Considerations for Your Business...
Gallup estimates that lack of cohesiveness costs organizations 34¢ of every payroll dollar.
Neuroeconomist Dr. Paul Zak in his Neuroscience research, "Compared with people at low-trust companies, people at high-trust companies report: 74% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives, 40% less burnout... one new—and surprising—thing we learned is that high-trust companies pay more. Employees earn an additional $6,450 a year, or 17% more, at companies in the highest quartile of trust, compared with those in the lowest quartile. The only way this can occur in a competitive labor market is if employees in high-trust companies are more productive and innovative."
Global Human Resource Consulting firm, AON Hewitt, found that companies with high levels of engagement (65% or greater) outperform the stock market, posting total shareholder returns 22 percent more than the average. Companies with low engagement (45% or less) had total shareholder returns that were 28 percent lower than average. Furthermore, AON Hewitt estimates that a disengaged employee costs an organisation an average of $10,000 in profit annually; as a result organizations with high engagement are 78% more productive and 40% more profitable. Aon Hewitt also found that in the most recent economic downturn (2008), organizations with high engagement scores were more resilient than companies with low engagement scores.
A 10-year analysis (2002-2012) was performed on the stock market returns of the top 40 best companies to work for in the USA (high engagement and commitment). These 40 companies had annualized stock returns of 16.4% compared to the S&P average of 4.1%.
Millenials from Gallup research:
Past Future
My paycheck My purpose
My boss My coach
My annual review My ongoing conversations
My weaknesses My strengths
My job My life
In the U.S. only 29% of employed millennials are engaged at work. Only half say they feel good about the amount of money they have to spend, and less than 40% are what Gallup defines as “thriving” in one aspect of well-being.
21% of millennials report changing jobs within the last year (3X non-millennials). Gallup estimates the millennial turnover costs the U.S. economy $30.5 billion annually. 60% say they are open to a different job opportunity (15% higher than non-millennials).
In a Harvard Business Review article by Emma Seppala, Ph.D., Science Director of Stanford University titled Why Compassion Is a Better Managerial Tactic than Toughness, Seppala states, "Simply put, our brains respond more positively to bosses who have shown us empathy, as neuroimaging research confirms. Employee trust in turn improves performance.”
Emotional intelligence (Emotional Quotient = EQ): 90% of high performers have high EQ. EQ is responsible for 58% of your job performance.
With baby boomers hitting retirement age at the rate of 8,000 per day, according to AARP. In Minnesota, millennials make up 41 percent of the workforce according to state officials. At 3M, which recently came out on top in a national survey (NSHSS) that asked 13,000 millennials where they would most like to work. At 3M, recruiters and managers carry easy reference charts showing a list of “Millennial Needs” and “3M offerings.” By 2025, every employee will have gone through a lengthy leadership training, said 3M CEO Inge Thulin.
In Google’s study by their People’s Analytics Department study on what made an effective team (Project Aristotle) they identified 180 teams and used over 35 different statistical models on hundreds of variables, and found that what really mattered was less about who is on the team and more about how the team worked together. In order of importance: 1) Psychological safety (by far #1), 2) Dependability, 3) Structure and clarity, 4) Meaning, 5) Impact. In this study, variables that were NOT significantly connected with team effectiveness were: colocation of teammates, consensus-driven decision making, extroversion of team members, individual performance of team members, workload size, seniority, tenure. (ref. Smarter, Faster, Better, Charles Duhigg 2016)
From chief of Google Analytics Engineering, Sagnik Nandy, who heads one of Google’s biggest teams, “I come from a quantitative background. If I’m going to believe something, you need to give me data to back it up. So seeing this data (from Google’s People’s Analytics Department ‘Project Aristotle’) has been a game changer for me. Engineers love debugging software because we can get 10 percent more efficiency by just making a few tweaks. But we never focus on debugging human interactions. We put great people together and hope it will work, and sometimes it does and sometimes it doesn’t, and most of the time we don’t know why. Project Aristotle let us debug our people. It’s totally changed how I run meetings. I’m so much more conscious of how I model listening now, or whether I interrupt, or how I encourage everyone to speak.”
Harvard’s Amy Edmonson’s survey on organizational team learning: 1) Supportive Learning Environment – (Successful Team: psychological safety, appreciation of differences, openness to new ideas, time for reflection), 2) Concrete Learning Processes and Practices (experimentation, information collection, analysis, education and training, information transfer, 3) Leadership That Reinforces Learning.
"Although teaming is imperitive in today's organizations, neither teams nor organizations naturally do it very well. Successful teaming requires four behaviors: speaking up, collaboration, experimentation, and reflection. (Edmonson).
Andy went through a 6-month executive development program with about 20 other company presidents and executives from his parent company at Darden School of Business with Edward D. Hess. Ed recently wrote an article in Fortune magazine - Why Being a CEO Means Something Different Than It Once Did:
Technology has changed the ways leaders need to act:
1. Engage the world as a lifelong learner with a quiet ego.
2. Embrace uncertainty, ambiguity and complexity like a courageous scientist
3. Excel at managing self and "otherness" - a focus on connecting, relating and emotionally engaging with other stakeholders in the pursuit of a meaningful, purposeful organizational mission.
4. Enable the highest levels of human development and performance.
We, Andy and Rich, would add one more:
5. Elevate yourself as a leader for yourself and your team for breakthrough business performance. We can help you do that and we'll be your biggest supporters.
DNA of Value Creation – Ed Hess Research – Darden School of Business
Simple, focused strategies
Structures that enable entrepreneurial behaviors with customers
Business purpose and meaning (values) above and beyond just creating shareholder value
Relentless, constant improvement
High employee engagement and high accountability
Humble, passionate, values-based leaders
Execution excellence.
Breakthrough Performance is the result of connected people creating new ways to meet challenges. Connected people: 1) Work/live with purpose, 2) Feel ownership, 3) Recognize their place in the system, 4) Create psychological safety.
Innovative, entrepreneurial Breakthrough Performance creates new mental maps to address strategy, business process, and new differentiated products/services.
Breakthrough Performance is measured by financial returns (much greater growth rates in stock and profit returns), stakeholder satisfaction/engagement, and high-performing millennials.
“Recently, as I was teaching this concept (The Speed of Trust), a CFO—who deals with numbers all the time—came up to me and said, “This is fascinating! I’ve always seen trust as a nice thing to have, but I never, ever, thought of it in terms of its impact on economics and speed. Now that you’ve pointed it out, I can see it everywhere I turn. “For example, we have one supplier in whom we have complete trust. Everything happens fast with this group, and the relationship hardly costs us anything to maintain. But with another supplier, we have very little trust. It takes forever to get anything done, and it costs us a lot of time and effort to support the relationship. And that’s costing us money—too much money!” This CFO was amazed when everything suddenly fell into place in his mind. Even though he was a “numbers” guy, he had not connected the dots with regard to trust. Once he saw it, everything suddenly made sense. He could immediately see how trust was affecting everything in the organization, and how robust and powerful the idea of the relationship between trust, speed, and cost was for analyzing what was happening in his business and for taking steps to significantly increase profitable growth.” Stephen M.R. Covey, The SPEED of Trust: The One Thing that Changes Everything
Gallup estimates that lack of cohesiveness costs organizations 34¢ of every payroll dollar.
Neuroeconomist Dr. Paul Zak in his Neuroscience research, "Compared with people at low-trust companies, people at high-trust companies report: 74% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives, 40% less burnout... one new—and surprising—thing we learned is that high-trust companies pay more. Employees earn an additional $6,450 a year, or 17% more, at companies in the highest quartile of trust, compared with those in the lowest quartile. The only way this can occur in a competitive labor market is if employees in high-trust companies are more productive and innovative."
Global Human Resource Consulting firm, AON Hewitt, found that companies with high levels of engagement (65% or greater) outperform the stock market, posting total shareholder returns 22 percent more than the average. Companies with low engagement (45% or less) had total shareholder returns that were 28 percent lower than average. Furthermore, AON Hewitt estimates that a disengaged employee costs an organisation an average of $10,000 in profit annually; as a result organizations with high engagement are 78% more productive and 40% more profitable. Aon Hewitt also found that in the most recent economic downturn (2008), organizations with high engagement scores were more resilient than companies with low engagement scores.
A 10-year analysis (2002-2012) was performed on the stock market returns of the top 40 best companies to work for in the USA (high engagement and commitment). These 40 companies had annualized stock returns of 16.4% compared to the S&P average of 4.1%.
Millenials from Gallup research:
Past Future
My paycheck My purpose
My boss My coach
My annual review My ongoing conversations
My weaknesses My strengths
My job My life
In the U.S. only 29% of employed millennials are engaged at work. Only half say they feel good about the amount of money they have to spend, and less than 40% are what Gallup defines as “thriving” in one aspect of well-being.
21% of millennials report changing jobs within the last year (3X non-millennials). Gallup estimates the millennial turnover costs the U.S. economy $30.5 billion annually. 60% say they are open to a different job opportunity (15% higher than non-millennials).
In a Harvard Business Review article by Emma Seppala, Ph.D., Science Director of Stanford University titled Why Compassion Is a Better Managerial Tactic than Toughness, Seppala states, "Simply put, our brains respond more positively to bosses who have shown us empathy, as neuroimaging research confirms. Employee trust in turn improves performance.”
Emotional intelligence (Emotional Quotient = EQ): 90% of high performers have high EQ. EQ is responsible for 58% of your job performance.
With baby boomers hitting retirement age at the rate of 8,000 per day, according to AARP. In Minnesota, millennials make up 41 percent of the workforce according to state officials. At 3M, which recently came out on top in a national survey (NSHSS) that asked 13,000 millennials where they would most like to work. At 3M, recruiters and managers carry easy reference charts showing a list of “Millennial Needs” and “3M offerings.” By 2025, every employee will have gone through a lengthy leadership training, said 3M CEO Inge Thulin.
In Google’s study by their People’s Analytics Department study on what made an effective team (Project Aristotle) they identified 180 teams and used over 35 different statistical models on hundreds of variables, and found that what really mattered was less about who is on the team and more about how the team worked together. In order of importance: 1) Psychological safety (by far #1), 2) Dependability, 3) Structure and clarity, 4) Meaning, 5) Impact. In this study, variables that were NOT significantly connected with team effectiveness were: colocation of teammates, consensus-driven decision making, extroversion of team members, individual performance of team members, workload size, seniority, tenure. (ref. Smarter, Faster, Better, Charles Duhigg 2016)
From chief of Google Analytics Engineering, Sagnik Nandy, who heads one of Google’s biggest teams, “I come from a quantitative background. If I’m going to believe something, you need to give me data to back it up. So seeing this data (from Google’s People’s Analytics Department ‘Project Aristotle’) has been a game changer for me. Engineers love debugging software because we can get 10 percent more efficiency by just making a few tweaks. But we never focus on debugging human interactions. We put great people together and hope it will work, and sometimes it does and sometimes it doesn’t, and most of the time we don’t know why. Project Aristotle let us debug our people. It’s totally changed how I run meetings. I’m so much more conscious of how I model listening now, or whether I interrupt, or how I encourage everyone to speak.”
Harvard’s Amy Edmonson’s survey on organizational team learning: 1) Supportive Learning Environment – (Successful Team: psychological safety, appreciation of differences, openness to new ideas, time for reflection), 2) Concrete Learning Processes and Practices (experimentation, information collection, analysis, education and training, information transfer, 3) Leadership That Reinforces Learning.
"Although teaming is imperitive in today's organizations, neither teams nor organizations naturally do it very well. Successful teaming requires four behaviors: speaking up, collaboration, experimentation, and reflection. (Edmonson).
Andy went through a 6-month executive development program with about 20 other company presidents and executives from his parent company at Darden School of Business with Edward D. Hess. Ed recently wrote an article in Fortune magazine - Why Being a CEO Means Something Different Than It Once Did:
Technology has changed the ways leaders need to act:
1. Engage the world as a lifelong learner with a quiet ego.
2. Embrace uncertainty, ambiguity and complexity like a courageous scientist
3. Excel at managing self and "otherness" - a focus on connecting, relating and emotionally engaging with other stakeholders in the pursuit of a meaningful, purposeful organizational mission.
4. Enable the highest levels of human development and performance.
We, Andy and Rich, would add one more:
5. Elevate yourself as a leader for yourself and your team for breakthrough business performance. We can help you do that and we'll be your biggest supporters.
DNA of Value Creation – Ed Hess Research – Darden School of Business
Simple, focused strategies
Structures that enable entrepreneurial behaviors with customers
Business purpose and meaning (values) above and beyond just creating shareholder value
Relentless, constant improvement
High employee engagement and high accountability
Humble, passionate, values-based leaders
Execution excellence.
Breakthrough Performance is the result of connected people creating new ways to meet challenges. Connected people: 1) Work/live with purpose, 2) Feel ownership, 3) Recognize their place in the system, 4) Create psychological safety.
Innovative, entrepreneurial Breakthrough Performance creates new mental maps to address strategy, business process, and new differentiated products/services.
Breakthrough Performance is measured by financial returns (much greater growth rates in stock and profit returns), stakeholder satisfaction/engagement, and high-performing millennials.
“Recently, as I was teaching this concept (The Speed of Trust), a CFO—who deals with numbers all the time—came up to me and said, “This is fascinating! I’ve always seen trust as a nice thing to have, but I never, ever, thought of it in terms of its impact on economics and speed. Now that you’ve pointed it out, I can see it everywhere I turn. “For example, we have one supplier in whom we have complete trust. Everything happens fast with this group, and the relationship hardly costs us anything to maintain. But with another supplier, we have very little trust. It takes forever to get anything done, and it costs us a lot of time and effort to support the relationship. And that’s costing us money—too much money!” This CFO was amazed when everything suddenly fell into place in his mind. Even though he was a “numbers” guy, he had not connected the dots with regard to trust. Once he saw it, everything suddenly made sense. He could immediately see how trust was affecting everything in the organization, and how robust and powerful the idea of the relationship between trust, speed, and cost was for analyzing what was happening in his business and for taking steps to significantly increase profitable growth.” Stephen M.R. Covey, The SPEED of Trust: The One Thing that Changes Everything