Transparency—A Business Imperative

Employees today are demanding total transparency from their organizations. It used to be that most leaders thought they had to be truthful with the world—including their employees—when they’d done something wrong and they needed to confess. Sure, that is a great time to be transparent but it’s not a “one and done” kind of action—we need to be transparent all the time.

I know this makes many people nervous—not because they have something to hide. It’s because it isn’t something they’ve had much experience doing. Many leaders have operated under the assumption that they didn’t need to tell their employees when the organization was experiencing problems—they thought they were doing their employees a favor by hiding the bad news.

That may have worked in the past century but it won’t work today. Now we want to know it all—the good and the bad so I hope this is the way you are operating and if it isn’t, here are some ways to get started.

• Live your vision and your values—take every opportunity to reinforce your organization’s values to your employees. Let your employees hear from you what you value but be sure you live out those values or your employees will lose faith in you and your organization.

• Share financial results—the dashboard concept is an easy way to quickly share financial information in an easy to understand format.  Keep it to one page and put it on your intranet or share in meetings so that everyone knows how you’re doing against your financial targets.

• Set clear expectations and hold people accountable—when people are clear on what is expected of them, don’t let them off the hook if they don’t deliver. Let them know what the consequences are to not reaching a goal, give them the help they need to succeed but if they fall short, hold them accountable.

• Train your managers—let managers know that they’re expected to be open and honest with their teams and provide help to them if they run into difficulty making this happen. Once they see how empowering having employees in the know can be, they usually see the value of transparency.

Of course there are pending actions that you wouldn’t share with everyone such as the possibility of a lay off or a termination for cause so always exercise good judgment when sharing information.  Remember that transparency is what good employees crave so do your part to be as open and honest as is possible!

You Can't Factor Out Judgment

I spent a great deal of my HR career working in employee relations.  People continue to fascinate me and I'm amazed at what I continue to learn.  Consider the following:

Two employees were caught drinking a six-pack of beer during their meal break in a van parked in the company parking lot.  The company had a clear policy regarding the consumption of alcohol on the premises.  One of the employees had a long tenure with the company along with a long history of disciplinary actions.  If discipline, which comes from the word disciple, means to teach, he hadn’t learned anything.  He did not make an attempt to change his behavior despite the company’s efforts to help.  The second employee had a shorter tenure, two to three years.  This was his first policy violation.  The first employee was terminated, but the second was suspended without pay for five days.  When the first employee cried foul, we only had to produce his record which showed that the company had tried to work with him over the years.

Managing employees is an art, not a science.  More importantly, it’s not a sport or a game.  What doesn’t work is an approach or “algorithm” that shows if this happens, than that is the action you have to take, or as someone once asked me, “Don’t you have a three-strikes and you’re out model for dealing with performance or behavior issues?”

Not every situation is going to fit into the same neat, tidy package.  It is critical to consider of all the issues and facts before making a decision and judgment cannot be factored out of the decision-making process. Not all situations are the same and not all employees are the same. 

While managers can’t expect a perfect algorithm for making employee decisions, employees can’t expect to have everything spelled out for them – like the employee who once said during a disciplinary meeting, “No one ever told me I couldn’t do that.”  They too must exercise some judgment.  Employee accountability is the second critical factor in the equation. 

Policies should be management guidelines and not “cookbooks”.   Managers need to recognize that while they must be consistent in their approach to managing people, they have a say in the decision-making process.  Their judgment matters.  Don’t expect to treat everyone “equally”, because not all situations and circumstances are equal.  You can’t expect to treat a long-tenured employee with a good record, who happens to have a few missteps, the same as you would treat someone who had been with the company a short time and managed to build a disciplinary and negative performance history quickly. 

Treat everyone with fairness and respect and most importantly, don’t factor judgment out of the process.

You Can't Factor Out Judgment

Dilbert:  “I need something called a decision.” 

I spent a great deal of my HR career working in employee relations.  People continue to fascinate me and I'm amazed at what I continue to learn. 

I met an HR professional who also had a strong employee relations background.  We were clearly of the same mind when it came to dealing with employee issues.  We agreed on what doesn’t work, namely an approach or “algorithm” that shows if this, than that, or as someone once asked me, “Don’t you have a three-strikes and you’re out model for dealing with performance or behavior issues?”

Managing employees is an art, not a science.  More importantly, it’s not a sport or a game. Not every situation is going to fit into the same neat, tidy package.  Consideration of all the issues and facts is a critical part of the decision making process, and judgment cannot be factored out of the process. Not all situations are the same and not all employees are the same.  Consider the following:

Two employees were caught drinking a six-pack of beer during their meal break in a van parked in the company parking lot.  The company had a clear policy regarding the consumption of alcohol on the premises.  One of the employees had a long tenure with the company along with a long history of disciplinary actions.  If discipline, which comes from the word disciple, means to teach, he hadn’t learned anything.  He did not make an attempt to change his behavior despite the company’s efforts to help.  The second employee had a shorter tenure, two to three years.  This was his first policy violation.  The first employee was terminated, but the second was suspended without pay for five days.  When the first employee cried foul, we only had to produce his record which showed that the company had tried to work with him over the years. 

During a recent round-table discussion where someone described “serial” disruptive behavior by a staff member, she went on to say that the organization wanted to make sure everything was equal. Apparently someone else had engaged in similar behavior – once. Not different from the situation described above. I pointed out that the behaviors she described did not appear equal – the first sounded like a pattern and practice of behavior which while the second appeared to be an isolated incident.

While managers can’t expect a perfect algorithm for making employee decisions, employees can’t expect to have everything spelled out for them.  They too must exercise some judgment.  Employee accountability is the second critical factor in the equation. 

Policies should be management guidelines and not “cookbooks”.   Managers need to recognize that while they must be consistent in their approach to managing people, they have a say in the decision-making process.  Their judgment matters.  Don’t expect to treat everyone “equally”, because not all situations and circumstances are equal.  You can’t expect to treat a long-tenured employee with a good record, who happens to have a few missteps, the same as you would treat someone who had been with the company a short time and managed to build a disciplinary and negative performance history quickly. 

Treat everyone with fairness and respect and most importantly, don’t factor judgment out of the process.

Are Your Expectations Clear?

A common dilemma for many CEOs is whether their team members and the firm’s associates are giving them honest feedback or merely telling them what they want to hear. Are major problems being covered up? Are major problems being solved without making the CEO aware that there was a problem? Are major problems being brought to his attention, and if not, why not?

Masking or hiding issues from a leader can be the cause of embarrassment for her at the very least, or result in a major conflict. Yes, associates should be empowered to take on tough issues and solve them on their own, but they should also be held accountable for letting the leaders know what’s going on. The best way to avoid this dilemma – foster a culture of open communication. In organizations where the leadership is courageous, it’s not unusual to have a “speak-up” culture where everyone embrace accountability – holding themselves and each other accountable for actions or inactions that are counterproductive to the team and the organization.

Consider the CEO who is very approachable. He walks around, talks with people in all departments and asks “What can I do better?” He’s vulnerable and invites feedback. He expects that his leadership team members do the same. There are no formal 360 evaluations. Rather there is honest feedback and dialogue that is listened to and acted upon.

How does this CEO foster courageous leadership in his organization? First, and most importantly, he builds trust. One way he accomplishes this is to take the feedback he receives seriously. If it’s something that can be acted upon, he does so quickly. If a team member makes a suggestion that can’t be implemented, he’ll explain why. He never dismisses suggestions nor makes other people feel vulnerable.

He also communicates early and often. He lets people know what their roles entail, how each role supports the organization’s goals and values, what successful performance looks like including outputs and results, and how successful performance positively impacts the organization.

This CEO’s communication style is direct. When he discusses expectations, he describes exactly what needs to happen and why. “Our goal is to increase sales by 30% in the coming fiscal year with 15% coming from existing markets and an additional 15% from new markets. Sales will have to work closely with marketing to develop a plan for expansion. That plan must be in place 45 days before the fiscal year begins.” His expectations are precise and realistic. The deadline is clear and the actions are essential and manageable. People know where they stand and what they have to do.

When expectations are clear, the likelihood of conflict arising diminishes. Rather than waste time and energy being confused and frustrated, employees have a clear path to follow. They know that they can and are expected to bring unforeseen issues to anyone in management as early as possible so adjustments can be made. Embedded in the organization’s values are trust and respect for all. They achieve this by expecting active employee participation in issues, mutual problem solving and goal setting, and transparency. People are not afraid to engage in dialogue, question goals, tasks or expectations, nor ask for clarification.

Our CEO’s open attitude fosters an environment of continued improvement for the employees and for the organization. An open culture that encourages feedback and accountability will engage, motivate and retain good talent – a goal every organization should strive to achieve.

This article originally appeared in the CEO Magazine on October 22, 2015

Building Healthy Organizations and Leadership Teams

The facilitator at a recent breakfast meeting brought the topic of healthy teams for the group to discuss. He framed his presentation and subsequent group exercise around Patrick Lencioni’s 2012 book, The Advantage: Why Organizational Health Trumps Everything Else In Business.

A smart organization is one that has a defined strategy and has teams and processes in place for marketing, sales, financial health and technological resources. A healthy organization has minimal politics – the focus is on the team; clarity throughout the organization – everyone knows where the firm is going, how they are going to get there, and what their roles are; high morale – employee engagement is strong; consistent productivity; and finally, low employee and customer turnover. So how do you get there?

Randy Taussig, our facilitator shared Lencioni’s five-step process. It begins with trust, vulnerability-based trust that is authentic. When a leader can be vulnerable and show his or her humanity, it sends a powerful message. If trust is absence, well pack your bags and leave.

The second element or step, once trust has been established, is healthy conflict – Don’t forget The Essential Workplace Conflict Handbook!  Too often, conflict is perceived as negative, but the ability to have passionate, positive debate moves the organization forward. It’s not about personal gain or winning an argument. Rather it’s about giving everyone the opportunity to have their say so ideas and issues can be presented, decisions made, and then allow everyone to move on. When there’s fear of conflict or unhealthy conflict, the result is the avoidance of issues, passive-aggressive behavior, and lack of engagement.

Healthy conflict leads to the next step – true commitment. Healthy conflict provides input. When all team members know and understand all opposing points of view, they will be able to commit to team decisions and buy into them. It avoids those situations that we’ve all witness in organizations, where everyone shakes their heads in agreement, then leave the meeting and voice discontent or just don’t stand behind and support the decisions.

When true commitment exists, accountability can be embraced – that is the willingness not just to be accountable as an individual, but to hold others on the team including the leader accountable. If accountability is avoided, feedback does not take place. It’s the old adage of telling the boss (or anyone on the team) what you think he wants to hear rather than what he needs to hear – withholding vital information.

This leads to the final step – results – collective team results that supersede any departmental or personal objectives or pursuits. If there is inattention to results, the team loses track and misses what was possible.

Test if your team is a healthy one. You can do this exercise alone, but it’s more powerful to do it with others:

1.     Describe a time when you were part of a team that exhibited some or all of these behaviors. What stands out about the experience?

2.     Then, describe a time when you were you were part of a team that did not exhibited these behaviors. What stands out about the experience on this team?

3.     Generally, how good were the outcomes and results in both of the above?

4.     Looking back, how important was the “health” of your team in achieving the overall results you expected in the scenarios you described.