DDI’s Talent Management Intelligence

Stop Monkeying Around in the Middle

By Verity Bisset-Powell

Early this month it was reported that researchers in Liverpool and Manchester (UK) had observed Barbary macaques for almost 600 hours, and found that "middle hierarchy" monkeys experienced the most amount of stress. Dr. Susanne Shultz, a research fellow who oversaw the study, said: "What we found was that monkeys in the middle of the hierarchy are involved with conflict from those below them as well as from above, whereas those in the bottom of the hierarchy distance themselves from conflict. The middle-ranking macaques are more likely to challenge, and be challenged."  

Swap out references to “monkeys” in that quote. Replace with “managers”. The sentiment would hold true. In the recent recession, the role of the middle manager has never been so imperative. The organisations that have successfully surfed through the tidal wave of economic devastation, have been able to do so because they have responded with quick, engaged agility – decisions and changes cascading with ease through company structures. These middle managers played a pivotal role in influencing improvements both up and down the organisation, responding to practical and personal reactions from all directions. Not every organisation has had such a rosy time however, as documented in the HCI Mid-Level Managers research which states that “Even today, as the economy moves into recovery, only 14 percent of respondents see their mid-levels as fully engaged. The ramifications are serious. If mid-levels aren’t managing with energy and optimism, it follows that neither will staff who look to their leaders for strength and guidance, especially during tough times.” So what about the other 86% of respondents, whose managers are not fully engaged? The below list represents some of the challenges that these mid-level leaders will struggle to address within two years of role:

1. Leading change
2. Making tough decisions
3. Executing work priorities
4. Developing talent
5. Networking / partnering with others

Those 5 trials are not going to be innately resolved simply due to a job title. Managers are not born, they are made. Such a simple and logical sentence – yet so easily disregarded. DDI completed a survey which asked leaders to rank a list of life’s challenges in order of greatest difficulty. Making a transition at work (promotion) soared above moving house, managing teenagers, becoming a parent, and getting married. Like the monkeys; the middle managers experience extreme stress with activities such as navigating politics, achieving through others, and making high-risk decisions;  causing peak anxiety…when not provided with the right support. Prior to, or upon promotion, middle managers should receive specific developmental guidance including blended learning areas such as those shown below:

• Formal: Classroom workshops on topics such as executing strategy, driving innovation, developing organisational talent, or operating with a global lens.
• Informal: Diagnostic tools for personality awareness, and behavioural perception. Community / CSR projects. Internal networking sites such as SharePoint discussion boards.
• On-The-Job: Development planning and sustained coaching from manager / mentor. Individual or peer projects to test application of skills. Peer networking with example sharing.

With this level of development, middle managers in your organisation are more likely to land in the 14 percent engaged leader category, rather than just swing aimlessly and cause damage to your organisational branches. Middle managers make a huge difference in your organisation; socially and economically. So don’t just give them bananas – invest in robust, actionable, behaviour-based development. Can you really afford not to?

Verity Bissett-Powell is a Business Development Executive at DDI UK.

Lessons from the Zappos Culture Playbook

By Mike Hoban

March 2012 Is the purpose of a business about “delivering happiness?” Can you really run a company with a core value like “Create fun and a little weirdness?” I know – it sounds like a helping of new age pabulum from the warm-and-fuzzy set. However, this company has revenues of about $1 billion, was sold to Amazon in 2009 for a figure north of $1 billion and was named #6 and #11 Best Places to Work in 2011 and 2012 respectively.

That company is Zappos. I recently finished Delivering Happiness, a book written in a somewhat quirky style by its CEO Tony Hsieh (pronounced Shay), a brilliant, resourceful - maybe a little geeky – thirtysomething retail iconoclast.

The book had been sitting on my shelf for about a year (it was published in 2010) and it turned out to be an interesting and provocative read. Zappos, of course, sells shoes and now clothing through its website and telephone sales channel and offers free returns for one year (they even pay for the shipping back). There was a lot of press buzz a few years back about the company’s practice of offering new employees $2,500 to quit after their initial two week training period to test their level of commitment.

I was also intrigued because my adult daughters are both huge Zappos fans/customers and the one daughter who is in the fashion industry has visited Zappos headquarters twice as a supplier and has spoken with Hseih. Many companies have vision and value statements that are inspirational or aspirational or both but have a gap between the stirring sentences that are framed on the wall and the actual practices that are day-to-day reality. Zappos advocates fun and happiness and it is a freewheeling, zany, playful culture.

Check out a typical Zappos 30-second short from YouTube.  Zappos has also published something they call “The Culture Book” which is a collection of verbatim (no editing was permitted) statements from Zappos employees about what the Zappos values mean to them. (Another value: “Be passionate and determined”).

When my daughter visited headquarters she had to sit on a throne and have her picture taken and then on the office tour she was asked to carry a Zappos flag and as she passed the cubicles and offices all of the associates in them would sound their noise makers for her. She said it was high energy and wonderfully wacky.

I’m currently reading Isaacson’s superb biography of Steve Jobs and it strikes me how very different – culture wise – Apple is from Zappos, yet they both achieve spectacular results. Apple is intense, low forgiveness, “A-Player” only and no-nonsense and Zappos is, well, Zappos. Each has a distinct culture created by its founder that brings enormous value to the brand and to the band mystique. Both companies attract, develop and retain a certain talent which fits with its culture and mission and the successful Zappos associate would never fit in at Apple and vice versa.

The Zappos culture works for Zappos. It’s as simple as that and neither its culture nor its talent practices can be replicated somewhere else. There is not an easy organizational “me too” answer here.

An aside - Watching the Zappos videos I couldn't help noticing that no one appears to be over 35 years old. It will be interesting to see if Zappos associate still have water gun battles and fantasy costume days 15 years from now as the Zappos workforce ages. Tony Hseih believes in his heart of hearts that it’s all about delivering happiness. The book is a fairly quick read and it’s bound to provide you with some new perspectives about organizational life.

Mike Hoban is a Senior Consultant for Development Dimensions International (DDI).

Is 'Fun' the Answer to what Ails Us?

By Mark Dembo

So, it’s been declared that the recession is over – long over, in fact.  According to National Bureau of Economic Research, we officially emerged from the worst economic slump since the Great Depression in June of 2009. Shouldn’t that mean that our organizations should be humming along, brimming full of engaged, motivated and productive people?

A quick walk through the halls, cubicles, and shop floors of many companies these days would tell a far different story, not to mention the almost 10% of the US workforce that remains unemployed.

Robert Hall  of the NBER, quoted in The Wall Street Journal,  is quick to point out: “Many people ‘think recession means bad times, and there’s no question we’re [still] in bad times.’” 

The fact remains, that while economic growth has returned, those on the front lines of our organizations are still faced with having to do more with less, more pressure to perform, and ongoing anxiety that more cuts could loom on the horizon if Wall Street expectations aren’t met next quarter.

Many progressive organizations, looking to overcome this general workplace malaise, are turning to creating “fun” workplaces; tying into the theory that a happy worker is a productive worker. There’s certainly no doubt, and plenty of research to back up the theory that if we are happy we are likely to feel better about ourselves and about the work that we do. And if we feel good about ourselves and our work, we will be more engaged, and by extension be more productive. All great stuff!

But, this raises the question: does mandating “Fun” in the workplace have the desired effect, or does it just start looking like another forced corporate mandate? As Schumpeter writes in the Economist: “The most unpleasant thing about the fashion for fun is that it is mixed with a large dose of coercion.” (I can only imagine what the performance review discussion of someone who wasn’t having enough fun might look like….)

The “fun” movement is well-intentioned – at its heart it’s trying to create a more engaged workforce, but what it’s missing out on is addressing the bottom-line of what makes and keeps people engaged and motivated. Study after study show the levers of engagement include having meaningful work, feeling that one’s work is appreciated and having opportunities to develop new skills.  

So, why are these elements still lacking in so many organizations, while the move for fun is gaining steam?  Why, with so many companies offering pool tables, rock climbing walls, free lunches, and allowing employees to wear wacky costumes to work, are only “20% of workers…“fully engaged with their job”?

To create engaged workforces in today’s world we need to strike the right balance; yes, we may need to ask more of people, but we also need to help make the connection from the work they do to the meaning they can gain from it. As one reader commented in the Economist:  a “fun work environment is created by people who enjoy what they do, have a purpose and have what they need to be successful.”

No, there may not be as many opportunities for advancement in today’s flatter, leaner organizations, but we can be a catalyst to help people learn new skills and stretch in ways that will benefit the individual and the organization. We can listen better to the needs and concerns of our workforce. We can arm our leaders with the tools to help them coach, mentor, and develop their teams.   

At the end of the day, perhaps the way out of the malaise is what we’ve known all along: great leadership makes for great organizations.  

Mark Dembo is a manager for Development Dimensions International (DDI).

Our 'Stuffless' Workplace

By Barry Stern, Ph.D.

The late comedian George Carlin claimed that all he really wanted in life was a place for his “stuff”. To Carlin, our homes are mainly places to keep our stuff and most of our extra-home activities merely opportunities to get more stuff. I have developed over the years acute “stuff-radar.” It kicks into high gear with new folks I meet and happens with a few stolen glances. The 10 copies of a book that occupy the top shelf of an executives’ bookcase, the Middle Eastern décor of the New York City sales leader, the hiker attire of the senior food exec—these all accelerate my Holmesian mission to establish professional intimacy and, ultimately impact, fast. 

But our stuff sight lines have decidedly changed. With the stroke of a key we can reach our global workforces, but we can’t see their stuff. To add to the challenge, Kindles are replacing bookshelves, associates are in shared “hotel workspaces”, or alone in their homes, or—as George Clooney’s character was in the movie, “Up in the Air”—working from planes, trains and automobiles. Clooney’s character was the personification of “non-stuff”. Essentially he lived out of a suitcase, felt most comfortable in airline clubs and hotels, and his personal discomfort and lack of stuff in his own apartment palpable.

Now, nearly every aspect of human resources has a technological backbone. As the scope gets larger, our view into the realities of our associates and their “stuff,” dims exponentially. We run the risk of further alienating our already disengaged workforces. Ask yourself:

• Despite the “coolness factor” associated with technology, what steps is your company really taking to use technology to drive employee engagement? Are you even thinking in those terms? And what are you doing especially to address the younger workforce so pinned to their phones and text messages?
• What advances has your company made in deepening the organizational understanding and implications of virtual learning or meeting environments? What have you done to compensate for the missing elements of face-to-face connections?

The promise of technology is to create both deeper employee intimacy and engagement while driving greater efficiency and profit. Only through addressing these types of questions in a fearless way, will that promise be realized.

Barry Stern is vice president, Consulting Services and Delivery for Development Dimensions International (DDI). Follow him on Twitter.

Trick or . . . Recognition?

By Matt Collins

Halloween - scary costumes, decorations, pumpkins, hay rides and CANDY!  If you’d polled children on Saturday to find out their favorite aspect of Halloween, they'd almost assuredly have put candy in the number one spot.  But wait a second—why are the kids so excited? Don't they have candy all the time? 

Think about how this relates to employee recognition. You've probably been to houses during Halloween that load up your kids pillowcases with fistfuls of penny-a-piece hard. In these cases, the quantity of candy your child is receiving is much greater than average. But whoa! The next guy gave them each a king size candy bar!  Squeals of delight from the pirate and princess for something really memorable.

How much "candy" does it take for workers to feel they are valued?

For some employees, receiving frequent recognition is important to help them stay engaged in their job.  For others, they value the type of recognition more so than how often it occurs. The important thing is to ensure that you are determining the proper blend of recognition needs for your culture and individual employees. 

Now that Halloween is over, and the candy has been put away, are the kids in sweets withdrawal? Do your employees feel that same void when recognition for their efforts is overshadowed by economic worries and survival mode commentary? 

DDI's recently released survey, "Pulse of the Workforce", indicated that 42 percent of individual contributors feel as though their efforts are going unrecognized.  Of those, three in five say they will look for another job when the economy improves (four times the amount of those who do feel recognized).  What is your organization doing to avoid falling into this trap? 

Recall the reactions of kids you know this weekend as they received their favorite or not-so-favorite types of candy.  Then think about how your coworkers will react if you can identify the type of recognition that motivates them, and supply them accordingly. Don't just shower your coworkers with a bag of mixed goodies—send them their favorite sweets every now and then. They'll appreciate it, and maybe even send you some back. 

Matt Collins is marketing and sales coordinator for Development Dimensions International (DDI).

Not a Numbers Game

By Mark Phelps

When it comes to employee engagement, organizations are quick to jump on the statistical bandwagon. And why not? What senior leader doesn’t want to see issues and solutions in black and white so they can put on their “problem solver” hat and go to work?

It’s a simple fact that increasing the engagement of your workforce requires discussions, thoughtful reflection, and a lot of organizational accountability to make positive change happen. Increasing organizational engagement starts with more engaging leader behavior at all levels.

This focus on analytics, and letting algorithms and correlations drive the process creates other problems as well. When I talk with organizations that use this approach, I hear the following:

• Senior executives don’t consider the impact of their behavior
• Managers of low-scoring groups attack the survey questions and methodology
• HR owns the initiative, but execution is weak

The easy part is measuring engagement and identifying areas for improvement. The hard work begins with trying to engage leaders’ personal side: their commitment, motivation, and “heart.” This begins before the survey takes place, and continues as long as engaging employees is important to organizational success!

Employee engagement starts with senior executives—not HR. From that beginning, leaders and employees need to be involved and committed to working on an aspect of their work environment that they feel will make the best impact

You can’t analyze your way to a more engaging work environment, and you definitely won’t energize or engage your leaders by piling on the statistics.

Join me for a discussion on how to make employee engagement a priority for your senior executives at our webinar on November 10, 2009: Engaging the C-Suite: How to Gain and Sustain Leader Buy-in for Your Engagement Initiative

Mark Phelps is a practice leader and manager for Development Dimensions International (DDI).

Focus on the Fish, Not the Size of the Pond

By Mark Dembo

I spent many years of my career working in small companies and in my own business, and for some reason (maybe an inferiority complex) I always had this vision that somehow the big companies were smarter; that their sheer size meant that they must hold some hidden wisdom that was unavailable to the likes of us toiling away in smaller enterprises. 

They would toss around big words and phrases like “performance process improvement” and “alignment of resources to the organizational strategy”…and I envisioned that someday maybe I too would see the light.

Well, now I spend my time working with some of the biggest organizational names in the world, helping them align talent strategy and organizational goals, and I’ve come to a grand conclusion; big organizations are not any smarter than the smaller guy. Organizational success ultimately comes down to the personal commitment that each individual makes to improve what they do each and every day..

Here’s how I see it–organizational success and individual success are inextricably linked. A recent study by Quantum Workplace showed that employee engagement can predict movements in the Dow Jones Industrial Average; the study contends that as employee engagement scores rise there is a corresponding increase in the Dow. If that indeed is the case, then we really can work to make a win-win.

Regardless of what the engagement scores show, it is ultimately up to each employee to take personal accountability to find the meaning in what they do. But they can’t always do this  alone. A hallmark of a strong leader is the ability to create the right atmosphere where people WANT to do their best work: an environment where associates feel like they are making an important contribution, and where what they do is recognized and appreciated. The best leaders are able to understand and tap into this inner motivation for each member of their team.  By doing this, we can create engaged workplaces that benefit each associate, the organization, and the constituents and stakeholders it serves. 

How often do we take the time to think through and articulate, “what really matters to me, why do I do what I do” and how do we, as organizational stewards, help our employees do the same? Sure, most people do what needs to be done for a paycheck, but there should be more than that. In today’s ever-changing, fast-paced, stress-packed world, how can we help individuals find the deeper meaning and satisfaction in what they do? 

Mark Dembo is a manager for Development Dimensions International (DDI).

Listen to DDI's Podcast on employee engagement.