As reported in Training & Development Magazine, a recent study by the Institute for Corporate Productivity Leadership Competencies found that executives are placing greater emphasis on soft management skills (people skills).  The need for operational efficiency and profitability is driving this change. 

The people skills that executives rated as most important to successful leaders in their organization were building effective relationships (51.6%) and creating an environment of trust and respect (44%).  Other people skills that the executives identified as characteristics of successful leaders were motivating others effectively, coaching staff effectively, and demonstrating a high level of emotional intelligence.   

The message for leadership at all levels of the organization: leadership proficiency in building relationships is becoming just as important as leadership proficiency in building and maintaining a business.

Business Consulting Solutions LLC, Copyright 2010.  All rights reserved.

An article in HR Magazine addressed the dynamics of older workers in business—those who are 50 years or older (Baby Boomers & Veterans).  It addresses some interesting myths and realities about older workers:

• Older workers cost more!  This is true. But contrary to popular opinion, the financial difference is only about 10% according to the Urban Institute.

• Older workers are absent more!  Statistically, the US Bureau of Labor Statistics reported that the difference was insignificant.  The ratio is 3.2 absences per 100 workers for younger employees.  The ratio is 3.6 absences per 100 workers for older employees.

• Health costs are greater for older workers!   The answer here is mixed.  As workers age from 40 on, there is a gradual increase in health care costs.  Significant health care cost differences do not occur until workers reach age 65.  However, even the findings here are mixed as some organizations report that older workers actually cost less for health care (due to the high cost of some child births for younger workers).

The reality is that the cost of older workers is often over-stated.  What older workers cost in higher salaries, they make up with their experience, ability to complete tasks correctly the first time, lower turnover costs, and organizational loyalty.  With older workers delaying retirement, managers will need to adjust their view of this demographic in the new millennium.

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All rights reserved.

A recent study by Leadership IQ shows that employees are dissatisfied with the quality of communication and performance feedback that they receive from their managers. This dissatisfaction has only increased with the Great Recession.  Workers surveyed in the United States and Canada reported five interesting findings:

• 67% of employees report that they receive insufficient positive feedback from their managers.
• 51% of employees feel that they get insufficient constructive criticism from their bosses.
• 53% of employees report that any positive feedback that they do receive from their managers is too generic to help them improve their performance (for example, “good job”, “great presentation”, etc.).
• 65% of employees report that criticism from their managers is too general to help them improve their performance.
• 79% of employees report that they do not have a clear sense of how their managers view their performance.

The message for managers is that employees want the chance to develop their skills and improve their performance, particularly during these insecure times.  Employees desire feedback that is constructive, specific, and motivating.  Employees desire this feedback both when they have done well and when they need to improve. If done correctly, performance feedback can be a source of motivation for employees.

Business Consulting Solutions LLC

Copyright 2010.  All rights reserved.

There is much agreement in business about generational diversity in the new millennium for American workers.  First, most business researchers agree that there are 4 very different generations in the workplace:  the Veterans, the Baby Boomers, Generation X, and Generation Y workers.  Second, many business leaders and managers agree that getting these groups to work together effectively is challenging.  Finally, many workers agree that the different generations look at each other with confusion and suspicion as they interact together in the workplace. As a result, generations are colliding in the workplace and business professionals are working hard to contain the organizational damage that occurs. Managers and leaders must first understand each of these groups, however, before they can stop generational collisions from occurring in the workplace.   

A survey by the Novations Group explored why senior management teams have a hard time communicating effectively with their employees. The top two findings are that too little follow-up communications and too much reliance on email are the reasons.  Interestingly, few employees feel senior management communicates too frequently.  The complete survey results are as follows:

• Senior managers rely too much on email                                        35%
• Senior managers assume a single message is enough                     30%
• Senior managers have no feedback loop in place                             28%
• Senior managers messages are often unclear                                  24%
• Senior managers communicate too much, too often                       __ 3%

The message for senior managers:  communicate more informally and more often with your employees.

Note:  Multiple items could be selected on the survey.

Business Consulting Solutions LLC, Copyright 2010. 
All rights reserved.

In their quest to maximize profitability over the past several decades, senior leaders typically put emphasis on technological and organizational process improvements. Technological improvements through automation and major hardware and software implementations have dramatically reduced costs and increased organizational efficiencies.  Organizational process improvements such as six sigma and lean management have also had the same effect. Clearly, technological and organizational process improvements have been the primary drivers for organizational success. With this focus, organizational leaders have put a great importance on how work is done in the organization.   

Many business forecasters stress that leaders cannot continue to focus their efforts too heavily on technological and organizational process improvements.  Leaders must pay greater attention to their human capital.  Failure to do so will cause these leaders to lose their competitive advantage.  Forecasters point to the fact that successful technological and organizational process improvements have narrowed the productivity gap.  This gap has narrowed not only among industry competitors but also among different countries.  Successful outsourcing to other countries is an example of the narrowing productivity gap.

In this new millennium, business forecasters explain that an organization’s human capital will be the key driver for success.  An organization’s competitive advantage will come from the quality of its human capital and the ability of its managers and leaders to leverage this talent successfully.  An organization’s human capital can no longer be ignored as leadership attention is focused on other organizational areas.  Successful businesses in the new millennium will put a greater importance on who is doing the work in the organization!

Business Consulting Solutions LLC.  Copyright 2010.  All rights reserved.

People tend to resist that which is forced upon them. 

People tend to support that which they help to create.

Vince Pffaf

People tend to take better care of what they own themselves. They have more personal investment. This insight is a powerful tool for managers to understand and leverage.  Requiring employees to “help own the solution” both for their own performance and for business operations in general has a positive impact on organizational productivity. This process begins with management doing less telling and more asking in their communications.  It starts with managers and leaders asking: What do you think?

Business Consulting Solutions LLC

Copyright 2010.  All rights reserved.

Conflict is everywhere! Kids fight. Business professionals try to outmaneuver each other over process and control issues. Political parties battle for influence with their competing ideologies. Nations war over dominance and the control of resources. Families clash over their different values and expectations of each other. Conflict is always present with us and conflict will always be a part of our life. For the business professional, manager, or leader ...

It seems like most important decisions always come down to the numbers.  This is especially true for management.  This month I am introducing a new blog entry called Fascinating Numbers.  In these short blog entries, I will share fascinating numbers that provide important insights into the world of management and leadership.  For the first entry, I will share the top 5 motivators at work.  Although the rank order for the top 3 motivators may vary depending on who conducts the survey, results consistently show over time that the top 5 motivators for employees are the following

Top 5 Motivators

1. Challenging Work
2. Recognition
3. Employee Involvement
4. Job Security
5. Compensation

These fascinating numbers show that employee morale is more directly affected by the boss and his or her management and leadership styles than it is by job security and compensation. (This is true, of course, when employees’ compensation and job security are reasonable for their needs and are equitable.)

Numbers are fascinating!

Business Consulting Solutions LLC, Copyright 2010. 
All rights reserved.