Several years ago Ken Blanchard, author of The One Minute Manager, said, “People who feel good about themselves produce good results.” He suggested managers could help employees feel good about themselves by catching them doing things right.
I’d like to suggest they can make employees feel even better (and produce much more) by helping them to feel loved. Here are four ways we can show people they are loved:
First, as managers we should Listen unconditionally. We need to clear our minds of any judgments or preconceived notions we may have about the person or their ideas. We need to hear them out fully before drawing conclusions or taking action. And, if we disagree, we should teach them instead of reprimand.
Second, we need to Overlook flaws and faults. We need to look for the good in people. Most people only see the exceptions, the discrepancies, the negatives. It is much more difficult to notice the every day or routine successes people experience. We take for granted their good performance and only point out the bad. We need to “catch people doing things right.”
Next we should Voice our approval regularly. People want to be acknowledged. They need recognition. They want to know they are valued and appreciated for what they do. No matter how long we’ve worked for a company or how old we become, we still covet the approval of our boss, our peers, our friends, and, yes, even our mothers. It motivates us and makes us feel good when we know our actions meet the approval of others.
Finally, we need to Extend ourselves by spending time and showing interest. There is no greater motivator of people, whether workers or our children, than to spend quality time with them.
The best management tool a manager can have is to get out among the workers. Go to where they are. Talk on their level. Show interest in what they are doing and how they do it. Find out what is important to them and take a genuine interest in it. Ask meaningful questions. Listen to the answers and respond appropriately. Focus on them. Don’t have somewhere else you need to go. Nothing you could do is more important than talking to your employees. Show them how much you really L.O.V.E. them.
Thursday, August 20, 2009
EGO Keeps Some People from Being Good Managers
Perhaps one of the saddest experiences in the work place is to see a manager or employee who is so intelligent and who has so much potential, yet their personality gets in the way of true success.
Unfortunately almost everyone at some time in their career has come into contact with bosses or colleagues whose inflated ego limited their potential. Sadly, most ego-centric people don’t see how their ego inhibits their progress. Egotists usually think someone else is at fault.
People with strong egos usually are self-centered, self-absorbed, and me-focused. They believe their ideas or opinions are more valid, more important, or superior to those of others. They turn to themselves for answers, rather than seeking input from those around them.
It’s easy to tell who has an ego problem. Egotists are those who Edge the Group Out. They project an image that they can do things on their own. They don’t need others. They act as if they are smart enough, good enough, or strong enough to solve any problem or conquer any challenge on their own. When others try to interject their ideas or offer to help, the egotist rejects or devalues the gesture. The egotist wrongly believes his or her own intelligence is greater than the collective intelligence of the group.
You can check the strength of your own ego by assessing the level of trust, respect and confidence you have in those with whom you work. The higher the trust and respect you feel for others, the lower your ego.
Unfortunately almost everyone at some time in their career has come into contact with bosses or colleagues whose inflated ego limited their potential. Sadly, most ego-centric people don’t see how their ego inhibits their progress. Egotists usually think someone else is at fault.
People with strong egos usually are self-centered, self-absorbed, and me-focused. They believe their ideas or opinions are more valid, more important, or superior to those of others. They turn to themselves for answers, rather than seeking input from those around them.
It’s easy to tell who has an ego problem. Egotists are those who Edge the Group Out. They project an image that they can do things on their own. They don’t need others. They act as if they are smart enough, good enough, or strong enough to solve any problem or conquer any challenge on their own. When others try to interject their ideas or offer to help, the egotist rejects or devalues the gesture. The egotist wrongly believes his or her own intelligence is greater than the collective intelligence of the group.
You can check the strength of your own ego by assessing the level of trust, respect and confidence you have in those with whom you work. The higher the trust and respect you feel for others, the lower your ego.
How to Get Employees to Commit to Your Company's Values
Emotional intelligence means there is value in being an “emotional” manager
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Several weeks ago I had lunch with the Senior Vice President of Human Resources from a large Las Vegas Strip casino. She shared with me the concerns of the casino’s CEO who lamented that too many of the company’s managers had not internalized or actualized the company’s stated values.
The CEO said many managers seemed to understand the company values intellectually, but they don’t get them emotionally.
“How do you get people to internalize the company values?” the HR professional asked. This led to a deep, profound discussion about what companies can do to help their managers “get it.”
In our discussion we first explored the differences between intellectually understanding something and emotionally, or internally, understanding it.
INTELLECTUAL UNDERSTANDING
Managers who intellectually understand a company’s values generally can grasp the actions or behaviors that ought to correspond to the stated company values. However, they tend to view these behaviors as a list of do’s and don'ts of appropriate or inappropriate behaviors. They judge their own and others’ actions as either right or wrong. Things are black or white. They are either in harmony with the values or they are contrary to the values.
Those who rely on an intellectual understanding of the stated values usually desire clarity in direction and expectations so they’ll know how to focus their actions. They want policies and procedures that tell people exactly what to do and how to act. They prefer consistent enforcement of rules to ensure everyone behaves appropriately.
Managers who intellectually live the company’s values get out on the shop floor or solicit employee input because they know they should — not because they want to. They know certain managerial behaviors will promote the desired employee performance, so they use these learned techniques as a means to an end. Many intellectual managers tenaciously read the latest management books looking for new techniques to motivate their employees. When intellectual managers attend training they want specific “how to’s.” They get frustrated with ethereal philosophical discussions about management principles. They particularly get turned off by suggestions that they manage from the heart, rather than the head.
EMOTIONAL UNDERSTANDING
Managers who emotionally understand the company’s values do so because they know those values are right. They feel the values deep within their soul. They believe in them. The values are a part of who they are; and they live them.
Values to the emotional manager are not “stated” values; they are real. They are meaningful because they are viewed as universal “truths,” rather than managerial techniques.
Emotional managers talk to their employees and respond to their ideas because they value the input. Employee involvement is an end, not a means. These managers show respect to employees because they actually respect them. This leads to a true bond and real rapport between the manager and the employees.
Managers who internally “get it” manage from the heart, not by the book; because the book by nature is too general and doesn’t trust the manager’s judgment.
Emotional managers are situational managers. They take into consideration extenuating conditions and circumstances. They judge by people, not by policies. Consistency is less important to an emotional manager than fairness.
Emotional managers only appear ambiguous to intellectual managers. Employees of value-based managers have no problem seeing consistency in the manager’s actions, since these managers seldom violate their values.
Emotional managers are not swayed by the latest management theories. They stick to the core practices of open communication, working shoulder to shoulder with their employees, and promoting a positive work environment. They show genuine concern for their employees. And employees can tell it comes from the manger’s heart.
DISCERNING THE TYPE OF MANAGER
It’s not difficult to discern the intellectual manager from the emotional manager. You can feel the difference.
Intellectual managers seem distant and detached from their employees. Although they may do the right things, one can sense that the actions are planned or programmed, rather than felt. When challenged or stressed by business pressures, intellectual managers tend to become irritable or angry. When faced with declining profits or failing performance, they emotionally distance themselves from their employees. Their anger causes them to blame the employees for the failure and often leads them to use scare tactics or intimidation to try to turn the situation around. When the world is dark, they think adding more darkness will brighten up the room.
Emotional managers realize even a flicker of light, no matter how small, offers hope. They instinctively know positive results cannot be achieved by negative means. They focus on the good, discerning that one beam can light other beams until the whole room is transformed from darkness into light.
Emotional managers move toward their employees in troubled times. They trust the collective intelligence of the workers rather than bearing the burden alone. Instead of blaming the employees for problems, they enlist the employees in finding a solution.
One can sense the genuine concern, and even love, of an emotional manager. They manage with care and compassion. They feel close to their employees and have a “spirit” about them that draws employees toward them. Those who serve under or work with emotional managers can feel the dedication and commitment of the manager; and they, likewise, dedicate and commit themselves in return.
---------
Several weeks ago I had lunch with the Senior Vice President of Human Resources from a large Las Vegas Strip casino. She shared with me the concerns of the casino’s CEO who lamented that too many of the company’s managers had not internalized or actualized the company’s stated values.
The CEO said many managers seemed to understand the company values intellectually, but they don’t get them emotionally.
“How do you get people to internalize the company values?” the HR professional asked. This led to a deep, profound discussion about what companies can do to help their managers “get it.”
In our discussion we first explored the differences between intellectually understanding something and emotionally, or internally, understanding it.
INTELLECTUAL UNDERSTANDING
Managers who intellectually understand a company’s values generally can grasp the actions or behaviors that ought to correspond to the stated company values. However, they tend to view these behaviors as a list of do’s and don'ts of appropriate or inappropriate behaviors. They judge their own and others’ actions as either right or wrong. Things are black or white. They are either in harmony with the values or they are contrary to the values.
Those who rely on an intellectual understanding of the stated values usually desire clarity in direction and expectations so they’ll know how to focus their actions. They want policies and procedures that tell people exactly what to do and how to act. They prefer consistent enforcement of rules to ensure everyone behaves appropriately.
Managers who intellectually live the company’s values get out on the shop floor or solicit employee input because they know they should — not because they want to. They know certain managerial behaviors will promote the desired employee performance, so they use these learned techniques as a means to an end. Many intellectual managers tenaciously read the latest management books looking for new techniques to motivate their employees. When intellectual managers attend training they want specific “how to’s.” They get frustrated with ethereal philosophical discussions about management principles. They particularly get turned off by suggestions that they manage from the heart, rather than the head.
EMOTIONAL UNDERSTANDING
Managers who emotionally understand the company’s values do so because they know those values are right. They feel the values deep within their soul. They believe in them. The values are a part of who they are; and they live them.
Values to the emotional manager are not “stated” values; they are real. They are meaningful because they are viewed as universal “truths,” rather than managerial techniques.
Emotional managers talk to their employees and respond to their ideas because they value the input. Employee involvement is an end, not a means. These managers show respect to employees because they actually respect them. This leads to a true bond and real rapport between the manager and the employees.
Managers who internally “get it” manage from the heart, not by the book; because the book by nature is too general and doesn’t trust the manager’s judgment.
Emotional managers are situational managers. They take into consideration extenuating conditions and circumstances. They judge by people, not by policies. Consistency is less important to an emotional manager than fairness.
Emotional managers only appear ambiguous to intellectual managers. Employees of value-based managers have no problem seeing consistency in the manager’s actions, since these managers seldom violate their values.
Emotional managers are not swayed by the latest management theories. They stick to the core practices of open communication, working shoulder to shoulder with their employees, and promoting a positive work environment. They show genuine concern for their employees. And employees can tell it comes from the manger’s heart.
DISCERNING THE TYPE OF MANAGER
It’s not difficult to discern the intellectual manager from the emotional manager. You can feel the difference.
Intellectual managers seem distant and detached from their employees. Although they may do the right things, one can sense that the actions are planned or programmed, rather than felt. When challenged or stressed by business pressures, intellectual managers tend to become irritable or angry. When faced with declining profits or failing performance, they emotionally distance themselves from their employees. Their anger causes them to blame the employees for the failure and often leads them to use scare tactics or intimidation to try to turn the situation around. When the world is dark, they think adding more darkness will brighten up the room.
Emotional managers realize even a flicker of light, no matter how small, offers hope. They instinctively know positive results cannot be achieved by negative means. They focus on the good, discerning that one beam can light other beams until the whole room is transformed from darkness into light.
Emotional managers move toward their employees in troubled times. They trust the collective intelligence of the workers rather than bearing the burden alone. Instead of blaming the employees for problems, they enlist the employees in finding a solution.
One can sense the genuine concern, and even love, of an emotional manager. They manage with care and compassion. They feel close to their employees and have a “spirit” about them that draws employees toward them. Those who serve under or work with emotional managers can feel the dedication and commitment of the manager; and they, likewise, dedicate and commit themselves in return.
Wednesday, August 19, 2009
My Book, For Sale on the Internet
I'm pleased to announce my book, Stepping Forward Together: How to Create Trust and Commitment in the Workplace, is now for sale directly on Innovative Management Group's website at www.imglv.com. The book can be purchased for $24.95 plus $5.00 shipping and handling.
Recently a company executive told me the book was "one of the top ten business books I've ever read." Another company Chief Executive Officer placed the book at the top of his list of management books. It is an easy read with management concepts that every manager can quickly learn and apply in the workplace.
The book provides a step-by-step guide for motivating employees within your company to work together as a team. It shows how to gain the full commitment of your staff to achieve common goals. It walks you through my patented LADDER OF COMMITMENT model, which shows the process people go through before they will commit to course of action, individual or entity. It explains the seven things that matter most in business and describes how to develop mutual and reciprocal trust, respect, confidence and support at every level of your organization.
One manager, who has used the book as a key management tool in his department, said: "The synergy that has resulted in my management team by climbing the Ladder of Commitment together has helped us maintain our focus and momentum during tumultuous times in our industry. Our whole company would benefit from the content of this book."
For more information about the book, please visit Innovative Management Group's website at www.imglv.com.
How to Create Trust and Commitment in the Workplace
Perhaps one of the greatest challenges in the workplace today, particularly in a down economy, is maintaining the trust and commitment of your employees. Workers have become increasingly cynical and no longer believe management has their best interests at heart. The greed and mismanagement of top American firms has caused many employees to turn inward in an ever stronger resolve to “look out for number one.” Teamwork in America has dissolved as companies and individuals hunker down rather than stepping forward together to ensure their company’s long-term profitability and growth.
Never before has there been a greater need for people to work together as a team to resolve the problems in the workplace. Now, more than ever, managers must reverse the “every-man-for-himself” trend and unite the team around a common goal. The fastest way to do this is to understand the process people go though internally before they will commit to a specific action, person or entity. By knowing the steps of the commitment process, you can accelerate that process and quickly reacquire the loyalty and commitment of your workforce.
Many years ago I developed a model, called the LADDER OF COMMITMENT®, that explains how to build trust and commitment in the workplace.
The commitment process is depicted as a ladder because people have to climb up to “commitment.” Unfortunately, people do not start out committed in any element of life, although it may appear otherwise on the surface. For example, even though one might expect a new employee to be committed to a job he or she willingly accepted when hired, this usually is not the case. Commitment is not automatic. Most people are reluctant to commit themselves to a task until they fully understand it. Typically, people do not openly share their opinions or ideas at work until they’ve assessed whether or not it is safe to do so. New employees invariably hold back until they’ve achieved a level of comfort and confidence before they completely commit themselves to an organization or process. This initial hesitancy to commit, signals the employee is in the CLOSED area at the bottom of the ladder.
Similarly, although newlywed couples make vows of commitment at the altar when they get married, the fact that 52% of marriages in the United States end in divorce shows vows of commitment are a far cry from true commitment, just as accepting a new job doesn’t mean the worker is willing to do that job. Newlywed couples and new employees start at the same place in the commitment process – a state of “hope” where one hopes the marriage or the new job will work out.
To become truly committed one must climb the Ladder of Commitment and go through each successive rung on the Ladder. Deep, lasting commitment only results when relationships have been solidified as one climbs up the Ladder.
The most vital step in the commitment process is to get people out of their “Closed” posture and up to the OPEN rung on the Ladder. The most successful companies are those that have a culture of open communication between their managers and employees. Successful companies do not leave communication to chance or assume effective communication has occurred. They ensure every employee has the information needed to succeed at work. Successful companies over-communicate. They use several different modes and methods to get their message out. They know the decisions made in the workplace are only as good as the information from which those decisions are made.
For effective communication to occur, people must be willing to speak openly. The strongest determining factor of whether someone will open up is the reaction they get once they do. If the reaction is positive, they’ll be more inclined to speak openly again. However, if the reaction is negative, most people will close down. Extreme negative reactions to employee input can cause workers to permanently close down.
Employee performance is strongly tied to the reactions employee’s experience in the workplace. Positive reactions typically generate positive results, causing employees to open up. Negative reactions produce negative results, causing employees to close down. Consequently, you need to realize that most of what a manager does is manage reactions. If you want your employees to become committed, you need to control the negative reactions in the workplace that cause people to close down.
The first, and most important, reactions you have to manage are your own. If you react poorly to what you perceive to be stupid or silly ideas or comments from your employees – and cause the employees to close down because of your reaction – you may never hear their good ideas or comments later as they keep their thoughts to themselves.
As a manager you also have to control the reactions of others. You must manage the reactions of your employees. Employees often react poorly toward the customers or toward their fellow employees, causing those people to close down. Customers, too, can react poorly, causing employees to close down. You may even have to control the reactions of your boss, whose reactions often trickle down and stifle the commitment of the workforce.
Open communication occurs when managers and employees react well to each others' input, ideas, and perspectives. Department cooperation and coordination is most effective when people learn not to over-react to departmental requests or procedural requirements.
Once reactions are under control and people have moved into the “Open,” there are specific and important things that must be discussed in the Open area. To achieve high levels of understanding and commitment, employees need complete information about what is required of them. They need to know what the goals of their tasks are and why they are important. They also need a clear understanding of their role, what the expectations are of them, their authority level, and the boundaries in which they must perform their tasks. Additionally they require regular, honest, helpful feedback that recognizes their accomplishments or provides constructive coaching when improvement is needed.
Companies that communicate effectively usually are more likely to develop working relationships among their staff that are infused with TRUST, RESPECT and CONFIDENCE. The trust, respect and confidence rung of the ladder is where real progress is made in a company. Tremendous levels of production can be achieved in organizations where management trusts the employees and the employees trust management. When management respects the opinions, ideas, decisions and judgments of the employees and the employees feel likewise toward management, wonderful things happen. People confidently go about their tasks without fear or concern over the political machinations that take up far too much energy and time in many organizations. They also are more inclined to take risks or think outside of the box in order to improve their part of the business.
More importantly, people who trust, respect, and have confidence in others are supportive of those people. The tangible indicator of whether or not an organization has a culture replete with trust, respect and confidence is witnessed by the level of support one can sense throughout the organization. This is denoted in how management supports the employees, how the employees support management, how employees support each other, and the evidence of support between departments.
When people trust, respect, have confidence in, and are supportive of one another; it is easy for them to BELIEVE each other. It is easy to accept input or feedback from others, even feedback of a personal nature, when they believe the person delivering the feedback is interested in a common good. Likewise, when those in the business are at a level of belief, it is easy to respond favorably to changes that may come along within the organization because people know the changes are necessary to the success of the business.
Once people step up to the Belief rung on the ladder, COMMITMENT usually follows. The difference between belief and commitment is what a committed person does with, or because of, their belief. Committed people sink their whole heart and soul into what they believe. They offer their time, talents, resources, energy and anything else required to succeed for that to which they are committed.
Unfortunately, real commitment in too many organizations seldom occurs because the company never rises to the level where the employees believe management or where management believes the employees. The reason for this lack of belief is because neither party trusts, respects or has confidence in the other. The trust, respect, and confidence is missing because they have not spent the time openly communicating about the things that matter most in the company. Sadly, closed organizations may get employees to comply when directed by management to perform a task, but compliance doesn’t equate to commitment.
Companies that actively encourage their employees to honestly and openly communicate up and down the ranks will find their employees to be more enthusiastically committed to performing their tasks at expected levels.
----------
You can purchase my book, "Stepping Forward Together: Creating Trust and Commitment in the Workplace", on my website (www.imglv.com) for $24.95 plus S&H.
Never before has there been a greater need for people to work together as a team to resolve the problems in the workplace. Now, more than ever, managers must reverse the “every-man-for-himself” trend and unite the team around a common goal. The fastest way to do this is to understand the process people go though internally before they will commit to a specific action, person or entity. By knowing the steps of the commitment process, you can accelerate that process and quickly reacquire the loyalty and commitment of your workforce.
Many years ago I developed a model, called the LADDER OF COMMITMENT®, that explains how to build trust and commitment in the workplace.
The commitment process is depicted as a ladder because people have to climb up to “commitment.” Unfortunately, people do not start out committed in any element of life, although it may appear otherwise on the surface. For example, even though one might expect a new employee to be committed to a job he or she willingly accepted when hired, this usually is not the case. Commitment is not automatic. Most people are reluctant to commit themselves to a task until they fully understand it. Typically, people do not openly share their opinions or ideas at work until they’ve assessed whether or not it is safe to do so. New employees invariably hold back until they’ve achieved a level of comfort and confidence before they completely commit themselves to an organization or process. This initial hesitancy to commit, signals the employee is in the CLOSED area at the bottom of the ladder.
Similarly, although newlywed couples make vows of commitment at the altar when they get married, the fact that 52% of marriages in the United States end in divorce shows vows of commitment are a far cry from true commitment, just as accepting a new job doesn’t mean the worker is willing to do that job. Newlywed couples and new employees start at the same place in the commitment process – a state of “hope” where one hopes the marriage or the new job will work out.
To become truly committed one must climb the Ladder of Commitment and go through each successive rung on the Ladder. Deep, lasting commitment only results when relationships have been solidified as one climbs up the Ladder.
The most vital step in the commitment process is to get people out of their “Closed” posture and up to the OPEN rung on the Ladder. The most successful companies are those that have a culture of open communication between their managers and employees. Successful companies do not leave communication to chance or assume effective communication has occurred. They ensure every employee has the information needed to succeed at work. Successful companies over-communicate. They use several different modes and methods to get their message out. They know the decisions made in the workplace are only as good as the information from which those decisions are made.
For effective communication to occur, people must be willing to speak openly. The strongest determining factor of whether someone will open up is the reaction they get once they do. If the reaction is positive, they’ll be more inclined to speak openly again. However, if the reaction is negative, most people will close down. Extreme negative reactions to employee input can cause workers to permanently close down.
Employee performance is strongly tied to the reactions employee’s experience in the workplace. Positive reactions typically generate positive results, causing employees to open up. Negative reactions produce negative results, causing employees to close down. Consequently, you need to realize that most of what a manager does is manage reactions. If you want your employees to become committed, you need to control the negative reactions in the workplace that cause people to close down.
The first, and most important, reactions you have to manage are your own. If you react poorly to what you perceive to be stupid or silly ideas or comments from your employees – and cause the employees to close down because of your reaction – you may never hear their good ideas or comments later as they keep their thoughts to themselves.
As a manager you also have to control the reactions of others. You must manage the reactions of your employees. Employees often react poorly toward the customers or toward their fellow employees, causing those people to close down. Customers, too, can react poorly, causing employees to close down. You may even have to control the reactions of your boss, whose reactions often trickle down and stifle the commitment of the workforce.
Open communication occurs when managers and employees react well to each others' input, ideas, and perspectives. Department cooperation and coordination is most effective when people learn not to over-react to departmental requests or procedural requirements.
Once reactions are under control and people have moved into the “Open,” there are specific and important things that must be discussed in the Open area. To achieve high levels of understanding and commitment, employees need complete information about what is required of them. They need to know what the goals of their tasks are and why they are important. They also need a clear understanding of their role, what the expectations are of them, their authority level, and the boundaries in which they must perform their tasks. Additionally they require regular, honest, helpful feedback that recognizes their accomplishments or provides constructive coaching when improvement is needed.
Companies that communicate effectively usually are more likely to develop working relationships among their staff that are infused with TRUST, RESPECT and CONFIDENCE. The trust, respect and confidence rung of the ladder is where real progress is made in a company. Tremendous levels of production can be achieved in organizations where management trusts the employees and the employees trust management. When management respects the opinions, ideas, decisions and judgments of the employees and the employees feel likewise toward management, wonderful things happen. People confidently go about their tasks without fear or concern over the political machinations that take up far too much energy and time in many organizations. They also are more inclined to take risks or think outside of the box in order to improve their part of the business.
More importantly, people who trust, respect, and have confidence in others are supportive of those people. The tangible indicator of whether or not an organization has a culture replete with trust, respect and confidence is witnessed by the level of support one can sense throughout the organization. This is denoted in how management supports the employees, how the employees support management, how employees support each other, and the evidence of support between departments.
When people trust, respect, have confidence in, and are supportive of one another; it is easy for them to BELIEVE each other. It is easy to accept input or feedback from others, even feedback of a personal nature, when they believe the person delivering the feedback is interested in a common good. Likewise, when those in the business are at a level of belief, it is easy to respond favorably to changes that may come along within the organization because people know the changes are necessary to the success of the business.
Once people step up to the Belief rung on the ladder, COMMITMENT usually follows. The difference between belief and commitment is what a committed person does with, or because of, their belief. Committed people sink their whole heart and soul into what they believe. They offer their time, talents, resources, energy and anything else required to succeed for that to which they are committed.
Unfortunately, real commitment in too many organizations seldom occurs because the company never rises to the level where the employees believe management or where management believes the employees. The reason for this lack of belief is because neither party trusts, respects or has confidence in the other. The trust, respect, and confidence is missing because they have not spent the time openly communicating about the things that matter most in the company. Sadly, closed organizations may get employees to comply when directed by management to perform a task, but compliance doesn’t equate to commitment.
Companies that actively encourage their employees to honestly and openly communicate up and down the ranks will find their employees to be more enthusiastically committed to performing their tasks at expected levels.
----------
You can purchase my book, "Stepping Forward Together: Creating Trust and Commitment in the Workplace", on my website (www.imglv.com) for $24.95 plus S&H.
How to Regain the Commitment of Your Employees After a Merger or Acquisition
More and more we see companies using mergers and acquisitions as their primary growth strategy. This is a fast and effective way to boost sales volume or gain market share. Difficulties can arise, however, as the parent company tries to bring the newly acquired business into the corporate family.
Many books and articles have been written offering insight into how to mesh divergent cultures of merging companies. These literary works often provide very precise transition plans that outline the steps a company can take to achieve the synergistic goals sought in the acquisition.
Often overlooked in these comprehensive plans is the criticality of the first communication the parent company has with the employees of the acquired business. This initial contact is crucial to getting employees to transfer their commitment from the previous owner to the new parent company. Wise companies plan their employee communication strategies very carefully. They know how important these messages are to the ultimate success of the acquisition.
Once a takeover has been announced at the acquired company, the employees immediately start looking for subtle signals that will alert them to what the parent company is all about. Sensory acuity is greatly enhanced in the early months of a takeover. Everyone raises their antenna to pick up whatever message one can. Employees are hyper-sensitive to every nuance and change. The imaginations of some workers go into overdrive. Everything the parent company does communicates. Every action and comment has meaning. Employees pay close attention to what is being said and, perhaps more importantly, what is not being said.
During the initial stage of an acquisition the employees are watching you carefully. How you come across and what you say in these early moments establishes almost irreversible impressions in the minds of the employees. The first interaction you have with these new employees sets the stage for future interactions. This meeting establishes who you are, how you will operate, and how people should deal with you and your company on an on-going basis. It sets a precedent for the future.
Takeover companies typically are hesitant to share certain information with newly acquired employees, particularly if the information is of a negative nature. But people expect you to bring up all relevant issues in a straightforward manner, especially any negatives that might impact the employees directly. Avoiding these issues sends a message that either the issues are not important or, worse yet, the employees themselves are not important enough for you to share information with them. The absolute worst thing you can do in the early stage of an acquisition is to send a message to new employees they are not important.
One critical thing to remember throughout the acquisition is that when people lack real data, they make up their own. Usually what people make up is far worse than reality. You can stop the rumor-mills that typically run rampant during mergers by being up front with the employees.
There are three crucial objectives you should have for your initial communication with employees of an acquired company.
First, you should do everything you can to mitigate the usual fears employees have when an organization is in transition.
Second, you should view this initial contact as one of your best opportunities to build rapport with your new workers.
Finally, your message should be formulated and presented so well it focuses the energy and effort of the employees where you want it – on the customers -- rather than on the company. What you say must eliminate from the employees all doubt, worry, gossip, wondering, and hesitancy. At the conclusion of your message you want the workers worrying about their work, not worrying about their jobs or their employer. To do this you must understand the psyche of the employees and address the concerns they worry about the most during a takeover.
Invariably there are four predictable questions employees will have during an acquisition or merger. Although the specific verbiage of the questions highlighted here may not be exactly how the employees would articulate their concerns, the answers to these questions will address most of the issues the employees will be wondering about. When you know these questions in advance you can target your communication to address the employees’ concerns before they come up. This in turn shows the workers you are empathetic to their needs, thereby building rapport between you and them.
VISION OF THE FUTURE
The first concern employees have after an acquisition is: What Does the Future Look Like?
In a takeover the future is unknown. People generally are afraid of the unknown. To alleviate their own fears, the acquired employees will latch on to any information they can about the parent company’s future plans for the acquired business. This is why rumors run rampant during a takeover. It is the natural human need for information – any information – even if it is false. Acquired employees will remain fearful about the future until they have information that will assuage their fears.
The primary objective for your initial communication at an acquired business is to instill within the employees confidence in the future viability of the business, particularly their business as currently constituted.
Before addressing the employees you should have a clear vision of where you want to take the acquired company. Leaders who possess and can communicate a confident view of the future can infuse confidence within the new employees by sharing their vision. Employees are more apt to follow those leaders who have a clear view of what the future entails.
Tell people your vision for the company. Help them to clearly see the future themselves. Let employees know what they can expect to see and experience in the months ahead. Explain what changes or non-changes the company anticipates over the next one, three, six or twelve months. Share your plans. Be as open, specific and precise as possible. Any hesitancy or waffling from you will damage the confidence and commitment you will receive from the employees.
Some of the topics you should address in your communication are outlined below. You specifically should highlight any changes or alterations to what the employees are currently used to. This includes such things as the following:
• The current product mix and how these products are offered or delivered. Employees are very protective of products they perceive to be linked to their job security. They normally will be receptive to renovations, improvements or upgrades to the organization, but less enthralled by talk of eliminating a product or a particular business line. Downsizing or significantly altering the company’s product mix often translates to the employees as a downsizing of the organization.
• The current customer mix and who currently is viewed as targeted customers. Changes in the type of customer the company is targeting may signal to employees possible changes in the quality or quantity of the performance required of them.
• The current competitive strategies and who currently is viewed as primary competitors. A shift in competitive focus may indicate either an upgrading or down-grading of the products the company offers. This in turn may signal either a raising or lowering of performance standards.
• The current marketing strategies and tactics. Employees on the front-line are very interested in the acquiring company’s marketing philosophy. They want to know how committed the parent company is to growing and expanding the current enterprise. Perhaps this, more than anything else, tells the employees whether or not there will be future job security at the company.
• The current economic expectations for the business. Employees want to know what economic pressure the new company will put on the enterprise and how it will affect current production and cost containment strategies. This, of course, will signal what pressure will be placed on the employees themselves.
• The current manner in which the business is being run. This includes the operating style and business practices within the parent company. Workers usually are comfortable with their daily routine. They want to know what policy, procedure or process changes the parent company will implement after the takeover. This will tell them the degree to which their worklife will change in the future.
Employees also have a lot of questions about the management philosophies and practices of the parent company. They may not feel comfortable expressing their concerns about these issues, but you can be assured they are wondering what it will be like to work within the new company.
The items mentioned in the bullets above can be categorized as “we” issues. They deal with what “we” as a company are going to do to ensure the future success of the business. However, the concerns expressed in the next series of bullets revolve around the “me” issues employees typically have in an acquisition. They deal with how the new company will treat “me” or what the company expects from “me” as an employee. Wise leaders will be well-prepared with their answers to all of these questions. They will answer them before the employees bring them up.
Workers at an acquired company want to know:
• The history of the parent company and what growth opportunities this offers for the acquired employees. They are particularly interested in any career opportunities that are now opened to them because of their association with the parent company.
• The vision, values and guiding principles by which the parent company operates. These qualities explain a great deal of what might be expected of the employees by the parent company. They also give an indication of the quality of worklife in the new organization.
• The overarching emphasis or driving focus of the company (i.e., emphasis on profits, emphasis on customers, emphasis on employees, etc.) This may or may not indicate a significant shift in focus or change in culture for the employees.
• The cultural norms and mores of the company. These are the subtle, and sometimes not so subtle, tangible and intangible things that express most to employees what it is like to work for the acquiring company.
• The management style of the company and how management typically interacts with the employees. Again, this is a great indicator of whether or not a person would want to work for the parent company.
MY PLACE IN THE NEW COMPANY
After you have shown the employees what the future looks like, the next thing people want to know is: Is there a place for me in the new company? In other words, now that you’ve explained what the future looks like, employees want to know if they are in that future.
Your answers to the issues outlined in the bullets above will help the employees decide whether or not they want to work for the new company. Your answer to this second question tells the workers whether or not there will be a position for them in the new company.
People need to know if their position is secure or if they should start looking for another job. They also want to know if the new company is the type of company that looks out for the interests of its employees.
No doubt these are the most important concerns to the employees. They want to know about your human resource and labor relation philosophies. They are very interested in your compensation practices and your benefit packages, particularly how your benefits compare to what they have had in the past. They want to know what orientation, training, and developmental opportunities you will provide them. They seek information concerning how they will be recognized and rewarded for their work and whether there will be career development opportunities for them in the future.
Even more important, however, they want to know if they will have a job in the future. They listen for clues that express what your attitude is toward the current employees of the company. Will you bring in your own leadership team? Will you get rid of any of the current management? (This could either be viewed negatively or positively depending on the employees’ perspective of the current managers in the organization.) Will you alter the mix of employees or do anything that might jeopardize a person’s job.
Employees want to know whether or not there will be any downsizing or elimination of jobs in the organization. Does the company anticipate combining or eliminating any functions? Will the company reduce any positions to part-time that are currently full-time? Are there any parts of the business that the company is thinking of bundling, unbundling, selling or closing?
The worse thing you can do at this early stage of the transition is lie, deceive, mislead, or remain silent on these extremely important and very personal issues. If you anticipate any cuts or changes in the organizational structure, tell people the truth. Tell them quickly. People need to know. Knowing gives people control over their situation. It allows them to take appropriate action to find a new position either within or outside the company. Not knowing causes people to wonder. When workers wonder they spend their energy trying to mitigate their fears rather than serve the customers.
If you don’t know whether or not there will be reductions in staff, you cannot respond by saying you don’t know. “I don’t know” is a horrible answer to important questions. It is never believable. Rather it almost always appears as if management is hiding something. It is highly doubtful you really don’t know what organizational changes are needed at the acquired enterprise. Even given the benefit of doubt, you certainly must have some informed assumptions based upon your assessment of the business during your due diligence before the takeover. Logic or basic intuition already will have given you some inkling of changes needed in the acquired organization. Consequently, more than likely you will have some preliminary assumptions about the business.
Employees can sense, or logically deduce, that you have already made some assumptions about the business. This is why “I don’t know” is an unacceptable answer. If you really don’t know, employees still expect you to tell them about your assumptions. Again, to avoid causing people to draw their own false or distorted conclusions and lose their commitment, it is imperative you share what you know, assume, hope, wish or desire for the acquired enterprise.
Most managers have a hard time accepting the notion they should share their assumptions, because their assumptions may be wrong. But when a person’s job security is on the line, employees expect you to be “honest” and share any negative consequences that are being contemplated. People have a tendency to assume the worst. Many of your assumptions will be far better than the worse assumptions the employees have already drawn. Therefore sharing the assumptions might be a positive instead of a negative.
One of the greatest ways to build rapport and express your trust in the new employees is to freely share information with them. Take people into your confidence. People may not want to hear that their position is being eliminated, but they will appreciate the fact you respected them enough to tell them the truth upfront.
Again, people expect you to share all information, particularly negative information, in a straightforward manner. This also is the most humane thing to do. It is analogous to receiving bad news about the health of a family member. When a person is infected with a terminal illness, most people want to know the truth as soon as possible so they can get their affairs in order. Nothing is more frustrating, disheartening, or demoralizing than to learn too late about something for which one could have been prepared had they been forewarned. People who have advance notice of an extremely negative situation may momentarily be taken aback by the information, but they soon refocus. They turn their attention away from the things that are out of their control and channel their energy toward the things that matter most.
If there are staff reductions anticipated in your takeover plans and you immediately inform the employees, as you should, then the next question becomes very important.
FAIR TREATMENT OF ELIMINATED STAFF
In an acquisition that includes a reduction in staff the surviving employees wonder: Will the new company treat fairly those employees who are let go?
Employees pay close attention to the way you treat departing workers. It cannot be over-emphasized how important this is to gaining the commitment of the employees who remain with the company. Your actions toward displaced workers declare very loudly the value you place on your employees. Your actions strongly signal how employees will be treated in the future. They indicate how you feel about people and whether or not, when making decisions, you take into consideration the impact those decisions will have on your employees.
Employees are concerned about your treatment of displaced workers for two reasons.
First, surviving employees may have considered many of those displaced workers to be their friends. They are saddened that their friends are leaving and expect you to treat their friends in a kind and considerate manner.
Second, and perhaps more important, the perception that you have treated the downsized workers in a fair an equitable manner will give the remaining employees confidence that, should their position be eliminated in the future, they too will be treated well. This will allow them to stop worrying about their own job security and refocus on the customers.
Prior to announcing a takeover you must develop well-thought-out policies and procedures regarding how you will eliminate staff if displacement is necessary. These policies should be favorable toward the employees. This is not a time to be miserly. Company generosity exhibited in the initial stage of a takeover will reap huge returns later in employee commitment. Good displacement practices can keep your company from experiencing the typical decline in production that usually follows a takeover.
ROLE IN THE FUTURE
Finally, although employees may not know they have this last need, and therefore generally may never articulate it, workers who stay with the company have an inherent desire to know: What is my charge?
Once employees have decided they want to stay with the company after a takeover, they need clarity on what the company expects of them. What do you want them to do? Should they carry on as they have been doing in the past, or should they do something different? What are their new marching orders? If you expect employees to change, you must tell them so. If you expect employees to continue doing what they have been doing in the past, you must tell them this also. Never assume the employees will conclude what you want them to conclude. You must tell them.
Your initial communication with the employees must close by giving the employees their charge. You should end by stating very clearly to the employees the things that matter most to both the company and to them. Tell them:
• What it takes to win in the new company.
• What they can do to contribute to the success of the company, as well as to their own success.
• What is in it for them if they do contribute to this success.
People need hope in the future. Employees need to know their future is brighter with the new company than what they have experienced in the past. Everything you do during a merger or acquisition must be designed to build hope, not destroy it. When you answer point-by-point every question outlined in this article, you mitigate the fears of the employees, you build tremendous rapport with them, and you refocus their energy and effort on the future success of the business. You get people thinking about the customers, instead of worrying about themselves.
Many books and articles have been written offering insight into how to mesh divergent cultures of merging companies. These literary works often provide very precise transition plans that outline the steps a company can take to achieve the synergistic goals sought in the acquisition.
Often overlooked in these comprehensive plans is the criticality of the first communication the parent company has with the employees of the acquired business. This initial contact is crucial to getting employees to transfer their commitment from the previous owner to the new parent company. Wise companies plan their employee communication strategies very carefully. They know how important these messages are to the ultimate success of the acquisition.
Once a takeover has been announced at the acquired company, the employees immediately start looking for subtle signals that will alert them to what the parent company is all about. Sensory acuity is greatly enhanced in the early months of a takeover. Everyone raises their antenna to pick up whatever message one can. Employees are hyper-sensitive to every nuance and change. The imaginations of some workers go into overdrive. Everything the parent company does communicates. Every action and comment has meaning. Employees pay close attention to what is being said and, perhaps more importantly, what is not being said.
During the initial stage of an acquisition the employees are watching you carefully. How you come across and what you say in these early moments establishes almost irreversible impressions in the minds of the employees. The first interaction you have with these new employees sets the stage for future interactions. This meeting establishes who you are, how you will operate, and how people should deal with you and your company on an on-going basis. It sets a precedent for the future.
Takeover companies typically are hesitant to share certain information with newly acquired employees, particularly if the information is of a negative nature. But people expect you to bring up all relevant issues in a straightforward manner, especially any negatives that might impact the employees directly. Avoiding these issues sends a message that either the issues are not important or, worse yet, the employees themselves are not important enough for you to share information with them. The absolute worst thing you can do in the early stage of an acquisition is to send a message to new employees they are not important.
One critical thing to remember throughout the acquisition is that when people lack real data, they make up their own. Usually what people make up is far worse than reality. You can stop the rumor-mills that typically run rampant during mergers by being up front with the employees.
There are three crucial objectives you should have for your initial communication with employees of an acquired company.
First, you should do everything you can to mitigate the usual fears employees have when an organization is in transition.
Second, you should view this initial contact as one of your best opportunities to build rapport with your new workers.
Finally, your message should be formulated and presented so well it focuses the energy and effort of the employees where you want it – on the customers -- rather than on the company. What you say must eliminate from the employees all doubt, worry, gossip, wondering, and hesitancy. At the conclusion of your message you want the workers worrying about their work, not worrying about their jobs or their employer. To do this you must understand the psyche of the employees and address the concerns they worry about the most during a takeover.
Invariably there are four predictable questions employees will have during an acquisition or merger. Although the specific verbiage of the questions highlighted here may not be exactly how the employees would articulate their concerns, the answers to these questions will address most of the issues the employees will be wondering about. When you know these questions in advance you can target your communication to address the employees’ concerns before they come up. This in turn shows the workers you are empathetic to their needs, thereby building rapport between you and them.
VISION OF THE FUTURE
The first concern employees have after an acquisition is: What Does the Future Look Like?
In a takeover the future is unknown. People generally are afraid of the unknown. To alleviate their own fears, the acquired employees will latch on to any information they can about the parent company’s future plans for the acquired business. This is why rumors run rampant during a takeover. It is the natural human need for information – any information – even if it is false. Acquired employees will remain fearful about the future until they have information that will assuage their fears.
The primary objective for your initial communication at an acquired business is to instill within the employees confidence in the future viability of the business, particularly their business as currently constituted.
Before addressing the employees you should have a clear vision of where you want to take the acquired company. Leaders who possess and can communicate a confident view of the future can infuse confidence within the new employees by sharing their vision. Employees are more apt to follow those leaders who have a clear view of what the future entails.
Tell people your vision for the company. Help them to clearly see the future themselves. Let employees know what they can expect to see and experience in the months ahead. Explain what changes or non-changes the company anticipates over the next one, three, six or twelve months. Share your plans. Be as open, specific and precise as possible. Any hesitancy or waffling from you will damage the confidence and commitment you will receive from the employees.
Some of the topics you should address in your communication are outlined below. You specifically should highlight any changes or alterations to what the employees are currently used to. This includes such things as the following:
• The current product mix and how these products are offered or delivered. Employees are very protective of products they perceive to be linked to their job security. They normally will be receptive to renovations, improvements or upgrades to the organization, but less enthralled by talk of eliminating a product or a particular business line. Downsizing or significantly altering the company’s product mix often translates to the employees as a downsizing of the organization.
• The current customer mix and who currently is viewed as targeted customers. Changes in the type of customer the company is targeting may signal to employees possible changes in the quality or quantity of the performance required of them.
• The current competitive strategies and who currently is viewed as primary competitors. A shift in competitive focus may indicate either an upgrading or down-grading of the products the company offers. This in turn may signal either a raising or lowering of performance standards.
• The current marketing strategies and tactics. Employees on the front-line are very interested in the acquiring company’s marketing philosophy. They want to know how committed the parent company is to growing and expanding the current enterprise. Perhaps this, more than anything else, tells the employees whether or not there will be future job security at the company.
• The current economic expectations for the business. Employees want to know what economic pressure the new company will put on the enterprise and how it will affect current production and cost containment strategies. This, of course, will signal what pressure will be placed on the employees themselves.
• The current manner in which the business is being run. This includes the operating style and business practices within the parent company. Workers usually are comfortable with their daily routine. They want to know what policy, procedure or process changes the parent company will implement after the takeover. This will tell them the degree to which their worklife will change in the future.
Employees also have a lot of questions about the management philosophies and practices of the parent company. They may not feel comfortable expressing their concerns about these issues, but you can be assured they are wondering what it will be like to work within the new company.
The items mentioned in the bullets above can be categorized as “we” issues. They deal with what “we” as a company are going to do to ensure the future success of the business. However, the concerns expressed in the next series of bullets revolve around the “me” issues employees typically have in an acquisition. They deal with how the new company will treat “me” or what the company expects from “me” as an employee. Wise leaders will be well-prepared with their answers to all of these questions. They will answer them before the employees bring them up.
Workers at an acquired company want to know:
• The history of the parent company and what growth opportunities this offers for the acquired employees. They are particularly interested in any career opportunities that are now opened to them because of their association with the parent company.
• The vision, values and guiding principles by which the parent company operates. These qualities explain a great deal of what might be expected of the employees by the parent company. They also give an indication of the quality of worklife in the new organization.
• The overarching emphasis or driving focus of the company (i.e., emphasis on profits, emphasis on customers, emphasis on employees, etc.) This may or may not indicate a significant shift in focus or change in culture for the employees.
• The cultural norms and mores of the company. These are the subtle, and sometimes not so subtle, tangible and intangible things that express most to employees what it is like to work for the acquiring company.
• The management style of the company and how management typically interacts with the employees. Again, this is a great indicator of whether or not a person would want to work for the parent company.
MY PLACE IN THE NEW COMPANY
After you have shown the employees what the future looks like, the next thing people want to know is: Is there a place for me in the new company? In other words, now that you’ve explained what the future looks like, employees want to know if they are in that future.
Your answers to the issues outlined in the bullets above will help the employees decide whether or not they want to work for the new company. Your answer to this second question tells the workers whether or not there will be a position for them in the new company.
People need to know if their position is secure or if they should start looking for another job. They also want to know if the new company is the type of company that looks out for the interests of its employees.
No doubt these are the most important concerns to the employees. They want to know about your human resource and labor relation philosophies. They are very interested in your compensation practices and your benefit packages, particularly how your benefits compare to what they have had in the past. They want to know what orientation, training, and developmental opportunities you will provide them. They seek information concerning how they will be recognized and rewarded for their work and whether there will be career development opportunities for them in the future.
Even more important, however, they want to know if they will have a job in the future. They listen for clues that express what your attitude is toward the current employees of the company. Will you bring in your own leadership team? Will you get rid of any of the current management? (This could either be viewed negatively or positively depending on the employees’ perspective of the current managers in the organization.) Will you alter the mix of employees or do anything that might jeopardize a person’s job.
Employees want to know whether or not there will be any downsizing or elimination of jobs in the organization. Does the company anticipate combining or eliminating any functions? Will the company reduce any positions to part-time that are currently full-time? Are there any parts of the business that the company is thinking of bundling, unbundling, selling or closing?
The worse thing you can do at this early stage of the transition is lie, deceive, mislead, or remain silent on these extremely important and very personal issues. If you anticipate any cuts or changes in the organizational structure, tell people the truth. Tell them quickly. People need to know. Knowing gives people control over their situation. It allows them to take appropriate action to find a new position either within or outside the company. Not knowing causes people to wonder. When workers wonder they spend their energy trying to mitigate their fears rather than serve the customers.
If you don’t know whether or not there will be reductions in staff, you cannot respond by saying you don’t know. “I don’t know” is a horrible answer to important questions. It is never believable. Rather it almost always appears as if management is hiding something. It is highly doubtful you really don’t know what organizational changes are needed at the acquired enterprise. Even given the benefit of doubt, you certainly must have some informed assumptions based upon your assessment of the business during your due diligence before the takeover. Logic or basic intuition already will have given you some inkling of changes needed in the acquired organization. Consequently, more than likely you will have some preliminary assumptions about the business.
Employees can sense, or logically deduce, that you have already made some assumptions about the business. This is why “I don’t know” is an unacceptable answer. If you really don’t know, employees still expect you to tell them about your assumptions. Again, to avoid causing people to draw their own false or distorted conclusions and lose their commitment, it is imperative you share what you know, assume, hope, wish or desire for the acquired enterprise.
Most managers have a hard time accepting the notion they should share their assumptions, because their assumptions may be wrong. But when a person’s job security is on the line, employees expect you to be “honest” and share any negative consequences that are being contemplated. People have a tendency to assume the worst. Many of your assumptions will be far better than the worse assumptions the employees have already drawn. Therefore sharing the assumptions might be a positive instead of a negative.
One of the greatest ways to build rapport and express your trust in the new employees is to freely share information with them. Take people into your confidence. People may not want to hear that their position is being eliminated, but they will appreciate the fact you respected them enough to tell them the truth upfront.
Again, people expect you to share all information, particularly negative information, in a straightforward manner. This also is the most humane thing to do. It is analogous to receiving bad news about the health of a family member. When a person is infected with a terminal illness, most people want to know the truth as soon as possible so they can get their affairs in order. Nothing is more frustrating, disheartening, or demoralizing than to learn too late about something for which one could have been prepared had they been forewarned. People who have advance notice of an extremely negative situation may momentarily be taken aback by the information, but they soon refocus. They turn their attention away from the things that are out of their control and channel their energy toward the things that matter most.
If there are staff reductions anticipated in your takeover plans and you immediately inform the employees, as you should, then the next question becomes very important.
FAIR TREATMENT OF ELIMINATED STAFF
In an acquisition that includes a reduction in staff the surviving employees wonder: Will the new company treat fairly those employees who are let go?
Employees pay close attention to the way you treat departing workers. It cannot be over-emphasized how important this is to gaining the commitment of the employees who remain with the company. Your actions toward displaced workers declare very loudly the value you place on your employees. Your actions strongly signal how employees will be treated in the future. They indicate how you feel about people and whether or not, when making decisions, you take into consideration the impact those decisions will have on your employees.
Employees are concerned about your treatment of displaced workers for two reasons.
First, surviving employees may have considered many of those displaced workers to be their friends. They are saddened that their friends are leaving and expect you to treat their friends in a kind and considerate manner.
Second, and perhaps more important, the perception that you have treated the downsized workers in a fair an equitable manner will give the remaining employees confidence that, should their position be eliminated in the future, they too will be treated well. This will allow them to stop worrying about their own job security and refocus on the customers.
Prior to announcing a takeover you must develop well-thought-out policies and procedures regarding how you will eliminate staff if displacement is necessary. These policies should be favorable toward the employees. This is not a time to be miserly. Company generosity exhibited in the initial stage of a takeover will reap huge returns later in employee commitment. Good displacement practices can keep your company from experiencing the typical decline in production that usually follows a takeover.
ROLE IN THE FUTURE
Finally, although employees may not know they have this last need, and therefore generally may never articulate it, workers who stay with the company have an inherent desire to know: What is my charge?
Once employees have decided they want to stay with the company after a takeover, they need clarity on what the company expects of them. What do you want them to do? Should they carry on as they have been doing in the past, or should they do something different? What are their new marching orders? If you expect employees to change, you must tell them so. If you expect employees to continue doing what they have been doing in the past, you must tell them this also. Never assume the employees will conclude what you want them to conclude. You must tell them.
Your initial communication with the employees must close by giving the employees their charge. You should end by stating very clearly to the employees the things that matter most to both the company and to them. Tell them:
• What it takes to win in the new company.
• What they can do to contribute to the success of the company, as well as to their own success.
• What is in it for them if they do contribute to this success.
People need hope in the future. Employees need to know their future is brighter with the new company than what they have experienced in the past. Everything you do during a merger or acquisition must be designed to build hope, not destroy it. When you answer point-by-point every question outlined in this article, you mitigate the fears of the employees, you build tremendous rapport with them, and you refocus their energy and effort on the future success of the business. You get people thinking about the customers, instead of worrying about themselves.
Four Types of Feedback
Most people have a typical feedback style. They tend to use the same approach whenever they give someone feedback. Some feedback styles are highly effective, while other styles tend to leave “debris” after the feedback. If an employee leaves the feedback session feeling bad or negative – either toward you or about the information they received – that is an indicator the feedback session did not go well.
The purpose of feedback is to either reinforce good performance and appropriate behavior or to correct bad performance and inappropriate behavior. You give feedback to increase the value of those employees who do well, or to keep poor performing employees from decreasing their value by continuing on a downward path. In other words, feedback is supposed to build people up, not tear them down. The intent of all feedback, both positive and negative, is to either help people stay on course or correct whatever deficiencies are keeping them from performing well. Consequently, any feedback that does not build people up or cause employees to improve their performance is not helpful. Feedback that decreases employee morale, causes ill-will, or actually leads to less productivity instead of more, is ineffective feedback.
There are four primary types of feedback. The first two types of feedback tend to be highly ineffective, yet they are used far too frequently by many managers. The last two types of feedback are the most effective.
The first negative feedback style is PUNISHMENT. Punishment almost always includes some type of threat or penalty if the employee does not change his or her behavior. “You do that one more time and I will have you out of here so fast your head will spin!” is a punishing phrase I’ve heard managers use. Here are some other punishment-type statements I’ve heard: “I’ll fire your butt for that,” “You break it and you’ll pay for it,” “You idiots quit standing around and get back to work or I’ll give you a permanent vacation,” “One more screw up like that and you’re history,” or “Don’t make me come down there!”
Threatening to punish someone doesn’t necessarily motivate them to do what you want; it just makes them want to steer clear of you. Punishment usually causes people to become defensive, since they must shield themselves from your chastisement. If employees feel the punishment is undeserved or too severe for the infraction, some people may harbor a desire to get even and look for ways to equalize the situation. Employees hell-bent for retribution have been known to sabotage the work effort.
CRITICISM is another negative feedback style that is ineffective, yet also used frequently. Criticism is where you constantly harp at people for every little infraction. You look for the exceptions and point out every weakness. Of course, the reason why you do this is because you want your employees to improve. You feel that by identifying where the employees are not performing well they will want to perform better. Unfortunately, this often is not how employees respond. The cynical, sarcastic, degrading or derogatory tone that usually accompanies criticism seldom causes people to react well to the feedback.
People who are criticized tend to go in the opposite direction from where the feedback is supposed to lead. People feel bad when they are criticized, not good. When employees are criticized they tend to react negatively and become withdrawn rather than stepping forward confidently to change their behavior. Criticism tears people down; it does not build them up. It wounds pride and takes away dignity. It diminishes the very self-esteem the employees need in order to improve their situation.
Although there may be times when punishment and criticism might be used in giving employees feedback, the long-term effectiveness of these two feedback styles is questionable. However, there are two feedback styles that work well.
ADVICE is where you gently offer suggestions for improvement. You present options to the employees so they can determine the best course of action to take. When you give advice you spend very little time scrutinizing the deficiency and instead focus on ways the employees can improve.
Advice is always offered in a positive tone and from an approach of how the employee can best be helped. Unlike punishment and criticism, which usually are delivered in a one-way manager-telling-the-employee-what-to-do approach, advice is given during a two-way give-and-take discussion with the employee. During the discussion various options are explored and the employee is allowed to discuss each option and choose how best to correct one’s performance.
During the normal course of the workday, particularly when employees are performing well, the feedback style you should use most is REINFORCEMENT. Your primary role as a manager is to reinforce and support the day-to-day accomplishments of your employees. Reinforcement is the best way to ensure you get what you want from your employees. It lets them know you noticed what they are doing and are pleased with their efforts. It is one of the best ways to help your employees feel comfortable, confident, proud and included at work. Reinforcement signifies your employees have value. It builds them up and inspires them to do more.
Whenever your employees are in training or learning new policies, procedures or processes, they need reinforcing support or advice, not criticism or punishment. Never use criticism, punishment, sarcasm or any other demeaning behavior as a training method — it does not work. You cannot achieve a positive outcome by negative means. Everything you do and say when teaching, mentoring, or training your employees should be done in reinforcing words and tones.
Most employees need generous doses of reinforcement. Reinforcement is the fuel that keeps employees moving in the right direction. You should do everything you can to find ways to regularly and dynamically recognize and celebrate individual and team accomplishments in your work areas. The more reinforcing and supportive your work environment, the greater the odds your employees will stay focused and perform the way you want.
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(Special Note: There is a fifth feedback style — none at all. Failing to give feedback or withholding feedback from employees never works. You will never get the performance you want from your employees without giving them feedback, so if you are not adept at giving feedback you need to practice and perfect your reinforcing and advice giving skills so you can get what you want.)
The purpose of feedback is to either reinforce good performance and appropriate behavior or to correct bad performance and inappropriate behavior. You give feedback to increase the value of those employees who do well, or to keep poor performing employees from decreasing their value by continuing on a downward path. In other words, feedback is supposed to build people up, not tear them down. The intent of all feedback, both positive and negative, is to either help people stay on course or correct whatever deficiencies are keeping them from performing well. Consequently, any feedback that does not build people up or cause employees to improve their performance is not helpful. Feedback that decreases employee morale, causes ill-will, or actually leads to less productivity instead of more, is ineffective feedback.
There are four primary types of feedback. The first two types of feedback tend to be highly ineffective, yet they are used far too frequently by many managers. The last two types of feedback are the most effective.
The first negative feedback style is PUNISHMENT. Punishment almost always includes some type of threat or penalty if the employee does not change his or her behavior. “You do that one more time and I will have you out of here so fast your head will spin!” is a punishing phrase I’ve heard managers use. Here are some other punishment-type statements I’ve heard: “I’ll fire your butt for that,” “You break it and you’ll pay for it,” “You idiots quit standing around and get back to work or I’ll give you a permanent vacation,” “One more screw up like that and you’re history,” or “Don’t make me come down there!”
Threatening to punish someone doesn’t necessarily motivate them to do what you want; it just makes them want to steer clear of you. Punishment usually causes people to become defensive, since they must shield themselves from your chastisement. If employees feel the punishment is undeserved or too severe for the infraction, some people may harbor a desire to get even and look for ways to equalize the situation. Employees hell-bent for retribution have been known to sabotage the work effort.
CRITICISM is another negative feedback style that is ineffective, yet also used frequently. Criticism is where you constantly harp at people for every little infraction. You look for the exceptions and point out every weakness. Of course, the reason why you do this is because you want your employees to improve. You feel that by identifying where the employees are not performing well they will want to perform better. Unfortunately, this often is not how employees respond. The cynical, sarcastic, degrading or derogatory tone that usually accompanies criticism seldom causes people to react well to the feedback.
People who are criticized tend to go in the opposite direction from where the feedback is supposed to lead. People feel bad when they are criticized, not good. When employees are criticized they tend to react negatively and become withdrawn rather than stepping forward confidently to change their behavior. Criticism tears people down; it does not build them up. It wounds pride and takes away dignity. It diminishes the very self-esteem the employees need in order to improve their situation.
Although there may be times when punishment and criticism might be used in giving employees feedback, the long-term effectiveness of these two feedback styles is questionable. However, there are two feedback styles that work well.
ADVICE is where you gently offer suggestions for improvement. You present options to the employees so they can determine the best course of action to take. When you give advice you spend very little time scrutinizing the deficiency and instead focus on ways the employees can improve.
Advice is always offered in a positive tone and from an approach of how the employee can best be helped. Unlike punishment and criticism, which usually are delivered in a one-way manager-telling-the-employee-what-to-do approach, advice is given during a two-way give-and-take discussion with the employee. During the discussion various options are explored and the employee is allowed to discuss each option and choose how best to correct one’s performance.
During the normal course of the workday, particularly when employees are performing well, the feedback style you should use most is REINFORCEMENT. Your primary role as a manager is to reinforce and support the day-to-day accomplishments of your employees. Reinforcement is the best way to ensure you get what you want from your employees. It lets them know you noticed what they are doing and are pleased with their efforts. It is one of the best ways to help your employees feel comfortable, confident, proud and included at work. Reinforcement signifies your employees have value. It builds them up and inspires them to do more.
Whenever your employees are in training or learning new policies, procedures or processes, they need reinforcing support or advice, not criticism or punishment. Never use criticism, punishment, sarcasm or any other demeaning behavior as a training method — it does not work. You cannot achieve a positive outcome by negative means. Everything you do and say when teaching, mentoring, or training your employees should be done in reinforcing words and tones.
Most employees need generous doses of reinforcement. Reinforcement is the fuel that keeps employees moving in the right direction. You should do everything you can to find ways to regularly and dynamically recognize and celebrate individual and team accomplishments in your work areas. The more reinforcing and supportive your work environment, the greater the odds your employees will stay focused and perform the way you want.
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(Special Note: There is a fifth feedback style — none at all. Failing to give feedback or withholding feedback from employees never works. You will never get the performance you want from your employees without giving them feedback, so if you are not adept at giving feedback you need to practice and perfect your reinforcing and advice giving skills so you can get what you want.)
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