Building A Winning Team – Making Decisions Stick

Many leaders complain that they hate to go to meetings because they are non-productive. It is common to find that decisions taken at meetings do not stick.
Instead, group decisions at meetings become the subjects of post-meeting lobbying. Some team members call separate meetings to try to filibuster the decision. Others take a passive-aggressive approach, deciding to hope the decision goes away. In most organizations the latter approach works best because accountability is limited – by not doing your part, you might get a slap on the wrist in the worst-case scenario. In the end, the company loses precious time and money.

The above issues are found in varying degrees in every organization. Pat Lencioni has really captured this well in his book, “Five Dysfunctions of A Team”. This leadership fable identifies team behavioral factors that will reduce the results in your company. I think the book is a must-read for any organization that depends on teamwork to make money.
Company teams come in various forms. It starts with an executive team to run the company. Then it takes teamwork to: create loyal customers; deliver your product or service; manufacture your products; ship your products; execute a special project; and so on. The more employees and customers you have, the more complicated this gets because you need more teams, and each employee may have to play on more than one team.

I will give you a snapshot of the key issues I took away from the book, and then I want to encourage you to read the book for yourself. I believe that by addressing the five dysfunctions Pat Lencioni identifies, you will find that the decisions you make in your company will stick. The dysfunctions work in a pyramid, just like Maslow’s hierarchy of needs. If you have not addressed lower level need with an individual, it is futile to address the next level need. Pat’s five dysfunctions are as follows:

  1. Absence of Trust
  2. Fear of Conflict
  3. Lack of Commitment
  4. Avoidance of Accountability
  5. Inattention to Results

Absence of trust, the first dysfunction, is the hardest to overcome. It starts with the premise that one must have confidence among team members, believe that one’s peers’ intentions are good, and that there is no reason to be careful around group members. In most teams, too much time and energy, and too many good ideas are wasted trying to protect one’s reputation by managing behaviors, comments, and interactions because of a lack of trust that was created in previous interactions. People are reluctant to ask for help and to offer assistance to others, causing lower morale and unwanted turnover. To address this dysfunction, a leader must demonstrate vulnerability first, and make sure this is genuine. Leaders must encourage open dialogue in meetings, look for situations where people engage in behavior that demonstrates lack of trust, and bring it out in the open. They need to have everyone openly discuss the strength each team member brings to the team. They also need to describe the behaviors that lead them to be distrustful and get them to address those behaviors. No one, including the CEO, is immune from this exercise. One bad apple will spoil the batch.

Fear of conflict is the second dysfunction. Addressing the first dysfunction makes it much easier to address the second. If the first exercise succeeded, team members are mentally prepared to engage in passionate discussion without the fear of being perceived as vulnerable or the fear of reprisal. It means that one can speak up and not worry that someone is going to judge them, question their worth to the team if a particular comment is not one of their best, or interrupt them until they finish their thought. They know that while their idea may not be accepted, at least it will be heard. What is important here is to focus on discussion and resolving issues more quickly while avoiding personality-focused and mean-spirited attacks.

Many people have been trained to launch personal attacks when they are not getting their way. The leader has to make sure that this behavior is not tolerated, and that topics focus on the issues that need to be resolved. If everyone is not weighing in and openly debating and disagreeing on important ideas at your meetings, look for passive-aggressive behavior behind the scenes or back-channel attacks. What organizations find is that healthy conflict saves them a lot of time and leads to much better decisions. The role of the leader is to practice restraint and to allow for conflict and resolution to occur naturally.

The third dysfunction, commitment, is often missing in many organizations. As you can now see, it likely resulted from a lack of healthy debate in meetings, which led to false consensus and weak buy-in to the decisions. By having productive conflict and tapping into everyone’s perspectives and opinions, everyone can confidently buy in and commit. Even those who voted against the matter at least know their issues have been heard and considered. Now commitment is required.

Great teams know the danger of seeking consensus and certainty and find ways to achieve buy-in from the rest of the team. The leader’s role is to demonstrate decisiveness and to communicate awareness and acceptance of the fact that some decisions may turn out wrong. He or she must push decisions around issues, as well as adherence to schedules that the team has set. The leader must cascade messaging to key people in the organization to support follow-through on decisions so that everyone is clearly aligned.

The fourth dysfunction, accountability is also a team effort. Team members need to hold each other accountable in daily, weekly and monthly meetings when their behaviors and actions do not support the goals set by the team. Peer pressure is the most effective and efficient means of producing performance. A team should create clear standards, using leading indicators to enable each team member to know that they are doing their part. The more detailed the actions plans and the more specific the leading and lagging performance measures are, the easier it will be to hold people accountable. This is where many teams fall down. It is the leader’s role to demand these details and to allow the team to serve as the primary accountability mechanism. However, when the team does not serve this function well, there should be an external measure so that they team cannot run too far off course and eventually fail to achieve its goal(s).

The last dysfunction, inattention to results, seems obvious but is very hard to manage. This is where ego and self-preservation get in the way of company goals. If teammates are not being held accountable for their contributions to the collective results, they will likely look to their own personal or departmental interests and advancement. By having good measures in place to align an individual’s incentives with that of their team goals rather than their personal performance, an organization can produce better results. The role of the leader is to set the tone to focus on results. A problem will arise if team members sense that the leader values anything other than team results or demonstrates anything different in their own behaviors than what is expected of the team. It is important that a leader’s conversations with individuals are consistent with focusing on organizational results and not encouraging selfish behaviors.

Many organizations will find that they can significantly increase their results by improving the performance of their teams. Pat Lencioni has done a wonderful job of identifying these five areas that clearly compromise the efforts of most teams.

Howard Shore is a business growth expert that works with companies that want to maximize their growth potential by improving strategy, enhancing their knowledge, and improving motivation. To contact Howard Shore please call 305.722.7213 or visit our business coaching page for more information.
Used the “Synopsis of The Five Dysfunctions of a Team” by Randy Mayeax, of Creative Communication Network for www.15MinuteBusinessBooks.com as additional reference material.

Cost of Hiring New Employees

It is not often that I hear my business coaching clients use “hiring new employees” and “strategy” in the same sentence. In fact, before hiring me and beyond the typical tactical issues with employees, it was rare for human resources issues to be considered during strategic planning meetings. I recently met with one of my clients regarding challenges they encountered in recruiting sales personnel, and it became obvious that their tactical issues were really related to their strategic model for hiring employees. Worse even than their tactical issues was the fact that it was costing them a huge amount of money to hire new staff members.

Commonly Overlooked Costs Associated With Hiring New Employees

Before discussing the strategic issues of my Florida coaching client and how we wrestled them to the table, I want to clarify what I mean by the “cost of hiring new employees”. Here are some costs you probably do not measure, and they are the big ones:

1. Hiring Success Rate

The lower your hiring success, the more people you have to hire to get a full set of performers. For example, if you need to add 10 people, but your hiring success rate is only 25%, you will ultimately have hired 31 people before you have the 10 people that will perform at your required performance levels.

2. Hiring & Performance Standards

Most companies are lowering their performance standards rather than raising their hiring standards. They get frustrated by their inability to recruit the right people and take whatever they find available. The lower performance requirements result in excess employees, lower customer service, more mistakes, lost opportunities, and lost customers.

3. Leadership Time

Leadership has to divert significant time to interview extra people, manage superfluous people, and address the performance-related issues of substandard employees. This brings far less value to the company than the leadership activities they would perform otherwise.
Unfortunately, there is no separate income statement line item for the above. In every company I have visited, the financial statement impact is huge when we start trying to quantify the above numbers. This is what I am referring to when I am concerned about the cost of hiring new employees:

How Business Strategy Impacts the Hiring Process

As I was working with one of my customers in Miami, they were explaining to me that 2,000 candidates had applied for 10 open sales positions over a 6-month period. They ended up being very disappointed with their results. Very few candidates were qualified. They had tried hiring a few new employees, several of whom never showed up for the first day, and, of the ones that did show up, they were not pleased.
They were looking at all the time that was passing and how much money the employee hiring process was costing them. They were losing money on sales that were not generated by having an open position, sales that were not generated by people that could not perform, and the cost of management time applied for recruiting. After reviewing their situation, we realized the situation was a strategy issue.

Considering All Factors in the Employee Recruitment Process

When developing a strategy, you need to consider the people decisions related to that strategy. In every company, there are several key positions that must be filled quickly in order to grow your business. In my client’s case the need was for additional salespeople. If your business model requires a unique individual (in other words, someone with a skill that is very unusual, hard to find, hard to attract, etc.) and you will need a lot of them to grow to the levels you want, you have a bad strategy. The solution to this is to change the model so that you will be able to staff your model.
My coaching client and I looked at the cost of hiring problem and realized that he was not considering all the factors in the recruitment process and addressing them wisely. In their case, they wanted people to work on a commission-only basis, be highly experienced in my client’s industry, and be a seasoned salesperson. It should not have been a big surprise that none of their ideal candidates were biting. The people that were biting required different internal support systems, and the company was not set up to help them be successful.

Understanding the Costs of Hiring the Employees You NEED

So here is how we attacked the problem. We broke down candidates into 3 groups: No Experience, Sales Experience/No Industry Experience, and Sales Experience with Significant Industry Experience. We then discussed the implications of risk, internal system support, ramp-up time required, compensation systems needed, and search strategy. What we learned from the process was that they had 4 different sales positions, two of which could not be successful without significant industry experience. Compensation needed to be very different for these people versus the others. We concluded that the client’s current internal systems and processes to support the strategy they had chosen were severely inadequate.
These revelations were critical. Failure to identify and address them would certainly have resulted in continued frustration. By addressing the disconnect between how they were approaching people decisions, their operations, and their strategy, my client was in a much better position for success. This was a clear case where the cost of hiring new employees was much greater than they realized.

Improve Your Hiring Strategy

Howard Shore is an executive coach and founder of Activate Group Inc. based in Miami, Florida. His firm works with companies to deliver business coaching to improve executive leadership development. To learn more about executive leadership coaching through AGI, please contact Howard at 305.722.7213.

Law of the Lid

The 21 Irrefutable Laws of Leadership

Law #1 of 21: The Law of the Lid

In John Maxwells book The 21 Irrefutable Laws of Leadership he identified “The Law of the Lid”, which states that, “leadership ability determines a person’s level of effectiveness. Without leadership ability, a person’s impact is only a fraction of what it could be with good leadership. If a person’s leadership is strong, the organization’s lid is high. But if it’s not, then the organization is limited.”

Leadership Ability

I have spoken with three CEO’s in the last week that I am confident are causing a lid on their organization. All were reasonably successful and suffering from a clear case of “what got you here will not get you there.” We have found that the leaders that are able to take their companies to great heights are committed to identifying and addressing the changes necessary to take the business up a notch.

They realize that those changes begin with changing themselves and permeating that change throughout. As a general rule, the lid is a byproduct of employee expansion and reflects a leader’s ability to gain follower-ship among a greater number of employees. The first major lid happens from between 50 and 60 employees, and the second lid we find around 150 employees.

Leaders Evolution of Growth

It is important to note, that if you have no one following you, you are not a leader. To get more people to follow you (because they want to) you have to become a greater leader. And, the more people you have, the more easily one can see leadership effectiveness. It is all too easy for successful people to get full of themselves and believe they have arrived. In business and success, you never arrive. It is an evolution of growth.

Breaking Through Leadership Lid

Only one of those three leaders mentioned above has positioned themselves to break through their current lid. The biggest difference was her desire to break her personal lid. She has strong self-awareness, self-grounding, and foresight to hire a third party to help with her transition. This person deserves a lot of credit as she runs one of the most profitable companies in her industry sector.

She realized that her company was not growing as it should over the last few years, despite having a better strategy than the competitors. In initial meetings with her coach, she has recognized that she is going to have to learn how to work through an extra layer of management, communicate more proactively and clearly, and to shift her role from top producer to head coach.

Improve Your Leadership Ability

Contact Activate Group, Inc. for a FREE consultation or give us a call at 305.722.7213 to see how an executive business coach can help you run a more effective business or become a more effective leader.

3 Things Great Leaders Never Do

Great leaders have a lot in common. I have been reading Great by Choice (Jim Collins), which discusses the personality traits common among the most successful CEOs in the country. Things like goal setting, creativity and healthy paranoia are highlighted. As a business coach and leadership trainer, I have worked with many successful CEOs. Based on my experience, I’d like to add to the conversation with three things that the great leaders would never, ever do:

  1. Pass the buck. The buck stops with the leader. That’s what they are getting paid for, and if something goes wrong within the team they innately understand that it is their responsibility and no one else’s. Great leaders never blame others. I think this is especially important for young managers and mid-level team leaders to remember. Great leaders at all levels don’t play the blame game.
  2. Say, “I’m too busy.” A leader’s primary responsibility is to set their employees up for success. Period. If employees need help, have questions or want to share their ideas, great leaders always have time and an open door.
  3. Spend, spend, spend. Great leaders understand that spending company money is a highly visible responsibility, and that they set the example for everyone else. I’ve seen leaders and company owners spend money like drunken sailors and guess what? So do their employees. And at the end of the year when accounting shows them the damage, they have no one to blame but themselves.

Howard Shore is an executive coach and leadership trainer with expertise in leadership coaching and human capital management. To learn more about AGI’s executive coaching, management consulting, and leadership training, please contact Howard Shore at (305) 722-7216 or email him.

Commitment to Change

Just like the people who work for them, CEOs and leaders come in all different sizes, shapes, styles, and backgrounds. As you can imagine, those variations influence how their people behave, who they hire, the systems and processes they use, and the strength of the team they have around them, etc. Dave Kurlan of Objective Management Group put together a list of 10 ways some CEOs react to recommendations he makes about their sales force. They are exactly the typical answers we’ve heard from the CEOs and seniors regarding unsuccessful projects of all types:

#1 – “Thank you for your advice. I’m not comfortable with that.” Who says that you have to be COMFORTABLE? You have to do the right thing for your company!

#2 – “I’m not quite ready for that. How about if we do that in six months?” This is a less honest version of #1 – at least be straight with me!

#3 – “Whatever you say. You’re the expert.” This tends to work out a lot like #1. Yes, they agree with whatever I say but are no stronger with management than with me and can’t drive change.

#4 – “This is B*ll S*it. They’re just going to have to do what you say, right now, or they’re gone.” That’s the spirit, but it isn’t driving change. You can’t pound people with a sledgehammer to drive change; you have to inspire them to change.

#5 – “Let me see if I can get some consensus for this.” Oh-oh, this isn’t going to work. You never get consensus from people who don’t want change in the first place!

#6 – “OK. Let’s talk about how we’re going to accomplish that, given our challenges.” Much better! At least we’re going to talk about how we can implement…

#7 – “Great – can YOU deliver that message for me?” This is even worse than #5!

#8 – “I’m not going to drive this. One of my senior managers will have to drive this.” OK, how many years are you willing to wait to find a genius who finds value in this AND isn’t threatened by it or me?

#9 – “Why aren’t my people doing what they’re supposed to do?” Because you have to be strong enough to tell them that it’s a condition of continued employment rather than quietly sitting there, not saying a thing, and expecting something to change!

#10 – I don’t want to do it your way. I think it should be done my way instead.” Ah, excuse me, but isn’t that the same way you were doing it for the last 10 years – and it didn’t work then either?

Remember, your people won’t be committed to change if leadership isn’t.

Howard Shore is a business growth expert who works with companies that want to maximize their growth potential by improving strategy, enhancing their knowledge, and improving motivation. To learn more about him or his firm please contact Howard Shore at 305.722.7213 or shoreh@activategroupinc.com.