HBS: To Motivate Employees, Give an Unexpected Bonus (or Penalty)

What best motivates employees to do their best work? Below is a blog from the Harvard Business School Working Knowledge by Michael Blanding:

To Motivate Employees, Give an Unexpected Bonus (or Penalty)

Susanna Gallani finds that employees can be more motivated by the anticipation of a reward or punishment than the actual payoff.

In the 1992 film Glengarry Glen Ross, an executive played by Alec Baldwin presents a unique motivational scheme to a trio of down-on-their-luck real estate salesmen. There will be a new contest, he tells them, to see who can bring in the most sales. “First prize is a Cadillac Eldorado,” he says. “Second prize is a set of steak knives. Third prize is you’re fired.”

This might seem an extreme way to motivate employees (and, of course, fails spectacularly in the movie). But companies hold so-called tournaments based on relative performance all the time to incentivize workers, says Susanna Gallani, an assistant professor in the Accounting and Management Unit at Harvard Business School.

How much those systems spur employees, however, may depend on how fair employees perceive them to be.

“We have a tendency to attribute favorable outcomes to our own abilities, but when things go wrong, we try and find other reasons to explain it,” Gallani says.

Which rewards motivate workers?

In a new working paper written with doctoral student Wei Cai, Subjectivity in Tournaments: Implicit Rewards and Penalties in Subsequent Performance, she finds that those perceptions can have a lot more to do with how employees are motivated than the actual consequences they receive.

Motivation is important in business for one reason: In the contract between employers and employees, it’s simply not possible to spell out how employees’ roles will need to expand to meet every contingency.

“Maybe there is an epidemic of the flu and everyone needs to work overtime, or there is an exogenous increase in demand,” Gallani says. “There is so much left unwritten.”

Because of that, employers rely on employee motivation to go above and beyond the contract and do what’s in the best interest of the organization.

“If you feel like you are being given a gift more than you thought you would earn, then you tend to go above and beyond to restore this balance”

Incentive mechanisms to motivate employees can take many forms, whether it’s tangible rewards or punishment, comparing one employee’s reputation versus another’s, or peer pressure to work on behalf of the larger group. All of those forms of incentive influence individual decisions, which are driven by expectations of future outcomes.

“We make choices in anticipation of what the consequences of those choices will be,” Gallani says. “If I work hard, I will get a bonus or greater respect from my peers or simply the confirmation that I am a good employee—so I will make choices to exhibit high levels of effort.”

In some cases, tournament incentives are structured in such a way that when some employees triumph, others fail. General Electric’s “vitality curve,” for example, made employees in the top 20 percent of performance eligible for raises and promotions, while those in the bottom 10 percent risked being demoted or fired. Industries such as investment banking, consulting, and academia routinely include “up and out” systems in which employees are either promoted or fired. While these systems are intended to spur hard work and high levels of performance, they also introduce potential risks.

The determination of winners and losers in a tournament-based reward system is rarely based on purely objective measures, such as how many sales employees make or how many units they produce. “The objective performance measures don’t take into consideration whether the machine broke down or whether someone is still learning the job,” Gallani explains.

To compensate, managers often inject an element of subjectivity into the competition to even out the scores, by taking into consideration factors that might be outside of the control of the employees or contingencies not foreseeable at the time the employee signed the contract. While subjectivity can improve the precision of the performance evaluation, it might also be open to bias. “Maybe you don’t like that worker, so you are biased consciously or unconsciously against him,” says Gallani.

Whether or not that bias exists, humans’ natural tendency to look for someone else to blame often makes employees believe that bias exists. Gallani and Cai decided to test the effects of those perceptions in a real-world scenario involving an anonymous Chinese company that operates in printing processes.

The company, which Cai found while she was home in China on winter break, runs a tournament-style reward scheme for departments, with each ranked on a 100-point system. Each month, the best performing department receives a bonus, while the worst performing department receives a pay cut. Determining whether departments were awarded the bonus or pay cut depends on objective rankings in the point system, but also on the subjective evaluation by top managers.

“It’s not just about who gets the reward or the penalty, but who was expecting to”

What makes the company perfect for research is that it publishes the objective monthly scores for each department alongside the actual winners and losers. Thus, departments can see any discrepancy between objective and subjective results, which happens about 50 percent of the time. In cases where employees thought they would be rewarded but weren’t, Gallani and Cai called that an “implicit punishment,” while in the opposite case, in which employees thought they would be punished but weren’t, they called it an “implicit reward.”

They found that when employees received rewards—whether they were actual or implicit—they tended to be more productive afterward. In the case of the implicit rewards, Gallani speculates that the extra effort is due to a principle of reciprocity. “If you feel like you are being given a gift more than you thought you would earn, then you tend to go above and beyond to restore this balance,” she says.

On the other hand, those employees who were punished, or who didn’t receive the reward they anticipated, tended to be less productive.

Perceptions are worth more than money

Surprisingly, Gallani and Cai found that the productivity boost or lag in response to an actual reward or punishment was short-lived in comparison to those from implicit consequences. (While they couldn’t say exactly how much longer the effects lasted, they liken it to the difference between a short-term and medium-term effect.)

In other words, the feeling of getting an unanticipated bonus or penalty was more motivating to employees than actually getting a bonus or penalty they earned—perhaps because they interpreted it as a result of bias either for or against them by their bosses.

“It’s not just about who gets the reward or the penalty,” says Gallani, “but who was expecting to.”

Ultimately, such tournament-style motivation schemes may be a zero-sum game, Gallani and Cai found, with the increased productivity of the winners and decreased productivity of the losers canceling each other out to create a statistically negligible overall effect.

The study’s findings are relevant for practice in that they point to side effects of tournament performance evaluation schemes that might undermine effectiveness of incentive systems. In particular, this study shows that the effects of rewards and punishments have wide-ranging consequences that impact not only the receivers of rewards and penalties, but also their colleagues, Gallani says.

Additionally, this study shows that workers are motivated not only by the prospect of receiving a reward or a punishment, but also by the methodology by which rewards and punishments are assigned.

Related Reading:

How to Demotivate Your Best Employees
The Power of Ordinary Practices
Sharpening Your Skills: Motivation

 

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GT: How to Add Value to Your Business

What value are you adding to your business? Which of the following are you doing, not doing, or need to improve? Below is a blog from Growthink:

How to Add Value to Your Business

If you’re like me and passionately roll up your sleeves and get to work on something great for several years or more (your business), you owe it to yourself to have a final result for your efforts that is truly a masterpiece.

I’m talking about your business, once it’s complete…Done…Ready to sell for as much as you can reasonably expect, often for several times its yearly earnings.

If and when it does come time to sell, you want to be selling from a position of strength-to sell it when it is at its most valuable point and not when you’re burned out, in ill health, or in some other situation where you are rushed or won’t make nearly as much from the sale.

Like any great work, you have to start with the end in mind, and to that end I’ll be writing this to clarify just what a “sellable” business looks like.  This will give you an ideal to work towards and guide your plans and work.

Below are several things to be aware of in increasing the value of your business to yourself and potential acquirers.

Positioned in its clearly-defined niche

Your business must be the best it can be at what it does, without trying to be everything to everyone. A business that knows its customer segments, their needs and language, and how to solicit a response from them is a lot more valuable than one that is a mixture of everything, or an unknown in its market.

Coach your team to run the business without you

Could other people ever run your business without you? They’ll have to, if you’re selling! So why not make this your goal from Day One?

Make an organizational chart of how your business will look when it’s time to sell it. List all the various workers in marketing, operations, and those they report to.  It’s okay if it’s just you or a handful of people currently filling all those roles. Doing this will help you organize who is going to do what in your business before you hire a new person.

Then, over time, you can find other people to fill those positions one by one until you’re out of the picture.

Build relationships with customers

Goodwill, such as your reputation and brand in the minds of your current and prospective customers, is considered an asset on your company’s balance sheet. You build this over time by treating people right and maintaining good relationships.

If you intend to sell your business someday, or if you just want to have the option, this is something you have to make a priority throughout the business’s life. You can’t just start doing it well suddenly in the final year. Relationships and recognition take time.

Make sure you’re stable

Make sure you’re not overly dependent on any one customer, vendor, employee, or anything else. Diversify your strengths. If you have any “whale” customers that make up a large portion of your business, try to get at least 80% of your business from other people.

The new owner does not want to take the reins and have revenues drop in half in the event your biggest customer leaves.

Maximize your revenues

This one’s self-evident, but deserves to be repeated. In my last essay, I shared 4 proven ways to increase your revenues-getting more customers, increasing your average order size, get customers to buy more frequently, and finding new ways to monetize your customers and visitors.

A company with higher revenues and which shows growing revenues will be more valuable and attractive to buyers.

Hold expenses accountable

You boost your net profit (and therefore the value) by reducing your expenses. However, no one ever shrank themselves into wealth. You’re not going to grow your business by keeping expenses lower-but the numbers will increase as it grows.

Your goal is to keep the percentages the same, such as keeping advertising at 20% of your revenues whether earnings are $100,000 or $1,000,000 per year.

Basically, you’ll want to make sure that budgets are made and followed, to keep spending within projected limits and to avoid costs creeping up that don’t generate more revenue in return.

Keep great records for the next owner

Keep excellent records of everything for the new owner-your files, databases, customer communications, marketing materials, financial records, employee agreements-everything

Committing to do this now will make your life so much easier between now and the time you sell. Keep good records for your own efficiency, protection, and to make your business look a lot more attractive to buyers than one where all the records are filed away in the old owner’s head.

Develop a plan for when it’s “done” and ready to sell

I don’t want you to have plans on top of plans, but each of these will take certain actions to make them happen.  So here’s what to do:  Add these end results into your existing business plan, and use your best judgment when choosing how to make each of them happen in your company.

When it’s all said and done, the next few years are going to go by whether you maximize your business’s value or not. At the end of, say, 5 years, would you rather have a stable, attractive, polished business ready to sell for top dollar, or be left taking what you can get for what you have?

If it seems like a lot, remember you have until the time you sell to take care of these things. You don’t have to do it all now! Just add these elements I described to your vision of what you want your company to be, and keep your eye on it until the big day finally comes.

Carson Tate: Bring Back Recess – No, I Am Not Kidding…

“The true measure of play is how it feels. Play is joy. Play is a sense of being fully present in the moment and not looking to produce or gain anything as a result of effort.” When was the last time you played? Below is a blog from Carson Tate:

Bring Back Recess – No, I Am Not Kidding…

“It is a happy talent to know how to play.” Ralph Waldo Emerson

When was the last time you played?

I’ll be honest with you – for me, it had been months. As a recovering workaholic and someone who is fairly obsessive about productivity and effectiveness, I always struggled with the idea of play. ‘Play’ felt a little like a four letter word.

Why? Because, at the end of the day, what does dancing around my office singing Katy Perry at the top of my lungs actually produce? Sure, it burns a few calories and relieves writer’s block, but isn’t that time that I could be using more productively, more effectively?

I hit the wall a few months back; it was in that moment that I realized the true power of play. I was working on multiple tight deadlines each requiring significant outputs of fresh creative ideas and energy. As much as I tried to fuel myself with a steady supply of caffeine and chocolate, my body felt tired and my brain was blank, dull and flat. I knew that something had to give or I was never going to create a new program or write a fresh article again.

In that moment of desperation, I turned on NPR, and my brain fog parted when I heard Brigid Shulte discussing her book, Overwhelmed, and the value of play. She quoted Stuart Brown who says that play is what keeps our brains flexible and is what enables us to innovate, create and solve problems in new ways. And, in Brown’s “play histories” he has found that people who do not make time for play – in either attitude or activity – are often joyless, rigid, have diminished curiosity and, at the core are depressed.

I knew immediately what I needed to do – I need to play.

Of course, my first instinct was to try to make these attempts at play productive uses of time. So, I scheduled runs with friends – exercise and social time. A book club – expanding my mind and social time. However, each of these attempts at play felt like work just wrapped up in a prettier package. I was missing something.

I was missing what play naturally produces.

The true measure of play is how it feels. Play is joy. Play is a sense of being fully present in the moment and not looking to produce or gain anything as a result of effort.

So, if any of this sounds vaguely familiar or you are just looking to reignite passion it is time to insert PLAY into your life.

P – Purpose

The first step, which I of course learned the hard way, is to disconnect play from any purpose. You are not doing this to get in shape, stimulate your mind, or produce a specific outcome or deliverable. You are doing the activity for the pure joy of it. Now, this can be challenging, so if you must have a purpose refer back to Brown’s research on what happens when you do not make time to play. That should provide a little motivation.

L – Love

How do you feel when you look at a person you love? Play is about connecting to that place of bliss, passion and pure delight. I will never forget that feeling of expansiveness and pure adoration when I looked at my daughter for the first time. So, what lights you up? What did you do as a child that got you excited? I loved making mud pies. I could play in the sandbox and make mud pies for hours pretending not to hear my Mom when she called me in for dinner. I would lose myself in the pure joy of simply creating. How can you recreate this in your life today?

A – Action

Play requires action. There is no such thing as virtual play. Play is the full engagement of body, mind and spirit. You cannot outsource it or reduce it to 140 characters. Trawling Facebook does not count either. You have to do something. To reconnect with the joy of play I enjoyed as a child, I enrolled in a pottery class. It was two hours once a week playing in the mud. I will not be entering any art shows, but I could not care less. I am once again playing in the mud.

Y – Yes!

Play ignites that feeling of yes in your life. It is the full expression of the essence of you. When you are truly playing, you cannot help but feel the exhilaration and a deep sense of rightness that you are truly and fundamentally aligned to your spirit.

Play is living fully.

Go play.

What can you do now?

  • Write down five things you loved to do as a child. Choose one to do again this week.
  • If you cannot think of anything you enjoyed to do as a child or need inspiration check out http://miceatplay.com/ . This is an amazing community of women in the NYC area who meet regularly for pretty cool playdates. If you are in NYC go play with them!
  • Check out http://www.meetup.com/ and find some people in your area who are getting together to play. Find a group and go join them.
  • If you are at work, play a game on the computer, bring in a slinky and watch it fall off your desk, or start each team meeting by asking your colleagues to share a story about the last time they played. Lighten it up and lose yourself, even for two minutes, in the joy of play.

HBR: Should You Cover for a Friend’s Mistakes at Work?

How would you handle your friend’s mistake? I’m interested in hearing your comments. Below is a blog from the Harvard Business Review by Liane Davey:

Should You Cover for a Friend’s Mistakes at Work?

It’s nice to have a friend at work who cares about you and looks out for your best interests. Research has even shown that it contributes to your engagement. The benefits of having a friend at work are clear, but what about the downsides? What happens when your friend starts to let things slip? How do you handle it when you notice they aren’t keeping up? Should you cover for them?

As with most difficult situations at work, there isn’t one right answer. The approach you take depends on a variety of factors. First, how worrisome are the slips? Will they create significant problems for your team, or even your customer? Next, how self-aware is your friend about their harmful behavior and the impact it’s having? Finally, how is your friend’s manager handling the situation? Is anyone other than you noticing the problem? The answers to these questions will help you decide when to intervene and how quickly to escalate from one of the following steps to the next.

The first couple of times your friend drops the ball, it’s perfectly acceptable to cover for them. When I say “cover,” I don’t mean hide the issue. I mean you can jump in and do the task yourself. For example, if your friend was supposed to guide a customer on a tour and is nowhere to be found, you might conduct the tour yourself. Covering could also mean you help diffuse any negative consequences by acting as a character witness, such as by saying, “I needed help a few times today, and Preet didn’t have time to get to the report he was working on. I know he’s focused on it now.” Importantly, you shouldn’t lie. Not only is it dishonest, but it could threaten both your standing and your friend’s if the lie is exposed.

As soon as you need to cover a second time, make sure you take the opportunity to let your friend know that their behavior had an impact. You don’t need to be formal about it, but you do need to raise your friend’s awareness of their behavior. You could say something simple, like, “You had a tour scheduled at noon. I covered it for you. Where were you?” If the answer causes you concern, you can probe a little further and see if there is something worrisome going on. Something as simple as “Is everything all right?” would do the trick.

If your friend continues to miss important duties, it’s time to be more explicit with your feedback. At this stage, share your experience of the person’s behavior and the impact it’s having on you. Now is the time to switch to more-formal feedback. Even the change in your language and tone will signal that something is wrong: “You were 30 minutes late for the team meeting this morning. I noticed Marie making a note in her book when you walked in. You’re probably going to hear about this at your next meeting with her. What’s up?”

If your friend is starting to take advantage of your generosity in covering for them, you should share the impact that their behavior is having on you: “You were 30 minutes late for the team meeting this morning. I had to cover the pipeline report for you. I felt unprepared and uncomfortable having to do it on the fly. What made you late?”

At some point, if your feedback isn’t working, you’ll need to change tacks. If every time your friend drops the ball, you’re there to catch it, the consequences might not be grave enough for them to change their ways. All you’ve done by covering for your friend is show them you’ll be accountable, so they don’t have to be. Now it’s time to let something drop.

Choose your spot wisely; don’t let something fall through the cracks that will be harmful to the team or visible to the customer. If your friend is ignoring internal deadlines or missing big chunks from the presentation they’re preparing, don’t save the day. Give your friend a heads up, and then leave it for them to fix the situation. For example, say, “I notice you don’t have the competitive analysis in your presentation yet. I know Frank is expecting it to be in the draft.” If your friend responds with puppy dog eyes and a plea for you to do that section, simply say “no,” or “I can’t.” Don’t make a big fuss over it, but stand firm.

At this point, if this person is really a friend, you’ll want to get a little more serious about understanding what’s going on. Is it a particularly busy time at home? If so, you can suggest the person ask for help from other members of the team, rather than leaving everyone in the lurch. If it’s something more worrisome, like a physical or mental health issue, your friend might be relieved to have someone to confide in. Don’t push if your friend isn’t comfortable discussing the problem. In that case, you can encourage them to seek support outside the office.

This might be the time to engage your friend’s manager in the conversation, particularly if the manager is supportive and focused on helping the team succeed. You can keep the conversation light and simply flag your concerns without causing alarm. For example, “I’ve noticed my friend has missed a couple of their deliverables this month. I asked them about it, but they didn’t say much. I’m worried. Would you have an opportunity to check in with them this week?”

Your approach needs to change as soon as your friend’s dereliction of duty threatens the financial, reputational, or legal standing of your organization. At that point, you need to put your responsibility to your company above your sense of obligation to your friend. As with all of the situations above, you should be telling your friend what you’re going to say before you say it: “I can’t let this one slide. The wrong shipment has gone to the client, and we need to rectify the situation before it causes problems for everyone.”

All of these scenarios, even the ones with the most basic comments to raise self-awareness, might feel uncomfortable. That’s a sign that you care about your friend and want to maintain the relationship. Remember, true friends are the ones who do the kind thing to protect you and support you in the long term, rather than saying what you want to hear in the short term.

If you have a friend who’s not pulling their weight, make it clear when you cover for them, share the impact their behavior is having on both of you, let the natural consequences of their inaction happen, and, if necessary, alert their manager if the repercussions of their behavior could have negative impacts on the team, the organization, or the customer. That’s what a real friend would do.

The Power Of Moments

I highly recommend reading The Power of Moments: Why Certain Experiences Have Extraordinary Impact by Chip Heath, Dan Heath. Are you creating memorable moments with your customers and memorable experiences in your everyday life?

The Power Of Momentspower of monments.jpg

What are these moments made of, and how do we create more of them? In our research, we have found that defining moments are created from one or more of the following four elements:

ELEVATION: Defining moments rise above the everyday. They provoke not just transient happiness, like laughing at a friend’s joke, but memorable delight. (You pick up the red phone and someone says, “Popsicle Hotline, we’ll be right out.”) To construct elevated moments, we must boost sensory pleasures — the Popsicles must be delivered poolside on a silver tray, of course-and, if appropriate, add an element of surprise. We’ll see why surprise can warp our perceptions of time, and why most people’s most memorable experiences are clustered in their teens and twenties. Moments of elevation transcend the normal course of events; they are literally extraordinary.

INSIGHT: Defining moments rewire our understanding of ourselves or the world. In a few seconds or minutes, we realize something that might influence our lives for decades: Now is the time for me to start this business. Or, This is the person I’m going to marry. The psychologist Roy Baumeister studied life changes that were precipitated by a “crystallization of discontent,” moments when people abruptly saw things as they were, such as cult members who suddenly realized the truth about their leader. And although these moments of insight often seem serendipitous, we can engineer them -or at the very least, lay the groundwork. In one unforgettably disgusting story, we’ll see how some relief workers sparked social change by causing a community to “trip over the truth.”

PRIDE: Defining moments capture us at our best-moments of achievement, moments of courage. Tb create such moments, we need to understand something about the architecture of pride – how to plan for a series of milestone moments that build on each other en route to a larger goal. We’ll explore why the “Couch to 5K” program was so successful-and so much more effective in sparking exercise than the simple imperative to “jog more.” And we’ll learn some unexpected things about acts of courage and the surprising ripple effects they create.

CONNECTION: Defining moments are social: weddings, graduations, baptisms, vacations, work triumphs, bar and bat mitzvahs, speeches, sporting events. These moments are strengthened because we share them with others. What triggers moments of connection? We’ll encounter a remarkable laboratory procedure that allows two people to walk into a room as strangers and walk out, 45 minutes later, as close friends. And we’ll analyze what one social scientist believes is a kind of unified theory of what makes relationships stronger, whether the bond is between husband and wife, doctor and patient, or even shopper and retailer.

Defining moments often spark positive emotion – we’ll use “positive defining moments” and “peaks” interchangeably throughout the book – but there are categories of negative defining moments, too, such as moments of pigue: experiences of embarrassment or embitterment that cause people to vow, “I’ll show them!” There’s another category that is all too common: moments of trauma, which leave us heartbroken and grieving. In the pages ahead, we’ll encounter several stories of people dealing with trauma, but we will not explore this category in detail, for the simple reason that our focus is on creating more positive moments. No one wants to experience more moments of loss. In the Appendix, we share some resources that people who have suffered a trauma might find helpful.

Defining moments possess at least one of the four elements above, but they need not have all four. Many moments of insight, for example, are private-they don’t involve a connection. And a fun moment like calling the Popsicle Hotline doesn’t offer much insight or pride.

Some powerful defining moments contain all four elements. Think of YES Prep’s Senior Signing Day: the ELEVATION of students having their moment onstage, the INSIGHT of a sixth grader thinking That could be me, the PRIDE of being accepted to college, and the CONNECTION of sharing the day with an arena full of thousands of supportive people.

Sometimes these elements can be very personal. Somewhere in your home there is a treasure chest, full of things that are precious to you and worthless to anyone else. It might be a scrapbook, or a drawer in a dresser, or a box in the attic. Maybe some of your favorites are stuck on the refrigerator so you can see them every day. Wherever your treasure chest is, its contents are likely to include the four elements we’ve been discussing:

  • ELEVATION: A love letter. A ticket stub. A well-worn T-shirt. Haphazardly colored cards from your kids that make you smile with delight.
  • INSIGHT: Quotes or articles that moved you. Books that changed your view of the world. Diaries that captured your thoughts.
  • PRIDE: Ribbons, report cards, notes of recognition, certificates, thank-yous, awards. (It just hurts, irrationally, to throwaway a trophy.)
  • CONNECTION: Wedding photos. Vacation photos. Family photos. Christmas photos of hideous sweaters. Lots of photos. Probably the first thing you’d grab if your house caught on fire.

All these items you’re safeguarding are, in essence, the relics of your life’s defining moments. How are you feeling now as you reflect on the contents of your treasure chest? What if you could give that same feeling to your kids, your students, your colleagues, your customers?

Moments matter. And what an opportunity we miss when we leave them to chance! Teachers can inspire, caregivers can comfort, service workers can delight, politicians can unite, and managers can motivate. All it takes is a bit of insight and forethought.

Thank God It’s Monday!: Key Messages For A More Motivated Workplace

Thank God It’s Monday!: How to Create a Workplace You and Your Customers Love by Roxanne Emmerich —  this book which is twenty years old didn’t offer any new insights for me. Below is an excerpt from the book:

Key Messages For A More Motivated WorkplaceThank God Monday.jpg

Here are some of the core messages for change I share, which you will explore in the pages that follow:

  • Commit with all your heart. If you are anything other than a 10 on a 1-10 scale, you are hurting your fellow team members, your customers, and yourself.
  • Be unreasonable with yourself. Be unstoppable going after what you want.
  • Don’t let the little things take you out.
  • Call it tight on dysfunctional behaviors-yours and others: How you do anything is how you do everything.
  • Show you care-colleagues, customers, and vendors. In every encounter, make it obvious.
  • Celebrate every win. It reprograms the brain for more winning.
  • Clean up your messes. If you “blow it,” and you will, restore your integrity.
  • Use powerful and positive language about what you will do and the attitude you expect from others.
  • No more adult daycare! Dysfunctional behaviors must go, whether yours’ or of those around you.
  • How you do anything is how you do everything. live with passion and creativity by reprogramming your limiting beliefs.
  • You can be as miserable or as joyful as you choose. Those who show they care, who appreciate and celebrate, are leaders of their way of being. They keep a culture focused and people thriving.
  • Stop being busy and start doing what matters. Be accountable for results.
  • The fastest way to success and happiness is by giving. Life gives to the givers and takes from the takers; the world has a perfect accounting system.

Try This:

  • Imagine your workplace as one you are eager to come to.
  • Imagine that the only way your workplace will turn around is if you, and only you, are 100 percent accountable for the turnaround. If that were the case, what would you do differently starting tomorrow?
  • Identify the ways in which you are part of the problem instead of the solution-whining about what’s wrong instead of going to the right people with suggestions, shooting down ideas but not proposing ideas for further progress. Be honest. Really honest. Look at your own behaviors with a magnifying glass.
  • Look around and see the fellow employees who are going to need special help to embrace the vision. Use a mirror if you have to.
  • Think about it. Do you really believe? Can you commit to this? Can you make it happen and keep happening?
  • Do you want this enough to help ensure it can happen? What can you do from all levels of your job?

HBR: Dealing with Sexual Harassment When Your Company Is Too Small to Have HR

Most building supplier retailers do not have a formal HR department.  If you turn a blind eye to sexual misconduct at work, you create a toxic setting for all of your employees. What is your company doing about sexual misconduct? Below is a blog from the Harvard Business Review by Karen Firestone:

Dealing with Sexual Harassment When Your Company Is Too Small to Have HR

The subject of sexual misconduct at work is dominating mainstream conversation and board room agendas. This doesn’t just mean men and women who run large global enterprises, Fortune 500 behemoths, film studios, and media platforms. The conversation is happening in small businesses as well.

In the U.S. 43% of employees work in organizations with 50 or fewer people. It would be a mistake to think that a smaller workforce means a decreased chance of sexual harassment. In fact, a few characteristics make small firms more susceptible.

For example, at a smaller firm, people may engage with each other more frequently and that proximity can make the impact of any harassment feel disproportionately large. It can be extremely disruptive if two out of twenty employees suddenly can’t work together and need to be separated. And the legal and punitive costs of sexual harassment cases can feel steeper to a firm with less money and fewer resources.

Importantly, many small firms, especially those with fewer than 30 people, do not have a formal HR department. There is often not enough work to justify a full-time HR employee. The absence of HR means that CEOs must take more responsibility when it comes to keeping current with changing laws, and designing, communicating, and monitoring rules regarding workplace behavior. Another challenge is that without an HR department, more incidents might go unreported, since it may be easier for staff to talk to HR than the boss.

Managing all this is no easy feat for leaders who must also focus on running the business. At our firm of thirteen, the president and I, as CEO, handle all the hiring, compensation, performance, promotion reviews, and any personal matters that our staff brings to us. (Our business manager handles the rest of our “HR” functions like administering payroll, health insurance, and 401K enrollment issues.) Over the past thirteen years, I have brokered the reconciliation of some damaged relationships among colleagues, occasionally helping them through difficult medical and financial situations, and remained watchful for any unhappiness or anxiety. We have never had a sexual harassment complaint, but I’m on high alert for any signs, and I’m thinking more now about how to preempt them.

My CEO peers feel similarly. I surveyed 57 small business CEOs on how they were thinking about sexual harassment. Twenty-nine of these firms had fewer than 50 employees and 21 had no full time HR staff. Among the group, 30 had a written sexual harassment policy, 14 had held a company-wide meeting, and 10 had conducted a training session on the subject.

Two-thirds of the CEOs were male and the group ranged in age from 27 to 81. The majority (70%) said they are more worried now about sexual harassment affecting their business than they were a year ago. They attributed this heightened anxiety to the news focus on high profile cases and reverberations, rather than to any specific incident within their company.

They worried that allegations of inappropriate behavior would damage their office culture, but they were also concerned that hiring a consultant for a day-long training session might be costly, redundant, ineffective, and cause tension about the reasoning behind such action. They were also nervous that the absence of a clearly written harassment policy could hurt both recruiting and the firm’s reputation.

Despite the lack of organized meetings or programs, they seem to be trying to create a constructive workplace culture: 20 of them acknowledged that they are more aware of their own behavior today than in the past, and 16 said that they encouraged their colleagues to come to them directly with any issues or complaints.

Small businesses do not need HR to root out and prevent sexual harassment. But leaders need to 1) be conscious of the factors that lead to a toxic work culture, such as having a predominantly male executive staff, layers of hierarchy in power within the organization, and indifferent responses to previous allegations; 2) establish clear policies outlining what constitutes sexual harassment, which behaviors will not be tolerated, and what employees should do if they see or experience misconduct; and 3) enforce these rules by designating clear roles for people within the organization. At my company I have told everyone they should come to me or my second in command immediately with any complaint. Should this ever happen, I would try to understand the incident by interviewing everyone involved, and I would likely ask the alleged harasser to take a leave until we understood the entire situation. Then I’d try to resolve the problem internally. If that was impossible, we would seek outside counsel.

So far, it’s not a dilemma I’ve had to face. Over a decade ago, we wrote up a sexual harassment policy that strongly denounced any form of sexual harassment. These included physical, verbal, or implied requests for sexual favors; inappropriate jokes and gestures; and intimidating behavior. It also offered directions about reporting that misconduct. Each year we revise this, recirculate it, and have every employee sign it. We continue to discuss this policy at company-wide meetings, including one recently, following all the recent news stories on the subject. At that session, I asked everyone if we should do anything else, such as hold a sexual harassment training session; no one believed that necessary.

Since we have no HR department, we tell employees that should they experience sexual harassment, they need to come forward, at some point, to one of the top managers. We know that this won’t happen if they don’t trust us and feel that we care about their well being. To foster this kind of trust, I talk to my colleagues every day when I see them, make sure people are included in any discussions around their work, and ask them questions about their assignments and contributions. This may sound trite, but these actions will generate more trust than merely telling people to come forward with a harassment charge.

Every CEO of a small company has concurrent goals of growing into a highly profitable business and creating a vibrant and desirable office environment. If you turn a blind eye to sexual misconduct at work, you create a toxic setting for all of your employees, and face high financial, reputational, and energy-sapping costs of dealing with a sexual harassment lawsuit. The main way small businesses can prevent sexual harassment is to establish the right internal culture, which means paying more attention to the example you set. The well-being of your company could be at stake.