Recently, an employee of a client organization told me that she had received a $200 gift card for doing a job well done. She went on to say that the “recognition” had no meaning because she didn’t even know who sent the card or what she had done to receive it. While she didn’t mind having an extra $200, she certainly did not get recognized. Money well spent by the organization? Well . . . no. Don’t get me wrong, I am glad they are trying to do the right thing with their programs, but did it have the intended impact? No.
When speaking with audiences, I often ask them this question: “We know recognition can foster better engagement, reduce turnover, and consequently produce more profits, but what is the ultimate purpose of the recognition?” Most of the audience members look around thinking that the engagement, the turnover, and profits are the ultimate purpose. However, I believe the ultimate purpose extends way beyond these final intended results.
The ultimate purpose is simply this: “To emotionally engage and inspire employees by reaffirming that what they do is appreciated – that they feel like their lives have real meaning – in short, that they feel like they matter.”
Research suggests that when people feel good about themselves, they are more abundant and considerate to others. Of course, just the opposite occurs when people don’t feel good. So, how do we encourage people to feel good? The answer is glaringly obvious but it is crucial to share with clients: Create great recognition experiences for your employees NOT just programs. When people are recognized, the brain releases the “feel good” chemical dopamine that boosts the person’s feelings and mood. However, it only works if there is actually an experience for the brain to feel good about thereby creating the release of dopamine.
The problem is that we often make recognition far more complicated than we need to. Let’s remember that the ultimate goal is to help employees feel like they matter. Let’s offer programs that focus on creating the recognition experience. If we do this right, the engagement, retention, and profitability will follow.
Monday, November 12, 2007
Monday, October 22, 2007
Why Culture is Important
Tom Long recently had a client that asked why culture is so important. Specifically, they wanted examples of organizations that were suffering because of their culture. Immediately, I thought of Home Depot and their former CEO Bob Nardelli.
During his tenure – or his reign of terror – the stock went sideways and they lost market share to LOWES. He cut out recognition, railed on his employees, and slashed expenses in every direction. At the same time, they lost huge talent (100% of 100+ leaders left), and they started having trouble recruiting new talent. In the end, Bob’s efforts to cut costs really wiped out morale, engagement, and retention. Their reputation got out in the market and qualified people stayed away.
When he was fired, Newsweek magazine reported that employees were cheering in the stores. Since his departure, the new CEO has reinstituted many recognition efforts (including hand written thank you cards to store employees).
In the aftermath of this whole snafu, Inc magazine (April 2007) asked a panel of experts the following question:
“Bob Nardelli’s departure left customers, shareholders, and employees of the Atlanta-based retail chain wondering whether it will ever recapture the entrepreneurial zeal that the co-founders Bernie Marcus and Arthur Blank worked so hard to develop. How can the company go about refurbishing its good name?”
Tom Sternberg, the founder and former CEO of Staples and a partner at Highland Capital in Boston answered by saying:
“First thing the company has to do is hang Bernie Marcus’s and Arthur Blank’s pictures in the lobby. They’re the two greatest entrepreneurs in American business history. They built the single best CULTURE of any business that I’m familiar with, and they built an extremely people-focused business in regard to both Home Depot’s customers and, even more important, its employees. Now you have Nardelli, this brash, abrasive egomaniac who destroyed the terrific culture in the name of efficiency, and that’s going to take decades to fix. I would try to hire back many of the phenomenal business leaders that Home Depot lost because of Nardelli. These are the folks who made Home Depot such a unique brand. I’d ask them to help put back in place the people-focused culture in order to get the company back to its prior standard of operating excellence.”
We all know that culture is important, and that is exactly why our business is so critical. Recognition drives cultures of excellence, and provides opportunities for people to appreciate one another. When you think of the havoc Bob created at Home Depot, it is easy to see how recognition is a crucial component in building a people-focused culture that really produces results.
Are their costs associated with supporting a people-focused / recognition culture? Of course! Are their costs for destroying a culture? Ask Bob Nardelli or the hundreds of people he ran out of the company. Which strategy actually gets results? Is there any question?
During his tenure – or his reign of terror – the stock went sideways and they lost market share to LOWES. He cut out recognition, railed on his employees, and slashed expenses in every direction. At the same time, they lost huge talent (100% of 100+ leaders left), and they started having trouble recruiting new talent. In the end, Bob’s efforts to cut costs really wiped out morale, engagement, and retention. Their reputation got out in the market and qualified people stayed away.
When he was fired, Newsweek magazine reported that employees were cheering in the stores. Since his departure, the new CEO has reinstituted many recognition efforts (including hand written thank you cards to store employees).
In the aftermath of this whole snafu, Inc magazine (April 2007) asked a panel of experts the following question:
“Bob Nardelli’s departure left customers, shareholders, and employees of the Atlanta-based retail chain wondering whether it will ever recapture the entrepreneurial zeal that the co-founders Bernie Marcus and Arthur Blank worked so hard to develop. How can the company go about refurbishing its good name?”
Tom Sternberg, the founder and former CEO of Staples and a partner at Highland Capital in Boston answered by saying:
“First thing the company has to do is hang Bernie Marcus’s and Arthur Blank’s pictures in the lobby. They’re the two greatest entrepreneurs in American business history. They built the single best CULTURE of any business that I’m familiar with, and they built an extremely people-focused business in regard to both Home Depot’s customers and, even more important, its employees. Now you have Nardelli, this brash, abrasive egomaniac who destroyed the terrific culture in the name of efficiency, and that’s going to take decades to fix. I would try to hire back many of the phenomenal business leaders that Home Depot lost because of Nardelli. These are the folks who made Home Depot such a unique brand. I’d ask them to help put back in place the people-focused culture in order to get the company back to its prior standard of operating excellence.”
We all know that culture is important, and that is exactly why our business is so critical. Recognition drives cultures of excellence, and provides opportunities for people to appreciate one another. When you think of the havoc Bob created at Home Depot, it is easy to see how recognition is a crucial component in building a people-focused culture that really produces results.
Are their costs associated with supporting a people-focused / recognition culture? Of course! Are their costs for destroying a culture? Ask Bob Nardelli or the hundreds of people he ran out of the company. Which strategy actually gets results? Is there any question?
Thursday, October 18, 2007
Hope . . . or the lack of it.
Lately, I've been reflecting on why I get such varied responses from different audiences. Why is it that some audiences respond with a standing ovation while others sit there wondering how they will ever be able to act on the presentation material?
My guess is that there are some organizations that simply don't have much hope. Their culture is one of repression and criticism -- a place where employees are unsettled or even afraid. It is amazing how the heavy burden of the culture floods over me as soon as I walk into the building of such an organization. Not surprisingly, I find that most of the employees are very candid, yet unhappy, about their situation -- even informing me that they are always looking for the next opportunity to leave the organization -- ouch! Sadly, they often seem overwhelmed after a presentation since it seems so hard to recognize successes in such an environment.
On the flipside, when I walk into an organization full of hope (NOTE: I did not say a perfect company -- just a company full of hope), I sense a great deal of optimism -- even in the face of adversity, pressing deadlines, and the inevitable people issues. At such a place, they cheer and smile at the end of a presentation. They know there will be challenges ahead, but they face them head on and look forward to finding creative ways to recognize their colleagues.
Does your organization feel like there is hope inside? One way to to tell is to examine what the language is like in the place. What words are being used? How do people respond to clients, customers, or even to one another?
Did you know that being positive and taking time to appreciate your life & others is actually good for your health?
How do you create hope?
My guess is that there are some organizations that simply don't have much hope. Their culture is one of repression and criticism -- a place where employees are unsettled or even afraid. It is amazing how the heavy burden of the culture floods over me as soon as I walk into the building of such an organization. Not surprisingly, I find that most of the employees are very candid, yet unhappy, about their situation -- even informing me that they are always looking for the next opportunity to leave the organization -- ouch! Sadly, they often seem overwhelmed after a presentation since it seems so hard to recognize successes in such an environment.
On the flipside, when I walk into an organization full of hope (NOTE: I did not say a perfect company -- just a company full of hope), I sense a great deal of optimism -- even in the face of adversity, pressing deadlines, and the inevitable people issues. At such a place, they cheer and smile at the end of a presentation. They know there will be challenges ahead, but they face them head on and look forward to finding creative ways to recognize their colleagues.
Does your organization feel like there is hope inside? One way to to tell is to examine what the language is like in the place. What words are being used? How do people respond to clients, customers, or even to one another?
Did you know that being positive and taking time to appreciate your life & others is actually good for your health?
How do you create hope?
Wednesday, October 17, 2007
High performing employees want great managers
After speaking at a large organization (the 3rd city and 4th presentation this week), an audience member came up to tell me that they refused a promotion because they didn't want to risk getting a bad manager. "I know that I am very fortunate to have the boss I have," she said, "and I don't want to lose that."
Have you ever left a bad boss or stayed with a good one? What makes them so good / bad?
If you could offer one piece of advice, what would you say managers should do to be more effective?
Have you ever left a bad boss or stayed with a good one? What makes them so good / bad?
If you could offer one piece of advice, what would you say managers should do to be more effective?
Our adult waking hours . . .
Where are most of your adult waking hours spent? For most of us, it is work. So why is it that so many people are unsatisfied with their current work lives? Why is it that a book called, "The Purpose Driven Life" was the best seller of the decade? How do we find meaning and purpose in the work that we do? Does it make a difference?
Do you work harder when you enjoy the work you do?
Do you work harder when you enjoy the work you do?
Friday, September 28, 2007
Making Recognition Relevant
Making Recognition Relevant
So you know the seven best practice standards – now what? The challenge: Not only do we have to figure out how to apply what we know, but we also have to make sure that the application is appropriate. Simply put, we need to make the recognition relevant to recipients. While this may seem easy enough, as I speak about the power of effective recognition with hundreds of organizations around the globe, one of the biggest questions is always how to make it relevant.
After a recent presentation, a manager came up to tell me about his own experience in recognizing the top performers in his department. Despite his best efforts, his attempts at recognition had the opposite effect on some well deserving employees. In fact, one of his best employees had recently requested that he simply stop doing the recognition. Now I was curious, and I asked this manager what he was doing that had his best employees asking him to stop. He said, "I give a candy bar for good performance and for every ten candy bars that someone receives, they then get a pack of "LIFESAVERS." Of course, the unintended impact of this "recognition attempt" was that his team felt micromanaged by their obsessive boss and it all came across more like a parent treats a child (they liked the chocolate, but it just went too far).
The kicker is that this well intentioned manager is not alone. Time and time again, audience members will ask, "How come my employees don't appreciate the recognition I give them?" Or comments like, "We spend lots of money on recognition, but it doesn't seem to have an impact."
If that is happening at your organization, I would suggest asking the following questions:
· How do your current recognition programs make the recipient feel?
· What programs are generating a negative response? Why?
· What are you actually communicating when you give recognition?
· What are you doing to engage each individual?
· Do your managers / supervisors know what to do or how to communicate the message?
If the recognition is actually interpreted as belittling or as an insult, it simply won't be appreciated. Again, while that seems rather simple, we find that this happens more often than anyone would like to admit. At one large client, a five year employee said that she begged HR not to give her manager the opportunity to present a service award for this very reason. However, when done well, service awards can be some of the best recognition a company can offer an employee! Reminding the individual of their contribution and inspiring all those who hear the presentation that what they do is important represents a huge opportunity that should not be squandered.
To make recognition relevant, consider a few of the critical factors for success:
Examine the recognition awards / programs. Do they communicate respect for the individual or do they feel more like stars on a second graders homework?
Examine the delivery. Do you rely on "employee of the month" programs to deliver recognition? Is the program old, tired, or overused?
Examine the communication. Make sure that managers understand what to do to make the presentation powerful instead of demeaning.
Don’t get me wrong. The little things can be great! Ice cream socials, thank you cards, a special token of appreciation, and even a simple e-mail message can all be great - just make sure that recipients know what its about and that it demonstrates respect.
Obert C. Tanner, founder of O.C. Tanner Company, once said (and I paraphrase): “Recognition done right celebrates the dignity of human beings and lifts them up!” Let’s remember that RPI’s seven best practice standards promote the same thing. Now what? Make your recognition more than just a program, make it relevant.
So you know the seven best practice standards – now what? The challenge: Not only do we have to figure out how to apply what we know, but we also have to make sure that the application is appropriate. Simply put, we need to make the recognition relevant to recipients. While this may seem easy enough, as I speak about the power of effective recognition with hundreds of organizations around the globe, one of the biggest questions is always how to make it relevant.
After a recent presentation, a manager came up to tell me about his own experience in recognizing the top performers in his department. Despite his best efforts, his attempts at recognition had the opposite effect on some well deserving employees. In fact, one of his best employees had recently requested that he simply stop doing the recognition. Now I was curious, and I asked this manager what he was doing that had his best employees asking him to stop. He said, "I give a candy bar for good performance and for every ten candy bars that someone receives, they then get a pack of "LIFESAVERS." Of course, the unintended impact of this "recognition attempt" was that his team felt micromanaged by their obsessive boss and it all came across more like a parent treats a child (they liked the chocolate, but it just went too far).
The kicker is that this well intentioned manager is not alone. Time and time again, audience members will ask, "How come my employees don't appreciate the recognition I give them?" Or comments like, "We spend lots of money on recognition, but it doesn't seem to have an impact."
If that is happening at your organization, I would suggest asking the following questions:
· How do your current recognition programs make the recipient feel?
· What programs are generating a negative response? Why?
· What are you actually communicating when you give recognition?
· What are you doing to engage each individual?
· Do your managers / supervisors know what to do or how to communicate the message?
If the recognition is actually interpreted as belittling or as an insult, it simply won't be appreciated. Again, while that seems rather simple, we find that this happens more often than anyone would like to admit. At one large client, a five year employee said that she begged HR not to give her manager the opportunity to present a service award for this very reason. However, when done well, service awards can be some of the best recognition a company can offer an employee! Reminding the individual of their contribution and inspiring all those who hear the presentation that what they do is important represents a huge opportunity that should not be squandered.
To make recognition relevant, consider a few of the critical factors for success:
Examine the recognition awards / programs. Do they communicate respect for the individual or do they feel more like stars on a second graders homework?
Examine the delivery. Do you rely on "employee of the month" programs to deliver recognition? Is the program old, tired, or overused?
Examine the communication. Make sure that managers understand what to do to make the presentation powerful instead of demeaning.
Don’t get me wrong. The little things can be great! Ice cream socials, thank you cards, a special token of appreciation, and even a simple e-mail message can all be great - just make sure that recipients know what its about and that it demonstrates respect.
Obert C. Tanner, founder of O.C. Tanner Company, once said (and I paraphrase): “Recognition done right celebrates the dignity of human beings and lifts them up!” Let’s remember that RPI’s seven best practice standards promote the same thing. Now what? Make your recognition more than just a program, make it relevant.
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