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Understand Before Seeking to be Understood

 

In your negotiations, how much attention to you give to really understanding the needs, wants, and desires of the other negotiator? Do you understand why he’s really negotiating with you per the mindset he possesses, his values, his sources of motivation? A lot of negotiators don’t really understand the mindset of the opposing negotiator and thus, they lead themselves down a path that infuses the negotiation with more angst than what otherwise might be the case.

In your future negotiations, be more mindful of the mindset of the other negotiator. Seek to understand him before you seek to be understood by him.

www.TheMasterNegotiator.com

 

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Growth Management Personal Development Women In Business

The Other Side of Sexual Harassment

A lot of women who are employed outside the home have been sexually harassed at work.  It happens in every industry. Men are inappropriately touching, speaking, or wanting sexual activity from a woman.  Whether he’s her boss or someone she works alongside, women deal with uncomfortable and sleazy advances.  Undoubtedly, the thought of losing her job crosses her mind.

When the advances come from a boss, women have to think what it will do to her career. Will she get passed over for a promotion, receive a poor review, or lose her job. Advances from a co-worker cause a woman to worry that others will hear about it, ruining her reputation, or separating her from the team.

In Hollywood, it’s no surprise this has been happening. We’ve heard stories of couch calls for decades. These auditions are invitations from intimidators to engage in something sexual so the actor will get the part. In the 60’s and 70’s mothers would bring their daughters to these meetings knowing what would happen. Sexual misconduct also happens after the actor receives the role.

Recently, film producer and co-founder of Miramax, Harvey Weinstein, has been in the news about his sexual harassment of actors and staff. Women have stated they were afraid to speak out, saying that Weinstein could make or break their career. That’s a ludicrous reason for letting it continue. Without putting a stop to it means you value your career over your body, your dignity. When you don’t shut it down you are allowing it to happen. You make the choice of what is more important to you, your body or your career. Once the choice is made, you must live with it. If you don’t put a stop to it, then you are supporting it.

One of the actors speaking out against Weinstein said that Weinstein raped her twice. How does that transpire. There’s only one way: by putting yourself in the same situation again. Then whose fault is it.

Since then many women have stepped forward, telling about sexual misconduct at work. It covers all industries:

Corporate leaders, politicians, athletes, media people, chefs, photographers, animators, talent agents, singers, doctors, professors, deans.

The list keeps growing.

Choosing to let it happen by reason of valuing your job over your body makes you just as guilty as the oppressor. Giving into the situation doesn’t matter if you are an actor, an executive climbing the ladder, a minimum wage earner or any employee. Women need their jobs and worry about losing them in every industry.

In these situations, women have the power. They can take control or give it up. You take control by saying no. There are numerous stories of actors who told Weinstein no and left unscathed. If you don’t shut it down you are participating.

Men should never put women (and vice versa) in a position where they feel sexually harassed; period. That doesn’t mean it won’t happen. There are actions women can do:

  1. Immediately say NO, making it clear that you mean it.
  2. Remove yourself from the location. That means physically move away.
  3. Put a stop to it. Adamantly tell him that you do not accept that behavior and he is never to do that again.

There is no excuse to allow being harassed. If you come up with an excuse you are participating. Excuses are a way to hide your guilt to yourself. You can’t justify letting it happen if you think you will lose your job or for any other reason. You put a stop to it or you are engaging in it.

Imagine what it would be like today if women stood up to their bosses or co-workers a long time ago. We wouldn’t have all these accusations coming out now. We wouldn’t have our daughters subjected to this kind of treatment. Women would have already taught men that the behavior is not allowed. It’s like training a new puppy; sometimes you have to ‘pop him’ in the nose so he will learn.

If you didn’t confront the behavior long ago you have allowed it to continue. You still have the power.  Train him at the time it arises. Remaining silent doesn’t stop sexual harassment; it’s participating in it. Take immediate and assertive action, and shut it down.

 

 

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Accounting Growth Investing Management Personal Development Taxes

How to Get a Charitable Tax Deduction for Remodeling Your Properties

If your home or rental property needs remodeling, consider getting a charitable tax contribution by helping a worthwhile cause. Many charities build and renovate homes for the needy. The tax law allows you to take a charitable deduction for donating used building materials removed from your house or rental property when they are used by a qualified organization.

How much you can deduct depends on the fair market value (FMV) of the materials you donate and when you donate them.

Amount of Your Charitable Deduction

  • For property held for more than 1 year, you will usually get a deduction of the FMV of the materials donated. If the property was used for business or rental purposes, you must reduce the FMV by any gain (if you sold the property) that is considered ordinary income. This is a simple calculation if you ask your tax advisor.
  • For property held less than 1 year, you will usually get a deduction of either the FMV or the cost basis (less any depreciation allowed) of the materials donated, whichever is less.
  • There may be limits depending on how much you contribute and your adjusted gross income, but the good news is, you can carry forward any unused deduction to later years.

Steps Needed to Get a Charitable Deduction

Before you begin your remodeling process:

  1. Get your licensed contractor to give you two bid quotes. One for deconstructing the space that you are remodeling and another one for demolishing it. Deconstructing the space is more expensive than demolition because fixtures, sheetrock, wood studs and more are taken apart slowly and carefully by hand to recycle every last piece as opposed to demolition where they rip out the materials without any consideration for reusing them (e.g. they just go into the dump).

Deconstruction usually is 1.5 to 2 times more expensive than a demolition process. However, since demotion is only a small part of your remodel, it should not add a large cost to your overall remodel.

  1. Find an appraiser that can appraise the reusable materials that result from the “deconstruction” process. Usually they can give you an idea of the FMV per sq. ft. of real property you are remodeling. Appraisal costs range but typically are around $2,000-10,000. They will need to see the materials before they are donated to a charity so they can issue an appraisal report.
  1. Consult with your tax advisor. They usually know a qualified appraiser you can use in your area or one can be recommended by the charity to which, you are going to donate the materials.

Your tax advisor should also be able to determine whether it is cost beneficial to consider getting a charitable deduction. For example, if the appraisal cost is $5,000 and the additional contractor cost of deconstruction is $5,000, the donation you must receive must exceed $35,000 to give you a net tax benefit. Some of our clients have obtained charitable benefits of over $100,000.

  1. Pick a 501(c)(3) US charity in your area that has as their mission to use the materials in their programs such as Habitat for Humanity.

After your remodeling process:

  1. The appraiser will give you a signed appraisal report and an IRS form 8283 signed by both the appraiser and the charity to which, you contributed the material; both must be attached to your tax return.

If these steps are followed correctly, then there is an excellent chance that much of the costs of your next remodel can be claimed as a charitable contribution.

For more information about this and other tax strategies to help you pay only your fair share of taxes email him at ssinger@groco.com

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Growth Human Resources Management Personal Development

Power to the (Customer Service) People!

If you had to describe effective customer service in a single phrase, what would it be? I would define it as the ability and authority to take whatever action is necessary to make a customer happy. I believe mine is a reasonable definition given the nature of customer service itself.

With that said, effective customer service requires that staff members be empowered by their employers to both make decisions and take action. This leads to a question: does each and every employee in your organization, with jobs that involve customer contact, have the ability and authority to make decisions that are in the best interests of customers? If not, they are not empowered to keep customers happy.

You must understand that customers looking for help from your customer service team want immediate answers. They want solutions to their problems, not customer service reps transferring them from one department to the next. They certainly don’t want to be dismissed with a promise that a manager will call back later.

What Does Your Customer Service Department Do?

Modern business has unfortunately evolved into a rigid, top-down organization that is reluctant to give people at the bottom of the organizational chart the freedom and authority to do what they need to do. Modern business is more about micromanagement than actual problem-solving.

To that end, one of the first questions I ask clients in this regard is this: what does your customer service department do? I’m hoping to hear an explanation of customer service reps empowered to do their jobs. That is not always the case. More often than not, customer service reps are merely phone-answering personnel who defer all decisions to supervisors or middle managers.

Maintaining this kind of top-down customer service department leads to unhappy customers. Why? Because customer service reps not empowered to make decisions:

  • Do not present an air of confidence when dealing with customers;
  • Frequently have to put customers on hold in order to talk to supervisors;
  • Don’t tend to make an effort to understand answers and solutions;
  • Often do not have any real answers to give customers; and
  • May not really care about the end result once the customer interaction is complete.

Are You Willing to Empower Your Staff?

I hate to paint such a negative picture of customer service, but that is what customers often encounter. The question for you is whether you are willing to empower your staff to take care of customers. If you are, you will reap the benefits that come with an empowered customer service team. If not, your current level of customer service may never improve.

There are three things you need to do to empower your staff. First is to give them the authority to make decisions without necessarily consulting a supervisor or mid-level manager. It’s true that decision-making authority comes with a certain level of responsibility, but almost every employee will rise to the occasion if given the opportunity.

Second, customer service staff need to be trained to keep up with company standards and solutions. It’s not reasonable for employers to expect staff members to make wise decisions if those staff members are not kept up-to-speed at all times.

Finally, those customer service representatives who take good care of customers should be rewarded for their efforts. Rewards are an excellent incentive for taking ownership of one’s work. And it’s not necessarily money that your employees want. It’s often acknowledgement and validation that motivates them.

So, are you ready to power up your team?

 

Randi Busse, President, Workforce Development Group

www.workdevgroup.com

 

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Entrepreneurship Human Resources Management Personal Development

Trust Is Essential for the Health of an Organization – Part 3

In two recent blogs I have attempted to address the serious leadership responsibility of managing the variation in trust to produce desired results.  This is the third part of a 4-part series of blogs to provide a framework for a predictable method for building and maintaining trust.  The method needs to be actionable and predictable.  We can’t just wait for trust to be created. It’s too valuable for organizational performance and when it’s lacking, the damage is fierce.

A predictable method requires two important sets of ideas.   The first is an appreciation of the right definition of trust. We adopted The International Association of Business Communicators definition of trust: “a willingness to be vulnerable because of the presence of integrity, concern, competence and shared objectives.”[1]

Second, we need an effective leadership structure.   THINK – BEHAVE – IMPROVE (TBI) is a set of ideas which help us to appreciate how an optimum leader thinks, how an optimum leader behaves and how an optimum leader acts to improve the system within which they operate.  In this blog we will expand and clarify the BEHAVE portion of the structure.

We have seen organizations achieve incredible success with leaders who exhibit questionable behaviors.  There are numerous stories about the petulance of Steve Jobs.  Some days he was ‘good Steve’ and other days ‘bad Steve’.  Steve Jobs was well known for exaggerated emotional outbursts laced with profanity. Yet still, Apple has been amazingly successful and, as of this writing, is the most valuable company in the Fortune 500 (capitalization).

How does one explain the valuation of Uber in the face of recent leadership issues and the resignation of one of the founders because of sexual harassment and discrimination accusations?  As of this writing, Uber is estimated to be worth $70 billion and is known to have upended how people think about and use personal transportation.

These stories beg the question, “how can a leader(s) achieve such amazing success while behaving so inappropriately?”    It’s frustrating to many, including myself, to know that inappropriate behavior by leaders can still occur concurrently with incredible financial success.  It’s a paradox.  The answers lie in the interaction between strategy and culture and the priorities of the leadership at the time namely, the desire for short-term vs. long-term success.

The famous quote, “Culture eats strategy for breakfast” was originated by Peter Drucker and made famous by Mark Fields, President at Ford.  This thought helps set the stage for us here to help provide some answers and lead us toward how we can manage the variation of trust. The point of Drucker’s quote is both the culture of an organization and its strategy interact to achieve success.  They are interdependent. One will influence the other.  Culture will eventually either undermine the strategy or support it.  Overtime culture wins.

We can look back at our two stories and point to examples.  If it’s true that the leader(s) of an organization influences the culture, then we can point to how Steve Jobs evolved.  It can be shown that Jobs behavior softened over time.  We can make the case that the earlier culture of Apple also evolved to help support their aggressive strategy.

Recent articles about Uber reveal that they changed their core values.  Those closest to the organization describe the how the original core values often led to inappropriate behaviors including competition between colleagues.

The key answer to long-term success is consciously managing culture to support strategy.  This is our purpose with this series of blogs. By providing a structure and method to manage the variation in trust the culture will support strategy.  There is no reason why this can’t happen concurrently with start-ups and/or company transformations.  In an earlier blog (Part 1) the point was made that leaders often don’t focus on managing trust because their theory of trust is incomplete, and therefore their methods of building and maintaining trust are often ineffective.

The key question is, “How can we create a culture of trust which will support long-term success through the positive support of an aligned strategy?”  The answer: “We must develop aligned core operational values and then provide consistent feedback about those values behaviors.”

When the core values of an organization are operationalized, they provide a description of specific and observable behaviors.  For example, our point is it’s not enough to just say, “We behave with integrity” or, “We respect each other”. The leadership needs to define exactly what that looks like.  Otherwise, it is difficult, if not impossible, to provide credible feedback when needed.  The feedback needs to be timely and credible otherwise it is a waste of time.

There are three operationalized values which help leaders and staff to behave with trust.  They are Integrity, Respect, and Customer Focus.  Here are some examples of the observable behaviors that can describe these values.

  • Integrity: making only agreements we are willing and able to keep and communicating immediately if those agreements cannot be kept.
  • Respect: Treat others as we would like to be treated; listening with the intent to understand without interruption; expressing empathy as needed.
  • Customer Focus: Ask clarifying questions to be sure we understand what customers need; proactively making recommendations that will better suit their needs

These are only examples.  The statements above only begin to describe the behaviors which will enable everyone in an organization to manage their own behaviors first and to provide feedback to each other because the behavior is observable. More details are needed and are always created in the planning phase of a “creating a culture of trust” initiative.

When the desired behavior is observable it is relatively easy to express appreciation when its seen.  Furthermore, it’s just as easy to provide feedback when it is not.  Providing of feedback enables everyone to contribute toward managing the variation in trust.

The three operational values of integrity, respect, and customer focus align perfectly with the adopted definition of trust.  The four key elements in our definition of trust are integrity, concern (a demonstration of respect), competence, and shared objectives.  Integrity in the operational values of course, aligns with ‘integrity’ in our trust definition.  Respect aligns with ‘concern’ and customer focus aligns with ‘competence’ and ‘shared objectives’.

The consequence of this alignment is powerful.  Everyone now has the ability (and even the obligation) to observe behavior and either express appreciation or provide feedback for optimum learning.  Now we have the structure and the behavior we need to begin to manage the variation in trust.  Now we are closer to our intended purpose.

Leaders who start businesses and/or who are reinventing their businesses must focus on strategy to achieve results.  If we believe that “culture eats strategy for breakfast”, leaders can now concurrently create a culture of trust along with their new strategy. The results can be achieved more quickly and with less waste because poor behavior does not get in the way and slow them down.  Strategy will be nourished with “breakfast”.

Wally Hauck, PhD has a cure for the “deadly disease” known as the typical performance appraisal.  Wally holds a doctorate in organizational leadership from Warren National University, a Master of Business Administration in finance from Iona College, and a bachelor’s degree in philosophy from the University of Pennsylvania.   Wally is a Certified Speaking Professional or CSP.  Wally has a passion for helping leaders let go of the old and embrace new thinking to improve leadership skills, employee engagement, and performance.

 

[1] International Association of Business Communicators (IABC) by Pamela Shockley-Zalabak, Ph.D., Kathleen Ellis, Ph.D., Ruggero Cesaria

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Best Practices Growth Management Personal Development Technology

Protecting Your Organization – How to Have an Engaged Cybersecurity Team 

In the first article of this series I provided an overview of the 5 pillars for creating an EPICC high performance teams. In this article we discuss the first pillar of the EPICC model – engagement.

Gallup continues to report that in the US, employee engagement is  around 30% and worldwide at only 15%. While we know this costs real money and affects the bottom line, it has an even bigger cost when we are talking about cybersecurity. When it comes to your cybersecurity team, 15-30% engagement can actually be dangerous to your organization. This is the team that has to be on their toes 24/7 to keep your network and data secure and you want — no, you need — them engaged.

Engaged employees are motivated and excited to do the work they are assigned to do and don’t have to be convinced to do a good job. They truly want to be at work, and want to do their best to contribute. They are looking for continual ways to improve and innovate and they go above and beyond, take initiative, interact with coworkers and management, produce high quality work products, and take responsibility.

Because that is what you are looking for in your cybersecurity team, let’s get to what it takes to have engaged employees. It takes a leadership team that knows how to create engagement by tapping into the key motivators that people have. As a leader, you can inspire your team to want to do more and be better, but you can only motivate them for the long run if you can tap into their intrinsic motivators. For more information on the following motivators, use the links to take you to a more in-depth article on each one.

Contributing fully through alignment – When you want people to contribute fully they need to align with the work they do in a way that allows them to contribute who they are to a task. When people are not aligned they get bored and find other things to do instead of the work at hand. If you ever feel that people on your team are slackers it could be a sign that they are not aligned with their work and as a result, not fully contributing. That is not a sign of a bad employee; it is a sign that they are doing work that is not aligned with who they are.

The Big Picture – People want to know how they fit into the big picture. How does their work help the organizations goals? Punching a clock or showing up to do a job with no meaning is not going to cut it anymore. Your most loyal, dedicated, and hard working employees will be the ones that understand and believe in the purpose of their role in the organization. As a leader and coach of your team it is your responsibility to ensure your team knows, understands, and is bought into the big picture. It is your job to keep that big picture and shared goals in front of them as part of the on-going conversation.

Continued Growth – As a leader, it is your role to ensure your team is getting continued growth opportunities. They want to learn and grow and they will be more appreciative and harder working when given these opportunities. My experience as an employee in several organizations where there were no growth opportunities lead me to be less motivated and look elsewhere for what I was missing. Plus, when you provide educational opportunities, you are going to have a smarter, more talented workforce, and when has that ever been a bad thing?

Feedback and Recognition – Here is a place where your team needs you more than anywhere else. Do you know that most people go through their days getting no praise, feedback, or recognition, not even at home or from those they love? When people are told they are doing a good job, they will want to do an even better job next time. When they don’t know how they are doing they often make assumptions and think to themselves, “oh well, no need to try harder, no one seems to notice around here.” However, don’t just provide recognition and positive feedback because you are supposed to. Do it from a place of sincerity, like a proud parent would when their child is walking across the stage at graduation or scoring the winning goal of the soccer game. Without proper feedback and recognition you are missing out on one of the greatest motivators of all.

One of your jobs as a leader is to inspire those around you so that they are motivated to contribute fully, which will result in improved engagement and in the case of your cybersecurity team improved protection of your organization’s network and sensitive data. See how you can use these tips to amplify their motivation and help create better results for everyone on your cybersecurity team, and in return, for your organization..

If you have questions or comments email me at sharon@c-suiteresults.com and for more resources visit www.c-suiteresults.com and/or listen to C-Suite Success Radio

 

 

 

 

 

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Best Practices Entrepreneurship Human Resources Management Marketing Skills Women In Business

How to Listen Better to Win More Negotiations

“When asking questions, listen to the response! Be sure to hear the meaning and any hidden meaning in the message you received.” –Greg Williams, The Master Negotiator & Body Language Expert

To win more negotiations, listen better. When you negotiate, how well do you listen? The better you listen, the more negotiations you’ll win.

… but he didn’t answer the question! Good negotiators are very adept at diverting questions that don’t serve their purpose. In some cases, they’ll give superficial responses that appear to answer the question, or like a good magician, draw your attention in another direction without you noticing that they’ve done so.

To enhance the probability of winning more negotiations, listen to how questions are answered, and listen to the words used to represent the answers. In so doing, you’ll gain invaluable insight into hidden meanings and the thought process behind those meanings.

Listen to how questions are answered:

Take note to what degree a question is answered, avoided, and/or modified. As an example, if you ask, “Is that your best offer?” You might receive several responses:

A.) In the past, that’s as much as we’ve paid.

B.) Due to our current ‘situation’, we have a ceiling on the amount we can pay.

C.) Other vendors/suppliers are accepting our price structure.

In each of the above answers, you received a response to your question but what you did not receive was a direct answer to your question. Depending on your alertness or how diligent you wanted to appear, you might rephrase the question, point out that you’d not received an answer to it, or accept the answer given in order to address the situation from another perspective. The course of action you adopt should be aligned with how you wished to position yourself and the person with whom you’re negotiating to enhance your negotiation position.

 Listen to the words used to answer questions:

Words are the representation of the thoughts being conveyed. In the above answers, the word choice conveyed additional insight per how that person was thinking. In response ‘A’, the information conveyed is stating, “That’s our norm.” It could also be perceived as, you shouldn’t consider going outside of the norm. Conform to our standards.

In response ‘B’, the subliminal message is, “We’re in a challenging time, please bear with us. Help us by being understanding.” If you acquiesce, you might attempt to acquire chits that can be used in future negotiations. If you do so, attempt to instill in the current negotiation when and how you might use such chits. Keep in mind, you’ll also be setting a precedent to ‘help them’ again in the future, since you did so this time.

Depending on the value of your offer, you could position it so that it’s seen as ‘added value’ that warrants a ‘higher investment’ on the part of the purchaser, or one that you can fit into the current pricing structure because of the reason that’s best suited for the situation and your purpose. The point is, after you’ve gleaned the additional information based on how your questions are answered, you have a better understanding of how to position yourself.

You make decisions based on your interpretation of the situations you’re in. Then, based on your interpretation, you decide how you’ll act and react to situations. Thus, you and only you control your actions in a negotiation. So, to control more of the aspects of the negotiation, listen to the meanings and hidden meanings in the answers given by the other negotiator. Your reward will be in winning more negotiations … and everything will be right with the world.

Remember, you’re always negotiating.

 

 

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Growth Human Resources Management Personal Development

Trust Is Essential for the Health of an Organization – Part 2

In a recent blog I promised to expand and clarify how a leader can, and must, predictably manage the variation in trust to produce desired results.  Therefore, the purpose of this 4-part series of blogs is to clarify why trust is so important, define and appreciate a definition for trust, to clarify the most effective way to think about trust, and to provide a framework for a predictable method for building and maintaining trust.  It needs to be predictable.

To accomplish this requires two important sets of ideas.   The first is an appreciation of the right definition of trust. We adopted The International Association of Business Communicators definition of trust: “a willingness to be vulnerable because of the presence of integrity, concern, competence and shared objectives.”

Second, I suggested we adopt a leadership structure of THINK – BEHAVE – IMPROVE (TBI). This structure will give us an introduction to how an optimum leader thinks, how an optimum leader behaves and how an optimum leader acts to improve both behaviors and the system within which they and their team members operate.  In this blog we will expand and clarify the THINK portion of the structure.

Leadership theory is so challenging because it’s paradoxical. We want control, but we don’t want micro-management.  We want freedom to act, but we must avoid chaos.  What is the best way of thinking about the world (about people and problems) that will enable us to manage the variation in trust and deal with the complexity and the paradox?  The answer is ‘systems thinking.’

As recently as 2012, a nurse, in an Ohio Hospital, accidently discarded a kidney that was awaiting a transplant and had been provided by a living donor.  The nurse had been on break, had been replaced by a different nurse, and was therefore unaware the kidney was submerged in an ice filled sludge.  She purposely disposed of the contents into a disposal hopper thinking the kidney was still in the operating room because “that’s what usually happens.”

The hospital suspended the two nurses after the incident; one was later fired, and the other resigned.  Furthermore, a surgeon was stripped of his title as director of some surgical services.  What a tragedy on many levels.

The nurse who discarded the kidney had walked past a doctor and other nurses carrying the container.  Should someone have noticed?  Should someone have said something?  How was she to know?  If we embrace the typical “industrial age” model of management, which uses command and control leadership strategies and focuses on holding people accountable for results, the act of firing the nurse makes total sense.  The general rule in this model is: “results were not achieved and someone (or perhaps multiple people) must be at fault!”  That’s the prevalent philosophy most of us were taught.  That model continues to dominate in our schools and our organizations yet today, i.e. “someone must be held accountable for the results.”  This model cannot create optimum trust.

Systems thinking is a way to see the world recognizing the interdependency of the parts of the whole. The interdependency idea helps us to realize that each part of the system (each employee) is impacted by and can impact all the other parts.  This idea makes cooperation and the quality of communication essential for achievement of the aim or purpose for which the system was created. Everyone cooperating and communicating fosters trust.

The industrial age model can be described using two different metaphors.  The first, “an organization is like a machine”. In this metaphor all parts can be individually evaluated for efficiency and effectiveness and are easily replaceable.  Furthermore, the parts serve no purpose on their own.  The parts each perform only to serve the machine.  They cannot make independent decisions.  Management is by domination.  The parts are dominated by their position in the workings of the machine.

The second metaphor is: “organization is like a human body”.  This is where the parts (the organs, the extremities) have no other purpose than to serve the whole.  Management of the parts is by command and control.  The parts serve the “head” because the “head” makes all decisions.  The parts have no decision-making skill nor purpose separate from serving the “head”.

A more useful metaphor for the systems thinking approach is “an organization is like an orchestra”.   In this metaphor the parts can exercise choice.  An orchestra and an organization are social systems.  A social system is self-organizing and self-regulating.  The parts cannot be controlled.  They instead can be influenced because they all have choice.  They can choose to serve the community (and the customer).  The quality of the interactions and the cooperation between the parts are the most important factors in achieving the purpose of the whole (the community).  It’s not about replacing the parts when a mistake occurs.  It’s about the parts understanding the purpose of the social system (to produce beautiful music), understanding their roles and responsibilities in that system, and how they can cooperate with each other.  These elements enable the system to produce the desired outcomes (e.g. beautiful music to be enjoyed or a successful operation).

In 2016 Wells Fargo fired 5,000 employees for creating millions of unauthorized bank and credit card accounts.  Customers complained, and leadership acted.  The employees were incentivized by the Wells Fargo leadership to sell a certain number of new accounts to banking customers within a certain timeframe.  More so, they were threatened by that leadership with disciplinary action if these stretch goals were not met.

To save their careers they created new accounts using customer data and without customer knowledge. Did the employees do this completely on their own or did the policies influence them?  What they did was wrong and there is no defending it.  Simply stated, in a social system, one part will influence the other and to remove root causes requires a new way of thinking about leadership and the impact it has on the parts and on the community. Wells Fargo leadership blamed the people, yet their incentive policy contributed to the inappropriate behaviors.

In our hospital example, there was probably a dozen or more hand-offs that occurred in that operating room between the surgery preparation time and the time the nurse returned from her break.  Each of those hand-offs was an opportunity for effective communication and cooperation.  Information about the location of the kidney was a hand-off.  What to do with the slush was a hand-off.  Each of those hand-offs was a process that could be improved.  To blame the nurse(s) does nothing to improve those hand-offs and therefore, nothing to prevent a reoccurrence.

If we fired every nurse and every bank employee in the country and replaced them all with highly trained substitutes would anything improve?  It’s unlikely because the system did not change.  Systems thinking provides every leader with the best opportunity to create an environment where trust can flourish.  The first section of our leadership structure is labeled THINK.  It means an optimum leader who wants to effectively manage the variation in trust must embrace systems thinking and the metaphor of the orchestra.  Do you want optimum trust?  Have you embraced “systems thinking”?

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Accounting Best Practices Entrepreneurship Human Resources Management Personal Development Taxes Technology

What Does It Mean to Be a Leader in the Age of AI? Part 1

With the advent of artificial intelligence (A.I.) and machine learning, it’s time to re-evaluate how we hire, train and lead our employees.

The ability to do a job faster or cheaper will no longer be what sets an organization apart from its competitors, but rather the ability of organizations and its human component to critically and strategically think for the organization and its customers.

With improved critical thinking, machine learning and A.I., an organization will be able to move faster and more effectively than its competitors making it both more interesting and challenging for its human workforce and valuable to its customers.

In an A.I. environment, co-workers will be expected by its customers and the organization to work in teams, improve communication with customers, come up with original thoughts and strategies, explain how A.I. came up to its conclusions and implement their strategies. Objectives of the organization and its customers probably will not change (e.g. enhanced customer and trusted relationships, bottom and top line growth). However, the way the organization uses its human components will change dramatically.

What does it mean to critically think? According to the Foundation for Critically Thinking.org you and your co-workers should be able to:

  • Raise vital questions and problems, formulating them clearly and precisely.
  • Gather and assess relevant information, using abstract ideas to interpret it effectively.
  • Come to well-reasoned conclusions and solutions, testing them against relevant criteria and standards.
  • Thinking open-mindedly within alternative systems of thought, recognizing and assessing, as needs to be, their assumptions, implications, and practical consequences.
  • Communicate effectively with others (in teams) in figuring out complex solutions.

How to go about implementing and dealing with co-workers who are unfamiliar or unable to cope with the new paradigm?

  • Link their compensation and future to these management objectives so they realize the importance of these new organizational directives.
  • Identify your stars who understand and employ “critical thinking” methods and encourage them to lead by giving them authority and autonomy to do so.
  • Recognize, embrace and communicate this as a cultural shift that will enhance the well- being and livelihood of everyone involved.
  • Be prepared to promote team members that exhibit these skills and counsel out those who can’t adopt.
  • Prioritize these skill sets as a core competency of new hires.
  • Make it as a top goal for your organization.
  • Hire the right professionals.
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Best Practices Management Marketing Personal Development

People Want Entrepreneurial Culture!

Suddenly, entrepreneurial culture is in demand by C-Suiters of large corporations. Why? They see small companies doing what they aren’t—moving fast and seizing opportunities. They see more and more start-ups taking industries by storm with innovative products, groundbreaking services, and fresh takes on consumer demand. And they want to do the same.

Large businesses are under pressure from stockholders and board members to make entrepreneurial culture happen, and they don’t understand why that culture is off-limits in their own companies. Slowly, they realize where they went wrong. They learn that their rigid structure, strict processes, and scale of standardization they’ve polished over the years have actually worked against them. Their own employees have become discouraged and disempowered.

An employee can’t be forced to feel inspired and invested, and C-Suiters can’t develop entrepreneurial culture overnight. This takes long-term commitment—it is not a fad or an item on a checklist. The basics of entrepreneurial culture contradict some sacred corporate cows, such as structure, compliance, and compensation. This shift will require you to introduce 3 new wild horses:

  1. Work like a two-division company. If your customer is at the top, how can customer service and sales be at the bottom? No matter how an entrepreneur’s company and office are organized, there is a permeating two-division attitude and structure. These are sales and sales support. Sales is on top, and everybody else works to support sales. This includes production, marketing, and administration. Even the CEO is in sales support. Why? Because every entrepreneur knows that employees are paid by the customer, through sales. To ensure that departments such as marketing and production do their best, keep them informed and in the loop. Sales and customer service know the most about the market, so why not use them to keep everyone relevant and updated?
  2. Pay for performance. This might be difficult for a large corporation to implement. Your employees will be doubtful of this shift unless they are already paid according to performance. But, in order to foster entrepreneurial culture, a portion of their pay must be measured by profitability, growth, and sales. You need to make sure that your employees are driven by much more than a stable paycheck. Paying your employees just for attendance tells them, “Whether or not the company makes a profit, you’ll get paid the same, so relax!” Dedicated members of an entrepreneurial workforce are eager to gamble their pay on personal productivity.
  3. Be mindful of the legal department. Corporations can suffer from the restraint of legal departments. Hidden in their good intentions to protect against liability is a tendency to halt creativity. In our opinion, legal should develop a system where strict compliance reviews simply are not necessary. Part of their pay should be based on growth, sales, and profitability, just like everyone else. Why should their pay stay the same no matter how competitive the company is? Their challenge should not be “Can we do this?” It should be “How can we do this?”

In our book, The Entrepreneurial Culture: 23 Ways to Engage and Empower Your People, you’ll find the tools we used to create entrepreneurial culture at Barefoot. These tools can be applied to corporations of any size. Released in 2014 alongside Jeff Hayzlett’s on-demand C-Suite TV, it is the ideal companion to our New York Times bestselling book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. Check ‘em out!

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