The Talent Retention Myth: A Devil’s Advocate Viewpoint

We hear it all the time, the continuous chatter of experts reiterating the same old talking points about what organizations need to do to retain and engage a younger workforce. All this talk got me thinking.

What if we got it all wrong? What if we are being held captive by our own beliefs and assumptions about the very nature and structure of work in today’s society?

Common thinking is that we, as leaders of organizations, should retain talent as long as possible in order to capitalize on things like organizational knowledge, relationships with co-workers and vendors and that, somehow, employees who stay with us will be eternally motivated and highly productive team members. We may also subscribe to the risk mitigation side of the argument, seeking to keep talent to avoid the costs, financial and otherwise, of having to recruit new talent to fill in the gaps that departing employees leave.

The issue with this philosophy is that we are basing these rationales on our own (older generational) beliefs that the longer the tenure of the employee the more productive, engaged and fulfilled they are. We equate tenure with loyalty and loyalty is a sought after attribute. Workers of the millennial generation, and younger, don’t necessarily view their experience with one employer from a permanence perspective. Instead, they move from job to job, and organization to organization, in a constant effort to find a place where they can make a meaningful contribution and develop.

What if, rather than trying our best to hold onto younger employees and satisfying our own needs, we redesigned work to be accomplished by people who would give us their all while they were with us, but who could also quickly and easily pass the knowledge onto new generations of employees when they moved on? Rather than fighting against the values and trends of the times, what if we embraced the values of younger generations and evolved the way in which we do business to capitalize on a more consistent stream of new and fresh viewpoints and ideas? What if, instead of spending mounting resources trying to retain talent, we used those resources elsewhere and flexed our way of thinking to thrive in a new age of business?

With the speed of change in organizations today, is the job even the same thing it was two or three years ago? One might argue that many jobs today evolve rather quickly and the gains of retaining talent are a bit overstated. Let’s think about re-designing work and re-shaping organizational cultures to take advantage of new talent that fills these roles over time.

The Importance of Learning from (and About) Others

At gothamCulture we talk about culture all the time. Like, all the time. This stems from our belief that at the center of an engaged workforce and an organizations’ performance, whether you define that as a healthy bottom line or degree of social impact, lies its culture. Culture reveals itself in many ways, from the plaque on your office door to the policies that guide how you work, but none more important than how you engage with your colleagues.

As we start a new year, my guess is that a lot of us have professional ambitions on our list of resolutions for 2014, probably just under “lose weight/join gym”. This is great – no one believes in finding professional fulfillment more than we do here at gC. But if you’re feeling antsy and annoyed in a job and are ready to throw in the towel, consider this (incredibly uncomfortable) lesson I learned last month.

I spent a November weekend in an unusual training many social psychologists subject themselves to during their education: a Group Relations conference. Using the word “conference” doesn’t quite call up the right image, because the purpose of this conference wasn’t to ideate around the newest innovations or complete continuing education credits while enjoying a new conference tote and swag. The purpose is simply just to be in groups. Just be….in groups. Over the course of three days we sat in big groups and small groups, self-organized groups and assigned groups. Without an agenda, keynote speaker, facilitator or assignment, the central focus became the words we used and how we chose to relate to each other. (If you feel uncomfortable just reading this, imagine how I and 74 of my new friends felt after three straight days.)

At one point over the weekend, we self-organized into groups and were then encouraged to interact with other the groups that had formed. Conflict theory teaches us that when you fail to see another person in full context, you tend to make up stories to explain any unpleasant behavior. Throw in a little negative emotion and your working relationship goes from water cooler chit chat to sending covert emails to your friends riddled with four letter descriptors. At the conference, you would have thought the walls separating our groups were actually borders separating countries. Because we could only guess at what was happening in the other rooms, our defenses went up fast and my teammates and I were quickly swept up in how convinced we were that everyone else was rejecting us. Every intergroup interaction was entered into with skepticism and doubt about the other’s motives. But when all groups came together toward the end of the weekend, I was surprised to find that my group was not, in fact, the social outcast. In fact, nearly every group thought it had been rejected, too. It was a tremendous “a ha” moment for me when I realized just how rich those stories we wrote about what went on on the other side of the wall were.

Which brings me back to culture, how we choose to engage with others and your list of resolutions. If you are struggling with your boss, so much so that you’re ready to throw up your hands and saunter out the door, consider what’s actually going on behind her wall. It might not be what you think. If you’re a leader whose team or organization is always a little toxic and people just don’t seem to jive, consider the amount of transparency that is (or isn’t) there between you. It’s amazing what just 10 minutes of honest and vulnerable communication can do to clear up years of misconceptions. Consider a resolution to learn more instead of to up and leave. Your own health, and that of your company, will be better off for it. No gym required.

M&A Failures…Oh, When Will They Ever Learn

A recent Google search titled

“merger and acquisition failure reasons” resulted in an estimated 242,000 hits. There is a mix of academic research, specific industry experts and consultants within the first fifty postings, with what appears to be “violent agreement” that somewhere between 50% and 75% of M&A’s are judged to be failures. Lack of attention to organization culture alignment is a likely culprit.

In fact, within those previously mentioned articles, lack of alignment of cultures is identified from the #1 to #17 rationale explicitly. Particular elements of the integration or lack of integration suggest that not enough attention was paid to “the way things are done around here” as opposed to “the way things are done around there.” In fact the “lack of due diligence” is cited frequently. Unfortunately, markets, competition, economy of scale, share price etc., etc, etc. is what is called out…little to nothing is said about the likelihood our people will get along, or whether our processes are different or if we value the same thing.

In my fifteen years plus in culture integration work; I can recall only three clients who were bold enough to do “pre-marital” counseling. Taking that analogy a bit further, typical M&A due diligence might be compared to a couple getting married after “speed dating.” We all know the advice to put our best foot forward during the courting stage. The push-back on due diligence at the front end, particularly public companies, is that transparency is dangerous. But lack of transparency can certainly be more hazardous.

So, back to the three clients who “peeled back the onion” before their union. Two of the three decided NOT to move forward. An excellent case was a financial institution considering acquiring a competitor. We started by gathering quantitative data, employing the Denison Organizational Culture Survey (DOCS). Interestingly enough, both institutions had very strong and similar profiles. In particular, both scored high in “values.” On the surface it seemed like a great fit. Yet there was more of the onion to be peeled.

After doing one-on-one confidential interviews and focus groups, we learned that yes, both institutions had strong values; however, they valued very different things. My client valued entrepreneurial behavior, going the extra mile for their customer and pitching in to help their team mates. The other group saw themselves as a family (some even described themselves as dysfunctional), with members who valued working apart from each other in silos and valued the “rules,” as it related to interacting with their customers. The C.E.O. recommended to her board that they continue to look elsewhere.

In closing, there was an anti-war song in the 60’s by the folk group Peter, Paul and Mary titled “Where have All the Flowers Gone.” The key repetitive lyric… “Oh, when will they ever learn?” seems to apply here. When will companies learn that sometimes it makes sense to go a little slower at the front-end so you can go fast when it really counts? Perform the “cultural” due diligence…it pays dividends in multiple perspectives.

*To date DOCS appears to be the only survey instrument that makes the connection between the strength of an organization’s culture and performance measures such as market share, ROI, customer satisfaction, employee satisfaction and quality.

On Being Unreasonable

Last week, I watched an executive address 150 leaders in his organization – an organization known for its unparalleled ingenuity, ‘against all odds’ innovation, and global impact. In his remarks to close a three-day ‘leaders summit’, the executive made a request of his team:

“Please…Be unreasonable.”

Unreasonable: difficult, obstinate, without good sense…

The negative connotation of the word hit first. But within seconds, the meaning behind the request settled. And the reaction was visceral– an energy spurred by the idea of disruption, dissatisfaction with the status quo, an urge to take risks. I envisioned Monday’s to-do lists being mentally rearranged by listeners, “reasonable” tasks being shuffled off the list indefinitely.

We hear leaders struggle with the pace and complexity of today’s changing environment. How do we inspire innovation? Breakthrough? How do we stay ahead of the curve?

Doing something remarkable requires risk-taking. Inevitably, with certain risks comes failure. To motivate employees to take risks, leaders need to drive and maintain a cultural acceptance for failure. “Please…be unreasonable” set the foundation for just that.

If your organization feels starved for fresh ideas, a good first place to look is how failure is perceived culturally. Is risk being recognized and rewarded – whether it ends in success or failure? Are failures broadcast as organizational learning or swept under the rug? Are leaders encouraging employees to tackle challenges that seem impossible? If we think about what innovation truly is – upheaval, disruption, breakthrough, how could we achieve it any other way than being unreasonable?

The reasonable man adapts himself to the world: the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man. – George Bernard Shaw

5 Tips For Turning A Performance Deficit Into Your Company’s Best Year Yet

We all know that in a company’s big picture, consistently failing to meet performance goals can have dire repercussions. But falling short of these goals can also affect how a workplace functions on a day-to-day basis. Employees can lose passion for their work or even look for other, healthier companies. Their productivity is likely to fade alongside their enthusiasm.

That’s why it’s so important to keep on top of these performance failures and change course before small losses snowball into bigger ones. In this article, Chris Cancialosi discusses how you can take these failures and turn them into opportunities to make your company healthier and stronger.

http://www.linkedin.com/today/post/article/20140123145743-7459271-5-tips-for-turning-a-performance-deficit-into-your-company-s-best-year-yet?trk=mp-reader-card

Toxic Cultures: Where Does the Buck Stop?

It’s been a long couple of weeks for New Jersey’s Governor Chris Christie. With numerous political scandals coming to light and the Governor continuing to insist that he knew nothing of the alleged strong-arming of local politicians with opposing views, one must wonder- how do such cultures devolve to the point where staff members feel that it is acceptable to behave in such ways.

When scandals erupt, once publicly confident leaders who seem to have complete control of their organizations suddenly claim ignorance and rush to divert attention away from themselves. This happens more commonly than one might expect.

If unethical organizational behavior is known to leaders and tolerated, for whatever reason, the clear message to employees is that it is okay to behave in such ways. If the behavior occurs unbeknownst to the leader than the leader is not doing an effective job of supervising the people that work for him. Either way, the leader is at the root of the culture issue.

Four Signs Your Culture May be Toxic-

  1. Employees feel they can behave in unethical or unprofessional ways with little or no repercussion from their leadership.
  2. Leaders hold themselves to a different standard than they hold their people.
  3. When the going gets rough, leaders quickly look to blame someone or something else for the mishap rather than take responsibility.
  4. Employees are fearful that they cannot speak up in fear of retribution from leadership.

The buck really does stop with the leaders. And, they must intentionally cultivate employees’ beliefs about acceptable and unacceptable behaviors and the guidelines for behavior in the organization. With so many stakeholders looking more closely at the brands and companies they engage with these days, it pays to create an organizational dynamic where team members know exactly what’s expected of them. Otherwise, toxic cultures will kill themselves.

How To Manage Dynamic Tensions — And Master The Balancing Act

At the core of good leadership is a skill shared by tightrope walkers and jugglers around the world: the balancing act. But in the business world, the tightropes are opposing workplace tensions and the juggling balls are stakeholders.

The trick to mastering this daunting feat? Find a way to manage seemingly opposing dynamic tensions — like stability and flexibility — to foster a clear set of expectations that allows for growth and innovation in an ever-evolving marketplace. In this article, Chris Cancialosi offers insight into how to manage these tensions to achieve an equilibrium that keeps engagement, performance, and productivity high.

http://www.linkedin.com/today/post/article/20140107150900-7459271-how-to-manage-dynamic-tensions-and-master-the-balancing-act?trk=mp-reader-card

Everything You Need To Know About Management You Learned In Psych 101

As a student, you almost certainly spent more time dreading general education courses than actually paying attention to them, and following the final, you quickly forgot the material altogether. After all, you’re never going to use calculus again, right?

Psychology 101, however, is one course that does play a pivotal role in business operations — particularly team management. Reacquaint yourself with the basic principles of psychology to boost your leadership, your team’s motivation, and your company’s success.

https://www.openforum.com/articles/everything-you-need-to-know-about-management-you-learned-in-psych-101?extlink=share-openf-email

Six Leadership Lessons From “The Walking Dead”

Zombies aren’t typically my thing, but “The Walking Dead” series has caught my attention. My interest isn’t so much related to the zombies as it is the leadership lessons that are embedded within. That’s right – leadership lessons. A lot can be learned by watching this small group of survivors struggle to prosper in a post-apocalyptic world infested with the living dead.

Here is proof that leaders can find guidance in the least expected places.

  1. Ditch the Script When the gates fail and you are being overrun, as happens in business and during the apocalypse, the rulebook should be thrown out the window. Leaders who are able to break from the script and quickly adapt to changing conditions are those who will survive. Those who stick to the plan no matter what’s happening around them risk being mauled.
  2. You don’t have to have all the answers Just because life as you know it has ceased to exist and you find yourself leading your group in unfamiliar territory, you aren’t expected to have all the answers. When hordes of undead are knocking at your door, effective leadership may call for decisive, top-down authority. But don’t forget that team members on the sidelines may hold key information that will help inform your decisions.
  3. The Stockdale Paradox The people who succumb to the mere thought of the biting and clawing undead always seem to be those who either lose all hope and quit or who fail to realize their dire situation. The Stockdale Paradox proposes that leaders must ensure that their teams are honest with themselves about the reality of their situation while always keeping hope that things will improve. Those who don’t keep a balance between the two are much more apt to lose their focus and become lunch.
  4. North Star Having a guiding “north star” provides clarity and creates a collective direction. Supporting the Stockdale Paradox, leaders need to articulate a vision for the future that inspires people to weather the storm. This becomes especially critical when the going gets rough and people are called to task in ways that push them to their limits.
  5. Empower your people Micromanaging doesn’t work in the office, and it certainly doesn’t get you very far during a zombie attack. Empowerment involves people making some mistakes, but that’s a great way for them to learn. Authoritarian and hierarchical structures enable dependence and mindless followership rather than creativity and proactive behavior. The worst you can do as a leader, in most cases, is to breed a team of zombies.
  6. Stick together It happens in every time. The person who splits from the group inevitably ends up stumbling around with a glazed look destined to become a future threat. When the odds are against you, working together becomes especially critical. One reason team members split off from the group is that they are misaligned in terms of who the real “enemy” is. As leaders, we must keep the group together and focused in the direction of that North Star. Misalignment can be disastrous in a business context in terms of lost productivity and team effectiveness. In “The Walking Dead,” it can mean the difference between life and death.

Though the obstacles we’re facing in our own businesses hopefully don’t match the intensity of “The Walking Dead,” we can certainly take a page out of the book of the brave survivors navigating the ultimate leadership challenge.

Well-Being & The Bottom Line

Remember the time when that boy in your fourth-period class made fun of your glasses and it totally ruined your day? Fifth and sixth periods offered up tons of new knowledge but you were too busy swimming in a sea of four-eyed misery to notice?

Maybe it wasn’t your nerdy specs, but we’ve all suffered similar affronts to our self-image. It’s amazing how negative experiences and the emotions they elicit can hijack our brains. And what might have once been fodder for teenage drama actually continues into our professional adult lives. Research on emotions and cognition suggests personal wellness has real implications for your company’s bottom line. In a fast-paced knowledge economy where we must innovate more quickly and more often to get ahead, leaders can’t afford, literally, to ignore the well-being of their employees.

A recent meta-analysis examining research into the relationship between employee well-being and business outcomes showed that business performance improves as employee engagement goes up (Harter, Schmidt, & Keyes, 2002). This is not news but rarely does this idea get linked to the bottom line. Consider perhaps the most obvious outcome of employee engagement: retention and turnover. If your company replaces its employees to the tune of $30,000 per person, it makes good sense to fight to retain your talent. This is not to mention less immediately quantifiable outcomes of engagement such as productivity, creativity and collaboration – just the stuff your company needs to reach optimal performance.

To avoid perpetuating those brain-hijacking negative emotions in the workplace, leaders need to make employee wellness a priority. But before you gather everyone in the conference room for a soothing kumbaya or attempt to win hearts and minds by starting up a Taco Tuesday tradition, here are a few quick questions to gauge if you are building the right environment for employee actualization:

  • Do your employees know what’s expected of them? While autonomy is important, at the end of the day employees need to know what they’re expected to achieve. More importantly, however, is making sure they understand the value of their contributions to the organization’s work.
  • Is your rewards system oriented toward the long-term? It’s imperative that employee’s basic needs like fair compensation and appropriate resources are readily available. But the best leaders look to the long term by considering how rewards and opportunities can benefit all aspects of employee health. Giving someone a raise might make her happy in the short term, but employees need emotional and intellectual fulfillment to commit for the longer haul.
  • Are you all in this together? The well-known cliché that we spend more time with our coworkers than our loved ones shouldn’t necessarily be a sad commentary on our lives. Work provides us with a casual social outlet, but research shows that when an employee feels a strong sense of belonging at work, well-being goes up. Feeling that someone in the organization cares about him can not only increase the chances he’ll stay there but has also shown to increase productivity and even the quality of service that he then passes on to customers.
  • Do you know what your employees love to do? Perhaps the best things leaders can do is understand not just their employees’ strengths but also what they love to do. You might ask, “If you could focus on just one part of your job all day long, what would it be?” Studies show that business outcomes and long-term retention rates improve when employers give employees space to indulge and grow their most beloved talents.

gothamCulture recently worked with a client who closely considered these questions. To explore how they could invest in the not just the physical but also emotional, intellectual and social health of its employees, they asked us to design a program for some of its senior team focused on employee well-being both in and outside of work. What was clear to them, and to us, is that organizations that want to move beyond surviving to thriving in the marketplace need to pay more attention to employees’ “higher level” needs.