Saturday, October 27, 2007

Measuring Effectiveness

We live in an age obsessed with metrics and measurements. Newscasts are frequently peppered with the latest statistic or ominous trend. The Internet gives us access to more and, in some cases, better data about what we buy, how to stay healthy, and of course why we are frequently in crisis. If you can count it, chart it, or expound on it there is likely someone doing just that. From baseball to bond markets, client satisfaction to consumer spending, death rates to debt ratios there is a measurement or stat to accompany it.

Is it any wonder that business leaders seem preoccupied with measuring results? They have MBA theories and case studies to prove the value of tracking company performance. And perhaps most importantly, many executives have compensation agreements loaded with incentives for successfully reaching enterprise and personal goals. Monthly reports and meeting agendas are replete with the latest Key Performance Measures and financial ratios.

So what does all this carefully compiled and audited information really tell us? Does it capture how inspired our workforce may be? Does it reveal how committed we are to truth telling and promise-keeping? Will it offer insights about how well the talents of our employees are being utilized? Is there any revelation about the quality of our listening skills or the level of trust among our Board members?

The sad answer to these questions is that we are failing to calculate perhaps the most important measure of any leader, how effective he or she really is. Effectiveness is a challenging concept to quantify and I don’t pretend to have the right metrics to track and express it. Instead what I am pondering is how to apply this new “measure” to the quality and output of my own work. How do I know if I’m effective as a leader?

Using existing metrics that calculate revenue, expenses, profits, client retention, close rates, and client satisfaction one might make the case that I am somewhat ineffective in the current fiscal year. But do these numbers reveal the complete story? If one begins to assess my work based on answers to the questions posed earlier about inspiration, telling the truth, or matching talent to task a much different picture emerges.

As someone who works with leaders who want to be inspiring and organizations that embrace them, my effectiveness depends in large part on how those leaders that I work with consciously change their behaviors. Are they more courageous in the face of adversity or more authentic and vulnerable with their direct reports and peers? Are they more willing to serve others or more committed to telling the truth? Are they more loving in their relationships? In other words, are they more effective too? I would like to think they are and that I have played a small role in their progress.

This musing expresses my deep longing for a new set of metrics. I’m not suggesting that the old measures be completely abandoned. Rather I am inviting conversation about how learning to measure leadership effectiveness could actually improve the results that our old metrics are designed to track. A commitment to being effective might also have the power to transform what has become a cold, fear-based workplace into a warm, inviting, inspiring sanctuary. Let the dreaming begin!

Sunday, October 21, 2007

Permission to Say “No”

I must confess that I love the word Yes. It has been one of the ways I measure personal and business success. I am needed, I am valued, I am important—these are the messages that tend to occupy my thinking when I am agreeing to help someone or take on a new project. Marketers count on people like me to read their latest offer or accept their invitation to buy more stuff. Today’s modern advances in technology put me just one mouse click away from information I might need, products to make my life better, or opportunities to change the world where I live. There is a sense of pride that feeds my ego and keeps me on this treadmill—doing more and saying, “yes” once again.

Leaders are especially vulnerable in a culture that seems to worship the word Yes. Regardless of education, background, experience, or position many of us have been hardwired to believe that yes is the only option. Multi-tasking is held up as a symbol of efficiency and effectiveness. Mastering the latest digital inventions and keeping in touch from remote locations (even while on vacation) is expected behavior. Serving on not-for-profit boards and community involvement is the measure of one’s impact and influence.

But, could the promises that accompany these invitations to say yes be built on a faulty premise? Is there a price to pay for over consumption, over commitment, and over working? While I think the answer is obvious, let me make a case of saying no, at least some of the time.

As I get older my perspectives are changing. Chasing the dream seems less glamorous and more tiring. This makes it somewhat easier to limit my personal consumption and be more content. I say somewhat easier because the temptation to keep up appearances and have the latest and greatest will always be part of a capitalist, free-market society. When we intentionally limit our consumerism we take one small step toward freedom from the word Yes.

The choices that confront leaders every day are rarely between noble good and abject evil. Most of our decisions involve choosing between good things or better things and here is where a conscious leader must use prayerful discernment. It is easier to say no to addictive behaviors or illegal activities than to pass up a promotion so you can spend more time with your family.

One of the toughest no’s a leader faces is the honest assessment he or she must eventually make when gazing in the mirror, “I’m really not that important.” The Psalmist writes, “The Lord is my chosen portion and my cup; you hold my lot. The boundary lines have fallen for me in pleasant places; I have a goodly heritage.” (Psalm 16:5-6) Here is a contented leader; a person that has accepted his role and is free from the pressures of ego or meeting other’s expectations.

For some leaders saying no is viewed as an opportunity to vent or make the other party feel guilty for asking in the first place. I confess my own fears that a relationship may be lost or a client disappointed if I place limits on myself. That is why we must learn to say no graciously and in a way that honors the person who is making the request.

Barbara Brown Taylor writes, “Learning to say no is how we clear space for a few carefully planted yeses to grow.” How might you and I put this wisdom into practice? What are the yeses waiting in your life? Will you have the courage to say no enough times so these possibilities can blossom and flourish? Instead of mighty plans and vision, perhaps leaders need to accept the reality that God meets us in small places. Saying no may be easier from this perspective.

Sunday, October 14, 2007

Invested in Weakness

This past week I was invited to share with the current crop of leaders participating in the Community Leadership Institute class, sponsored by the Indian Valley Chamber of Commerce. The occasion was a follow-up review for a “homework” assignment issued in September when I was a guest speaker. During that session each participant was given a copy of the best-selling book “StengthsFinder 2.0” and encouraged to complete an online assessment to identify their five personal Signature Themes (inherent talents that can be turned into strengths).

The premise of the book is that to excel in one’s chosen field and to find lasting satisfaction in doing so you need to understand and refine your strengths. In researching the book the Gallup Organization surveyed more than 1.7 million employees from 63 countries. One of the interesting questions they posed was this: “At work do you have the opportunity to do what you do best every day.” The results were surprising – only 20 percent strongly agreed with this statement.

This question set the stage for a discussion about strengths and their importance in determining how successful and satisfied we will be in our job. But it fails to address a rather obvious question, “What do we do about our weaknesses?”

In a strengths-based approach, a weakness is defined as “a shortage or misapplication of talent, skill, or knowledge that causes problems for you or others”. This suggests that ignoring one’s weaknesses, as a leader, is not an option. So what do we do?

In many organizations the topic of weaknesses fills agendas during the annual employee review cycle. Leaders are encouraged to identify weaknesses in themselves and their direct reports, corrective action plans are devised, and commitments made to implement them. This focus on weakness assumes we can fix ourselves and grow strong in all areas while the evidence, both circumstantial and concrete, suggests it doesn’t work. The Gallup research provides some of the strongest arguments against this strategy.

One way to deal with weaknesses is to create internal performance management processes and leadership development programs that enable each employee to maximize what he or she does best every day. In particular this should include honoring the distinctive way that each person succeeds using their inherent talents and making sure they are in roles and positions that fit their abilities. It also includes a sound approach to assisting these same persons in managing their weaknesses on the job.

Strategies such as getting the right education or training could help a person to develop the minimum competencies needed in areas like using computer software. Forming complementary partnerships with a co-worker could offset weaknesses in each other. If the weakness has a low impact on the employee’s career then perhaps delegating or outsourcing the task would be an option. Another may be to ignore the weakness knowing that doing so will have no measurable impact on their work or career path.

When the weakness threatens to limit a person’s career then more drastic measures may be necessary. A CEO who dislikes the budgeting process might be required to “bone up” on these skills to perform them at a minimum level of competency. Otherwise their ability to retain the role as CEO could be in question.

Our challenge as leaders is to recognize that investing in weakness is a sure-fire way to create unhappy and dissatisfied employees. While we can’t ignore the flaws that each of us has, it is a far more productive strategy to identify and cultivate the strengths inherent in each of our team members and ourselves.

Sunday, October 7, 2007

Honesty Matters

This weekend my wife, Melody, and I celebrated our 33rd wedding anniversary with a trip to Gettysburg, Pennsylvania. We stopped at one of our favorite local restaurants on Friday morning to enjoy some breakfast before hitting the road. There was nothing unusual about this ritual except what happened when we paid our bill. But I’m getting ahead of my story.

I’ve titled this blog entry “Honesty Matters”. Since it’s not phrased as a question you can assume I believe this short statement to be true. There was a time in America’s history where integrity mattered, where reputations were valued, and where character was more important than money and status. Today’s leaders and businesses often forget the important role that honesty plays in shaping client relationships, in attracting and retaining dedicated employees, and in building goodwill that creates a lasting brand.

Small businesses have the most to lose by not practicing honesty. They are generally more leveraged financially with less capital to invest in marketing and public relations campaigns. Owners represent the “face” of these enterprises so their own personal reputations are on the line when things go wrong. There is also the power of “word of mouth” to quickly affect the community’s opinion in a negative way if fraud or deceptive business practices are uncovered. In fact, entire industries, like remodeling, can suffer a damaged reputation at the hands of one unscrupulous contractor.

That’s why my experience at the cash register is so relevant. The warm and friendly person greeting us as we approached to pay our bill was Mary, a friend from our church. We often meet her under these circumstances so conversations quickly turn to the day’s events or inquiries about family and friends. Today’s banter was different. As I reached for my credit card, Mary produced a separate receipt and $1.37 that she placed on the counter. She quickly explained to my astonished wife that when she had rung up her lunch ticket earlier in the week, the cash register had failed to override a mistaken entry on her part and the money now in front of us represented what we were owed in change.

After the initial shock, we both responded in amazement that an error had been found and asked why she had held the money so it could be returned to us. After all, it was a small sum with little implications for our family budget. But Mary knew why honesty was important even under circumstances that had only small financial consequences. Her simple acknowledgement of a mistake, her sincere apology on behalf of the business, and the restitution of our $1.37 left a lasting impression.

Leaders everywhere would benefit from teaching employees about honesty and empowering them to make things right with customers. They would do well to model truth telling in the workplace and marketplace. Our experience with Mary is a wonderful reminder that integrity matters, regardless of the size of the mistake.