Leaders to Leader

Lessons from the Great American Leaders & How They Apply Now

Posts Tagged ‘loyalty

Q & A: Where Have All the Leaders Gone?

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Timothy F. Bednarz, Ph.D. - Author - Great! What Makes Leaders Great

Timothy F. Bednarz, Ph.D. – Author – Great! What Makes Leaders Great

An Interview With the Timothy F. Bednarz, Ph.D., Author of Great! What Makes Leaders Great

The editors of Majorium Business Press recently had the opportunity to interview Timothy Bednarz about his book: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, Stevens Point, WI 2012) to discuss his thoughts on the crisis of leadership being witnessed in America today.

Q: The research presented in Great! focuses upon 160 influential leaders, spanning 235 years. I would like to start our discussion by asking, do you believe leadership has changed over time?

Bednarz: The concept of what constitutes great leadership hasn’t changed over time. When I first started my research, I thought that genuinely great leadership was a thing of the past, but I was surprised to discover there are individuals today who can classified as great leaders.

There is no doubt that individuals are shaped by the times they lived in. However the great leaders rose to the pinnacles of success, while many of their contemporaries failed. What made the difference was the fact they developed the characteristics and leadership dimensions that allowed them to succeed.

Q: So you’re saying leadership hasn’t changed?

Bednarz: No, that’s not quite true. What has undoubtedly changed is the focus on short-term profitability and shareholder value, which often sacrifices a company’s long-term viability. This trend emerged in the mid 1980s after the success of Jack Welch at GE. Many CEOs jumped on the bandwagon and this trend changed the face of corporate leadership ever since. Consequently, this has severely eroded trust and credibility after years of scandals and downsizing that has affected literally millions of people.

Q: What impact has these two factors had on today’s leaders?

Bednarz: The Edelman Trust Barometer, which has evaluated global trust levels for the past 12 years, reported that the current levels of credibility of today’s CEOs has dropped to an all time low of 38%. This reflects a decrease of over 12% in the past twelve months.

Q: What are the implications of this drop in CEO’s credibility?

Bednarz: What is interesting about Edelman’s survey is that it emphasizes that without trust and credibility, a leaders lose their legitimacy to lead. Just because individuals are either appointed or elected to high positions of authority, doesn’t mean they have earned it. They may have the power and authority that comes with their position, but the legitimacy to lead must be granted by others, such as employees, voters, suppliers, communities, investors, and a host of potential constituencies, which leaders serve.

Q: How does this influence the concept of leadership?

Bednarz: Referring back to the idea of the earned right to lead, and from the decrease in credibility, many so-called leaders today have lost their focus on what is true leadership. To go back to your original question; has leadership changed? I firmly believe, great leadership is defined by the ability of an individual to earn the trust, respect and credibility of those that the leader serves. He or she has earned the legitimacy to lead. Every great leader I researched, over 235 years possessed trust, credibility and legitimacy, and 58% of the leaders I survey can be included in this category. All too many today solely focus on the financial performance of their companies and then wonder why they have lost their credibility.

Q: Is focusing on profits and financial performance wrong? After all this seems to be a theme in the current presidential campaign.

Bednarz: There is nothing wrong with being highly concerned about profits, and focusing on financial performance, but it needs to be balanced with the needs of all of one’s key constituencies. Great leaders today have proven this to be possible, without sacrificing financial performance. Jack Welch, whose example many corporate leaders follow, stated after he left GE that it is foolish to only focus on financial performance. It I only one factor to consider.

Q: Can you cite some examples of leaders today who have earned their legitimacy?

Bednarz: Certainly. Fred Smith of FedEx, Herb Kelleher of Southwest Airlines, Howard Schultz of Starbucks and Jeff Bezos of Amazon all come to mind, and there are certainly others.

Q: Based upon your responses and research, how would you define leadership?

Bednarz: That is an interesting question and one that I was seeking to answer, when I first started my research. There is a host of leadership books on the market, with many more written each year, yet, many are very similar, parroting the same information without providing the reader with any new insights or perspectives on the topic of leadership. I believe that to understand the topic of leadership, you need to first understand the leaders who have historically defined it and provided us with effective role models.

After years of study, I have concluded and condensed it into a brief statement; leadership is ultimately an act of faith in other people.

Q: That’s an interesting concept. Isn’t it the role of a leader to lead?

Bednarz: The operative word in your question is “lead.” The role of a leader is to inspire, motivate, influence and guide others. Think about it. In order to inspire, motivate, influence and guide other individuals, one must establish mutual bonds of loyalty, trust, respect and credibility.

Q: Can loyalty, trust, respect and credibility be measured?

Bednarz: You must understand that everything a leader does or says is judged by others and contributes to their credibility and legitimacy or ultimately undermines it. We have an environment that relies on relative rather than absolute truths. Consequently, we often observe so-called leaders making incredulous statements, devoid of any sense of intellectual honesty, and credibility, treating their audience like a bunch of fools, incapable of seeing the truth.

People view many in corporate and governmental positions of power as self-serving, without regard for others and the consequences of their actions. It is little wonder why we have a crisis of leadership. It’s everyone for themselves without regard for those they are appointed to serve. Subsequently, we see a crisis in confidence in these individuals, as noted by Eldeman’s survey.

Q: How would the great leaders that you surveyed respond to this crisis of confidence?

Bednarz: The great leaders I researched developed strong emotional bonds of loyalty, trust, respect and credibility with their employees, investors, suppliers, communities and a host of other constituencies. They were able to balance the needs of each of these groups, without sacrificing the needs of others. They had faith in the people they served, and this is reflected in the wiliness of these constituencies to eagerly believe in them and to loyally follow where they led them.

Q: Beyond the obvious benefits of loyalty, how did the great leaders you researched profit from it?

Bednarz: The emotional bonds forged by the great leaders paid dividends over time. For instance, when George Westinghouse faced financial difficulties during the Financial Panic of 1907, his employees sacrificed for him. They made personal contributions for him to save Westinghouse Electric. In another instance, Fred Smith saw his employees volunteer their time to help handle an onslaught of packages received by FedEx during the UPS strike in 1997. Herb Kelleher at Southwest Airlines has driven these attitudes deep into the company’s culture.

Q: In the introduction to your book you stated, “We stand at a critical moment in history for great leadership. The door of opportunity is wide open for us to those who desire to rise above the fray. History shows that many individuals have assumed the mantle of leadership, often not without experiencing painful failures and stifling adversities. Their actions and examples provide clear pathways to follow. This book is designed to show you the way.” Why do you think today’s leaders should look to examples of great leadership in the past?

Bednarz: America, if not the world is crying out today for ethical and strong leadership, especially since the world appears to be spinning into chaos. History has repeatedly demonstrated that great leaders emerge from difficult times. Many of the leaders focused upon in my book Great! have emerged from similar circumstances, If leaders today follow their examples and diligently study how they did it, there are many lessons that can be transferred into action that are able to transform individuals into great leaders.

Q: If you could condense the message of your book into one or two short sentences for this audience, what would you they be?

Bednarz: Two words: Leadership matters. This is true, whether as a CEO of a Fortune 500 company, or as the president of the local PTA. Great leaders can emerge at any level of an organization, at any time, and in every field. Each has the ability to make a difference in the lives of the people they lead and serve.

Q: Thank you for your time today.

Bednarz: My pleasure.

Read a Free Chapter of Great! What Makes Leaders Great

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Strategies and Solutions for Solving Team Problems

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manDelegating

Teams are complicated and complex structures since they are comprised of individuals with different personalities, biases, strengths and weaknesses. Before people can form into an effective team, they must first learn to work together. Participants must work through personal differences, find strengths to build upon, and balance collective commitments against the demands of individual job requirements.

Leaders must deal with team needs arising from the pressures of personal differences, biases, strengths, weaknesses and the demands of the individual jobs apart from the team. Addressing these issues is as important as the team’s task of making organizational improvements. Often both leaders and team members underestimate the need to develop themselves into a cohesive group.

Teams that run smoothly can concentrate on their primary goals. Conversely, teams that fail to build internal relationships waste time on internal control conflicts and unfocused efforts.

It is important for leaders to understand that the more they know what to expect as their teams progress, the better equipped they are to handle difficulties and problems as they arise. This knowledge enables leaders to recognize many problems and work through the ones that cannot be avoided.

The most obvious team efforts are associated with the task of improving a process or solving a problem. This includes holding meetings, gathering and analyzing data, planning improvements, making changes and writing reports. However, when individuals are formed into teams, the complexity of group dynamics seems to inhibit their ability to work well together.

The issues associated with group dynamics include hidden problems, concerns and agendas that create specific undercurrents and distract the team from the accomplishment of its assigned responsibilities. Some of these undercurrents can be seen in a host of conflicting emotions: the excitement and anxiety of being a part of the team; an individual’s loyalty to their department or division; a nervous anticipation regarding the team’s success. Left unaddressed, these conflicts can inhibit the team’s effectiveness.

Leaders must involve their teams in activities that are not directly related to the assigned task, but those that build understanding and support within the team. Only in this manner can leaders resolve these internal issues and undercurrents. Some of the common issues encountered by leaders in these areas include:

Personal Identity in the Team

There is a natural tendency to wonder how individuals will fit into a team. When individuals come together for the first time, there is apprehension, anticipation and questions concerning the value of the team and their contribution to it. These feelings of uncertainty are greatly reduced for individuals who have worked together previously on other projects.

The rest of the issues discussed in this lesson are closely associated with these feelings of personal identity.

Membership Inclusion

There are basic psychological needs associated with membership inclusion. Individuals have a natural desire to be part of a group and are motivated by a sense of being part of something larger than themselves.

Leaders must be concerned about membership inclusion as individuals who feel alienated from the team’s vision and purpose will represent sources of continual conflict until the issue is resolved.

Leaders can enhance membership inclusion with the use of team-building activities and assignments that will quickly unify the team and instill a shared desire to work toward mutual goals.

Influence, Control and Mutual Trust

Much of the apprehension and anticipation of new team members arises from issues of influence, control and mutual trust. Within new teams, these issues will not be resolved until individual members naturally establish themselves and emerge as leaders and influencers.

Mutual trust will not be obtained until individuals begin to work together and become familiar with each other’s personality differences. Deadlines, team pressures and external crises increase team members’ reliance on each other, foster trust and build team cohesiveness.

Mutual Loyalty

Loyalty is built upon mutual trust, respect and cohesiveness. Leaders can utilize these factors by developing and enforcing guidelines and boundaries that establish a foundation on which to operate. Without these guidelines, leaders will discover that individuals tend to dominate and intimidate other team members. Such domineering tendencies will destroy loyalty and trust, and greatly inhibit the team’s ability to operate effectively.

Relationship Between Team Members

While there are always exceptions to the rule, most people want their team to be successful, and as such, will cooperate toward that end. However, people are often personally concerned with the tone that will characterize the team, namely whether it will be friendly and light at times or all business. Additionally, members want to know whether they can be open or have to be guarded in their comments and about the team’s ability to work together to resolve issues. These are specific issues that need to be addressed by the leadership of the team. The group dynamics resulting from the influence and control of leaders and the guidelines enforced by the team, should be dealt with accordingly.

Organizational Identity

Team members will usually identify with their departments and divisions. Their apprehension lies with any conflict that may arise with team membership. When conflict develops between group and departmental loyalty, leaders will see their team’s effectiveness diminish.

As teams must also build relationships with the organization, it is critical for leaders to identify influential individuals who can champion the team and its projects. Leaders will find that this is a critical element in developing organizational support. The more visible a team’s contribution, the more motivated team members will be since there is a payoff in increased perceived value of their success.

Excerpt: Developing a Team Approach: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $ $17.95 USD

Related:

How Personal Agendas Can Destroy a Team

The Use of Teams Requires Self-Discipline

Five Pitfalls Teams Need to Avoid

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Eight Ways Others Evaluate Trust in Leaders

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smallgroup5

As seen in numerous large-scale corporate scandals around the turn of the century, trust or a lack thereof has a dramatic impact on an organization. While an organization can be defined as trusting and empowering, it is the individuals within it who form the basis for these qualities.

The responsibility for fostering and nurturing trust does not lie with the bottom tiers of the organization, but the managers that lead it. Where there is no trust, there is no legitimacy to management.

The starting point is the personal commitment made by individual managers.

Trust and empowerment stem from the individual actions of the manager. However, once initiated, trust and empowerment create a synergy within the organization that has the ability to move it forward to unimaginable heights.

As soon as employees know they can trust the words and actions of their managers, they are motivated. All too often the words sound good, but the accompanying actions do not follow, fostering a sense of mistrust and fear within employees.

Once managers have established trust with their employees, a strong bond is formed that is difficult to break. Unless trust is broken and people feel betrayed, employees will be intensely loyal and cooperate to achieve mutual goals and objectives. This is the strongest principle of management and its essence.

Whether or not a manager is trusted is determined by his or her actions. Anyone can make statements and pronouncements; it is actions by which an individual is judged. Managers must hold to higher standards of personal behavior if they are to foster and nurture trust with their employees, who closely observe every word and action.

Managers are judged by the following criteria:

Promises and Commitments

Corporate managers are placed under an enormous amount of stress and will miss commitments, especially minor ones made in the heat of daily activities. However, they pay close attention to what they say, and do what they promise. If unable to keep their commitment, they immediately inform the other party and make alternative arrangements.

Employees take note of a manager who makes a personal commitment but fails to keep it due to political or internal pressures. If when confronted with this failure they make excuses rather than take responsibility, they will be perceived as hypocritical. Employees with little other alternative may accept the excuse, but will inwardly feel betrayed and no longer trust the manager. The foundation for management has been greatly undermined.

Mistakes

As part of the human condition, everybody makes mistakes and fails. When managers make mistakes, they often impact and affect their organization. Trust is established when managers openly acknowledge their mistakes to their employees and apologize for them.

Managers also allow their employees to experiment, make mistakes and fail without repercussions. They foster an atmosphere where employees can learn from their mistakes and move on. Managers understand that individuals can only grow when they are allowed to learn. The most effective learning experiences stem not from successes but failures and mistakes.

Loyalty

Managers give and demand loyalty from their employees. While they understand that loyalty is earned, they do not tolerate employees who are disloyal to their organization and each other.

The most open demonstration of a manager’s own lack of loyalty can be seen in his or her constant and open criticism of superiors and employees in their absence. While loyalty is not blind, managers must demonstrate, at all times, a deep sense of allegiance to the organization, superiors, associates and employees.

If a manager takes issue with the actions of others, they should openly but privately discuss it with the individual and not criticize them behind his or her back.

Information

Managers as leaders show faith in their employees when they share information with them. In many organizations, the control of information is the basis of personal power. Managers understand that employees must be informed if they are to do their job well and be empowered to make decisions affecting their work. Those who withhold information clearly demonstrate their mistrust of employees.

Involvement

Trust is established with employees when they are included and empowered to make decisions that affect them. Trust is undermined when employees are enabled to make decisions but the decisions are never acted upon and implemented.

Effective managers actively work with their employees and trust their decisions. They work with their employees in implementing their decisions and striving toward the accomplishment of mutual goals and objectives.

Recognition

Trust is fostered and nurtured when managers recognize the individual contributions of their employees and publicly recognize them for their efforts.

When new ideas and strategies work, managers who lead never accept the credit for the idea. They always acknowledge the efforts and contributions of their employees. To do otherwise betrays the trust of those employees.

Communications

Managers build trust within their organization by maintaining open communications with all employees, superiors and associates. They understand that trust is only established when they communicate regardless of the situation and circumstances, and whether or not the information is positive or negative.

Goals and objectives are effectively met when all involved have a complete picture of what is happening around them, including the barriers and obstacles to be overcome.

Respect Confidentiality

Managers understand trust is developed when they respect and honor confidential and sensitive information provided to them by superiors, associates and employees.

They also know they must trust their employees with the confidential and sensitive information they need to do their jobs and make quality decisions. Without this confidence, managers will not be able to create a trusting environment since they are evincing a basic suspicion of their employees.

Excerpt: Building and Nurturing Trust in the Workplace: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $16.95 USD

Related:

You Are Judged by the Actions You Take

Emotional Bonds are a Reflection of a Leader’s Effectiveness

Six Ways to Enhance Your Personal Credibility

 Can You Be Trusted? The Answer May Surprise You

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

A Leader’s Four Key Responsibilities

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smallgroup11

A leader’s specific roles are determined through the four basic leadership responsibilities of directing, coaching, supporting and delegating. Specific responsibilities will fall into one of these four categories. In leadership practice, one must master skills in all areas in order to effectively lead others under their direction.

Effective leadership is not happenstance; it follows specific rules revolving around these four basic areas of responsibility.

Leadership skills can be learned and developed, even if an individual does not have a natural tendency toward leadership. More importantly, once learned and applied, these rules make a leader more effective and productive as he or she learns to work, direct and guide others toward the mutual accomplishment of goals and objectives.

Developing strengths in each of the four leadership roles allows a leader to read specific situations accurately and know what communication style is best applied.

Directing

Directing refers to how to keep work tasks and activities on the right track. A leader’s direction is what makes or breaks problem solving as well as determines the effectiveness of an approach to an assignment or task, the maintaining of momentum until its completion, and whether it is done by deadline. There are several ways to generate good direction techniques. These include:

Explain things completely and include the ‘why’s.

Leaders learn early on that the best way to gain support and trust from their employees is to explain all things in their entirety. Once people understand why something is important or necessary, they generally rally to the call of that which needs to be done or addressed.

Remain visible.

Leaders understand the power of their presence at all times. Nothing deflates the workforce’s motivation and desire to achieve more than to be left on their own with no visible means of support or direction.

Objectively consider opposing points of view.

Leaders consider situations, problems and solutions from various viewpoints, as the input from as many individuals as possible expands their capabilities to effectively frame their direction.

Coaching

Coaching refers to when a leader knows where he or she wants to go and remains in control of the task but needs to lead others in developing a mutual support network. Coaching instills the desire to achieve and builds a dialogue bridge between the leader and those under his or her charge. This motivates employees and positively changes attitudes toward the work assignment. To do this effectively a leader must make an effort to:

Incorporate the word ‘we’ into all conversations.

Effective leaders eliminate the word “I” because it denotes a singular rather than cooperative effort. The very meaning of the term “coaching” implies a team effort.

Listen for objections and areas of misunderstanding.

Effective leaders who coach well develop the skill of eliminating objections by developing an effective dialogue and creating clear and concise responses.

Offer explanations addressing the ‘why’s, what’s and how’s’ of the problem or task at hand.

Good coaching depends upon complete understanding. Motivation and confidence comes from understanding the expectations a leader has of those involved in a given task, assignment or problem solving situation.

Supporting

Managers cannot be effective leaders unless they actively hone their supporting skills. People look warmly on leaders who actively work to support them emotionally as well as physically. When leaders actively work to support the people under their charge they:

Acknowledge individual efforts with comments of praise and positive support.

Leaders are not afraid to say “thank you,” or “you’re doing a great job,” or whatever it takes to instill confidence in an individual.

Disclose their own feelings openly and honestly.

Leaders are not afraid to reveal their “inner self.” Trust and loyalty are built on disclosing inward feelings, concerns and desires. Readily and honestly opening up builds encouragement and perseverance on both sides.

Never hesitate to ask, ‘What’s wrong?’

Leaders allow themselves to get into the thick of a situation or task, and are quick to share the decision making responsibility, but know when to relinquish control in order to gain extra participation and involvement.

Delegating

Leaders know and understand their people. They know their strengths and weaknesses as well as what motivates and frustrates them. Effective delegating relies on the ability to select the proper person for the specific task or role. Leaders develop good delegation skills by:

Briefing the delegate.

Leaders leave nothing to chance when they delegate. When delegating, it is vital to explain exactly what expectations the leader has of the delegated individual.

Having confidence in the person they select.

Leaders do not select individuals for an assignment according to their job descriptions or the salaries they command, they look for people with the skills, abilities, perseverance and motivation to get the job done and done well.

Not abdicating responsibility, but allowing individuals to decide a best course of action for themselves.

Leaders monitor and weigh these individual decisions, but never advance their own leadership position for a particular course of action unless they assess it to be the best one.

Excerpt: Leadership Roles & Responsibilities: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $ 16.95 USD

Related:

Five Critical Steps to Maximize Performance

Execution: Six Action Steps

Performance Plans Create Results and Maximizes Performance

Objectives Allow Managers to Focus on Obtaining Results

For Additional Information the Author Recommends the Following Books:

Performance Management: The Pinpoint Management Skill Development Training Series

Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series

Maximizing Financial Performance: Pinpoint Leadership Skill Development Training Series

Improving Workplace Interaction: Pinpoint Leadership Skill Development Training Series

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Your Commitment to Others Defines You as a Leader

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William Hewlett and David Packard - Founders of Hewlett-Packard

William Hewlett and David Packard – Founders of Hewlett-Packard

A commitment to others defines the profound level of humanity that the great leaders displayed. They recognized employees, vendors and members of their communities as individuals, but also as valued human beings that had families to care for. They were never perceived as nameless assets, to be easily dismissed. A noteworthy illustration of this level of commitment is found in John Patterson (National Cash Register). “In-plant healthcare, company sponsored vacation trips, children’s programs, and even an employee country club were only a few of Patterson’s employee benefits. Other industrialists accused him of coddling his workers. Patterson believed this paternalistic treatment of his workers, especially the Victorian era ladies, was not only the right thing to do but was also good for business.” [1]

Hewlett-Packard established a “gold standard” for employee commitment that was ahead of its time, and replicated by numerous other companies. “Many leaders claim to appreciate the value of talent in their organization, but [David] Packard also seemed to understand the nature of talent. Rather than engineer their company to use people like replaceable parts, Packard and Hewlett respected their employees. They refused for example, to pursue boom and bust contract work because they did not want to go through cycles of hiring and then laying people off. They wanted the kind of contribution only loyalty can produce, so they modeled loyalty to their workers.” [2]

In Chapter 9 you recall went into detail about the great leaders’ character traits. One of the defining characteristics was found to be a deep sense of social responsibility from which this commitment to others stemmed from. Henry Heinz (H.J. Heinz) “believed that a person only developed so much as the people under their charge developed. As such, he made it the mandate of all of his top executives to take a pro-active interest in their employees, and to cultivate a spirit of respect and appreciation throughout his company. He encouraged solidarity amongst his workers no matter what their rank. Indeed, one of Heinz’s proudest accomplishments was in never having been witness to a strike within any of his own factories. He believed that if employers kept in close and sympathetic touch with their workers, any labor disputes that arose could be easily dissolved in the spirit of friendship. His theory proved to be true.” [3]

The same sense of social responsibility motivated Howard Schultz’s (Starbucks) commitment to his employees. “As the company began to expand rapidly in the ‘90s, Schultz always said that the main goal was ‘to serve a great cup of coffee.’ But attached to this goal was a principle: Schultz said he wanted ‘to build a company with soul.’ This led to a series of practices that were unprecedented in retail. Schultz insisted that all employees working at least 20 hours a week get comprehensive health coverage – including coverage for unmarried spouses. Then he introduced an employee stock-option plan. These moves boosted loyalty and led to extremely low worker turnover, even though employee salaries were fairly low.” [4]


[1]  John Henry Patterson (1844-1922) (NCR Corporation; home.paoline.com/knippd/whoincr/patterson.htm)

[2]  Orfalea Paul, Helfert Lance, Lowe Atticus and Zatkowsky Dean, Inspirational Figures David Packard (West Coast Asset Management)

[3]  Carmichael Evan, Lesson #3: Engage with Your Employees (EvanCarmichael.com)

[4]  Skeen Dan, Howard Schultz Secrets for Success (Success Television, April 14, 2010)

Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, Stevens Point, WI 2011)

If you would like to learn more about the commitment of the great American leaders to others through their own inspiring words and stories, refer to Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It. It illustrates how great leaders built great companies, and how you can apply the strategies, concepts and techniques that they pioneered to improve your own leadership skills. Read a Free Chapter

 

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Should Profit Be the Only Measure of Success?

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William Hewlett and David Packard - Founders of Hewlett-Packard

William Hewlett and David Packard – Founders of Hewlett-Packard

A commitment to others defines the profound level of humanity that the great leaders displayed. They recognized employees, vendors and members of their communities as individuals, but also as valued human beings that had families to care for. They were never perceived as nameless assets, to be easily dismissed.

A noteworthy illustration of this level of commitment is found in John Patterson (National Cash Register). “In-plant healthcare, company sponsored vacation trips, children’s programs, and even an employee country club were only a few of Patterson’s employee benefits. Other industrialists accused him of coddling his workers. Patterson believed this paternalistic treatment of his workers, especially the Victorian era ladies, was not only the right thing to do but was also good for business.” [1]

Hewlett-Packard established a “gold standard” for employee commitment that was ahead of its time, and replicated by numerous other companies. “Many leaders claim to appreciate the value of talent in their organization, but [David] Packard also seemed to understand the nature of talent.

Rather than engineer their company to use people like replaceable parts, Packard and Hewlett respected their employees. They refused for example, to pursue boom and bust contract work because they did not want to go through cycles of hiring and then laying people off. They wanted the kind of contribution only loyalty can produce, so they modeled loyalty to their workers.” [2]

In Chapter 9 you recall went into detail about the great leaders’ character traits. One of the defining characteristics was found to be a deep sense of social responsibility from which this commitment to others stemmed from.

Henry Heinz (H.J. Heinz) “believed that a person only developed so much as the people under their charge developed. As such, he made it the mandate of all of his top executives to take a pro-active interest in their employees, and to cultivate a spirit of respect and appreciation throughout his company.

He encouraged solidarity amongst his workers no matter what their rank. Indeed, one of Heinz’s proudest accomplishments was in never having been witness to a strike within any of his own factories. He believed that if employers kept in close and sympathetic touch with their workers, any labor disputes that arose could be easily dissolved in the spirit of friendship. His theory proved to be true.” [3]

The same sense of social responsibility motivated Howard Schultz’s (Starbucks) commitment to his employees. “As the company began to expand rapidly in the ‘90s, Schultz always said that the main goal was ‘to serve a great cup of coffee.’

But attached to this goal was a principle: Schultz said he wanted ‘to build a company with soul.’ This led to a series of practices that were unprecedented in retail. Schultz insisted that all employees working at least 20 hours a week get comprehensive health coverage – including coverage for unmarried spouses. Then he introduced an employee stock-option plan.

These moves boosted loyalty and led to extremely low worker turnover, even though employee salaries were fairly low.” [4]

Related:

References:

  1. John Henry Patterson (1844-1922) (NCR Corporation; home.paoline.com/knippd/whoincr/patterson.htm)
  2. Orfalea Paul, Helfert Lance, Lowe Atticus and Zatkowsky Dean, Inspirational Figures David Packard (West Coast Asset Management)
  3. Carmichael Evan, Lesson #3: Engage with Your Employees (EvanCarmichael.com)
  4. Skeen Dan, Howard Schultz Secrets for Success (Success Television, April 14, 2010)

Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It(Majorium Business Press, Stevens Point, WI 2011) Read a Free Chapter

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

 

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Without Trust, Change is Difficult If Not Impossible to Achieve

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The need for trust in the workplace and communication therein is understood by many leaders to be the foundational building block of the organization. The degree of trust developed will impact employee performance and retention, the development of teams and implementation of organizational change. Irrespective of size and industry, organizations are comprised of individuals who desire the same thing: the ability to trust those they work with. People cannot trust an organization, but they can trust their superiors, employees and associates.

Issues of broken trust and personal betrayal are far from just the result of restructuring, downsizing or other major organizational events. They are the product of the numerous micro-decisions that leaders and managers make every day. When individuals do not keep agreements or remain true to their word, and do not share information or trust another employee’s judgment or competence, trust is breached. Employees develop feelings of betrayal that lead to a chain of unresolved conflicts. These unresolved conflicts build a strong sense of mistrust and disloyalty that is extremely difficult to counteract.

This is important for leaders because they are personally responsible for developing the trust needed to bind their organization together into a cohesive unit. They have the personal ability to control the series of micro-decisions that contribute to a sense of mistrust and undermine their ability to lead. With their personal words and actions, they have the power to build or destroy their employee’s faith. They are the ones who must know that every statement or decision, no matter how inconsequential it may appear at the time, has an effect on whether or not corporate goals are reached.

Feelings of broken trust and betrayal are not just the byproducts of cataclysmic organizational change. They happen every day, and are in fact so pervasive that studies conducted since the mid-1940s have consistently shown that employees seem to have higher needs for esteem, respect and self-actualization, while most employers feel concerned only for their employees’ salary and safety. This demonstrates a clear disconnect that has implications for the future of organizations.

There is an increased need for trust in organizations as the world and corporate environments continue to change. Both organizational structures and managerial practices are changing and these changes do not appear to be ending in the near term. The policies and traditions that cemented employees to a company, which they relied upon, have disappeared. They have all exacted a high price in the form of diminishing employee loyalty and trust.

Many managers and leaders will quickly attribute the lack of loyalty to employee job-hopping. Yet the 2001 Randstad North American Employee Review reported that 77% of employees polled defined success as “a long-term commitment with one company.”

The lack of trust in many work environments is pervasive. Restructuring, mergers and acquisitions have produced not only opportunity, but also uncertainty and anxiety. Individuals in the current climate feel that they are unable to trust their future, their organization or even themselves.

Leaders need to create open and flexible organizations that are able to readily adapt to rapidly changing conditions. All indications point to organizational environments becoming more complex as changes and global pressures become more intense. While this places tremendous stress on the organization, leaders must also respond to their employees’ needs in a way that honors relationships and builds trust.

Change requires organizations to become agile and flexible. This demands employees who are willing to take risks. Taking risks requires employees that are able to trust themselves, their capabilities, and decisions as well as their leaders, coworkers and organizations.

Leaders must learn to evaluate their employees to determine their capacity for trust. This means establishing a foundation for trust that demands that past unsettled conflicts be resolved before a solid foundation for trust can be built. It also means that leaders must be conscious of their daily practices that either make or break employee trust.

The dynamics of trust are complex. It takes time and effort to develop trust and one small event to lose it. Regaining lost trust, while extremely difficult, is a critical element in any relationship. By first trusting themselves and others, it is possible for leaders to then develop caring, genuine relationships and rebuild trust with their employees.

When trust is ignored, the pain and price is tremendous, as it is the key to all successful change initiatives within the organization. Without trust, change will be difficult if not impossible to achieve.

Excerpt: Building and Nurturing Trust in the Workplace: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $ 16.95 USD

Related:

Building Employee Support Requires Interactive Leadership

Eight Ways Others Evaluate Trust in Leaders

Five Strategies to Build Trust

The Concept of Change Means Leaders Must Communicate

For Additional Information the Author Recommends the Following Books:

Improving Communication in the Workplace: Pinpoint Leadership Skill Development Training Series

Leadership Roles & Responsibilities: Leadership Skill Development Training Series

Improving Workplace Interaction: Pinpoint Leadership Skill Development Training Series

Negative Employee Behaviors: Pinpoint Leadership Skill Development Training Series

The Impact of Change on Individuals: Pinpoint Leadership Skill Development Training Series

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

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