Time To Retain, Time To Engage
By Adam Zak
The first LeanConnections in July launched with a single article dedicated to “Respect for People.” It was well received and sparked many thoughtful comments from our readers. Today, in the face of harrowing financial news and pressures on staff and leadership, many of the points addressed previously resurface in this issue where we tackle the dual challenges of retention and engagement of employees. Challenges which may be infinitely more important to address during this economic slowdown. Because if we truly believe that people are indeed our most important asset, the next 12-24 months or so are going to give us ample opportunity to clearly demonstrate that belief.
I earn my livelihood helping companies of the Lean persuasion recruit outstanding executives to meet challenges and achieve aspirations, and I am also a vocal advocate of maintaining a stable, supportive work environment where people can grow and flourish, both personally and professionally. I believe that now is a time when such a workplace is absolutely essential in order that all business stakeholders adapt to and weather the forces that swirl around us.
Create A Highly Engaged Workforce
In that first LeanConnections we quoted Oliver Wyman consultant Jamen Graves writing in Consulting Magazine. Graves advised, “Companies that create a highly engaged workforce benefit from having employees who strongly identify with the company’s success. These employees are willing to go the extra mile; that is, to dramatically increase their level of discretionary effort, which, in turn, significantly improves overall performance. Such employees tend to take pride in their company and are willing to recommend it as a great place to work to friends and family members.” I think we can all agree that these are the kinds of employees who will better carry us through our current trying times.
You may also remember that I raised the questions: “Other than for the money to support ourselves and our families, why do we really work? What’s really in it for us? And how will each of us make this very personal choice in a world where talent is the most scarce of all resources?”
As The Beatles Said, “Money Can’t Buy Me Love”
An engaged, respectful (and respected) team delivers the goods for employees, management, customers, shareholders and everyone else with a stake in the success of your Lean enterprise. In ordinary times, it works because people want to make it work. In times like these, it works even harder because it never becomes just a process; it remains the key to living and working together successfully. It’s the foundation that underlies the salaries and benefits we pile on top.
While I generally try to avoid using sports analogies, this one may be apropos in the current business climate. Imagine yourself in top management of an NFL team and the season has just ended. Whether you won the Super Bowl 
or finished at the bottom of the standings you have some important personnel issues to deal with. Because no matter where you finish in a given year, you’re always trying to improve. As a Chicago football fan I’ll be one of the first to testify on that. And that means deciding which players you must retain at all costs. Calculating whom you could afford to lose. And maybe most importantly, identifying skilled position performers and rising stars who might become available, or could be persuaded to change teams under just the right conditions.
That’s the current state your “team” is in at this very moment. If you’re an industry leader, it’s an excellent time to secure this enviable position for years to come. Or, if you’re committing yourself to come out of these economically turbulent times poised to charge to the top, now may be the best opportunity you’ll ever have to retain and recruit your way to greatness.
Either You’re Building, Or You’re Rebuilding
Last February, Maximize Possibility Blog spelled out “4 Tips for Hiring During an Economic Slow Down.” Their four rules are summarized as follows:
1. Be choosy, numbers are on your side – so broaden your selection horizons to include criteria other than just experience and education. Look at things such as passion for your industry, cultural fit within your organization, and the presence of soft skills such as strong interpersonal communication, empathy, and likeability.
2. Beware of the “low-bid.” While it may be tempting to hire an individual for the perceived payroll saving they promise to offer, doing so usually costs more in the long run. Bottom line – pay your team members what their positions are worth.
3. Wait for the best talent possible – While economic downturns are generally short lived, time is on your side. Hiring anything less than the best talent you can afford will ultimately rob your organization of possibility and profits.
4. Match candidates to the right jobs. It is absolutely critical that you insist on hiring team members who are a good fit for the position based on their unique behaviors, values, and personal talents.
But it’s not enough to build or rebuild your team. You have to inspire them to achieve great things.
Work And Life: A Balancing Act
In a recent posting on ERE.net, “A Work Strategy for a Good Life: Attracting and Keeping the Best” by Kevin Wheeler, the author addressed issues of work/life balance, paying particular attention to differences between generations. “I can’t think of any organization that has not had to change policies or at least address its employees on the issue of work/life balance. Perhaps it emerged because more Gen X employees moved into leadership positions and were more aware of the precariousness of employment and about how quickly corporate can swing from breakneck hiring to layoffs. But whatever the causes, the issues involved are core to whether people accept offers, stay with an organization, or decide to work for themselves.”
But why should this matter only to those within Gen X? Doesn’t everyone want to know that his or her role is making a difference? That they’ve accepted some risks and solved problems? That they have been part of something larger than themselves and were in some way instrumental in the success of that something? If you asked your employees to what degree they felt engaged, how would they answer? Would those responses be truthful? Would they be the answers you expected?
Other work/life factors also play into improving the mindset of your team members. A Deloitte Consulting LLP report entitled “Retention Strategies during Difficult Economic Conditions” provided some additional insights. “Companies are wisely trying to ease the strain on employees by improving their work environment. Many companies are implementing or expanding workforce programs that are designed to make balancing work and family easier. These include flexible work schedules, telecommuting and compressed workweeks. While these programs won’t put dollars in employees’ pockets, they can go a long way toward helping employees view their company more favorably, making them less likely to leave.”
Human Sigma: Six Sigma Meets Human Nature
Many Lean practitioners will relate positively to a relatively new, emerging idea, Human Sigma – I know I do. It’s a branch of Six Sigma focused on improving employee-customer interactions. I learned more about it in a recent article on isixsigma.com, “Strengthening the Employee-customer Interaction,” by Peter Sherman.
Human Sigma is an approach to management that recognizes human nature and uses that knowledge to achieve three objectives:
- To manage and motivate employees
- To accelerate their development
- To engage customers’ emotions.
Proponents of Human Sigma believe that “emotionally satisfied customers contribute far more to the bottom line than rationally satisfied customers. The key is to strengthen the employee-customer interaction,” wrote Sherman. In order to measure any company’s Human Sigma score, Sherman referenced a book by John H. Fleming and Jim Asplund. Human Sigma: Managing the Employee-Customer Relationship, which established a rudimentary measurement formula. The authors surveyed employees and customers with a series of 12 questions for each audience, measuring employee engagement on the one hand, and customer satisfaction on the other. Answers on a five point scale ranged from 1 (= no agreement) to 5 (= extreme agreement).
Four Core Principles Of Engagement
As a result of their research, Fleming and Asplund defined four core principles that great organizations and managers exhibit as key characteristics of employee engagement and customer engagement. Sherman reported these principles as follows:
1. Manage by outcomes, not behaviors – In other words, although the end remains constant, the means to achieve that end will inevitably vary between individuals.
2. Liberate, don’t legislate – The most dramatic increases in productivity occur when companies allow workgroups to choose their own initiatives and focus on them. Anything that makes employees passive viewers instead of active participants in the employee-customer encounter is counterproductive.
3. Engagement is for everyone – The ability to capture the heads, hearts, and souls of employees and instill an intrinsic desire and passion for excellence.
4. All politics is local – Companies cannot dictate employee engagement from corporate headquarters. They must manage engagement locally. To this end, the local manager is the single most important factor in local group performance.
Does this sound like a game plan for more effectively engaging the teams up-and-down and all across your organization? How would your internal and external customers benefit from this level of focus on team member engagement? Would your business stand a better chance for successfully maneuvering its way out of this economic storm?
These Times Require A Culture That Sustains All Employees
As cited in the first issue of LeanConnections, Frank Brown of PricewaterhouseCoopers (PwC) was quoted in Harvard Management Update on the importance of building a culture of retention. “In good markets and bad, there are always opportunities for top performers. The real trick is creating a culture that sustains all employees, and engenders a positive response to questions like these:
- Is my work valued?
- Does my opinion count?
- Are new ideas welcomed?
- Are people treated with respect?
- Am I evaluated and rewarded on my performance?
- Does leadership act with integrity?”
The challenge for those of us in the Lean Community is to embrace and explain the true nature of mutual respect for people – managers and associates – so all organizations can move toward a new and better way of solving their problems.
No Matter What The Economy Is Doing, Retaining And Engaging Pays Off
A current newsletter from Deloitte Consulting LLP asked the question “Cash or Talent?” Given the recently pronounced recession, “What should business leaders do in the face of the current economic crisis? Should they focus on maintaining cash or people? What should they make their top priority?”
No contest in my book, unless maybe you happen to be the Chairman of one of the Detroit Three. Engagement and retention strategies must win out because people are absolutely essential to weathering the current economic storm. But looking beyond the turmoil, these same efforts should continue to pay dividends for a long time into the future. Always remember that the people you chose to retain and engage today are the same people who will choose to be retained and engaged tomorrow. Take this opportunity to practice what you’ve been saying all along, that people are indeed your most important and valued asset.
