some of those psychological needs your employees crave—and giving them the tools to do it effectively. There are several ways to get this done—and yes, you can keep your year-end appraisal—if you focus on its value as a recap of the year. A good rule of thumb is that there should never be anything in a performance appraisal that is a surprise for the employee. Other strategies could include:

  • Linking goals to key company objectives like the mission/vision (they “why you exist” stuff)
  • Tying goal achievement to collaboration and communication (not every task needs to be a group project, but increased collaboration and information sharing leads to increases across the board)
  • Training managers to check in consistently (this allows for accurate course corrections throughout the year while retaining employee autonomy. The key here is manager training)
  • Allowing the employee access to the tools, resources, and training to allow them to successfully fill any knowledge gaps they have.

Of course amended performance measures won’t solve all team issues (for an idea of what other issues employers regularly encounter and how to fix them, read this page) but it’s a good support system for overall team engagement. And of course, we’re more than happy to help with any issues you do have  in finding the system that’s right for your business.

 

How about you? How do you facilitate the employee performance process, and what challenges have you encountered along the way? What do you find helpful? Let us know in the comments!

 

 

The Hidden Profit Centre in Your Business

Think HR has no bearing on profitability? Think again…

Having long been denounced as nothing more than a cost centre and a necessary part of doing business, the people management aspects of an organization (specifically HR) have been overlooked as an integral component of the profit structure of an organization. The link, however, is a lot stronger than many businesses have traditionally thought.

In a recent study on management practices in Fortune 1000 companies, the Center for Effective Organizations at the University of Southern California found that employee involvement measures (that traditionally sit well beneath the HR umbrella) show a solid ROI and link to the bottom line.

For small to medium-sized businesses who don’t even have an HR department, the impact of this study is even larger, as decisions made at owner-run businesses see an immediate trickle-down effect due to the smaller work structures, and can see a positive impact in the bottom linke much sooner than a larger organization. The key is in increasing the employee commitment to the organization.

Any one of the following measures can be implemented by a company to see a lasting improvement in financial returns (not to mention the cost-savings garnered from reduced turnover):

  • Employees generally feel that if an investment is made in them, they will return that investment in-kind. Establish a feeling of “repricosity” through:
    • Information-sharing
    • Skills training
    • Encouragement of ownership thinking
    • Fostering “buy-in” for organizational change measures
    • De-centralizing decision-making
  • Using technology for process improvement, not just cost-cutting benefits. If employees are brought into the process on the ground level, working backwards and can have input into process design, hey are more willing to manage change, and feel a greater benefit of new technology as a tool for them—not just because it’s cheaper for the organization
  • Building a culture which values job-security – which means attaching value to the person over the employee number.

Each of these measures is fiscally achievable in one way or another, even for very small businesses and engage in the employee’s higher level needs, which leads to increased productivity, better customer interactions, a willingness to tackle challenges and stick with the company–all which have a positive impact on profit.

Small tweaks can often have the greatest impact on profitabilty, particularly if they are seemingly unrelated to the bottom-line. Remember that everything in your organization starts and ends with culture, so before you tweak your marketing, sales prices, or slash costs to boost productivity, have a critical look at how investments to your people-practices can pay you back in spades.

How Strong is Your Network?

It’s been said that your net worth is a reflection of your network, and when it comes to the sales and marketing of your business, a good network is an extremely valuable tool.

However, it’s important to note that a network is not just the sum of the people you know.

It takes strategy and intention to create a network that will help grow your business. Watch to discover what makes a healthy network, and how to make it happen for your business.

 

The One Recruitment Mistake You’re Probably Making (And How to Fix It)

It’s been said that “Variety is the spice of life”. In business, this is true on a number of fronts, from investment to technology—but never does it ring truer than in the people we choose to surround ourselves with via our recruitment process.

Unfortunately, in the process of hiring, many business owners are inadvertently surrounding themselves with the wrong people which are halting business growth.

I’m speaking of course of the Halo effect—an effect so subtle, we may not even realize it’s taken hold—until we’ve made an expensive hiring mistake, that is.

In its simplest form, the Halo Effect occurs when we assume that because someone excels at (A), they will also be good at (B), and (C). During the selection process, our subconscious is making assumptions about a candidate that can be unduly influenced by the interactions we have. Take for example a hiring manager, who discovers they enjoy the same hobby as a candidate during interview pre-amble. Because, the hiring manager holds positive pre-conceived notions about that particular hobby, it influences how that candidate is assessed during all other aspects of the selection process, sometimes providing false positives where there are none. That hiring manager is being blinded by the glow of the halo, so to speak.

The halo effect can extend from any number of factors which hold a personal pre-conception for a hiring manager. The danger with the halo effect is not only that you may end up with the wrong candidate in the position, but you may end up hiring too many like-minded individuals, which can perpetuate the status quo and deprive your organization of the critical variety of personalities and thinking styles which are critical for business growth.

Luckily there are several easy-to-implement tools you can utilize to neutralize the halo effect, and we’ve rounded out the top five:

  1. Conduct a Preliminary Phase

Especially for small and medium-sized businesses who are time-crunched and resource deficient, traditional recruitment tends to follow some variation of the following: Place Ad, Review Applications, Conduct Interviews, Check References, Hire. The problem with this system is that often the first and only time you have personal contact with the candidate is during the interview process. To develop a whole candidate approach, consider developing a preliminary phase, whether that be a pre-screen phone interview, a specific set of tasks an applicant must complete to make it to the next round. The benefit of a preliminary phase is that it forces you to review different aspects of their abilities before a face-to-face meeting, which allows you to focus on the candidate’s overall abilities.

  1. Turn Your Thinking Upside Down

This one requires a bit of a shift in thinking, but if you meet a candidate who gives you an overall great impression, approach the interview with the mindset that you want them to prove that the impression matches the ability. Conversely, if the first impression is just lukewarm, adopt the mindset that you are committed to providing the benefit of the doubt. As you ask the same questions to each candidate you will find that your results tend to come out much more objective than getting carried away by emotion no matter what the first-impression.

  1. Adopt an Objective Scoring System

I cannot stress enough how much of a difference this will make to your organization. Asking the same main questions to each candidate and having an objective scoring system (like a five-point scale) rather than simply recording of their answers with a yes/no approach forces you to isolate the intent of the question, and focus on content rather than form.

At the end of the interview you will clearly see patterns that distinguish possible strengths from possible challenges, which brings us to the next point:

  1. Use Science to Your Advantage

The use of a personality assessment, job fit questionnaire or other metrical assessment will support the results of your interview impressions, and provide you the critical data about personality quirks that will either mesh with or create problems within your team. The more you practice this, the more you will discover that the scientific data will almost always uphold the interview impressions, with the added dynamic of assessing fit—which is a huge predictor of job success.

  1. Wait

Prevailing science says it takes approximately 30 seconds to form an impression, but that impression could change with a little time. With the rush of back to back interviews and short timelines to decide, we tend to rush our perceptions about candidates which otherwise might have become clearer with a little hindsight. Try to schedule some dedicated time after interviews to do at least 30 minutes of another activity before reviewing the candidates, which will provide enough space for a more objective recruitment result.

The Bottom Line

While these aren’t huge changes to implement, refining your recruitment process to eliminate bias, and the dreaded Halo Effect (whether conscious or not) will result in the selection of some more well-rounded candidates who can offer the essential variety of human capital your organization needs. In addition, you’ll likely find it will boost overall success and retention rates because after all, hiring is a two-way street. The time spent getting to know your candidates in the right way will  also allow potential employees to get a realistic feel for your business, which leads to both parties forming an informed relationship right out of the gate.

How about you? What strategies do you use that remove bias from your recrtuiment process?

4 Tips For Hiring Great People

Business Owners often say: It’s so hard to find good people…

Good People say: “It’s so hard to find good jobs”. So, where’s the disconnect coming from?

Just like your ideal customers are looking for companies that can help them solve their problems, your ideal job candidates are looking for the same thing. Only their problem is not about buying it’s about finding a great company to work for.

When thinking about hiring, always think in ideals. And I don’t say this because I live in fairy tale land but because thinking about ideals helps you to dream about what is possible. For something to be created, first, you have to be able to see it in your mind. In the case of hiring, get clear on the ideal candidate. Who is the absolutely perfect person for the role you want to fill?

Once you are clear on that person, now ask yourself – “what sort of company would that person be drawn to work for”. This can be hard to do because you need to put yourself in their shoes, not yours. There are going to be logical things like good pay, job security, close by etc – but I want you to think of the less tangible things such as the four below.

What is the quality of: Your Business, Your Vision, Your Culture, Your Leadership?

By quality of business I mean is there some level of professionalism and organisation or are you in chaos. Do you have some good customers and clarity on how you want to get more or are you dealing with deadbeats and whiners? Do you have some systems that ensure consistency or are you and your team winging it?

The quality of your vision is – do you know where you (the business) is going. Can you see it, does it excite and inspire you. If you are not excited and inspired, you can’t expect others to be.

The quality of your culture might be self-explanatory but it is about what it’s like to work in your business. How does your team interact and behave? Is it positive, challenging and supportive – or are complaining and gossip present … or perhaps somewhere in between.

Lastly, the quality of your leadership refers to how you view your people. How much do you care about them? How much do you invest in helping them grow? Leadership is a massive topic so we won’t aspire to cover it here, but essentially ‘what’s it like to work for you?’

With all these things, you don’t need to be perfect but you do need to recognise that you will only get the quality of people that you’re ready for. You will attract a quality of person that matches the identity of your business. And the identity of your business is largely made up from the four categories outlined.

Attracting great people is a journey. See the quality of the people you are attracting as a marker of your progress toward building a great business. Keep at it and have fun.

Unlocking Employee Potential Using the Keys You Already Have

Unlocking employee potential is easier than you might think.

When we run team alignment days to help clients with their business strategy, we coach the team through some principles that form the foundation for great teamwork. One particular exercise we run is a survival scenario, which has a byproduct of unlocking employee potential you may not even know about. We break the team into small groups of 3 or 4 and set the exercise up in a way that shows tangible improvements from working as a team vs working as individuals. Or at least that is the desired outcome. Occasionally it works out the opposite!

During the debrief of a recent team alignment day, I asked a particular group for their score. There are several scores that contribute to the overall outcome but one that is always interesting is how many people on your team had a better individual score vs team score. (i.e. who on your team would have been better on their own vs being with the team.) And as occasionally happens, one girl had an individual score that was significantly better than the team score.

I then asked the question, “why do you think your score was so much better?” Her response … “well a couple of years ago I actually did sail across the Atlantic and learned a lot about navigation, survival and sailing”. My next question … “did you happen to mention that to your team?” …. her response “No, I didn’t”

This happens in life and business all the time. We are often working with people who we know very little about. And if you think about all the experience, skills and knowledge that is probably lying there dormant … let’s tap into it.

Another case of unlocking employee potential appeared recently with one of our business coaching clients who has an employee that just finished an economics degree, majoring in accounting. As of right now, they are doing next to no analysis on their financials. Doing so will enable them to make much better decisions, so we’ve quickly moved her more into that role. Untapped resources.

 

The Potential for You

The lesson is – “who is on your team? and how well do you know them?” What skills, knowledge or natural interests do they have that you can tap into and leverage? The kicker is, people love utilizing their skills and contributing at the highest level. Particularly at what they are good at.

See what you can find out within your own team 🙂

The Importance of Sleep

Keeping your energy high is critical to achieving great things. And one key component of high energy is getting enough sleep.

Life is not perfect and we may not always get the sleep we need … so what do you do? Do you soldier on or do you take ‘sleep action’.

Here’s my strategy!

 

3 Things That Make a Successful Salesperson

 What are the 3 things that make a good GREAT salesperson?

When it comes to great sales people there are three key things you need to pay attention to:

1. Skillset – do you have the skills necessary to make the sale?

2. Activity – Are you doing the right level of activity to get the results you want?

3. State – How you feel. (energy, belief, confidence, etc.)

It’s important to remember that not all of the above are easily measurable, and in fact can be quite subjective. So, the best place to start is with the activity. By measuring those tangible items such as call, meetings, conversions, etc. you can then determine where the deficiency is – and it will either be in state or skillset. Watch the video to find out how to combat these deficiencies and ensure your salespeople are great.

Cheers

The Reality of Open Book Management

Truthfully, this is just one reality .. but a good one at that 🙂

Norm Jefferies of Computer Merchants has been running his company for over 20 yrs and I think it’s fair to say, he’s doing a damn fine job at it.

Norm and his team adopted the philosophy of Open  Book Management (OBM) at an early stage and it has become a key part of their culture.

In this interview, Norm shares how they implemented OBM and what the benefits and challenges have been of sharing the numbers within the team. We dive into the specific of day-to-day tactics, how OBM affects performance and how they make it a living and effective tool to align the team.

If you are thinking of implementing Open Book Management or are on the other side and think it’s crazy, either way you’ll get some direct benefit of learning from Norm’s experience.

Enjoy!


 

Links from the interview:

Computer Merchants website – http://www.computermerchants.com.au/

Norm on LinkedIn – https://www.linkedin.com/in/normjefferies

The Great Game of Business – http://greatgame.com/

Ownership thinking – http://www.ownershipthinking.com/