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Archive for CEO

In an interview not long ago by The New York Times, in its “Corner Office” feature, the former CEO of Continental Airlines reminisced about what it was like to be at the bottom of the ladder when he was a mechanic in the Navy.

When Gordon M. Bethune felt he was treated with respect, he always wanted to do more than expected and faster than if he wasn’t respected. So when he got to Continental in the 1990s to turn around the fortunes of the airline he knew that as CEO “being good at your job is predicated pretty much on how the people working for you feel.”

So he hired good people, of course, but he also did two other things: he communicated every week with employees and he’d spend time in the crew room when he was taking a flight. He provides further proof that the CEO is the key to fostering a culture of employee engagement in a company.

Engage and respect employees

Bethune did a weekly voice mail for 10 years communicating to employees what was going on. “And we never lied,” he said in the Q&A. When he was traveling he’d get to the airport early and met a lot of employees that way, showing an interest in them and recognizing their contributions to the company.

He relates a wonderful story of going to the break room one Christmas when the food was being passed out. He went to sit at a table with three guys, and one of them said to the other: “I told you he’d be here. Give me my $10.” He had bet the guy $10 that Bethune wouldn’t show up.

Since Bethune’s time, the CEO has even more communications channels to reach employees. Voice mail is still great – but now enlightened CEOs can use Twitter, Facebook and their own blogs to engage with employees – and to have employees respond right back.

The guys at the bottom of the ladder will still work harder and faster when they know what’s going on in the company ALL the time and they feel valued and respected. Just like Bethune when he was starting out at the bottom of the ladder.

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I was finally persuaded by a friend to watch the new hit show “Undercover Boss.”  This reality show confirmed that a CEO can learn a lot about how to make the company better by engaging with employees. For those who haven’t seen the new show on CBS, a CEO goes undercover as an employee in his own company to see for himself how things are working.  Dave Rife, owner of the White Castle hamburger chain, was this past Sunday’s undercover snoop.

Praise for a job well done

When he started his adventure, I don’t think he fully understood how stressful the job of a White Castle employee can be, with the fear of losing a job always in the background when you have a disabled child, as one employee did, or another’s fear of simply messing up.

How Do I Do This?

Mr. Big Shot discovered that he couldn’t do simple chores like sliding plastic wrap over a batch of buns in the packaging machine.  He ruined several barrels’ worth, prompting a supervisor to say the hogs (who get to enjoy the mangled buns) would be eating well that night.

What he learned best, though, was how important employees are to the success of the company.  At a White Castle drive-in a young co-worker explained to him about the importance of greeting each customer and going out of your way to help with little things, like sliding the customer’s credit card in a hard-to-reach slot.  In watching this scene, I was almost brought to tears by the young man’s sincerity and dedication.  So was Dan Rife.

Another employee showed him a shortcut, but told him not to tell management, because that’s not how they said it was supposed to be done.

After his eye-opening week on the road, working besides his employees, Rife returned to headquarters wiser and more appreciative of what it means to be on the front lines.

Magically, he brought several employees to headquarters to assist with developing training programs – hey, they should.  Aren’t they the ones who know what the problems are and how to fix them?  He gave a $5,000 scholarship to a budding chef, and another $5,000 to the employee with a disabled child.

The program ended with Rife speaking to a pep rally of employees, beaming with the joy of being acknowledged by the head of the company. Happy with the recognition that they were asked to work as a team to achieve the company’s success.

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Praise promotes employee motivation

The idea for this article came from a conversation I just had with a friend who works for one of the largest companies and best-known brands in the world.  Yet the company sucks at employee motivation.  If they haven’t got it figured out, then heaven’s knows many other companies are still in the dark, too, about what kinds of things motivate employees and that lead to employee satisfaction and retention.

He gave me a couple of examples that were almost laughable.The company held an off-site to reward their biggest producers.  Yet, the budget didn’t include money for lunch, which had to come out of the pockets of the attendees.  Come on.  Not even a sandwich and a soda?  The advertised “atta-boy” program devolved into here are your numbers for next year, with the implied threat that you won’t be at next year’s pep rally or even the company if you don’t come up big.  Not much of a motivator.

I’m not naïve.  A salary increase or bonus are great motivators. Yet, most of the tips I’m about to suggest cost little or no money to implement.  It all comes down to employee communication: saying what you mean and meaning what you say in clear, concise language.   Here goes:

1. Clear job descriptions. This may seem like a surprising first tip.  It sure is motivating to know what your job is.  If people don’t know what they’re expected to do, how can they achieve exceptional performance?

2. Chain of command. One of the Big Four accounting firms did a survey a number of years ago and 75% of the employees didn’t know who they reported to.  Tough to give a pat on the back when you don’t whose backs you have.

3. Ask employees what they need. Duh.  Hey, do you have all the tools you need to do your job?  What do you need?  How can I help?

4. Give immediate feedback. This is one of my favorites.  People are desperate to know how they are doing.  Forget the annual performance review; it’s a dinosaur.  Discuss a specific instance where the employee did well or where he needs to improve.

5. Praise outstanding performance. This couldn’t be simpler and it costs nothing.  If an employee exceeds standards, let her know.  Send an email to everyone in her group.  Make it easy for others to find out without having to navigate the company’s over-stuffed intranet.

6. Enlist employees as brand advocates. If you haven’t already, take the muzzle off your employees and let them represent themselves and their company on social media.  (See my post 7 Steps to Making Your Employees Brand Ambassadors)

7. Make employees part of the solution. Somewhere, someone in the company knows how to fix something that’s wrong.  Remember, that decisions should be delegated to the people who have the facts – and that’s not always those at the top of the company.

8. Encourage collaboration. It’s a real bummer when divisions are pitted against each other to compete for business.  This was almost the downfall of one of the major money center banks. Assemble the best client service team, no matter where the players reside in the company.  They will be highly motivated to get the business as collaborators and not competitors.

9. Sponsor friendly competitions. No, this isn’t a contradiction.  People do love to compete.  So sponsor a competition for new ideas within a profit center and reward the winner with a prize, like dinner for two at a four-star restaurant.  Or, have each employee submit a video to compete for best-in-class product demonstration.

10. Hold town hall meetings. Gather individual communities of employees, give them an update on the company and their group, and encourage conversation about how you can all work together to achieve greatness.

11. Get the CEO talking. The CEO (see my post CEO as Chief Communications Officer) can do more for employee engagement than anyone in the company.  Communicate often with how the company is doing, your role in contributing to our success, and how you will be rewarded.  Golden.

Within companies of any size, there are communities that are defined by the organization chart but many more that form organically.  Be sure to communicate the things that will motivate that community like praise for a job well done.   It will pay big dividends in employee motivation, satisfaction and retention of your star players.

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Employee engagement is the new buzzword – remember reengineering and rightsizing?

Companies claim that employees are their most important assets – and they are. But what a disconnect between words and actions.  For example, many companies are allowing their employees to choose flexible work arrangements.  This can be particular advantage to young families raising children.  But does it really work in practice?

According to a recent Catalyst report, Work-Life: Prevalence, Utilization, and Benefits, “91% of women and 94% of men agreed that they could be flexible with their schedules when they had a family emergency or personal matter, but only 15% of women and 20% of men agreed that they could use a flexible work arrangement without jeopardizing their career advancement.”  This is not encouraging employee engagement.

And what does it say to employees when there is a layoff and guards usher the “rightsized” employees out the door after they get the axe without even being allowed to pick up their personal belongings?   Bet most employees are not engaged trying to do their best job for the company.  After seeing mistreatment of other employees, those remaining are most likely engaged in looking for another job.

I’ve long contended that the CEO is the Chief Communications Officer of her company.  The CEO is the driver of employee engagement – that is, motivating employees to do their best work for the company they believe cares about them. The CEO must be communicating directly to employees with the good and the bad and how they can help themselves and the company to be better.

There are excellent examples of CEOs who are leading the engagement process, but not enough of them.  In previous posts, I’ve referenced Tony Hsieh, CEO of Zappos.com, who is famous for the wacky and wonderful culture he’s instilled there with employee engagement that’s over the top.  He is in constant communication with employees and with their customers.  Go to You Tube to see many videos of a happy and engaged Zappos work force.

The Issue: Maintaining Employee Engagement

For MGM Grand’s COO Gamal Aziz the challenge is maintaining the company’s remarkable employee engagement during tough times for the hotel and for Las Vegas.  In a Business Week article and accompanying video, Mr. Aziz discusses how critical it is to continue to engage employees during a very difficult environment for this Las Vegas hotel and casino.  He’s communicated with employees about the company’s problems in weathering the recession with fewer guests spending less money.

As a result, “employees are willing to give their all,” he says.  For him, it’s about employees “having a voice” in the success of the company.  Even though things are tough, he has committed to “not move away from commitment to employees.”

So what does it take for employees to feel engaged?  Based on in-depth research involving millions of employees over the years, The Gallup polling organization has developed and identified 12 core elements of employee engagement that predict performance.  Here they are.

The 12 Elements of Engagement

I know what is expected of me at work.

I have the materials and equipment I need to do my work right.

At work, I have the opportunity to do what I do best every day.

In the last seven days, I have received recognition or praise for doing good work.

My supervisors, or someone at work, seems to care about me as a person.

There is someone at work who encourages my development.

At work, my opinions seem to count.

The mission or purpose of my organization makes me feel my job is important.

My associates or fellow employees are committed to doing quality work.

My associates or fellow employees are committed to doing quality work.

I have a best friend at work.

In the last six months, someone at work has talked to me about my progress.

This last year, I have had opportunities at work to learn and grow.

© Gallup, Inc.

There are no doubt other drivers of employee engagement.  I’d be interested in hearing from you with stories about what makes employees want to work their hearts out for their companies.

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