Tag: leadership

  • AI Is Changing Work — and Leaders Need to Adapt

    As AI is increasingly incorporated into our workplaces and daily lives, it is poised to fundamentally upend the way we live and work. Concern over this looming shift is widespread. A recent survey of 5,700 Harvard Business School alumni found that 52% of even this elite group believe the typical company will employ fewer workers three years from now.

    The advent of AI poses new and unique challenges for business leaders. They must continue to deliver financial performance, while simultaneously making significant investments in hiring, workforce training, and new technologies that support productivity and growth. These seemingly competing business objectives can make for difficult, often agonizing, leadership decisions.

    Against this backdrop, recent empirical research by our team at the MIT-IBM Watson AI Lab provides new insight into how work is changing in the face of AI. By examining these findings, we can create a roadmap for leaders intent on adapting their workforces and reallocating capital, while also delivering profitability.

    The stakes are high. AI is an entirely new kind of technology, one that has the ability to anticipate future needs and provide recommendations to its users. For business leaders, that unique capability has the potential to increase employee productivity — by taking on administrative tasks, providing better pricing recommendations to sellers, and streamlining recruitment, to name a few examples.

    For business leaders navigating the AI workforce transition, the key to unlocking the productivity potential while delivering on business objectives lies in three key strategies: rebalancing resources, investing in workforce reskilling and, on a larger scale, advancing new models of education and lifelong learning.

    Solution #1: Reallocate Capital Resources

    Our research report, offers a window into how AI will change workplaces through the rebalancing and restructuring of occupations. Using AI and machine learning techniques, our MIT-IBM Watson AI Lab team analyzed 170 million online job posts between 2010 and 2017. The study’s first implication: While occupations change slowly — over years and even decades — tasks become reorganized at a much faster pace.

    Jobs are a collection of tasks. As workers take on jobs in various professions and industries, it is the tasks they perform that create value. With the advancement of technology, some existing tasks will be replaced by AI and machine learning. But our research shows that only 2.5% of jobs include a high proportion of tasks suitable for machine learning. These include positions like usher, lobby attendant, and ticket taker, where the main tasks involve verifying credentials and allowing only authorized people to enter a restricted space.

    Most tasks will still be best performed by humans — whether craft workers like plumbers, electricians and carpenters, or those who do design or analysis requiring industry knowledge. And new tasks will emerge that require workers to exercise new skills.

    As this shift occurs, business leaders will need to reallocate capital accordingly. Broad adoption of AI may require additional research and development spending. Training and reskilling employees will very likely require temporarily removing workers from revenue-generating activities.

    More broadly, salaries and other forms of employee compensation will need to reflect the shifting value of tasks all along the organization chart. Our research shows that as technology reduces the cost of some tasks because they can be done in part by AI, the value workers bring to the remaining tasks increases. Those tasks tend to require grounding in intellectual skill and insight—something AI isn’t as good at as people.

    In high-wage business and finance occupations, for example, compensation for tasks requiring industry knowledge increased by more than $6,000, on average, between 2010 and 2017. By contrast, average compensation for manufacturing and production tasks fell by more than $5,000 during that period. As AI continues to reshape the workplace, business leaders who are mindful of this shifting calculus will come out ahead.

    Solution # 2: Invest in Workforce Training

    Companies today are held accountable not only for delivering shareholder value, but for positively impacting stakeholders such as customers, suppliers, communities and employees. Moreover, investment in talent and other stakeholders is increasingly considered essential to delivering long-term financial results. These new expectations are reflected in the Business Roundtable’s recently revised statement on corporate governance, which underscores corporations’ obligation to support employees through training and education “that help develop new skills for a rapidly changing world.”

    Millions of workers will need to be retrained or reskilled as a result of AI over the next three years, according to a recent IBM Institute for Business Value study. Technical training will certainly be a necessary component. As tasks requiring intellectual skill, insight and other uniquely human attributes rise in value, executives and managers will also need to focus on preparing workers for the future by fostering and growing “people skills” such as judgement, creativity and the ability to communicate effectively. Through such efforts, leaders can help their employees make the shift to partnering with intelligent machines as tasks transform and change in value.

    Solution #3: Educate for the Future Today

    As AI continues to scale within businesses and across industries, it is incumbent upon innovators and business leaders to understand not only the business process implications, but also the societal impact. Beyond the need for investment in reskilling within organizations today, executives should work alongside policymakers and other public and private stakeholders to provide support for education and job training, encouraging investment in training and reskilling programs for all workers.

    Our research shows that technology can disproportionately impact the demand and earning potential for mid-wage workers, causing a squeeze on the middle class. For every five tasks that shifted out of mid-wage jobs, we found, four tasks moved to low-wage jobs and one moved to a high-wage job. As a result, wages are rising faster in the low- and high-wage tiers than in the mid-wage tier.

    New models of education and pathways to continuous learning can help address the growing skills gap, providing members of the middle class, as well as students and a broad array of mid-career professionals, with opportunities to build in-demand skills. Investment in all forms of education is key: community college, online learning, apprenticeships, or programs like P-TECH, a public-private partnership designed to prepare high school students for “new collar” technical jobs like cloud computing and cybersecurity.

    Whether it is workers who are asked to transform their skills and ways of working, or leaders who must rethink everything from resource allocation to workforce training, fundamental economic shifts are never easy. But if AI is to fulfill its promise of improving our work lives and raising living standards, senior leaders must be ready to embrace the challenges ahead.

    Article appears in Harvard Business Review

    Author: Martin Fleming, who is IBM’s Chief Economist and Vice-President.

  • Two Principles for Leading Your Organization Through the COVID-19 Crisis

    Business leaders are in the midst of a global crisis.

    The challenges facing organizations, employees, and communities are unprecedented, the stakes are high, and certainty is nowhere to be found. Under such staggering circumstances, it is only natural for leaders to feel unprepared to lead capably, nimbly, and honorably.

    “You’re feeling worry, fear, anxiety, pressure, and stress. And these feelings completely overwhelm you. And as a result of basically becoming overwhelmed, you almost become incapacitated,” says Harry Kraemer.

    Kraemer is a former chairman and CEO of the $12 billion global healthcare company Baxter International. In addition to being a clinical professor of leadership at Kellogg, he also is an executive partner with the private equity firm Madison Dearborn. Over the years, he has led through crises small and large—including a tragic crisis involving faulty dialyzers and patient deaths.

    In his view, there are two main things leaders need to understand in a crisis—two mantras, if you will, that offer a calm way forward, no matter what the situation. And, as he has been cautioning boards and management teams repeatedly in the past few weeks, COVID-19 is no exception.

    “Almost every crisis is different. So there’s not a game plan for solving the crisis. However, there is a game plan, in my mind, for how you should approach the crisis,” he says.

    Mantra 1: You’re going to do the right thing, and you’re going to do the best you can do.

    It sounds deceptively simple, so say it again. And again. You’re going to do the right thing. You’re going to do the best you can do.

    After all, that’s all you can do.

    Of course, that’s much more difficult than it sounds, Kraemer acknowledges. You don’t have to figure out what “the right thing” is all on your own. Nobody is smart enough or superhuman enough for that. Instead, surround yourself with people whom you trust and whose values align with yours and with those of the organization. Collectively, you will all determine the right thing—and then do your best to act on it.

    Picture your absolute worst nightmare, he says. For him, it would be learning that a member of his family had become critically ill with the virus; for others, it might be something quite different. Regardless, the way forward is clear: “I’m going to do the right thing, and with a lot of people’s help, I’ll do the best I can do,” he says. “I try to repeat this over and over again. Worry, fear, anxiety, pressure, and stress can be significantly reduced.”

    And by the way, he says, if you start off trying to do the right thing and it turns out it’s the wrong thing, you can adjust. Ego should be removed from the decision-making process; changing your mind is encouraged! “As I told a board earlier today, we’re not trying to be right; we’re trying to do the right thing,” says Kraemer.

    So what does following this mantra look like in practice—particularly when an organization’s values around, say, serving the community, prioritizing safety, and practicing fairness might conflict?

    “Say I’ve got a company with 100 employees,” says Kraemer. “And 50 of them are in cubicles, but 50 of them are literally making the product and they’re on an assembly line on the plant floor. Then COVID-19 happens. What’s the right thing?”

    For the 50 people in cubicles, you may send them home, even if it isn’t strictly fair: it will protect them and make the people on the assembly line safer as well. For the other 50 employees, the decision is harder. Do you need to continue to manufacture at all? If so—perhaps you’re making masks or hospital supplies or other essentials—then are there ways to make the process safer, perhaps by extending the manufacturing line so people can work further apart?

    “That may mean we don’t make as many products. Maybe that means we’re not as efficient. Maybe that means our costs go up. But that’s something we should do because we want to protect our people,” he says.

    Above all, be upfront about these trade-offs, as well as the risk to your employees. “I think what a value-based leader does is not only acknowledge that there is an elephant in the room,” he says. “They turn the floodlights on so everyone can clearly see the elephant.”

    Mantra 2: You’re going to tell people what you know, what you don’t know, and when you’ll get back to them to discuss what you didn’t know before.

    As the contours of the crisis become clearer, the exact communications will obviously change. But the general format will look the same: You’re going to tell people what you know, what you don’t know, and when you’ll get back to them to discuss what you didn’t know before.

    The first part, telling people what you know, is pretty straightforward. For COVID-19, this might require gathering data about your own operations, as well as learning as much as you possibly can about the virus, and the federal, state, and community responses to it. Then, share this information as simply and honestly as you possibly can, even if it is not what people want to hear.

    The second part—letting people know what you don’t know—tends to be even more difficult for leaders. “People will say, well, I don’t know if I want to get everybody together and let them know what I don’t know,” says Kraemer.

    But telling people what you don’t know is the key to building credibility with your stakeholders, he explains. Omit this step, and customers, employees, and others will recognize you aren’t being upfront with them and might assume that you can’t be trusted or the truth is more nefarious than it really is.

    “You’re not giving the people an understanding of what you’re doing and why, so it looks like you’re just jerking everything around and you lose all credibility.”

    Finally, you will need to tell people how quickly you’ll get back to them with any outstanding questions they may have. “We don’t know the answer to that issue yet, but here’s what we’re going to do: we’ll have another conference call or we’ll send out an email tomorrow with an update on what we didn’t know yesterday,” says Kraemer.

    Adhering to this mantra isn’t just about helping others, either, says Kraemer. It’s a good strategy for protecting your own reputation and that of your organization. Without this level of communication, “you’re not giving the people an understanding of what you’re doing and why, so it looks like you’re just jerking everything around and you lose all credibility. And that lack of trust creates chaos. [People] will start to think, ‘Either I’m being lied to, or the people in charge are idiots.’”

    Beyond reputation, the mantra also offers an organizing framework to keep the entire organization on track. “The process, I think has an enormous impact on how you operate as an organization and how you help the organization not get frozen in place with everybody running around like crazy,” he says.

    A failing during the current crisis, in Kraemer’s view, is that too many leaders, including many in the government, haven’t been upfront about the nature of the crisis: exactly what they know, all the things that they don’t, and how they plan to seek additional information and provide citizens with updates in the future.

    The worst-case scenario, he says, is one where people are truly surprised by how events are unfolding. You can’t eliminate surprise, of course, but with strong communication and follow-through, you can minimize it.

    Putting it all together

    Leaders who follow these two mantras closely stand the best chance of emerging from the current crisis with their conscience—and their organization—intact.

    There are some companies and industries that are already handling the crisis in ways that will reflect well on them in the future, says Kraemer. The airlines are bending over backwards to allow people to cancel or change flights without incurring fees, for instance, while Major League Baseball clubs have pledged $30 million dollars to the thousands of ballpark employees who will lose income while the league is on hiatus.

    “It may hurt your profitability in the short term, but the long-term impact is going to be very, very positive because they did the right thing,” says Kraemer.

    This post was originally published in Kellogg Insight here.

    ABOUT THE WRITER
    Jessica Love is editor in chief of Kellogg Insight.

    Photo by Erik Mclean on Unsplash

    Original article appears here: https://harrykraemer.org/2020/03/23/two-principles-for-leading-your-organization-through-the-covid-19-crisis-article/

  • COVID-19 Has My Teams Working Remotely: A Guide for Leaders by Jennifer Robison

    Story Highlights

    • Individualization, expectations, communication are key for remote workers
    • Managers need their leaders’ support more than ever during this time
    • Going fully remote may be your organization’s new way to work

    The novel coronavirus outbreak has put Italy on lockdown, closed schools in Madrid, shuttered the Securities and Exchange Commission’s D.C. headquarters, turned New Rochelle into a containment zone — and prompted business leaders everywhere to tell employees to take their laptops home at night in case a COVID-19 diagnosis suddenly turns the company remote.

    If so, they’ll join what Time calls “the World’s Largest Work-From-Home Experiment,” but without the preparation other companies have had. If your company is one of them — or you think it will be — this is what Gallup analytics reveals about managing remote workers.

    Individualization is key. The best managers have always individualized their coaching to the worker, but doing so at a distance requires greater intentionality. Managers need to ask each team member to describe the conditions under which they perform best, their concerns about their workflow and their emotional response to the situation.

    Managers in strengths-based businesses have a huge asset — they can predict employees’ reactions. Whether that means a driving need to complete projects, keep promises, maintain relationships or any other motivator, those traits are powerful … and different for everyone. Managers will need to individualize to the person to get the best performance. A one-size-fits-all response never fits anyone very well.

    Set expectations early and clearly. About half of all U.S. employees — remote or not — don’t know what’s expected of them at work. That’s a bad beginning, and it’ll get worse for employees sent home without good guidance. So managers must make expectations crystal clear: X is the work you should do, Y is the quality standard, Z is the deadline. Executives should provide higher-level expectations aligned with the company’s purpose: We’ll keep our customers engaged by doing X, we’ll maintain our standards by doing Y, we’ll fulfill our mission by doing Z. The more detail, the better.

    But remember, fulfilling expectations requires equipment and information. Research from University of California Irvine professor Judith Olson found that the most successful remote work situations are those in which workers have similar work styles, know and like each other, have technology that allows them to collaborate, and know how to use that technology. You may not have time to create great working relationships — though you should try — but now’s the time to explore your digital options. That’s how people will meet the expectations you set.

    Communication. Employees who are accustomed to working in-house may feel cut off from the resources, information or relationships they need to do their jobs well, so plan for more conference calls. It’s OK to pad socializing into the timeframe; indeed, it may be vital for people who need lots of interaction to keep their energy up. Managers will have to be diligent about communicating productively — coaching high performance requires frequent conversations, and there won’t be chance conversations in the hall.

    But your staff needs to hear from you too, especially as economic fears worsen, to maintain their trust in leadership. Keep the lines of communication open, honest and broad. Send emails or post videos about your reasoning, intentions and expectations. Make it easy for managers to know your thoughts and contribute their own.

    Support your managers: A sudden change in the practice of management can be hard on managers. They may worry about disruptions to the workflow they’re accountable for. Some may feel they have to be physically present to be good coaches, unsure that they can engage workers from a distance. Rather more negatively, there are still some managers who don’t trust workers they can’t see. All of them will have to manage workers in a new way, and fast.

    So give them your support, both practical and emotional, during what may be a tough transition. Invest in management development and coaching ahead of the budget plan, and be affirming about the situation and understanding about altered deadlines. Just remember, your managers always need to know you have their back — but never more so than when they feel insecure.

    Looking Ahead

    Gallup finds that 43% of U.S. employees work remotely some or all of the time, and many, many studies show remote workers are more productive and profitable than in-house employees. So don’t worry — telework can succeed spectacularly. Although your company will have to learn quickly, your people may perform at levels that surprise you.

    But don’t be surprised if they don’t want to come back to the office.

    Gallup research shows that 53% of employees say greater work-life balance and personal wellbeing are “very important” to them when considering a new job — as do 60% of women, of whom 48% are actively looking for a new employer — and that 51% of U.S. workers say they would quit their current job for one that allows flextime.

    A huge proportion of workers already have. Gallup found that the number of remote workers grew by four percentage points — representing millions of employees — between 2012 and 2016, that workers are spending more time off-site than ever before, and that more and more industries are putting remote work policies in place (primarily finance, insurance and real estate, followed by transportation, retail, manufacturing and construction). “Remote work is no longer a privilege,” Forbes recently reported. “It’s become the standard operating mode for at least 50% of the U.S. population.”

    That percentage is about to explode, whether companies are prepared for it or not. So if you have to send people home to keep them safe, individualize, communicate and set expectations so your managers can coach effectively during a crisis. But keep this in mind: While COVID-19 won’t be an issue forever, remote work will be. What you learn about leading a remote workforce now will likely become best practice for your company later on.

    Adapt quickly to COVID-19.

    Watch our live webinar “COVID-19: Managing Your Workforce Through Disruption” to get everything Gallup knows about disruption and other crises. Join us on Thursday, March 19, at 2:30 p.m. CT. Dr. Jim Harter, Gallup’s chief workplace scientist, and other experts will share what we’ve learned through research, hands-on experience and our connections with leaders around the world.

    Jennifer Robison is a Senior Editor at Gallup. Adam Hickman, Ph.D., contributed to this article.

    Original article appears here with additional tips: https://www.gallup.com/workplace/288956/covid-teams-working-remotely-guide-leaders.aspx?utm_source=workplace-newsletter&utm_medium=email&utm_campaign=WorkplaceNewsletter_March_03172020&utm_content=readourrecommendations-CTA-2&elqTrackId=5425240020ec4c2297f4836b9fb5810c&elq=c7db8c639bfa4d5bbe2551a4f67d607b&elqaid=3589&elqat=1&elqCampaignId=787

  • How to Manage the Loneliness and Isolation of Remote Workers

    Story Highlights

    • Loneliness is emotional and isolation is structural
    • Managers need to know the difference to help remote workers thrive
    • A strategy of engagement can help managers keep remote workers connected

    Despite the productivity gains and cost savings associated with remote work, many leaders worry that those advantages come at the expense of remote workers’ emotional health — in particular, that remote work causes loneliness and isolation. Ultimately, it’s feared, remote workers’ engagement and productivity will suffer.

    Gallup finds that remote workers can feel lonely and isolated — but it’s not typical and it is preventable. In fact, a recent Buffer study of 1,900 remote workers around the world found that 90% intend to work remotely for the rest of their lives and 94% recommend off-site careers. And when asked to name the biggest struggle with working remotely, just 21% named “loneliness.”

    Still, one-fifth of a workforce is a lot of people, and leaders need measures in place to fix that problem before it damages engagement and performance. Gallup research shows that managers are best positioned to implement the strategies that make the biggest difference for their teams — but first, they have to know the difference between loneliness and isolation.

    Loneliness is emotional. Isolation is structural.

    First, it helps to understand that loneliness is an emotional response to lack of connection — and people can feel just as lonely in the office as outside of it. One quasi-field experiment conducted at a global headquarters that was transitioning to open office workstations documented an interesting phenomenon. Instead of the open floorplan encouraging collaboration, the study found the volume of face-to-face interaction between employees decreased by approximately 70%, while electronic communication increased. Employees appeared to react to the workspace by socially withdrawing from peers and partners to interact over email and IM instead.

    Isolation, on the other hand, is related to access — or lack of it. The isolated can’t get the materials or information they need, they think their achievements or development are ignored, they feel cut off from the business. That isn’t an emotional issue, it’s a technical one.

    This is a manager’s top priority — having the materials and equipment you need to do your work right is fundamental to engagement.

    Loneliness can contribute to isolation and isolation can contribute to loneliness, but managers can address both by talking about the issues that cause them. Gallup workplace research recommends frequent, ongoing conversations — in fact, we recommend five distinct types of conversations that drive performance, each timed for maximum impact — but with specific language framed for remote workers: “I need to know how you’re getting along. So tell me, is it too quiet at home? Do you miss having people around? Do you feel left out?”

    The Five Conversations That Drive Performance: quick connect, check-in, developmental coaching, progress review, and role and relationship development.

    Direct questions get direct answers, and managers should be prepared with appropriate solutions. Here’s what Gallup recommends, geared toward the individual and the issue.

    Only the Lonely: How to Help Your Remote Workers

    If the worker’s answers indicate loneliness, the manager’s strategy must reflect the worker’s personality. If he’s lonely because he’s shy, trying to turn him into a social butterfly is a waste of the manager’s time and the worker’s patience. A better bet is creating low-stakes opportunities for meaningful connections, but the manager should take the lead — making formal introductions to colleagues, accepting the emotional labor of pre-meeting small talk, linking him with partners for projects.

    If the worker is more outgoing, his manager just needs to help him open his office door, metaphorically, to visitors. Online group chats allow teams a kind of ongoing hallway chatter. Managers can set up weekly “phone trees” for remote workers organized around a workplace topic. Managers can even send remote workers a list of local coffee shops along with a small gift card: “You need to be around people to keep your energy up. Get a cup of coffee and have a great workday.”

    In any case, managers who ask lonely employees for their opinions can gain some valuable insight. Opinions are especially fruitful post-project or at the achievement of a milestone — reflection helps workers process learning opportunities — yet remote workers may feel their perspective is so narrow that their opinion isn’t needed.

    When managers can meet the basics needs of engagement, even casual, friendly conversations turn into innovative discussions that help the team and organization thrive.

    In fact, remote workers’ perspectives can provide rare insights into the organization. Shy, lonely workers need to hear they offer unique value — it can ease social anxiety — and outgoing, lonely workers need more contact. Either way, their insights on the work environment can bring to light connections they ought to make, as well as show managers new ways to improve processes.

    Out of Sight, but Not Out of Mind

    The isolated need a more tactical approach, but it requires a judicious balance. Remember, some people choose remote work because isolation boosts their productivity. IBM learned this the hard way. In 2009, IBM reported that 40% of its workforce (386,000 employees in 173 countries) worked remotely. In 2017, after 20 straight quarters of losses IBM’s leadership decided that it needed to generate more serendipitous ideas from its employees. So “Big Blue” called in its remote workers to boost collaboration and innovation.

    It didn’t work. Those remote employees who loved to work remotely immediately began searching for new jobs that would continue to allow them to work from home. Those who did return to an office deliberately isolated themselves, possibly to recreate the environment that had best suited them — research has demonstrated as much in other workplaces. It’s a cautionary tale for managers: The isolated aren’t sad, they’re cut off. Managers can fix that by integrating remote workers deeper into the organization, despite their distance.

    For instance, managers can bring a list of their remote workers to strategic meetings, annotated with their CliftonStrengths if available, to help the manager’s recall when projects are being planned. That keeps remote workers visible and their advancement, development, and recognition top of mind. Managers can make time with their own managers to specifically discuss the engagement of remote workers and ways to help them learn and grow.

    If remote workers can’t access the materials and equipment they need, managers should work with departments that can solve the problem, such as IT or legal. Cybersecurity can be an obstacle, but tech is increasingly capable of keeping employees in the loop on secure channels. This is a manager’s top priority — having the materials and equipment you need to do your work right is fundamental to engagement.

    And remote workers who simply feel left out can really benefit from being brought in, physically. And as one Gallup manager of remote workers says, there’s always a business case to be made for in-person meetings at HQ, even if the purpose is as much social as practical. Or borrow a page from university alumni chapters’ regional meetups and organize remote-worker get-togethers somewhere central to them. It’s a cost-effective way to keep relationships alive and far-flung teams engaged, as any alumni director can tell you.

    Employee Engagement as an Organizing Principle

    Supporting the unique needs of remote workers may seem like a lot of work for a manager. It can be. Though the best managers are masters of individualization, staying on top of the psychological welfare and work environments of remote employees takes time and concern.

    It helps to use the elements of engagement as an organizing principle. The five conversations that drive performance are oriented toward engagement, and they keep managers focused where their attention most helps performance. Those conversations also give managers time and opportunity to really understand remote employees. To consider their unique contributions. To watch how they like to communicate. To discover how they respond to workplace situations. To understand loneliness when they see it or isolation for what it is.

    When managers can meet the basics needs of engagement, even casual, friendly conversations turn into innovative discussions that help the team and organization thrive. That’s what leaders want from remote workers, of course, and they’re right to worry that loneliness and isolation may get in the way.

    They can — but they don’t have to. Not if managers know the difference between loneliness and isolation and have the tools they need to solve for both.

    Explore more resources for supporting remote workers:

    Adam Hickman, Ph.D., is Content Manager at Gallup. Jennifer Robison contributed to this article.

    Original Article appears here with additional tips: https://www.gallup.com/workplace/268076/manage-loneliness-isolation-remote-workers.aspx?utm_source=workplace-newsletter&utm_medium=email&utm_campaign=WorkplaceNewsletter_March_03172020&utm_content=howtomanageremoteworkers-CTA-3&elqTrackId=d32e757e608e45adb6f99b65dfe34e9e&elq=c7db8c639bfa4d5bbe2551a4f67d607b&elqaid=3589&elqat=1&elqCampaignId=787

  • Letter from the CEO of Korn Ferry: Gary Burnison

      Hello,

    No one thinks much about this leadership quality—until the you-know-what hits the fan.

    It’s crisis management.

    Thankfully, crises are rare occurrences—the black swans of leadership.

    We’ve done nearly 70 million assessments of executives, so we know what makes a great leader—the best-in-class who are among the top 20 percent. Our research shows that three of the four qualities of a great CEO are largely intuitive: (1) sets vision and strategy; (2) drives growth; and (3) displays financial acumen. The fourth, which no one mentions, is managing crises. It’s underappreciated, overlooked, and often not even one of the top requirements—until a crisis hits.

    This is one of those times.
    A month ago, when the stock market was making all-time highs, only the rare few could have predicted universities would close, companies would tell employees to work from home en masse, and the NBA season would abruptly be suspended, followed by museums, cathedrals, and Broadway darkening.

    While it’s natural in uncertain times for people to turn to the leader for definitive answers, sometimes the authentic answer is “I don’t know right now”—quickly followed by, “And here’s what we are going to do.” In a crisis such as today, leaders need a Plan B—and a Plan C and Plan D as well.

    Leaders always deal with ambiguity—it’s timeless and comes with the job. During crises, ambiguity becomes exponential. As fear becomes contagious across organizations, leaders must manage their own responses to ambiguity.

    How do they do that? By following our six steps of leadership:

    Anticipate – predicting what lies ahead
    Navigate – course correcting in real time
    Communicate – continually
    Listen – to what you don’t want to hear
    Learn – learning from experience to apply in the future
    Lead – improve yourself to elevate others Let me provide some color commentary on what leaders can do to put crisis management in action.

    Start at the Bottom of Maslow’s Hierarchy:
    In a crisis, you first need to meet people where they are. Their most basic needs must be met first and they need to feel safe. Naturally, no one is interested in talking about the company’s strategic plan when they are out buying hand sanitizer and toilet paper. Once their essential needs are addressed, then the focus can shift to alignment, common purpose, elevating others and even opportunities for growth.

    Earthquakes and Aftershocks:
    In Los Angeles, where our firm is based, we’re accustomed to earthquakes—knowing that, when one occurs, the aftershocks are coming. In the same way, in a crisis, you have to anticipate the aftershocks—the unintended consequences of the initial shock to the system. Too often, people don’t consider all the possibilities. Anticipation becomes a Monte Carlo simulation in action. For example, what if travel bans expand, commerce slows, or a liquidity crisis develops, etc.? What is the impact on all aspects of my business? What are the implications for all stakeholders—employees, customers, and investors? Strategy is making a bet, and the skill of anticipating improves one’s odds.

    Urgent vs. Important:
    Day to day, leaders face a multitude of issues—both urgent and important. In the normal course of business, I’ve found that many leaders have difficulty distinguishing between the two. When a crisis hits, though, everything blurs as events and their implications constantly change. What’s important often becomes urgent, and the urgent becomes critical. Leaders must delegate the urgent by empowering others to lead around a common purpose.

    Leave No One Behind:
    In a crisis, leaders must connect with, motivate, and inspire others—and show genuine compassion. In the military, for example, leaders put the safety and well-being of others before themselves. I’ve met a number of military leaders who led during periods of conflict, and many have voluntarily told me, “I’ve never lost a soldier.” This reveals a deep mindset of humility and accountability, rather than hubris and bravado.

    Know What to Do When You Don’t Know What to Do:
    There’s nothing like a crisis or a complex problem to accelerate learning. This is learning agility to the “Nth” degree—applying past lessons to new and unfamiliar situations. It really is knowing what to do when you don’t know what to do. In a crisis, this has never been more profound. Amid uncertainty, leaders need to be hyper-focused on past experiences and synthesize and apply them to real-time, fluid conditions. Clarity comes from finding a close comparison. Is it like the Great Recession? The 1987 stock market crash? The outbreaks of SARS or MERS? By running the “unknown” of the current crisis against the “known” of previous ones, leaders gain perspective, identify patterns, connect the dots, and determine appropriate and timely responses. The eventual recovery may be a V or a U or some other alphabet letter, but there will be a new normal—thanks, ultimately, to the scientists, innovators, and dreamers. The natural inclination in a crisis may be to go into command-and-control. That’s not leadership! It’s creating a “bottom-up” culture of world-class observers to accurately perceive today in order to predict tomorrow.

    Regards,  
    Gary Burnison
    Korn Ferry CEO                           

  • The Opposite of Fear

    In uncertain times, the leader is the message, says Korn Ferry CEO Gary Burnison.

    Published: Mar 12, 2020

    When we face fear—whether personally or of the more existential variety— the natural inclination for any of us is to be paralyzed. But taking no action is an action – often, an ill-advised action.

    If knowledge is power, then people need to be empowered by information.

    As a CEO, I’ve always compared the leader’s role to that of a shepherd: occasionally in front, sometimes beside, and often behind. These days, however, the leader must be in front.

    Sharing information is critical, but far less than half the battle. Of course, people need to know about strategy, speed, direction, and results. But it can’t stop there.

    Language is an art to express ideas—but the messenger is the message. “Actions speak louder than words” is true for everyone—and twice as true for leaders. It’s not just what you say, but how you say it. It’s not just what you say, but how you say it.

    Verbally and non-verbally, the way in which communication occurs—humbly, passionately, confidently—has more impact than merely the words chosen. 

    Communication is where leadership lives and breathes. It informs, persuades, guides, assures, and inspires. Here’s how:

    Listen for the truth.
    If leaders want to hear the truth, they must welcome it. That won’t happen, though, unless people feel it’s safe to say what they really think without fear of retribution and not just what they think leadership wants to hear. Leaders need to ensure a culture of world-class observers, where information doesn’t just cascade down—it bubbles up. Observation needs to be a “team sport” as people throughout the organization are empowered to speak up and share their views about what they see. Perspectives will differ, but that only enriches the discussion. And, when perspectives are shared, people learn.

    The information highway.
    Communication is far more than a transmission of information. Communication needs to be the “information highway,” flowing freely in both directions and in every circumstance. Important in good times—crucial in challenging ones.

    More assurance, less authority.
    Communication is connecting and engaging with others. Messages must be delivered frequently and consistently, with candor and honesty. That means speaking with more assurance than authority—and being concerned with tone as well as content. Passionate, confident words motivate. Although information is crucial, if the message lacks authenticity, the team’s follow-through may be lackluster—or even lacking.

    People would rather know the truth.
    In bull markets, people look to the leader for validation. In bear markets, they look to the leader for assurance. When faced with a challenge, people would rather know the truth than dwell in the worst-case scenarios residing in their imaginations. Leaders who don’t communicate will become the subject of others’ communication—and not in a flattering way.

    Beware the vacuum. 
    If not addressed, a lack of information can lead to hazardous uncertainty. People will spend their time speculating, because there’s an information vacuum that needs to be filled. Uncertainty breeds conjecture, escalating fear and causing chaos. No matter how serious the news, people prefer certainty. To predict tomorrow, people have to accurately perceive the reality of today. Then you can plot a course for tomorrow.

    No shortcuts allowed. 
    Communication takes time—and lots of it. The temptation, therefore, is to take shortcuts such as assuming that people already know certain information or else glossing over a message from an employee or passing it along to someone else. Take time to acknowledge messages—and the messengers. Show others that they matter. 

    Remember, for a leader in uncertain times—and, in particular, these times—it’s not simply about staying on message. The leader is the message.

    Original post appears: https://www.kfadvance.com/articles/opposite-of-fear?utm_campaign=WuW-2020-03-14&utm_source=marketo&utm_medium=email&mkt_tok=eyJpIjoiWlRJMk0yRTBZekV6WWpKbSIsInQiOiIyU1lTaFwvYzFkMzZkY0E4SXRCNTgxdWhmMndNQnhUVlwvNWttUWs0bnRBM3VVSWExcEpHRDVrQ2NJdTBIVFFod2RzQWxDT1ltZE9jR1ZUXC9uVldYMzlwSElRMit6VDRiQmw0SjFzd1pzN29IaitxM1wvOU9za2dyRXFSQ1ZjWFFLc0IifQ%3D%3D

    Categories On the Clock

  • Be The Change

    https://www.slideshare.net/meecoinstitute/culture-transformation-are-you-ready

  • If You’re So Smart, Why Aren’t You Rich?

    New research suggests personality has a larger effect on success than IQ.

    How much is a child’s future success determined by innate intelligence? Economist James Heckman says it’s not what people think. He likes to ask educated non-scientists—especially politicians and policy makers—how much of the difference between people’s incomes can be tied to IQ. Most guess around 25 percent, even 50 percent, he says. But the data suggest a much smaller influence: about 1 or 2 percent.

    So if IQ is only a minor factor in success, what is it that separates the low earners from the high ones? Or, as the saying goes: If you’re so smart, why aren’t you rich?

    Science doesn’t have a definitive answer, although luck certainly plays a role. But another key factor is personality, according to a paper Heckman co-authored in the Proceedings of the National Academy of Sciences. He found financial success was correlated with conscientiousness, a personality trait marked by diligence, perseverance and self-discipline.

    To reach that conclusion, he and colleagues examined four different data sets, which, between them, included IQ scores, standardized test results, grades and personality assessments for thousands of people in the U.K., the U.S. and the Netherlands. Some of the data sets followed people over decades, tracking not just income but criminal records, body mass index and self-reported life satisfaction.

    The study found that grades and achievement-test results were markedly better predictors of adult success than raw IQ scores. That might seem surprising—after all, don’t they all measure the same thing? Not quite. Grades reflect not just intelligence but also what Heckman calls “non-cognitive skills,” such as perseverance, good study habits and the ability to collaborate—in other words, conscientiousness. To a lesser extent, the same is true of test scores. Personality counts.

    Heckman, who shared a Nobel Prize in 2000 and is founder of the University of Chicago’s Center for the Economics of Human Development, believes success hinges not just on innate ability but on skills that can be taught. His own research suggests childhood interventions can be helpful, and that conscientiousness is more malleable than IQ. Openness—a broad trait that includes curiosity—is also connected to test scores and grades.

    IQ still matters, of course. Someone with an IQ of 70 isn’t going to be able to do things that are easy for a person with an IQ of 190. But Heckman says many people fail to break into the job market because they lack skills that aren’t measured on intelligence tests. They don’t understand how to behave with courtesy in job interviews. They may show up late or fail to dress properly. Or on the job, they make it obvious they’ll do no more than the minimum, if that.

    John Eric Humphries, a co-author of the paper, says he hoped their work could help clarify the complicated, often misunderstood notion of ability. Even IQ tests, which were designed to assess innate problem-solving capabilities, appear to measure more than just smarts. In a 2011 study, University of Pennsylvania psychologist Angela Duckworth found that IQ scores also reflected test-takers’ motivation and effort. Diligent, motivated kids will work harder to answer tough questions than equally intelligent but lazier ones.

    Teaching personality or character traits in school wouldn’t be easy. For one thing it’s not always clear whether more of a trait is always better. The higher the better for IQ, and perhaps for conscientiousness as well. But personality researchers have suggested the middle ground is best for other traits — you don’t want to be so introverted that you can’t speak up, or so extroverted that you can’t shut up and listen.

    What does any of this have to do with economics? “Our ultimate goal is to improve human well-being,” Heckman says, and a major determinant of well-being comes down to skills.

    A newer study published in the journal Nature Human Behaviour focused on the flip side of success: hardship. After following some 1,000 New Zealanders for more than 30 years, researchers concluded that tests of language, behavioral skills and cognitive abilities taken when children were just three years old could predict who was most likely to need welfare, commit crimes, or become chronically ill.

    The lead author of that paper, Duke University psychologist Terrie Moffitt, says she hopes the results would foster compassion and help, not stigma. Her results also suggested that helping people improve certain kinds of skills before they’re out of diapers would benefit everyone.

    Faye Flam is a Bloomberg Opinion columnist. She has written for the Economist, the New York Times, the Washington Post, Psychology Today, Science and other publications. She has a degree in geophysics from the California Institute of Technology. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. For more columns from Bloomberg Opinion, visit http://www.bloomberg.com/opinion.

  • What High-Performance Workplaces Do Differently

    by Rob DeSimone

    December 12, 2019

    Employees now look to their workplace for purpose and development Companies that create a high-development culture achieve high performance Learn four development strategies to retain your best employees You’ve heard of high-performance workplaces, but how do they become “high-performance”? Gallup has discovered that one of the most important factors in creating a high-performance workplace is instilling a high-development culture: one that values the growth of individuals. Organizations that have made a strategic investment in employee development, Gallup finds, report 11% greater profitability and are twice as likely to retain their employees. It makes sense. High-achieving people (the ones who can grow your company) seek development. And all employees have a psychological need to learn and grow as human beings. Development at work satisfies two of the five essential elements of well being by fulfilling a person’s drive for career and social well being. Having a sense of purpose makes people feel great about what they do at work and helps them enrich and deepen their relationships outside of it.

    Nearly nine in 10 millennials say professional development or career growth opportunities are very important to them in a job. “Career growth opportunities” is the No. 1 reason people give for changing jobs. People need to be connected and involved in their workplace, and they want to be when that workplace offers them not only purpose, but also employee training and development. How to Create a High-Development Culture Perspective Paper Employee Engagement: Maximizing Employee Potential Learn how to build a high-development workplace culture driven by engagement that improves productivity, performance and profitability. Creating a high-development culture means more than adding a few learning programs and development plans to the roster. Here are four strategies that set the highest-performing workplaces apart:

    1. They protect their investment in employee development with a focus on increasing employee engagement. Many leaders fear that they will invest in their employees’ development only to see them walk out the door anyway. This does happen — but the best way to keep it from happening is to secure people’s psychological commitment through an employee engagement strategy. Organizations can foster commitment and improve engagement by meeting employees’ basic needs with clear expectations, sincere recognition, the right materials and equipment — and the rest of the 12 elements we outline in our employee engagement practices. People won’t stay with an organization or perform at their best — even if they’re given lots of development and learning opportunities — if they’re not engaged in their work and committed to the company. Read more about building a high-development culture through employee engagement.

    2. They avoid the most common misunderstanding about development. Companies have typically defined growth and development as a promotion. While effective development may involve a promotion, it doesn’t have to. Often, the employees who are really good at what they’re currently doing don’t necessarily want to be promoted — but they still want growth. From Gallup’s extensive workplace research, development should primarily be: A process of understanding each person’s unique talents (naturally recurring patterns of thought, feeling or behavior that can be productively applied) and finding roles, positions and projects that allow them to combine their talents and abilities with experiences to build strengths (the ability to consistently provide near-perfect performance in a specific activity). Giving people the opportunity to understand themselves, develop what they’re good at and use their strengths every day at work can be more fulfilling than a new title for most of your employees. Gallup research shows that when employees know and use their strengths, they are more engaged (nearly six times more), have higher performance and are much less likely to leave their company. NEW BOOK It’s the Manager Learn why the manager is key to every aspect of your workplace.

    3. Their managers are highly involved in the development of individuals — they act as coaches, not bosses. The manager is the vessel that makes culture change and engagement a reality. Managers are closer than HR or leadership to employees’ daily realities, so they’re more likely to understand how to develop employees and engage them. And since people are more likely to learn and grow when they receive immediate feedback that is specific and targeted to their development, managers become the perfect people to coach employees and link them to practical learning and action. Learn more about the importance of the manager in employee development.

    4. Their leadership owns the culture change (not HR alone). Culture change does not happen through all-hands meetings, emails, newsletters and strategy retreats. Consistent communication does help. But the fundamental driver of culture change is commitment from leadership to high-performance workplace practices that is backed by their actions. When C-level officers model a focus on development and put resources toward it, managers and employees will begin to mimic that focus on their own. This behavior change is foundational to making culture change stick. The Best Employees Will Always Seek Development A focus on developing people has the potential to outperform practices like Six Sigma in creating organic growth for companies. High-achieving employees continuously seek purpose and development — so if they’re engaged at your company and you provide those growth and development opportunities, they won’t have a reason to leave, and you’ll attract even more top talent. It’s a powerful opportunity for companies to capture the loyalty of hardworking employees who want to invest in their future and the future of your business. Start creating a high-development culture today: Download our latest perspective paper, Building a High-Development Culture Through Your Employee Engagement Strategy. Learn what Gallup recommends for a transformative learning and development strategy for your company. Get our bestselling book, It’s the Manager, to learn more about how managers play a key role in creating your ideal culture. Rob DeSimone is a Gallup Consultant based in Washington, D.C. Jessica Buono contributed to this article. Related Topics Include: Article CliftonStrengths Culture Development Employee Engagement Leadership Learning & Development Millennials Performance Management Profitability Retention Workplace Gallup at Work Newsletter Get the insights you need to create an exceptional workplace. Subscribe to the Gallup at Work newsletter to get our latest articles, analytics and advice. * Email Address * Country or Region I’d also like to be among the first to know about new Gallup offerings and services. I understand that I may unsubscribe from these offerings at any time. Recommended

    Original article appears here: https://www.gallup.com/workplace/269405/high-performance-workplaces-differently.aspx?utm_source=workplace-newsletter&utm_medium=email&utm_campaign=WorkplaceNewsletter_Jan_01212020&utm_content=whattheydodifferently-CTA-1&elqTrackId=d70ff841135e453c850d4e8572f3becd&elq=88f3f8febfec49ed937b26c4fb54216d&elqaid=3132&elqat=1&elqCampaignId=696

  • The Human Skills We Need For An Unpredictable World

    The more we rely on technology to make us efficient, the fewer skills we have to confront the unexpected, says writer and entrepreneur Margaret Heffernan. She shares why we need less tech and more messy human skills — imagination, humility, bravery — to solve problems in an unpredictable age. “We are brave enough to invent things we’ve never seen before,” she says. “We can make any future we choose.”

    Original article appears in: TED Talks Ideas worth spreading: https://www.ted.com/talks/margaret_heffernan_the_human_skills_we_need_in_an_unpredictable_world/transcript?utm_source=newsletter_weekly_2019-08-02&utm_campaign=newsletter_weekly&utm_medium=email&utm_content=top_left_button#t-4855