Archive for the ‘Optimizing Business Results’ Category

How High a Priority are YOUR Employees? Are You Sure?

Thursday, July 7th, 2011

One question that I often hear these days is, “What can we do to be successful in today’s economy?” My answer comes in the form of two questions:

    1. “How high a priority are your employees?” AND

    2. “Would your employees agree with your answer?”

Leaders who want their organizations to be successful first and foremost must focus on helping their employees become fully successful. When employees are fully successful, their productivity skyrockets, and customers are delighted because the organization is able to deliver, or over-deliver, its promised value.

I learned this secret to high productivity early in my career when I worked for FedEx. Fred Smith, the founder and CEO of the company, anchored the corporate culture on this simple philosophy: People – Service – Profit. Fred’s belief was that if you take care of your people, they will provide excellent service, which will increase profits. I have yet to see any evidence to disprove his belief. To the contrary, I have seen company after company adopt some version of this philosophy. Why? Because it works!

How do you make employees a high priority? I developed a research-based tool called the Employer Performance Scorecard that identifies four areas that influence employees’ perceptions of how they are treated. I encourage my clients to use this scorecard to help them assess employees’ perspectives about how they are treated on a day-to-day basis. High scores mean you place a high priority on employees; low scores mean you have work to do!

Here are the four areas and representative elements in each one:

1. Managers and supervisors
The #1 reason why employees leave organizations and why they join unions is dissatisfaction with the immediate supervisor. You can help employees be successful if you ensure their supervisors are meeting their needs effectively. This requires that you set your supervisors up for success (e.g., provide the proper training and tools) so they are able to manage effectively.

2. Organizational culture
Employees who feel they are part of something larger than themselves and that their views are respected are likely to perceive that they are valued. You can help employees be fully successful if you ensure they have “voice” (i.e., they feel they are heard) and that they understand how they contribute to the organization’s mission or vision.

3. Organizational processes
You increase employees’ ability to be fully successful when you ensure that workplace decisions and processes are procedurally fair, that communication is two-way, and that leaders truly “walk the talk” – i.e., their behaviors are consistent with their words.

4. Rewards and recognition
Research consistently shows that pay generally is not THE reason for employee dissatisfaction, disengagement, or turnover as long as there is a reasonable level of compensation. Employee commitment to their own success (and by extension, that of the organization) skyrockets when workers are recognized for their contributions to the organization. There are hundreds of no- and low-cost ways to recognize your workers in ways that are meaningful to them. Truly, a little recognition goes a LONG way!

How would you answer the two questions I posed at the beginning of this message? If you are not sure, or if you would like additional information about how to ensure that you employees are a high priority, I invite you to take our Employee-centered Workplace® Assessment. And let us know what YOU do to make sure your employees are a high priority!

© 2011 Pat Lynch. All rights reserved.

Why Insisting that Employees “Do More with Less” Is a Mistake, and How You Can Stop Making It

Monday, July 4th, 2011

One of the biggest and most preventable mistakes I see employers making in response to layoffs, furloughs, and budget cuts is what I call the fallacy of “doing more with less.” The admonition to “do more with less” has become commonplace in organizations over the last two years. Do you find yourself using it yourself? If so, stop it!

Here are three reasons why adopting the “doing more with less” approach is a mistake:

    1. It’s counterproductive: surviving employees, already demoralized by layoffs and furloughs, perceive that they are being asked to pick up the slack without being compensated for doing so – and they’re right!

    2. Doing more with less is not sustainable long-term. There’s only so much you can add to existing workloads before people and systems begin to break down.

    3. Employees become disengaged, burned out, resentful, and cynical – and they will leave the organization the first chance they get.

    In addition, I’ve found that when they try to “do more with less,” people start seeing everything as a priority. And of course, when everything is a priority, then nothing is a priority.

Here are two ways you can avoid falling into the fallacy of “doing more with less:”

1. Embrace the concept of doing LESS with less

This actually increases productivity: employees know you are being realistic and they appreciate your honesty so they reciprocate with good performance. Employee commitment is likely to increase when you’re truthful about what you’re asking your workers to do. If you would like to learn more about this issue, here are two articles that go into more detail:

The Fallacy of “Doing More with Less”

How to Prioritize: Doing LESS with Less Effectively

2. Set priorities effectively, and allocate available resources accordingly

Let’s be clear about two facts about priorities that people often ignore. First, priorities are what you DO, not what you say you will do. Realistically, you can only have a handful of priorities at any given time. (That’s ONE handful!) Second, priorities involve choices about time. By saying you don’t have time to do something, such as going to your kids’ soccer game, you effectively are saying that other things are more important to you at the moment.

A few years ago, I developed a straightforward process for setting priorities. Here it is in a nutshell:

    First, identify clearly your organization’s vision or mission. Beginning with the end in mind is the first step in organizational success.

    Second, use that vision to categorize everything you do (e.g., evaluate performance, develop products and services) as critical, very important, or important.

    Third, devise a realistic formula for allocating resources based on the above three categories. For example, while you might decide to allocate 100% of your resources to items in the “critical” category, it’s probably more realistic to devote 70-80% of them to the critical priorities, 15% to very important items, and 5% to important items.

If you would like more detailed, step-by-step information about this process, you may obtain the template, Pat Lynch’s Process for Prioritizing Organizational Services and Programs, by clicking here and checking the appropriate box on the list from my web site. You will receive the link to the template immediately via e-mail.

What are your thoughts or experiences about doing LESS with less? Let us know!

© 2011 Pat Lynch. All rights reserved.

New Teleseminar: 7 Strategies for Organizational Success in Today’s Economy

Monday, July 4th, 2011

Would you like to learn about the best no- or low-cost strategies that will help you re-focus and re-vitalize your organization so it can thrive in today’s economy?

I recently conducted a one-hour free teleseminar, 7 Strategies Executives and Business Owners Must Know for Organizational Success in Today’s Economy, in which I identified and described time-tested concepts, tools, and techniques that can make your life much easier and put your organization on (or back on) the road to success. Here are a few of the topics we covered:

    • How to set priorities and allocate resources
    • Techniques to increase employee engagement
    • Why insisting that your employees “do more with less” is a mistake
    • How to align employees’ interests with organizational goals
    • No- or low-cost tools and techniques that ensure organizational success

If you are struggling with the challenges caused by having to produce the same results with fewer resources, then I invite you to invest one hour of your time in listening to this free teleseminar. Then let us know which strategies you found most useful in helping to make your organization more successful!

© 2011 Pat Lynch. All rights reserved.

Budget Cuts: Why Fire Departments and Police Departments Need to Change the Question

Sunday, May 29th, 2011

As city, county, and state budgets are being discussed and finalized around the country, one thing is clear: those who allocate resources are asking the wrong questions. As a result, recipients of government services are being short-changed because resources are being misallocated.

During city/county/state budget negotiations, the primary questions generally are:

    1. How much must we cut so that our city/county/state has a balanced budget?
    2. How much must each agency cut so we can achieve this outcome?

The problem is that these are the wrong questions. Instead of focusing on money, politicians and administrators need to begin with the end in mind – i.e., the services to be provided. Here are the questions they should be asking instead:

    1. Is this service something that (city/county/state) government should provide?
    (If it is not, stop it!)
    2. If it is, what level of service do we (decision-makers) choose to provide?
    3. What is the best way to provide this service?
    4. How much are people willing to pay for it?

Using public safety (i.e., fire departments and police departments) as an example, here are the questions decision-makers should be asking:

    1. Should the government provide public safety services?
    2. What level of public safety do decision-makers choose to provide?
    3. What is the best way to provide this service?
    4. How much are people willing to pay for it?

When the conversation is all about cutting the budget, then guess what becomes the #1 priority? (You are correct if you said “cutting the budget.”) Focusing on cutting the budget can lead to dysfunctional behaviors (e.g., proportional sharing) and outcomes (e.g., ineffective resource allocation). (Elsewhere I explained why the tactic of proportional sharing as a budget cutting tactic is an ineffective way to allocate resources.) As a result, the public loses. In terms of public safety, for example, there may be fewer fire fighters, emergency medical personnel, and police officers available to respond to calls. Fewer civilian staff as well as outdated equipment and infrastructure also are consequences of cuts to public safety budgets. Together these results mean longer response times in situations in which seconds or minutes matter. Are longer response times okay with the public? If so, then there’s no need to change the question. But if public safety has taken a hit because of misdirected questions and stakeholders are not okay with longer response times, then it’s time to insist that decision-makers stop asking and answering the wrong questions.

The bottom line: if you want different answers, you have to change the questions you ask. If the public is at greater risk due to budget cuts and the heads of fire departments and police departments are not okay with that, it’s time for them to re-direct the conversation by changing the questions. While re-focusing the discussion won’t change the reality of scarce resources, it can ensure a much more effective resource allocation process.

What are you waiting for?

© 2011 Pat Lynch. All rights reserved.

Reality Check: How to Stop Trying to Square a Circle

Friday, May 27th, 2011

The world has changed in major ways in the last few years, with important implications for organizations. Despite the resulting upheaval in virtually all major areas of life and business, many people continue to cling to the notion that things will return to “normal” if they can just weather the current storm, so they resolutely keep doing what they have been doing for years – i.e., they are trying to square a circle. Here is the truth: change is the new “normal.” This means that the things that made organizations successful in the past are unlikely to be the key to future achievements. The playing field has changed, and organizations whose leaders who fail to adjust to the new reality are engaging in a form of organizational insanity. As a result, their organizations cannot possibly be successful.

How can leaders stop trying to square a circle and face their situations realistically? In no particular order, here are six suggestions to begin that process:

1. Realize that assumptions have expiration dates.
Since the environment has changed, it’s safe to say that the bases on which leaders made decisions in the past have changed. This is a great time to take a close look at what your organization is doing, why it’s doing those things, and how it’s doing them.

2. Recognize that the things that enabled the organization to be successful in the past won’t necessarily work now or in the future.
Begin by taking a step back and defining “success” for your organization and painting a clear picture of what it looks like. Then find new, viable ways to achieve that success.

3. Stop putting your head in the sand in the belief that ignoring reality will keep it at bay.
Having a strategy to guide the organization is one thing; sticking tenaciously to it in the face of major change is another. Living in denial about changes that are occurring all around you does NOT make them disappear. Make sure your strategy is realistic in light of the current environment.

4. Develop multiple contingency plans.

Situational agility is key to success in this world of permanent “white water” conditions where the only certainty is change. In this age of global interdependence, the sources and types of change can come from anywhere. As Dorothy said in The Wizard of Oz, “We’re not in Kansas any more, Toto.” Look beyond the immediate environment for other points at which change may derail your organization’s success.

5. Embed accountability processes into the organization.

One reason why people cling stubbornly to the past even when it doesn’t serve them well any more is that there is little or no accountability for mediocre or even poor performance. When situations and environments change, there must be mechanisms in place that demand appropriate adjustments to keep the organization on track for success.

6. Have a strategy in place and implement it.

Although situational agility is important, there must be an overall framework that provides the boundaries within which it operates. Developing a strategy that requires leaders to articulate a clear “big picture,” identifying the measures of progress and success, and adjusting the plan as necessary puts the leaders at the helm of the organizational ship rather than leaving its fate to the vagaries of the storms that it encounters.

© 2011 Pat Lynch. All rights reserved.

Is a Business Partnership in Your Future?

Friday, May 27th, 2011

Are you thinking about entering into a business partnership? If so, you might want to do your homework! I recently was interviewed about what entrepreneurs should consider before taking such a big step. I invite you to read the resulting article, “6 Questions to Ask Yourself Before Choosing a Business Partner.” Let me know what you think!

© 2011 Pat Lynch. All rights reserved.

8 Obstacles to Public Sector Success

Wednesday, May 18th, 2011

In my experience, public sector agencies and government entities (i.e., cities, counties, states) face eight common obstacles to their success. See how many of these issues you have experienced, either as a provider or a user of public services.

1. Lack of a common “big picture.”

The biggest obstacle to success for any organization is the failure of leaders to articulate and/or communicate the “big picture” – i.e., the value that the organization provides. Without this information, it’s impossible to set effective priorities, which means that one person’s claim on resources is just as valid as another’s. How can leaders allocate resources effectively when there is no overall direction to guide them?

2. Leaders’ inability or unwillingness to establish and enforce priorities.

One of the critical responsibilities of all leaders is to set and enforce priorities. In the public sector, setting priorities often is challenging because of the complexity and variety of stakeholders whose interests conflict with each other, and sometimes are diametrically opposed. In some cases, leaders simply don’t know how to set priorities – a serious deficiency, but one that can be remedied. In other cases, public sector leaders are unwilling to set and/or to enforce priorities because they know that some stakeholder group(s) will be unhappy with them. Too often, for example, we see scenarios in which politicians demand “proportional sharing,” or equal budget cuts across agencies. Or they identify some priorities, only to change them when confronted by stakeholders who wanted a different outcome. How can an organization be successful when its leaders shirk one of their most important responsibilities?

3. A dearth of courageous leaders.

I define courageous leaders as people who focus relentlessly on the big picture, even when they pay a personal price for doing so. Although such leaders are a critical success factor in all organizations, public sector agencies and units in particular desperately need individuals who are willing to focus on the greater good, setting priorities that serve the big picture, and allocating resources in ways that support those priorities. While it’s easy to point fingers at public sector leaders and label them as self-serving individuals who are only looking for ways to be elected to their next jobs (or to keep their current jobs) – and there are many who fit this description – let’s not forget that the public also bears responsibility for the lack of courageous leaders. Specifically, accepting mediocre or poor performance or results enables the behavior that caused it in the first place. We are setting organizations up for failure when we don’t support and nurture courageous leaders.

4. Ineffective resource allocation.

Successful organizations use their resources wisely. The ability to allocate scarce resources effectively requires these critical success factors: (a) a clearly articulated and communicated big picture, (b) specific priorities that support achievement of the big picture, and (c) courageous leaders. In short, the things that need to be in place for effective resource allocation are precisely those that public sector organizations often lack.

5. Inexperience in questioning assumptions.

Because assumptions have expiration dates, it’s good business practice periodically to assess the assumptions that serve as the foundation for decisions and practices. Yet public sector leaders often fail to do this. My experience is that they tend to layer things on top of each other, seldom taking the time to ask whether what’s underneath still is necessary for the success of the organization.

6. Willingness to settle for mediocrity.

Acceptance of mediocrity runs rampant in the public sector – e.g., mediocrity of service levels, of employee performance, of politicians’ decisions and actions. For years, the public has looked down upon those who work in the public sector, decrying the mediocrity – yet accepting it. Having worked as an employee and as a consultant for years in public (and private) sector organizations, I know that this embrace of mediocrity is not limited to outsiders: it’s all too common within organizations as well. When mediocrity is the standard by which performance is gauged, how can organizations possibly be successful?

7. Accountability run amok.

Imagine that accountability is a continuum, with “no accountability whatsoever” at one end and “extreme micromanagement” at the other. Now imagine situations in which you have stakeholders who reside at or near the “no accountability” end, and public sector leaders who work mostly at or near the “extreme micromanagement” end. What you have is a recipe for mediocrity at best, and failure at worse.

8. Bureaucracies that block organizational success.

The words “government” and “bureaucracy” often are used interchangeably. One result of layering things (e.g., regulations, programs, processes) on top of each other without considering whether any have outlived their usefulness is dysfunctional behaviors and outcomes. For example, RFPs (requests for proposals) from government agencies and entities tend to be hefty documents that can run well over one hundred pages. Whatever the size, my experience is that the actual description of the project is dwarfed by the blizzard of forms that document the myriad of requirements with which successful bidders must comply. (My favorite “You’ve got to be kidding me!” example of such a compliance issue is the City of Los Angeles’ insistence that contractors sign a document attesting to the fact that neither they nor any of their ancestors ever owned slaves.) How many stakeholder interests are being served poorly or not at all because of irrelevant restrictions and rules? And let’s not get started on how many people are required to process all this paperwork – before any real work can begin. Bureaucracy is a death knoll for success.

How many of these issues resonate with you? What will you do to address them? In a future post I will share some of my own suggestions about how to minimize these obstacles.

© 2011 Pat Lynch. All rights reserved.

Assumptions Have Expiration Dates

Monday, May 16th, 2011

Last month I was a judge for the International Collegiate Business Strategy Competition, which required graduate and undergraduate students to compete against each other in starting and running a business using a sophisticated computer program. One of the most important lessons learned was articulated by members of an MBA team whose seemingly effective strategy went down in flames at the very end: assumptions have expiration dates. That is, leaders must constantly check to be sure that the bases on which they make decisions remain sound and have a specific purpose that continues to serve the organization well.

How many of us question our own assumptions, and those of organizational leaders? How do we even know whether our assumptions are still effective? Here are three ways to determine whether any given assumption remains viable or whether it has reached the end of its useful life and must go:

    1. The answer to the question, “How’s that XYZ (i.e.,
    position/concept/process/system/program) working for you?” is negative.

    2. No one can remember the purpose of, or reason for, doing XYZ.

    3. If you stop doing XYZ, there are no adverse consequences. Things may even improve!

And by the way: the phrase “We’ve always done it this way” is a dead giveaway that inertia is at work, which means that assumptions definitely need to be re-visited.

I invite you to put your assumptions to any one of the above “tests.” If they pass, the assumptions probably continue to serve your organization well. If they don’t, it’s time to toss them, as they have outlived their usefulness.

© 2011 Pat Lynch. All rights reserved.

How to Create an Effective Bonus Program

Friday, May 13th, 2011

Will including a bonus program in your compensation system help your organization achieve its goals? If so, how do you structure the program so it is most effective? Recently I was interviewed about this subject; I invite you to read the resulting article, 4 Tips for Creating an Effective Bonus Structure, by Katie Morell. And let me know what you think!

© 2011 Pat Lynch. All rights reserved.

How Public Safety Professionals Are Shooting Themselves in the Foot

Sunday, May 1st, 2011

When the Long Beach Press-Telegram reported recently that Long Beach’s Chief of Police had vowed that the police would “get the job done” regardless of what they were tasked with doing in the face of drastically reduced resources, I had two immediate and contradictory reactions. As a Long Beach resident and business owner, I felt relieved to hear that the police still plan to provide “…the best possible service for the people who are accustomed to that service.” As an expert in resource allocation, however, I thought, “You’ve got to be kidding!” By publicly promising to maintain the normal level of safety no matter what, the Chief essentially gave the City Council the green light to take resources away from the Police Department and give them to other agencies. In short, he metaphorically shot his department in the foot – unless the Police department has been greatly over-funded, and recent budget cuts merely reduced its budget to an appropriate level. Somehow I doubt this is the case.

I’m not picking on the Long Beach Police Chief; he just happened to be a local example of what I’m hearing and seeing in law enforcement and fire service agencies. In both these professions, members tend to downplay the significance of their roles in keeping people safe while routinely putting themselves in danger. “It’s just my job,” they often protest when grateful recipients of their services try to express their thanks. As a result, over time the public began to believe them, and subsequently was lulled into a false sense of security because these public servants make what they do seem almost easy. Few people stop to think about what is required to keep our law enforcement and fire service protectors at the top of their respective games so they can perform at high levels at a moment’s notice. Thus when City Council members or other decision-makers adopt deeply flawed policies like proportional sharing instead of stepping up to the plate and making the tough decisions they were elected or hired to make, there is relatively little resistance from the public about whether the resources are being prioritized appropriately. As a result, we witness scenarios like the one in which a Los Angeles City Council member vowed to save the jobs of the City’s calligraphers (employees whose job is to produce the pretty certificates that Council members like to hand out to constituents) at all costs – even though “essential” jobs such as those of teacher, police officer, and fire fighter were on the chopping block.

The fact is that when law enforcement and fire service leaders continue to assure the public that all is, and will remain, well despite fewer and fewer resources each year, they are doing a serious disservice to the public and to their own employees. While service levels may be maintained in the short-term, they are not sustainable over time: employees get burned out due to overwhelming work loads, and critical, life and death decisions are made by people who are tired and stressed out. When equipment malfunctions, when (or even if) it can be repaired will depend on factors such as when overworked mechanics can get to it, and/or how long it takes for the parts to arrive after someone realizes that no one ordered them since the clerical personnel who handled the ordering were laid off, and/or whether the money to pay for the parts can be found somehow.

In short, the “things will continue to be normal” mantra is a charade that must stop. Decision-makers and the public need to be educated about the trade-offs that result from allocating fewer resources than required to maintain service levels.

Here’s my advice to leaders in law enforcement and the fire service, and to public sector decision-makers: stop it! More specifically:

    1. Leaders in the fire service and law enforcement: I’m sure you believe you’re doing the right thing by assuring the public that you will keep us safe. And I think you are sincere when you say you will do everything possible to make sure that happens. But the truth is that you can’t, at least not beyond the very short term. And in your heart of hearts, you know it too. So please: stop sending the message that everything is fine, and begin to educate the public about what the trade-offs will be when you have fewer resources with which to work.

    2. Public sector decision-makers: stop hiding behind the appearance of doing your jobs (e.g., by implementing ineffective policies like proportional sharing), and start making the tough decisions required to deal with current and future conditions. A good place to start, for example, is by setting priorities and allocating resources based on what is needed to achieve the relevant government entity’s “big picture” (e.g., a city’s vision or mission) rather than on what groups have complained the loudest most recently.

Public sector entities are having a tough time right now, and everyone is suffering as a result. Let’s not compound the existing challenges by setting unrealistic expectations about public safety, and then burning out good people trying to achieve them.

© 2011 Pat Lynch. All rights reserved.