Identifying Lead Measures

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Many organizations go to great lengths to track and report on lag measures.  A Lag Measure measures the ultimate goal you are trying to accomplish, such as an increase in sales or profits, or a decrease in turnover, however, it is always in the past.  While useful, the challenge, and benefit, comes when we spend the time to figure out the lead measures. How do we impact turnover or how to we move the needle on cost per hire?  It is impossible to reliable impact your lag measures without understating all aspects of lead measures.  Lead measure are the measures of the activities most connected to achieving the goal.

Lead measures have two advantages, they are both predictive, meaning they lead to the accomplishment of the Lag Measure or goal, and they are influenceable, meaning you can do something about them. Lead Measures are about narrowing your focus down to the 2 or 3 things that “trigger” success, or your end goal.  If you understand your lead measures, you can more consistently and predictably replicate your success

In the example of employee turnover, a lag measure, what might influence that?  If our goal is to decrease turnover to 10% per year, what leading measures do we need to focus on to achieve that goal?  Some examples could be employee satisfaction, employee engagement, time to respond to an interview request. All of these need to be measured and focus needs to be given to 2-3 that can reliably be shown to have a positive impact on reducing turnover. Choosing only 2-3 will allow you the best chance of success.

Spend time thinking about where your focus lies.  Does it lie on a lag measure that is out of your control or on a lead measure(s) that you can actually control?  Lead measures track the critical activities that drive, or lead to the lag measure.  They predict success of the lag measure and are influenced directly by the team. A common example of a lag measure is weight loss. Which activities or lead measures will lead to weight loss? Diet and exercise! Proper diet and exercise predict the success of weight-loss and they are activities that we can directly influence. Simple enough but be careful. Even the smartest people fall into the trap of fixating on a lag measure that they can’t directly influence. This is because lags are easier to measure and they represent the result we ultimately want

In summary, Lag measures give you the score, but Lead measure tell you how to win!

Locus of Control

Most recently I heard Locus of Control referenced on an episode of Bull I was half watching on my way to Tampa.  The question he posed to prospective jurors was “Why do you catch a cold?”. Those with an external locus of control answered “ because I was exposed to germs” or something along those lines.  Those with an internal locus of control answered “Because I let myself get run down”. You can quickly discern the difference. One believes things happen to them and the other believes they are in control and they make or allow things to happen

Locus of control is a psychological concept that refers to how strongly people believe that they have control over the situations and experiences that affect their lives. A person with an internal locus of control believes that he or she can influence events and their outcomes, while someone with an external locus of control blames outside forces for everything.  Infrequently does anyone fall exclusively in one category or the other. Most people fall on a continuum somewhere between the two

Your locus of control can influence not only how you respond to the events that happen in your life, but also your motivation to take action. If you believe that you hold the keys to your fate, you are more likely to take action to change your situation when needed. If on the other hand, you believe that the outcome is out of your hands, you may be less likely to work toward change.

Think about that for a minute in terms of your workforce:

Those With an Internal Locus of Control

  • Are more likely to take responsibility for their actions
  • Tend to be less influenced by the opinions of other people
  • Often do better at tasks when they are allowed to work at their own pace
  • Usually, have a strong sense of self-efficacy
  • Tend to work hard to achieve the things they want
  • Feel confident in the face of challenges
  • Tend to be physically healthier
  • Report being happier and more independent
  • Often achieve greater success in the workplace

Those With an External Locus of Control

  • Blame outside forces for their circumstances
  • Often credit luck or chance for any successes
  • Don’t believe that they can change their situation through their own efforts
  • Frequently feel hopeless or powerless in the face of difficult situations
  • Are more prone to experiencing learned helplessness

Which set of characteristics do you believe yield more motivated and productive employees?  Perhaps we should add to our long list of questions during interviews, “Why do you catch a cold?”

The Workplace Bully

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The word bully conjures up many images.  Perhaps, an elementary or middle school playground and physical intimidation. Maybe, in the technological age in which we live, bullies, the cowards they are, hiding behind social media and conducting their campaigns with anonymity but no less vengeance.  Seldom, though, when we hear the word bully, do our thoughts turn immediately to the workplace. And yet, bullies exist in the workplace as well. These bullies are a bit more calculating than their schoolyard counterparts. Not often will you find a workplace bully who comes up and pushes you to ground.  Instead, these types of bullies take great care to plant the seeds that they hope will 1) lead you to fall in line with their own selfish initiatives or 2) lead to your demise.

The most effective bullies employ a skillful blend of charm and aggression that can carry them to the top of their profession.  The below are the basics of how most bullies operate:

Intimidates through verbal aggression and spreads rumors

This verbal aggression could be directed at you in an angry voice but could also be something more insidious said about you that is intended to plant a seed of doubt in someone’s mind.  Bullies will often use words such as “obviously” and “you can’t possibly think…” to undermine your credibility and have you second guessing yourself.

Play Mind Games to distort the thinking of others

They keep people off-balance through half-truths, hearsay and misstatements. Their distorted version of events is intended to obscure and confuse the truth.  The only truth the bully is interested in is their own that will further their personal initiatives.

Blames Others

It is a very rare bully that will utter the words “I was wrong”.  In their mind, it is always someone else’s fault and there is no one quicker to point it out than a workplace bully.  They will often claim that they understood all along that the path being pursued was incorrect.

Disguises their true intentions

A bully puts on a good act to gain your trust and respect. They never reveal their true intentions, which are self-serving and at most times harmful to others. They conceal their innermost attitudes and emotions, which are self-absorbed and disrespectful of others. They maintain an image of strength, vision and leadership, and thus avoid exposing their underhanded, manipulative nature.

Pretends to Care

The bully will pretend to care about the employees and the workplace, but their actions will speak louder than words.  The bully will make suggestions and want you to carry out actions that are not in line with a strong employee culture built on trust.

Bullies have no place whether it be on the playground, on social media or in the workplace.  It is imperative that Human Resources be vigilant in identifying and addressing bullying behavior before the ramifications of high turnover or stress related disabilities start to take their toll.

Should we hit the Easy Button?

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It’s a question worth pondering.  Is easy indeed always better? The fast, intuitive response might be a resounding “YES”, but given more thought would you change your mind?  While easy gets the job done, does it leave us with the same level and sense of satisfaction of overcoming a challenge, something that was hard, something that, because it didn’t kill us, made is stronger?  Do we need to feel a sense of accomplishment at overcoming something that was not easy, in order to grow as human beings?

In the words of Margaret Thatcher “Look at a day when you are supremely satisfied at the end. It’s not a day when you lounge around doing nothing; it’s a day you’ve had everything to do and you’ve done it.”  And, I might add, exceedingly well in spite of it being exceedingly hard.

Perhaps that is because the level of accomplishment that leads to success and promotes self-esteem requires that you do estimable things.  Taking the easy way out does not result in these feelings and does nothing to further predict your ability to undertake great endeavors in the future.  This is part of the reason that colleges would rather see a student who takes Calculus and gets a “C” than a student who takes Pottery and gets an “A”. It is because undertaking something that is hard is a better predictor of success than simply achieving something easy.  

A look at accomplished individuals who regularly win awards and medals shows that they are driven by the effort rather than the result. It is the striving rather than the reward that is long-lived.  The striving, the risk taking, the hard won spoils of war are what build self-esteem, not the awards and trophies that are handed out to both teams, win or lose. 

Self-esteem feels good because it calls on the emotion of pride. Pride in turn arises from one’s sense of confidence and capability. Esteem and related emotions instill a sense of success and the confidence that you can accomplish whatever you set out to do.

So, are we cheating ourselves when we take the easy way out?  When we cut corners just to get to the result faster? Are we telling our selves that the result is all that matters?  I think “yes”. I think striving to do our absolute best against formidable odds, even if we take a few missteps along the way, is better than taking the easy way out.  It yields accomplishment rather than simply achievement, it builds self-confidence, and it forms a habit that is a predictor of success for the rest of your life

Creating your Guiding Principles

Sherrie Suski discusses guiding principlesJust like there are many different versions of a Purpose Statement, there are many different versions of Guiding Principles.  They can go by How’s, Core Principles, Core Values or Guiding Principles.  But, by any name, their main purpose is to start to establish what you stand for and what you believe in. They start to form the framework for how you will guide your company, how you will do business and how you will realize your Purpose Statement.

As with the purpose statement, it is always best to engage your workforce in the creation of your guiding principles.  Have a few brainstorming sessions, have an idea box or e-mail address that suggestions can be submitted to, have a contest, anything that will start people talking and then thinking, and it usually does happen in that order, about how they are going to actively contribute to the Company’s Purpose Statement.  Let people know up front that the management team appreciates all of their input, will take all of it into consideration, will summarize it and will come back to the group with 4-8 Guiding Principles.  There is some debate to be had over the ideal number of principles.  My preference is to have about six.  You need enough to cover everything you need to, but not so many that no one can remember them all.  Keep in mind that you will want them hanging or painted on a wall and you don’t want it to look like a long story that no one wants to take the time to read.

Some examples of Guiding Principles might be:

  1. Do what is right and not what is easy
  2. Be appreciative
  3. Have a positive impact with each encounter
  4. Be humble
  5. Focus on our customers

Once you have identified your core Guiding Principles, it’s time to announce them to the Company.  Make sure this is accomplished with some fanfare and that, preferably, it is participatory.  People remember how they feel and it is much easier to elicit a feeling if you are participating in something than it is if you are simply listening to something.  One idea might be to break your team up into groups and to have each group take one of the Guiding Principles.  Ask them to come up with a skit to depict the wrong way to portray and GP and then the right way.  Be sure to end with the right way as that’s what you want people remembering.  Teams can have a lot of fun with this exercise!  Imagine a skit showing how NOT to be humble where someone is walking around boasting how great they are and taking all the credit for a goal that has been achieved and then showcasing what the same scenario would look like when someone was being humble, giving credit to the team in its entirety.

Guiding Principles should concisely convey how a company defines itself from a variety of different perspectives.  Make sure that your Guiding Principles speak to your external customers, your internal employees (which can also be customers) and to what success means to you. Your Guiding principles should flesh out your purpose Statement, adding more specific information on how you plan to accomplish that on a daily basis. Ideally you become recognized by your Guiding Principles and stand out amidst your competition.

Stereotypical Startup Culture Can Be Detrimental – Part 2

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Last month, I started to explore the ways that the stereotypical culture may be detrimental to a business’s overall health. This is not to say that there aren’t benefits to the fun, laid back atmosphere that everyone associates with startups.

However, I do believe it is important for entrepreneurs that are looking to grow their companies to consider these points when developing the plans for their company culture. We already touched on how many startups spend too much money and face the issue of unclear boundaries between superiors and subordinates. This month we’ll touch on a few more company culture decisions that may not reap the positive results that they are expected to reap.

 

The “Hands Off” Approach is Not Always Helpful

Many companies live and breath the low-key “laissez-faire” approach to management and culture. When hiring “cultural fits” is the focus of the recruitment process, the mindset is often that the new hires will fall into place. Many startups feel that it’s easier to just let the new hires adjust and discover things on their own, rather than forcing them into endless meetings and orientations when they start the job.

The problem with this approach is that the lack of engagement leaves the new employees’ development up to chance. If employees aren’t explicitly informed about the work quality and cultural expectations, they are never given the chance to develop according to the company’s intended standards. Company culture, standards of work, and the overall environment may begin to suffer over time as the lack of direction starts to take its toll.

 

Charisma Isn’t Everything

This is probably the most controversial point in this series. The reality is that many startups will hire based on culture fits, and the expected culture for startups is “fun, charismatic, people-persons”. This will undoubtedly make for a very pleasant place, full of employees who can easily make friends and create beautifully intune work.

But, it’s extremely important for startups to look beyond the perfect culture-fit and to also hire employees that have the skillsets and work ethics to build the startup into profitability and greatness. A business cannot be successful if everyone is fun and personable, but no one really has the skills that are necessary to build and innovate.


 

For more ideas on startup culture, check out the Entrepreneur articles that inspired me: here & here

 

Stereotypical Startup Culture Can Be Detrimental – Part 1

startup culture

This is the era of the startup. Between the simultaneous unemployment crisis America has been experiencing in for the past few years, and the technological boom that is seemingly unstoppable, startups (primarily in the tech sector) have been popping up left and right. With this influx of startups came an entirely new culture: one of relaxed schedules, no dress codes, huge personal freedoms, and a never ending supply of snacks. The stereotypical startup is full of young, charismatic go-getters who thrive in a “fun” and “casual” workplace.

While this new culture and mindset have been hugely beneficial for some companies (see: Google and Facebook), it may not be the right move for all startups. There are a few ways that “startup culture” can actually do more harm than good for certain startup businesses.

 

Too Much Money is Being Spent

This is actually one of the biggest problems that many startups are facing. Everyone wants to emulate the Google culture, with the free food,  the games, and the chic & fun office space. But, the reality is that most startups cannot afford those overhead costs. Many companies will use a lot of the money from their investors to foster this fun space. While this will absolutely make a great impression on both employees and clients alike, it’s important to make sure that your company is saving money and focusing funds on creating a viable product/service.

 

The Lines Between Boss & Subordinate May Be Blurred

The beautiful part of startup culture is that it’s generally an environment of openness and personal connections. For a lot of companies, “culture fit” is important and people are hired based on how well they will get along with the existing employees. This creates a comfortable place of work and creativity, which is fantastic for productivity.

However, this wholly democratic environment may may lead to issues when hard decisions or conversations need to take place. If the bosses aren’t seen as leaders, and are instead seen as friends & peers, it makes it difficult to reign in a rowdy team, or to provide disciplinary action when an employee is out of line.


 

Be sure to check out the blog next month to learn more about the potential downfalls of the stereotypical startup culture.