Archives 2016

I received tons of questions on last weeks blog on how not to EFF Up talking to your people.

Communication in rough times is critical, and it must be truthful, open, and proactive. But that doesn’t mean leaders shouldn’t weigh their words carefully. Here are some suggestions for what leaders should communicate — and what they should keep under their hats.

Don’t talk to workers like you would talk to analysts. The Bank and Investors need to know the details of your financials and your projections. They want hard numbers. Employees, however, need your humanity. Tell analysts that your layoffs represent a small fraction of your workforce. Tell employees that letting people go was the last thing you wanted to do.

Don’t let the rumour mill take over. As bad as things seem, the rumour mill will always make it sound worse. So communicate regularly through every available channel, and — whether the news is good or bad — make sure the message is consistent across all channels. Tell employees everything you can about your company’s finances and how they affect individual employees.

Talk about the greater good. Your business strategy, tactics, and changes are meant to preserve the health of your company. Let employees know when hard decisions are necessary to ensure your company’s survival, especially painful changes like job cuts.

Don’t let employees hear the bad news first on Twitter. When a companywide decision has been made, employees need to hear it first and from you. In tough times, employees need a sense of security, and they won’t get that if they are the last to know.

Be visible. Employees need to see you believe you. They can’t trust that you understand their troubles if you’re not visible in their world. Make the rounds, listen to people, and ask about their situations. Workers will know you care, and you’ll learn things you couldn’t have learned otherwise.

Explain how the economy is affecting your company in words everyone can understand. Don’t assume that your employees know esoteric financial terminology — but don’t talk down to them either. It’s wise to explain why, for instance, a lower share price doesn’t necessarily mean downsizing or how a leveraged buyout will affect personnel.

For my international readers, I live in Calgary, Canada, which is a bit of a cross between Denver and Houston as we are located at the foothills of the Rocky Mountains and are the heart of Canada’s petroleum industry.

The oil crash in 2014 from over $100 a barrel to $30 in 18 months has been hard on our economy, with over 100 thousand layoffs. Many companies have closed their doors and are in dire financial straights.

The community is rife with terrible stories about how companies handle employee communications—from lies, senior leaders told people everything was good, then announced layoffs the next day. To inhumanity, one company asked all their staff to go into their offices, close the door and wait till 11:00. If they hadn’t been told by 11:00 that they had lost their job, they could have come out and carried on.

In short, many companies and bosses have messed up treating their people with respect and dignity.

How Not To Mess It Up

How do you talk to your employees honestly about company finances and plans?

It’s hard to be a business owner with people counting on you when you have worries and aren’t sure what is appropriate to share. As an employee, it is also hard to be in the dark regarding your employer’s plans and wonder if layoffs are looming or if your job is changing.

Here are four tips for talking with your employees when business is in tough times:

Tip #1: Don’t keep your employees in the dark — speak to them.

Here is the number one truism about your employees: They will make it up in the absence of information.

Employees are much closer to what’s going on than you are. They will know if sales are slowing because they are dealing with the phones and the deliveries each day. They also watch the news and follow social media, so they know. Never think that no news from you will be seen as good news.

There is a fine line to know when to discuss finances with employees. You don’t want to alarm anyone, but you also don’t want them jumping to conclusions because they aren’t getting information from you.

Bring everyone in, sit them down and lay out a few key points about the company’s situation. Don’t dwell on bad news, and don’t paint a picture of sunshine & roses — be balanced. Tell your people the steps you are taking to address the situation. You don’t have to have all the answers (see next point below), but you should also not give the impression that you’re clueless.

Read More about using silence while communicating

Tip #2: Allow for two-way communication.

When delivering bad news, I suggested speaking so your humanity and empathy come through.

Because we live through profit, losses, and recessions, you won’t have answers to every question. DO NOT make promises you can’t keep (like I guarantee no one will be laid off).

But letting employees talk and ask questions will make them feel part of the process. They will know you are listening. Hearing their questions will tell you much about what your people are thinking. You may be able to dispel rumours and reassure them.

Please keep track of the questions you have not answered and address them in subsequent meetings.

Tip #3: Convey confidence.

Suppose you are in a panic that will be magnified in your employees ten times over. If employees sense that you are coming across as if the sky is falling, they could start heading for the door.

The best way to deal with your own emotions is to know, plan and write out what you want to say in advance. Practice it if necessary. Take a deep breath and put your game face on before you meet with your people. You will feel calmer and more confident and convey that image.

Tip #4: Be a good fiscal role model.

Who would you support as a leader during tough times?

The CEO of an oilfield services firm overheard griping about the first-class service he received on his last flight just before he told his managers they had to cut staff by 5%.

Or, the Boss who took a larger pay cut than the staff got, cancelled the Palm Springs leadership team retreat and cut out catered lunches for management meetings?

Double standards destroy your credibility. When you share bad news and try to reassure people, they will likely not believe you unless they feel you have skin in the game.

Read More about walking the walk.

Let me close with this: Each situation is different, so there are no simple answers to how to communicate bad news to employees. But I do know that without your employees, your company is nothing.

Put yourself in their shoes and be the leader you would want to have during tough times.

Leading means you need to be in front

Fad Diets & Servant Leadership – Listening

Last week I gave you three tips to help get out from under Servant Leadership and reclaim your role as a boss. In the coming weeks, I will unpack the characteristics that Robert K. Greenleaf developed in his “Servant Leadership” model that Servant Leaders should possess: This Week: Listening Unpacking Servant Leader Characteristics

Like quinoa, paleo and glutton free diets, when concepts like servant leadership are taken to an extreme, it becomes unhealthy and a bit crazy. That is not to say there isn’t value in Servant Leadership, but as the adage goes: if the only tool you own is a hammer, everything becomes a nail.

Proponents of Servant Leadership argue that traditional leadership needs to be reinforced by a deep commitment to listening intently and identifying the will of a group.

The will of the group? You are the leader!

As the leader, you have the responsibility to guide and focus the will of the group solely on your mission and objectives. To ensure that people are focused on the right work and contributing to the achievement of your goals, you must listen to them. But how? Use Silence.

Silence is power. With silence, we can hear what is being said but also what is not being said. With silence, it can be easier to reach the truth. (click here to read the full blog on communicating with silence) Use one of these tips to use silence to improve your conversation skills:

1. When someone has answered a question, you asked, pause.

Just as nature abhors a vacuum and rushes to fill it, most people cannot stand silence, and they will quickly fill those silent parts of a conversation with talk. You will learn the most remarkable things if you just let people talk. Everyday immigration officers prove this at the border. They ask a question, you answer, and then they go quiet and look at you. Most people prattle on about their trip, how much extra booze or smokes they have brought home, or they fidget and give off body language that says to the officer that they are hiding something.

2. Losing control of a conversation? Ask a question and shut up.

Studies have shown that a person can think twice as fast as they can talk. When you need time, ask an open-ended question and wait for the answer. Invest that time, they are talking into thinking the issue to move the conversation towards the outcome you want.

3. When someone asks you a question, pause silently.

Nobody likes a know-it-all. When you answer too quickly, people think you have not considered their question. If you are not 100% sure of the answer, pause. Then answer.

You, as the leader, must ensure every action, word, and silence must contribute to meeting your objectives. That is how best you serve as a leader!

I was a Sergeant Major in the Canadian Army.

I held the second-highest non-commissioned officer rank and had a role that I loved and aspired. It was a job of power and influence. I carried a responsibility to my soldiers and, most importantly, to my leaders.

Imagine my surprise when I learned that the Latin root of the words ‘Sergeant Major’ was ‘Head Servant.’

Once I got over the indignation of being a servant, I realized my job was one of service.

Introduction to Servant Leadership Theory

Servant Leadership is a leadership philosophy first espoused by Robert Greenleaf in his 1970 essay “The Servant as Leader,” in which he states that servant leaders are servants first and leaders later. This is in sharp contrast to what many see as traditional leaders who aspire to lead through power and acquiring material benefits.

Many management thinkers such as Blanchard, Covey and Senge have since then reinforced the Servant Leadership Theory. More recently, Simon Sinek has made millions with his Leaders Eat Last book by encapsulating the importance of service to achieve your results.

The essence of servant leadership—serve the employees first and success will follow—is thousands of years old, dating back to hundreds of centuries to India and China, the Bible and texts of Islam. In contemporary practice, it means actively listening to employees, treating them as people with needs, interests and failings, and respecting their roles in the company and the world.

Unfortunately, the concept of servant leadership tends towards philosophical musings with little practical application. Worse than that, many people read into the concept that as leaders that they must cede power and authority to their employees.

5 Ways To Free Yourself From The Philosophic Tyranny

Servant Leadership does not mean you prostrate yourself to your employees but there are everyday habits leaders can incorporate into their management routines that can have powerful results.

►Listen. Pay attention to how you interact in face-to-face conversations, large groups and meetings. Find meaningful ways to invite feedback and suggestions. (Read more about using silence)

►Appreciate. Instead of assuming people will do things wrong, shift your attitude to look for people doing things right. Learn to appreciate that no one shows up to work to do a poor job and tell them you appreciate them. (Read about saying thank you)

►Respect. Do you treat the janitor the same respect as the CEO? You, as the leader, set your team’s culture of respect.

►Develop. Do you offer your employees the tools to become the best they can be? Provide training, professional development, book clubs or other personal growth tools? Emphasize coaching over controlling.

►Unleash. People have power and energy so how can you help them develop it? Decentralizing as many decisions as possible so employees can help you achieve your results.

What’s Next?

Over the next weeks, I’ll unpack Servant Leadership in more detail.

I hope to turn those philosophical nuggets into practical and applicable tools you can use to get results.