To be a leader of a sustainable business demands strong communication skills and engagement techniques that appeal to different generations and personality styles. It is not always easy to have clarity around what people need and how to deliver it.
Therefore, keeping things simple and clear can indeed be one of the hardest things for people to do when under pressure. But the one thing that should never be compromised is our intrinsic values and ethics which underpin what we do, how we operate and how in turn we treat others. While we may not have time to always see these things, one thing is for sure - the public, the community, the staff and stakeholders see this before they see anything else. What may take 20 years to build may take 20 minutes to destroy if our values and ethics are not deemed honourable.
It may not always be obvious to see the values or ethics of a company, but it is surely clear and obvious when they are not there. There is no better time to gauge whether a company is committed to a high level of values other than when circumstances are tense or difficult. Hence, given the havoc and trauma the GFC has played with people's businesses and lives, it's no surprise that many people have subsequently experienced behaviours or responses that were not only unexpected, but also unacceptable. True values and ethics were in some situations compromised as the extenuating pressures forced people into survival mode. However this may indeed be the perfect time to now check if a company's business values and ethics are aligned with their peoples' values, and that together enhance the results both personally and professionally.
Consider this to illustrate the point. The traditional role of the manager in normal business circumstances would mean he or she would typically be involved in day to day transactions, processes, people, and job duties, and ensure that things run according to schedules and budgets and projected work.
The leader however has a different role. This would involve taking on a more global perspective on growth, opportunity, finances, entrepreneurial situations, and not withstanding "the big picture." By this we mean keeping up to date with networks, building the net worth and understanding the market changes and fluctuations.
The synergy between the manager and leader works best when both understand and respect the different roles and report the required information not only to each other but to their direct reports sharing the values and ethics behind their decision making and behaviours, and getting buy-in to the situation.
The example given is of a CEO of a medium textile business in Melbourne. This illustrates how the strong values, ethics and leadership tie together - that they are interchangeable but not separate identities. By integrating the three areas, he has managed to grow, keep staff engaged and trade normally, while many of their competitors were laying off staff and pulling back on any activity that was outside the profit and loss statement.
In three easy steps the CEO, transformed what he called his "everyday garden variety managers into leaders who in turn converted their 9 - 5 foot soldiers" into highly productive people who were purposeful and proactive. He illustrated by strongly valuing his people and their worth, his behaviour is ethical and admirable.
Step 1
He responded immediately when he recognised his staff were experiencing discomfort and restlessness as they responded to media, panic and assumptions being made about their immediate future. Hence, he:
- Got his senior leadership team together and told them the most important thing was that their jobs were safe and everything pointed towards minimal disruption.
- He wouldn't take a red pen and slash and burn spending but wanted them to take ownership of what they could do within their departments to reduce discretionary spending (not core spend).
- He wanted them to share their ideas within departments and to other departments.
Step 2
- He asked them to then go to their teams and with the same sensitivity that he showed them, explain clearly the focus on keeping all jobs.
- They were to write down what they thought they could do in order to contribute further to protecting the business and ensure they are part of the journey going forward.
Step 3
- All data was collated and circulated throughout the business for everyone to read and comment on.
- All staff were brought together by a facilitator to prioritise areas that should be addressed immediately and the value they would bring.
What became evident almost immediately, was the enormous sense of relief the staff experienced because they were assured their jobs were safe for now, and that their CEO had placed a high value on their concerns. Many expressed gratitude for having the opportunity of being part of the decision making process for the future.
Secondly, the CEO brought in an outside facilitator to the business this time, to help them realign to the values going forward. Here are some of the results that were achieved within 15 days.
- 30% increase in productivity by having technical assistance from people within the business, rather than external who were not only willing to help but by being available at certain times of the day, were more quickly able to recover and repair issues.
- Increased their personal productivity time by working at their peak performance times, rather than clocking in at 9 - 5. (As a result, many in fact were able to work longer hours with a reduced error rate).
- Training and development was not cut. On the contrary, staff were encouraged to develop new skills that would enable them to do other jobs as well. The benefit of this initiative is that some staff developed skills that will improve their position and career prospects in the future.
- Factory staff sold old inventory on ebay and converted dead stock into thousands of dollars and then invested the money on updated computers, learning and programs.
- Staff used Skype for mobile, national and international calls, reducing telecommunication costs.
It can of course, be argued that these steps would not generate huge financial savings or a business recovery in the short term, and would not have a significant positive impact on the bottom line. However, the upshot was more profound in the short term. It provided a very much needed catalyst for motivating and energising staff and creating an environment where they could take responsibility and ownership of developing and contributing to the business in ways they could not or did not previously. One could ask whether the same principles can be applied to a bigger business and whether or not it would reap the returns. Whether businesses are big or small, whether offices have 3 people or 303 people in them, what people want most is to be part of the decision making process, to know what is going on and to be empowered to respond both intuitively and responsibly in their work.
Valuing the contribution and efforts people make work hand in hand with demonstrating the core values of a company. It is however important to qualify that a company is only as good as the quality of the people it recruits and while we can always teach a skill, we cannot teach values. Therefore, it's imperative that in the process of recruitment, there is a strong emphasis placed on looking at the core values of the applicant and ensuring they match the standards and ideals of those of the company and the people they will spend their workday with.
At a glance:
- People want to be part of the decision making process - to know what is going on and how it will impact on their lives is one of the greatest gifts one can give to staff.
- Saving on the financials does not always guarantee saving the company "real money". Real money is its people.
- Getting buy-in from staff is one of the most difficult but probably one of the most important jobs a leader can do and if he or she does it well, they almost always guarantee improved customer service, less staff turnover and improved results.
About the author
Ricky Nowak is an executive coach, corporate trainer and co-author of 'The Integrity Factor - Why Reputation Rules in Business and Leadership', available now for $22 from www.rickynowak.com. Alternatively email ricky@rickynowak.com