The Ugly Truth About Performance Management

What's Ugly

"Fewer Americans are satisfied with all aspects of their employment, and no age or income group is immune."

That is according to a Conference Board survey of 5,000 households. Those under age 25 had the highest level of dissatisfaction ever recorded by the survey for that age group. The report shows that dissatisfaction negatively affects employee behavior and retention, and that affects any company's success.

The state of performance management is bleak: A Towers Watson survey of 200 executives at mid- and large-size U.S. companies revealed that only 23 percent have a formal process for talent management. Only 14 percent use metrics to analyze and track their internal talent pools and connect that information with performance data.

Another study by the Corporate Executive Board's Learning and Development round table analyzed survey responses from nearly 20,000 employees and managers. Only 30 to 40 percent of employees said that their managers communicate performance standards and provide fair and accurate feedback in order to help them better do their jobs.

Are Motivation and Satisfaction Really Tied to Performance Management and Development Standards?

Yes. Studies show that managers who improve their effectiveness in employee development by only 20 percent can increase employee performance by about 5 percent. It translates this way: A company with a sales force of 2,000 employees who each average $1 million in annual sales can increase company-wide annual sales by about $100 million.

The widespread realization is that driving better performance depends on effective deployment, development and engagement of a range of people across an organization.

The Gallup Organization initiated a multi-year research project to try to define a workplace where employees were satisfied with their jobs. Using data from 200,000 employees and 36 organizations in 21 industries, five themes emerged: retention, productivity, profitability, customer loyalty and safety.

The study also measured employee desire for learning and growth; understanding the mission and purpose of the company; and leader encouragement for development. Among the elements cited as a key to retaining employees:

• Clarify expectations to employees.
• Give employees opportunities to focus on their talents and do what they do best.
• Provide opportunities for employees to learn and grow.

Jim Trinka, Ph.D. and chief learning officer for the FBI, conducted a study of manager-employee surveys. Focusing on development of others and communication competencies, managers can increase their overall leadership effectiveness by up to 60 percent. Furthermore, of 250 managerial activities, 10 have the most potential for delivering high employee performance. Among these: managers who set clear performance standards.

Trinka's findings show that managers who become more knowledgeable about employee performance and provide fair and accurate feedback on performance strengths can significantly improve individual performance. Discussing weaknesses is also important --- but with the focus on specific suggestions for improvement or development, which improves team member performance.

From the Ugly Duckling to the Beautiful Swan

The following are ways in which organizations can improve performance management.

1. Upper management can set the tone for evolving a culture of development. These members of the organization are good role models. Rather than viewing performance management and development as an expense, consider it an investment that returns dividends in the form of employees who are more committed to the organization and willing to expend the effort necessary to do the job.

2. Create an environment that involves continuous coaching and performance dialogue within work teams. Vital Learning teaches that managers should use positive performance feedback to encourage self-motivation among team members. Another skill for leaders to develop is to encourage and obtain team member participation. Manager-employee relationships improves, day-to-day productivity increases, and individuals and teams offer ideas that result in groundbreaking improvements.

3. Involve employees in a higher purpose. Employees need to understand the organization's mission and vision and clearly comprehend their roles in achieving these. They must see how their work on the job contributes to their performance management. This makes work more meaningful and satisfying.

4. Hold people accountable by establishing clear performance expectations with the goal for employees to contribute to the organization. Another Vital Learning technique teaches leaders to work with employees by developing performance standards that are S.M.A.R.T.-based:

• Specific
• Measurable
• Attainable
• Results-Oriented
• Time-Framed

Employees feel motivated and satisfied if they are delivering on their work promises to the team, the manager and all company stakeholders.

5. Align the performance culture with engagement strategies, job design and reward systems to maximize motivation. Sonoco created a pay-for-performance system that establishes clear links between performance and rewards based on individual and group measurements. Employee satisfaction and engagement improved markedly. In 2005, Sonoco was named by Hewitt Associates as one of the top 20 talent management organizations in the United States.

Final Thoughts

Developing performance management and setting employee development standards may not be completely ugly in your organization. However, even if your skills are good, it is critical to your organization's success that you continually improve whenever possible. With a well-defined approach in these areas, employees will become more committed, engaged and satisfied --- and this results in less stress and greater productivity for everyone.

Thought for the Day

"The secret to high performance and satisfaction --- at work, at school, and at home --- is the deeply human need to direct our own lives, to learn and create new things, and to do better by ourselves and our world."

--- Daniel H. Pink, Author of

The Surprising Truth About What Motivates Us

Sources:

Barrington, L., Franco, L (Jan. 2010). Conference Board report on engagement.
Coffman, C. (2000). Is Your Company Bleeding Talent? The Gallup Organization.
Developing Performance Standards (2010). Vital Learning
Fairlie, P. (2010). 10 Ways to Make Work More Meaningful, Workforce Management.
Lockwood, N. et. al (2010). Motivation in Today's Workplace: The Link to Performance, Research Quarterly, SHRM.Schade, J. (2010).
Providing Performance Feedback (2010). Vital Learning.
Towers Watson (Oct. 2009). Managing Talent in Tough Times. A Tipping Point for Talent Management
Trinka, J. (2010). Action Plan to Achieve Breakthrough Improvement in Employee Productivity and Leadership Effectiveness, GovLeaders.org.
Trinka, J. (2009) What's a Manager to Do? GovLeaders.org

Leading Despite Chaos

During the 9/11 crisis, the world witnessed tremendous courage and collaboration as the United States struggled to remain calm and collected despite the chaos, fear and resulting change. Leaders emerged from all walks of life.

The current global recession has brought about chaos in organizations, and organizations can learn from the way the government has handled crisis situations.

Today, many employees are unhappy at work, and job satisfaction has been on the decline. A recent Gallup report showed that more than 70 percent of employees are actively disengaged. Organizations are struggling to maneuver profitably amid economic uncertainty, and they're trying to find opportunity, retain customers and manage constant change.

According to chaos theory, chaos causes systems and people to function in ways that are often unpredictable and sometimes counter intuitive.

In order to be effective during times of crisis or chaos, leaders must maintain perspective and exercise good judgment. They must be actively committed to optimism and focus on the future.

In organizations, adapting to change during crisis and chaos requires a new kind of leadership that drives a culture of collaboration to understand difficult challenges and discover how to resolve them.

Crisis, Chaos and Change

During times of crisis or chaos, leaders have many choices and opportunities. They can remain frozen in a state of denial, or they can become proactive in their leadership. Although such situations are often painful, proactive leaders see these times as opportunities to make changes that can result in positive outcomes. These leaders guide others with the kind of courage and confidence that inspires them to press on.

Good Judgment and Communication

In their book Judgment, authors Noel M. Tichy and Warren G. Bennis wrote, "If leaders don't make smart judgment calls about the people on their teams, or if they manage them poorly, then there is no way they can set a sound direction and strategy for the enterprise, nor can they effectively deal with crisis."

Tichy and Bennis also wrote that making good judgment calls during crisis requires a leader to have clear values with an ultimate goal in mind. They cite open and effective communication among members of the senior management and the team as key elements, as well as the ability to gather and analyze data and effectively execute strategy.

Lessons From Leaders

Andy Grove was CEO of Intel during the turbulent early years of the computer industry. He wrote a book about his experiences, and in it, he explains that it is imperative for leaders to recognize the moments when basic changes are occurring and act quickly and decisively. As for his ability to keep Intel at the top, Grove credits communicating appropriately when slight changes are on the horizon, as well as responding correctly to crisis situations.

Former head of GE Jack Welch always looked for leaders who had the ability to make tough calls during a crisis by using both cognitive and emotional skills.

Both of these exceptional leaders demonstrate that good leaders spend time figuring out what is critical, frame their communications, and then mobilize and energize the troops.

A Case for Training

A leadership study conducted by the Center for Creative found that approaches to collaboration, crossing boundaries and collective leadership are gaining increasingly more importance than just making the numbers. As organizations face change, they must invest in training their leaders to meet challenges.

Training leaders to manage through change gives an organization greater speed and agility. Effective cross-communication between management and effective communication upward to executive leadership creates a forum for better decisions and increased productivity during the complexity of chaos and change.

Training leaders to communicate openly and effectively during crisis and chaos is essential. Vital Learning's Communicating Up™ seminar teaches skills that many managers and supervisors have never learned:

• Understanding the importance of framing all communications with managers
• Clearly linking well-thought-out and well-stated objectives with facts that support plans and goals
• Moving conversations toward agreement using questions that focus on the benefits gained when the objective is reached

In addition, Vital Learning's Supporting Change™ seminar teaches that leaders must understand and interpret changes that affect team members. Leaders should also be able to accomplish the following:

• View change and the anxiety it can cause team members as natural and inevitable
• Assist team members as they adjust to change
• Mobilize team members in the process of making the change

Train your leaders to lead despite chaos with effective communication that breeds good decisions and the attainment of goals. Then, these leaders will be able to manage through the change in the resulting aftermath of crisis.

Leadership and management styles are changing with the times. Help your organization's leaders become effective so you can not only survive difficult times but also emerge from them successfully.

Thought for the Day

"I think many correct decisions are messed up in execution ... because you've bet on people that you thought could deliver and they couldn't."

---Steve Bennett

Sources:

Communicating Up (2010). Vital Learning
Herman, R. (1995). Turbulence: Challenges and Opportunities in the World of Work. Are You Prepared for the Future? Oakhill Press, Akron, Ohio.
London-Vargas, N. Creating Teamwork in the Midst of Organizational Chaos, Workplace Institute.
Supporting Change (2010). Vital Learning
Tichy, N.M and Bennis, W.G (2007). Judgment: How Winning Leaders Make Great Calls, Penguin Group, New York, New York.
Yip, J.; Ernst, C., and Campbell, M. (2009). Boundary Spanning Relationship, The Center for Creative Leadership.

Keeping the Talent Pipeline Full

The quest for finding top talent is not just an American phenomenon. Organizations around the globe are seeking top talent in order to remain competitive. This begs the question: Does your organization work to keep fresh talent in its pipeline?

Managing the Talent Pipeline

Despite global economic conditions, the search for talent worldwide is predicted to intensify in the upcoming years. In developed countries, organizations are finding it difficult to recruit and retain skilled workers.

Several factors complicate talent acquisition: aging populations, younger workers who lack skills and experience, the gap between education and the skills organizations need, lack of investment in training, and societal and generational changes in how people want to work are just a few.

A study conducted by the Economist Intelligence Unit indicates that companies are implementing talent management strategies to address the following:

• Globally, sourcing talent is more competitive in attracting talent.
• Organizations expect to experience difficulty in finding talent with the success-driven skills necessary to manage change, think strategically, communicate effectively, and analyze and solve problems.
• Talent management should be integrated with business strategy, implemented by business units and supported by HR.
• Nontraditional approaches to recruitment will be needed.
• Organizations will need to work more collaboratively with educational institutions to develop training programs to develop the skills they need.

Other studies identify an issue with younger generations and their high expectations for on-the-job development. This creates a problem because these workers are more likely to consider leaving if their talents are not developed.

Underscoring the need for talent management is identification of the skills needed in a complex work environment:

• Acceptance and management of change
• Strategic thinking
• Communication and interpersonal skills
• Analytic and problem-solving skills
• Ability to work in teams collaboratively and virtually
• Project management skills
• Management skills
• Industry knowledge

Is Your Talent Preparing to Leave?

In June 2010, the U.S. government reported that the number of people who quit their jobs for positions at other companies rose to nearly 2 million in April. This signals that many who clung to their jobs out of fear now feel more confident about the job market --- in fact, they feel more confident than they have in a year.

David Adams, vice president of training at Adecco, said, "The hangover is kind of over."This could signal a mass exodus of talent in the post-recession.

Results of a May 2010 Harvard Business Reviewsurvey questioned 20,000 workers identified by their employers as "high-potential." About 25 percent of companies' top performers indicated that they plan to leave their current jobs within a year.

The loss of talented employees can have a damaging effect on organizations because these workers usually possess key skills and knowledge. Moreover, covering a departed employee's work and finding a replacement is expensive.

Leaders and supervisors affect employee retention by influencing factors that lead to an employee's disengagement and disenchantment with the organization. In order to retain winning talent, organizations must leverage both a talent management system and train high-potential leaders to actively work with their best employees.

High-Potential Leadership's Effect on Talent

Teaching leaders effective talent management strategies is one of the most important elements of the approach itself. Organizations must train high-potential leaders to recognize potential in others. The Center for Creative Leadership has found that high-potential employees expect their leaders to recognize their potential, discuss it with them and develop them accordingly. The study states that high-potential employees expect the following:

• Visibility and access
• Special assignments
• Training
• Greater responsibility
• Promotion and rewards
• More opportunities in general
• Freedom and flexibility

Leaders should be trained to communicate clearly with high-potential employees about their career paths. Training leaders to coach and delegate appropriately in order to provide talented team members with decision-making autonomy is also key to obtaining and maintaining employee commitment and engagement.

Recent studies have examined the ways in which employees become not only engaged but also embedded in their jobs. High-potential leaders can help high-potential talent by supporting them in community involvement, as well as in professional and community life. These leaders build a more positive team culture and provide more challenging jobs with well-defined career paths. They make team members feel more valued --- and leaving their positions is more difficult when employees have reasons to stay.

More than a Strategy

In today's complex environment, creating a talent management strategy can be tricky. A study in The Harvard Business Reviewindicated that most companies actualize only 63 percent of their strategy value because of lack of planning and execution. This is another indicator of the importance of well-trained leadership with a commitment to the talent plan.

When the recession is over, will your talent pipeline be ready and full? Talk to your Vital Learning training provider today about your strategy and Vital Learning's Hiring Winning Talent™ and Retaining Winning Talent™ programs, two valuable seminars that can help your organization prepare for the days after the recession.

Thought for the Day

"It is not just talent alone that is important...Talent without teamwork is not sufficient."

---Dave Ulrich, Author and Professor of Business Administration

Sources:

Allen, D. (2008). Retaining Talent, SHRM Foundation
Campbell, M. and Smith, R. (2010). High Potential Talent A View from Inside the Leadership Pipeline, Center for Creative Leadership
Hiring Winning Talent (2010). Vital Learning Corporation
Leonard, C and Rugber C. (June 2010). MSNBC.com
Murray, S. (May 2008). Talent wars: The struggle for tomorrow's workforce, The Economist Intelligence Unit
Murray, S. (May 2008). People for growth.The talent challenge inemerging markets
Retaining Winning Talent (2010). Vital Learning Corporation

A-Team Leaders Bring Their A-Game

An A-Team leader heads a small group of people with unique talents and complementary skills committed to a common purpose and goals. These leaders have an approach that engages team members in producing and holding themselves mutually accountable.

The movie The A-Team is a remake of the television show that ran from 1983 to 1987, the movie has a few variations --- like the characters are Gulf War veterans rather than Vietnam veterans --- but the premise is the same. Although faced with their own challenges, these good guys are on a mission to help others and to succeed.

Although The A-Team movie may be a rugged example of how teams work together, the emphasis for leaders is the capability to build a team and keep it together and functioning optimally.

A-Team Leadership Competencies

If you work with A-Team leaders, you'll notice several proficiencies they all possess:

• They create an inspiring culture and provide a clear, shared vision that enables people to achieve more than they dreamed.
• They listen to the team's input.
• They build trust and share their values.
• They make decisions with integrity and reliability.
• They are the primary forces behind successful change, which they consider an opportunity.
• They use passion and intuition to achieve extraordinary results.
• They can mold groups into a team that becomes a force of competitive business advantage.
• They know how to influence individuals to function collaboratively, as well as how to motivate them to excel in performance and balance their individuality with others to create synergy.
• They help each team member develop into an effective self-leader by providing the tools, training, coaching and incentives needed to help team members exercise and foster their own ability to set priorities and make decisions.
• They have a competitive spirit and set an example for others to follow.

Setting the Example

Lessons from Jack Welch, an American Businessman and Author, indicate that great leaders create a vision and help people generate passion about what they do so they become excited about achieving results. These leaders don't micromanage, and they encourage the team's input.

In 1983 or in 2010, it would have been difficult for the leader of the A-Team, Hannibal, to produce the results needed without the ideas and unique talents of each team member. A-Team leadership never goes out of style. Welch says that we must lead by example and master the four E's of leadership: energy, energize, edge and execution.

There Is No 'I' in Team

A-Team leaders are all about the collective results of the team rather than "I." Gen. George Patton said it well: "An army is a team. It lives, eats, sleeps, fights as a team. This individual stuff is a bunch of crap."

What we see in the TV show "The A-Team" and now in the movie is that every member shares in taking responsibility for failures. When tough decisions are made, every team member buys in.

In any organization, success depends on the employees as well as the leaders. A-Team leaders help each of their team member recognize the importance of his or her place on the team, as well as in the company. They help others see that their hard work --- and sometimes sacrifices, during these tough economic times --- are essential to creating solutions and achieving results.

A-Team Leadership Training

Effective training can help managers and supervisors become successful A-Team leaders. Regardless of the method or the intensity of the training, employees perceive it as valuable. Along with coaching, organizations can adopt the necessary leadership competencies and use training packages to build A-Team leaders.

An example of how to customize A-Team leadership training is to cluster training into core training packages, such as those offered by Vital Learning. For example:

Leadership Essentials™ provides 12 core learning solutions that address the typical management challenges leaders deal with every day. This suite includes seminars such asEssential Skills of Leadership™, Essential Skills of Communicating™ and Developing Performance Goals and Standards™.

Leadership Plus™ provides learning solutions designed to build the key strategic capabilities that every A-Team leader needs in order to perform at the highest level. This package includes Leading Successful Projects™, Hiring Winning Talent™, Motivating Team Members™ and Developing and Coaching Others™.

Following Vital Learning's training courses, your employees will have the added bonus of applying for college credit through the University of Phoenix. Ask your training consultant how Vital Learning can help you build A-Team leaders in your organization.

Thought for the Day

"Leaders inspire people with clear visions of how things can be done better."

--- Jack Welch, American Businessman and Author

Sources:

The Leadership Series (2010). Vital Learning Corporation
Bruce, A. (2001). Leaders Start to Finish, American Society of Training and Development.
Lessons from Jack Welch
Sanibel, M. (Dec. 2009). It Takes Leadership, Entrepreneur.

Eight Strategies for Effective Meetings

We've all been to "those" meetings --- the ones where it seems like nothing is accomplished or where the same old topics are discussed with no resolution. The most productive, effective and engaging meetings require clear objectives, open communication and strong leaders who understand the essentials of communication:

• Design clear and concise messages.
• Pay attention to nonverbal cues.
• Listen to feedback.
• Overcome barriers to understanding.

The way in which meetings are conducted to some extent determines an organization's culture. Beneficial meetings are productive, timely, useful and relevant, and they are the result of good leadership.

Case Study: UPS

UPS holds daily pre-work communications meetings at the beginning of every shift. This practice has been part of the company's culture at all of its centers worldwide since 1924. These highly structured meetings last only three minutes, and managers are responsible for delivering important information before drivers start the day.

UPS's meetings help reinforce the company's values on a daily basis, as well as provide relevant information, such as updates about weather and road conditions, safety reminders, and customer service tips. Employee anniversaries are also mentioned during these meetings. UPS has found a formula that works to provide timely information to and elicit feedback from a large workforce.

To Meet or Not to Meet, That Is the Question

Many organizations exhaust and overwhelm employees with meetings. Thanks to e-mail, everyone has at their fingertips the power to invite people to meetings. The problem is that nowadays meetings are often called when informal communication would work better and save everyone time.

According to one university professor, the best way to determine whether a meeting is appropriate and necessary is to find out whether the communication is one-way or if feedback and consensus are needed.

Consensus-building works best face-to-face; thus, a meeting is a good idea in these situations. If, however, feedback and consensus are not required, then an informative e-mail can work just as well.

Strategies for Effective Meeting

1. Plan the Meeting Objectives. If you are leading the meeting, you must know why you are calling it. Clearly write down 10 to 30 words about the purpose and objective of the meeting prior to completing your agenda. Preparing this at least an hour or so before sending the meeting invitation is helpful because you can set it aside and revisit it before you actually send the invitation. By reviewing the information, you perform a "gut check" to determine whether everything still seems necessary and relevant.

Along with the invitation, you should craft an agenda that provides a framework for the meeting length necessary to accomplish the objective. If you hold a regular weekly meeting, then a standard meeting format is also useful.

2.Invite the Right Participants. Invite only those team members who really need to attend to contribute, carry out action plans or make decisions. Including superfluous attendees may slow progress, or they may resent being invited to a meeting that they don't really need to attend.

3. Notify Invitees if They Need to Prepare. Meeting leaders and facilitators should ensure that that participants are informed about any advance preparation required of them or anything they need to bring to the meeting, e.g., reports, records, etc.

4. Start and End on Time. Always respect attendees' time commitments, especially those who are coming from previous meetings or who need to move on to the next meeting. End your meeting a few minutes early, if possible.

5. Preserve Order and Focus. Your organization should have established standard meeting practices or ground rules for meetings, as well as expectations to be followed. Always designate someone to be responsible for taking accurate notes and reviewing minutes with the meeting leader before sending them to meeting participants. Creating a standard format for meeting notes will also prove helpful.
Although conflicts and heated discussions sometimes occur, good leaders keep meeting participants focused on the agenda, give everyone a chance to be heard and redirect topics that need further discussion as action items to be resolved during a separate meeting.

6. Assign Tasks and Obtain Participant Agreement. As soon as consensus is reached on a subject, assign an action item to the person(s) who will be responsible and accountable for it, and be sure to set a deadline for the action item. Then, obtain participants' agreement that they understand and accept what is required of them.

Be aware of nonverbal cues given by participants during consensus, assignments and agreements. Probe and clarify directions so that participants understand what is expected of them and commit to the task. Recap during the last few minutes of the meeting and verify that everyone has the same understanding.

7. Follow up and Check Action-Item Status. Leaders should follow up with participants after the meeting minutes are sent in order to help smooth out any misunderstandings that may have occurred during the meeting. Status checks ensure that action items are on track, questions are answered, unanticipated roadblocks are discovered and better decisions can be made.

8. Keep on Track. Good leaders recognize issues or problems early on, and they attempt to correct such situations, e.g., participant conflict, task completion breakdown, lack of collaboration, etc. Failure to stay on course impedes progress, costs money, and affects delivery and quality.

Attendees and team members often perceive poorly run meetings as a waste of time. Meetings do have a place, and conducting a productive meeting requires that you invite the right people to the right place at the right time to collaborate, make decisions, and set the course for action items and project fulfillment.

Thought for the Day

"It gives them a guide to where you're going. It has a point of view and an action step. You're influencing them toward something, not just informing them."

---Bert Decker, Communications Consultant on Meeting Agendas

Sources:

Essential Skills of Communication, Vital Learning (2010)
Define Goals and Distribute an Agenda, B-NET
Kalvar, S.T. (May 2006). 10 Things You Can Do to Organize and Lead Effective Meetings, Tech Republic Project Management Newsletter.
Let's Be Careful Out There (Case Study), B-NET
Make Every Meeting Matter-or Don't Meet At All, B-NET
Mochal, T. (Jan. 2006). Use Time Wisely With Effective Meeting Management, Tech Republic Project Management Newsletter.

Keeping Cool When Things Go Wrong

"He dozes off after lunch for 15 minutes in his cubicle."
"Her tattoos are distracting me."
"He rolls his eyes every time I speak."
"It's not fair that she takes all the credit for the team project."

You may hear complaints like these frequently in your workplace. According to a 2009 CareerBuilder national survey of 2,667 hiring managers, unusual complaints are commonplace.

In everyday life, communication breaks down and misunderstandings occur even more frequently in a diverse workplace. The varying perspectives about how to get a job done or directives from the top can become a breeding ground for complaints and conflict.

Effective leaders make it clear to all team members that they want to hear their complaints. Then the leaders deal with the complaints in an even-handed way to resolve the underlying problems. Constructive working relationships are maintained. The workplace remains productive.

Managers and supervisors must deal with three areas in order to keep the workplace cool: managing complaints, mediating conflicts and using discipline effectively. Without training in these areas, leaders are unequipped to handle these situations. Everyday issues become problematic and can explode like a powder keg.

Unresolved complaints and grievances cost an organization time and money. The flip side of this is that well-trained leaders know that complaints, conflicts and effective discipline provide an opportunity for open communication, produce better solutions and keep the workplace productive.

Intervening to Keep the Cool

Whether you work in a large corporation or for a small nonprofit organization, the potential exists for growth and development as a result of a complaints, conflict or discipline. There are four areas of interaction in which a leader may intervene:

• Individual or between individuals
• Team or groups
• Inter-group
• Throughout the organization

First, it is important to understand the style differences of individuals. People don't communicate in the same way, and this influences how they react to each other in the workplace. When leaders understand their own styles, they can better understand and value the differences of others. This is a self-awareness practice that leaders can use to articulate clear business goals and keep individuals and teams focused.

According to a global study, "Workplace Conflict and How Businesses Can Harness it to Thrive," 54 percent of U.S. workers, report a better understanding of others after conflict, versus 42 percent of workers globally. Furthermore, forty percent of U.S. workers find that conflict leads to better solutions to workplace problems, comparedwith 31 percent globally.

Leadership training for conflict resolution should focus on four key objectives:

• Accept conflict as an inevitable part of all work situations and deal with it in order to maintain individual and team focus and productivity.
• Recognize positive and negative impacts of conflicts so that they may be leveraged for all involved.
• Recognize the sources of conflict so that they can be resolved fairly, effectively, respectfully and amicably.
• Establish a cooperative atmosphere to resolve conflict as they arise.

When Discipline Is Necessary

When team members perform their jobs while keeping with the established standards, they do so out of a sense of self-discipline. Occasionally an employee may lapse, but a reminder from the team leader usually puts the entire team back on track. If a team leader overlooks the situation, then the issue may continue and the team member may not realize that a certain behavior is unacceptable. When the team leader fails to respond altogether, the situation can deteriorate. Co-workers may be watching a bad situation unfold. If it persists, then morale suffers.

The effective team leader approaches the team member on a mature level, presenting the disciplinary matter as a problem to be solved by the team member. Using this communication strategy elicits an adult response and a solution to the problem. The team leader obtains the team member's agreement to solve the problem, evaluate possible solutions and select the best course of action. This works because the team member is committed to, and has responsibility for, maintaining appropriate behavior.

Mediation as a Cool Strategy

Mediation is a strategy to use when issues have progressed without resolution through other means. Mediation involves the voluntary agreement of conflicting parties to consult a neutral third party to help them reach a resolution. Even if no resolution is achieved through the mediation itself, employers can demonstrate that solid steps were taken to investigate and evaluate the problem.

Mediation generally results in a quicker resolution, reduces costs and preserves relationships. Disagreeing parties often are able to resolve the dispute better than a third party issuing a decision. Mediation is particularly useful in addressing the underlying cause of a disagreement so that a resolution can be found and damaged relationships can be healed.

Some Final Tips

Keeping the workplace cool is not always easy. But, it is possible to encourage more harmony in a culture that values issue management. First, train supervisors to communicate more effectively. Train them in conflict-resolution, managing complaints and effective discipline skills. These should be treated as core competencies for leaders. Leaders should also be able to set clear expectations for their teams. Leaders also should have an open door for listening to concerns, and they should know when to intervene.

Contact your Vital Learning representative to learn how to create a training system for your leaders in the area of conflicts, complaints and discipline.

Thought for the Day

"Working relationships are less likely to be damaged when the individuals in dispute listen to each other, share opinions and feelings, and determine their solutions."
--- Jim Hanley, Adjunct professor and Mediator

Sources:
Effective Discipline (2010). Vital Learning
Managing Complaints (2010). Vital Learning
Resolving Conflicts (2010. Vital Learning
Gurchiek, K. (Aug. 2009). Big Hair, Magnetic Personality Among Oddball Co-worker Complaints, SHRM.
Hanley, J. (April 2010). Transformative Mediation, HR Magazine.
Mooney, J. (Jan. 2009). Coaching Can Help Counter Personality Clashes, SHRM.
Wolfinger, P. (Dec. 2008). Workplace Conflicts Differ by Persona and Locale. SHRM

Transforming Your Organization's Culture

Using training to give your organization's culture a boost for current and prospective employees is imperative for 2010 and the upcoming decade. To remain competitive and increase productivity, businesses must hire and retain high-achieving employees. That's difficult to achieve if your culture has a negative reputation and does not engage employees.

The Disengaged and Dissatisfied

Disengaged employees create a culture of absenteeism, conflicts, turnover, declining work quality, loss of productivity and reduced customer satisfaction. This affects an organization's bottom line with loss of customers, diminished revenue and reduced market share.

In the Conference Board's annual job satisfaction survey, 22 percent of respondents said that they don't expect to be in their current job in a year. John Gibbons, program director of employee engagement research and services, said, "The data throws up a big red flag because the increasing dissatisfaction is not just a 'survivor syndrome' artifact of having coworkers and neighbors laid off in the recession."

Although many leaders consider recruitment and employee retention critical to business, few are actually prepared to address the issues with the appropriate training. A Towers Perrin study of 650,000 employees found that fewer than two out of three believe that management provides a clear business road, down from 1 out of 100 in 2008.

Communication Training: Road Map for a Better Culture

Training leaders for enhanced communication skills improves their ability to provide a clearer picture of what is expected from employees. Providing a roadmap for engagement boosts morale and helps transform the business culture for the better.

Studies show that improving employee morale creates an effective workplace culture regardless of organization size or industry. A Sears study, in conjunction with the University of Michigan Business School, linked employee satisfaction with customer retention. It found that as employee satisfaction improves, so does customer satisfaction, and this can increase quarterly revenue by about 1.6 percent.

So what does improving an organization's culture accomplish? Effective and productive cultures have the following characteristics:

• Effective workplace practices
• Opportunities for two-way communication and feedback about what is and is not working
• Flexibility in the workplace
• Supervisors and managers who treat employees with respect and dignity
• Effective problem-solving and conflict management skills
• Demonstrated value of employees
• Supervisor and co-worker support for employees
• Employee input into management decision-making
• Collaboration between management and employees in deciding schedules, developing customer service protocols and designing solutions for efficient business operations
• Managers who seek to bring out the best in workers by providing training and enrichment opportunities

According to a National Study of the Changing Workforce (NSCW) conducted by the Families and Work Institute (FWI), organizations that adopt effective workplace principles have employees who are more loyal, engaged and productive:

• Eighty-three percent of employees express high levels of job engagement and commitment.
• Eighty-one percent express high levels of job satisfaction.

Preparing Leadership

Driving the imperative for transforming a culture is a multigenerational and highly complicated workforce challenge. Stephen Parker, chief commercial officer of Healthy Companies, said, "Our research indicates widespread uncertanity about the future. Many CEOs will be severly tested in the decade ahead. CEO's are struggling to build trust with their employees."

Research is indicating that mid-level and first-level leaders are lacking in readiness to fulfill workforce challenges. The Center for Creative Leadership (CCL) conducted a study called "Understanding the Leadership Gap." Among the competencies identified were the following:

• Building and mending relationships
• Compassion and sensitivity in showing understanding to human needs
• Acting resolutely when dealing with problems
• Being culturally adaptable
• Coaching and encouraging employees to develop their careers
• Inspiring commitment by recognizing and rewarding employees' achievements
• Leading people by directing and motivating them
• Managing change effectively
• Respecting individual differences

By training leaders in these areas, organizations can take the first step in achieving a better culture.

Prescription for Transformation
Vital Learning offers training programs and tools to help organizations get started in building a more positive culture:

• Start with the Leadership Skills Assessment™ to pinpoint the individual training needs of managers and supervisors. This assessment is linked to Vital Learning's Leadership Series™ programs that address critical leadership competencies
• Consider Essential Skills of Leadership™ and Essential Skills of Communicating™ as foundational training.
• Leadership mini-series packages are available to incorporate into training plans.
• Flexibility of both classroom-based and online training formats provides opportunity for creative learning opportunities, such as collaboration and coaching