Michael Lee Stallard

The New York Times recently had an article entitled “What Makes a Hospital Great” that described new research concluding a hospital’s culture and the quality of relationships were the most important factors determining patient outcomes. This finding is consistent with our research that concluded leaders must be intentional about developing both “task excellence” and “relationship excellence” in order to achieve sustainable superior performance.  If leaders focus on task alone the eventual failure of relationships will sabotage excellence.

Many thanks to Deborah Mills-Scofield for complementing my book  Fired Up or Burned Out in her Forbes.com blog post entitled “Personal Connections are the New Currency.”

Congratulations to SAS Institute for being recognized the second year in a row as #1 on Fortune magazine’s 100 Best Places to Work list. Last year I met with Jim Goodnight, SAS Institute’s founder and CEO, to learn more about his leadership and SAS Institute’s culture.  You can read the article I wrote at  The Economic Times‘ website or below.

Most of the leaders I meet believe the people they lead are aligned with strategy and engaged in their work. The data suggest otherwise. The Conference Board released research in January that concluded employee satisfaction and engagement in America were at the lowest point since it began surveying more than 20 years ago.  The report also concluded that the downward trend began long before the Great Recession. Another well-respected organization, the Corporate Executive Board, released research last year that concluded 75 percent of the employees were not engaged and giving their best efforts and of the 25 percent who were engaged, 60 percent were not aligned with organizational goals. The bottom line is that 90 percent of American employees are either not engaged or aligned with strategy.

The potential productivity boost from improving employee engagement and strategic alignment is staggering.  Unfortunately, most leaders have a blind spot when it comes to these areas. Jim Goodnight, co-founder and CEO of SAS Institute, is not one of them. Recently, SAS was named number 1 on Fortune’s “100 Best Companies to Work For” list for 2010. SAS has made the list every year, five times ranking in the top five.

Goodnight, a 6-foot 4-inch tall North Carolinian with a Ph.D. in statistics, founded SAS more than 30 years ago with colleagues from North Carolina State University. Today, SAS is on a roll with annual revenues of approximately $2.3 Billion, a truly global business, a worldwide workforce in excess of 11,000 and an enviable long-term record of revenue and profit growth. Harvard Business School named Goodnight as one of the “20^th Century’s Great American Business Leaders” and he was named one of “America’s 25 Most Fascinating Entrepreneurs” in Inc. magazine’s 25^th anniversary issue.

Earlier this month, I met with Dr. Jim Goodnight to talk about his views on corporate culture and how it affects strategic alignment, employee engagement, employee retention and overall performance. What stood out to me as I observed Goodnight is that he loves to think about how to crack the code of difficult problems.  During our conversation it was evident that he is proud that SAS is developing software to solve problems in a broad range of fields.  He spoke of using parallel processing, a form of artificial intelligence, to create new solutions that address thorny risk management issues faced by financial services institutions such as banks and insurance companies. Education is another field he mentioned. Already 30,000 teachers are using the educational software developed by SAS that the company makes available to teachers online at no cost. Topping Fortune’s “Best Companies to Work For” list, it would appear that SAS and Goodnight are cracking the code of corporate culture too. Read more »

At the heart of building community is developing a bond of connection among the members of a group. In other words, when the members of a group feel positive emotions related to being understood, respected, appreciated, and included by their group’s leaders and fellow members, it forms a bond that strengthens cooperation and commitment among group members.

Emotions are important to organizational effectiveness. Research by the Corporate Executive Board has shown that emotional factors are four times as effective as rational factors when it comes to the amount of effort employees put in their work. Emotional factors include how an employee feels about his organization’s identity and the people he works with whereas rational factors include what an employee thinks about his compensation.

Typically, an organization’s managers and stars feel emotionally connected while three-quarters of all employees do not. What happens to those who don’t feel connected? They stop caring. They stop giving their best efforts. They stop fully communicating and, as a result, decision-makers don’t get the information they need to make optimal decisions. This disconnection results in a gradual spiraling down of performance that may eventually threaten an organization’s survival.

Connection is grounded in human needs. I’ve found that two of these needs, recognition and belonging, can be partially met through participation in online communities. The need for recognition is in our DNA. It’s almost as if we have a “recognition battery” that needs to be charged regularly but the curious aspect of this battery is that its plug-in is located at a spot on our back that we can’t quite reach. As such, we rely on the people around us to charge our recognition battery. If it’s charged, we are energized; if not, we become drained and lose energy.

In addition to recognition, we have a need to feel that we belong to a group — to be in a place where “everyone knows your name,” as the popular theme song of the old comedy television show Cheers stated. Positive interactions on a regular basis with members of a group bring about this feeling of belonging.

There are a number of online capabilities that organizations can put place to help meet the needs for recognition and belonging, and bring about feelings of connection.

Online Personal Profiles that allow people to express their personal identities through posting photographs, hobbies and interests outside of work provide recognition. When co-workers inevitably comment on these personal expressions of identity, it provides recognition and a sense of belonging that makes people feel more connected. Giving employees a place to express who they really are helps them avoid feelings of isolation that occur when they begin to feel like cogs in a machine. Also related to personal identity are affinity groups such as book clubs and alumni groups. These groups can be encouraged and supported with online intranet websites and social media that increase connection among people with shared interests outside of work.

Social Media can be used to inform employees and invite them into conversations about corporate issues. Leaders who mine the resulting body of content for good ideas, implement them, and give credit where credit is due will discover that this helps employees feel more connected. This practice will also improve decision-making and innovation as decision makers gain access to new information and participants to identify new business opportunities, process improvements and product possibilities.

Podcasts and Webcasts are helpful tools to facilitate connection by reaching employees who have visual and auditory learning styles. They can also be used to increase awareness of thought leaders and experts in an organization. For example, Polly Pearson, former Vice President of Employment Brand and Strategy Engagement at EMC, interviewed thought leaders and experts on an internal webcast entitled “Culture Talk.” Polly helped several EMC employees to become internal bloggers and eventually to blog externally. As a result, EMC developed more than 40 bloggers.

These are but a few of the online means that can be utilized to foster connection among the members of an organization. By helping everyone to feel connected, organizations will increase the employee engagement, strategic alignment, productivity, innovation and overall performance.

Jason Pankau and I were guests on a podcast for clients of The Alter Group, one of America’s leading real estate development firms.  The podcast host was Tom Silva, Vice President of the Alter Group. Our topic was happiness at work, leadership, employee engagement and employee motivation. You can check it out at this link or download it on iTunes.

Take time to read this thoughtful speech entitled Solitude and Leadership by William Deresiewicz given to this year’s plebe class at West Point. He describes how great leaders develop the courage of their convictions, which includes moral courage. Reflection, time alone with one’s thoughts, interactions with trusted friends and reading great books, as Deresiewicz says, are part of the mix.  What he didn’t adequately include is the impact of one’s experiences in life including one’s family of origin and periods of adversity and suffering that breed humility.  Despite its shortcomings, it’s a fine speech and well worth taking time to read.

Many thanks to David Books of The New York Times for bringing this thoughtful speech to my attention.  Brook’s recognized Deresiewicz’s speech as one of the best pieces of long journalism written in 2010.

Jason Pankau and I are speaking about maximizing employee engagement, alignment and productivity on several upcoming webinars. The webinars are based on ideas in our book Fired Up or Burned Out: How to Reignite Your Team’s Passion, Creativity and Productivity (Thomas Nelson).

Here are the names of the organizations hosting the webinars along with the respectives dates and links to sign up:

December 7, 1:00 PM EST for Linkage

December 7, 3:00 PM EST for the Human Capital Institute sponsored by the ITAGroup

December 15, 12:00 PM EST for the New Talent Management Network

Servant leaders connect with the people they lead and create Connection Cultures that are essential to achieve sustainable superior performance. Connection is defined as a bond that exists among a group of people based on shared identity, empathy and understanding that moves self–centered individuals toward group-centered membership.  Here’s an example of a servant leader that brings the force of connection to life.

Retired CNO Admiral Vern Clark was formerly the chief of the U.S. Navy from 2000 until 2005. When Admiral Clark became the chief, first term re-enlistment didn’t meet the Navy’s goal of 38 percent. Within a little more than a year, it soared from under 38 percent to 56.7 percent and the Navy had more sailors that it needed.  Although I don’t have space in this article to tell you all of what Admiral Clark did, his actions can be summarized in three words: Vision, Value and Voice. Read more »

Outlook Business magazine in India and HiringSmart.com in Toronto published articles on connection, employee engagement and alignment. The articles are entitled, respectively, “Connect With Them” and “The Case for Connection at Work.”

Michael Lee Stallard and Jason Pankau

In a recent post, I (Michael) wrote about a leader who imparted his values to the people he was responsible for leading at work and to his children.  In this post, we’ll address the “pride paradox” that relates to values.

Imparting one’s values to others and judging them based on their values has the potential to create a culture of self-righteousness and legalism. Mark Twain alluded to this when he described some people as “good in the worst sense of the word.”

Don’t get us wrong, great leaders impart their values to others and judge others by their values.  Herein lies the paradox.  Some leaders who do this fail to develop what is arguably the most important character value: humility. Read more »