I recently met with one of my clients, Budget Home & Office Cleaning.  The company is in a tough industry, working in a difficult environment given today's economic woes for the demographic they serve.  Through much hard work, smart marketing (much of it Social Media) and great leadership, they have continued to grow year after year.   We were recently discussing what kind of Key Performance Indicators they can use as predictors to understand where their business is headed and how healthy it is.  And one of the most interesting ones we discussed was the "laughter factor."  Will (the owner's son and future successor) explained it as follows:

"When the crews are getting ready for their day, when everyone is running around putting supplies and equipment in our team vehicles, there's a new energy in the air.  There's a higher sense of camaraderie & happiness, there's joking around, there's well - frankly, a lot of laughter!" 

We both paused for a moment and then talked about how that "whistle when you work" attitude builds on itself.  It becomes self-fulfilling and ultimately leads to indicating how happy the employees are - which in turn impacts productivity and retention, customer-service and the customer's experience.  

Yes, employee surveys are important tools to gauge employee loyalty & engagement.  Yes, performance evaluations are critical.  But for a quick pulse & checkpoint - consider your happiness factor, with the amount of laughter coming from you teams as a clear indicator of your company's future health!

 
If you haven’t yet heard the term employee engagement, it’s a pretty sure bet you will soon.  The term refers to how closely aligned your employees feel to your company – how emotionally attached they are to the company, the brand and their fellow employees. The closer they feel, the happier their work experience – which in turn reduces employee absenteeism, increases loyalty, promotes your brand and improves overall productivity.  The science to back the concept up is impressive and the bottom line impact to companies is even more so.  To see how your engaged your employees are, consider the following engagement factors:

• Employee perception of job importance:  An employee’s feelings of worth and how their role ties to the overall success of company
• Clarity of job expectation:   Having clarity of purpose as relates to the employee’s role, and having the tools & skills to accomplish what is asked of him/her supports an employees' ability to succeed
• Ongoing, relevant feedback:  It is not enough to have annual performance appraisals; engaged employees receive ongoing, specific feedback as to how they are doing
• Opportunity for advancement:  In Dan Pink's book, Drive, the author talks about how important working toward mastery is in motivating people.  Employees want to stretch and grow, and having opportunities in your company for advancement will provide them the opportunity to grow and develop themselves
• Relationships matter:  Employees are human beings first.  As such, positive, productive relations that are built on mutual trust and support enable them to perform optimally and towards common goals
• Values & leadership:  When their work value system is in line with their personal value system, and that system is supported, encouraged and nurtured by company leadership, employees are motivated from within.
• Communications:   Just as family members care about what is going on within the family, engaged employees are more connected when they are aware of company direction, successes and wins – both large and small. 
• Recognition & reward:   A good rewards & incentive program is not only self-funded, but is aligned to company goals, is attainable (with stretch goals), is within the power of the employees to influence outcome and is built on the company’s value system.  If any of these elements are missing there is the potential for more damage than if no reward system were put in place. 

Implement any of the above and you’re well on your way to furthering your employee engagement.  You’ll soon be on your way to having employees who are in flow state – but that’s for another posting.

In the meantime, please share your thoughts & comments – what are you doing to keep your employees engaged?  Where have you felt most engaged as an employee & why?

I'm a fan of Servant Leadership.  If you are not aware of the concept, check out this video of Colleen Barrett, CEO of Southwest Airlines or The Greenleaf Center for Servant Leadership to learn more.  The basic premise is that when company leadership serves their employees as their number 1 priority, the employees will be more engaged and motivated and better able to serve their customers and markets.  I love the concept because it assumes we are part of something greater than ourselves, that the whole is greater than the sum of its part when this care taking is the fabric of an organization.  This also feeds my (and others') spirtual and emotional self, in that by giving we become better beings. And there is an added bonus.  Companies that embrace a long term strategy of servant leadership are more profitable than their peers.  In turn "profits are the applause for the employees doing well."  It's a win-win for all.   

My analytical side loves to analyze the tangible implications of Servant Leadership. And that's where the term Triple Bottom Line (People Profits & Planet - or Triple P) comes in.  Triple Bottom Line management can be used to find the balance between People, Profits and Planet to create sustainable businesses that serve.  All companies have components of each element but without the right balance, one or more of the other factors may become skewed. 

Consider the 3 components as sides of a triangle, where sustainability is a board that balances at the tip of the triangle foundation  - too much emphasis on one or two will cause an imbalance - eventually resulting in a breakdown of the foundation.  Too much emphasis on profit, and employees and/or planet will suffer.  Too much emphasis on employees, and profits and/or planet will suffer.  You get the point.  Triple P allows for a measureable way to manage and grow a company based on the company and owner's unique value system with our real world business, social and environmental ecosystem.  

Want to learn more about People Profit & Planet, Triple Bottom Line?  I encourage you to join a group on linked in, or check out CNBC's series on the subject

 
When I was a student in college learning music theory & composition, one of the techniques our professors used was to teach us all the rules of composition & music theory before we could break them.  We would then better understand the full palette of musical techniques to combine.   One of the courses that was especially interesting to me was "Counterpoint & Fugue."  During this course we would be given part of a music line, around which we would build a short 4 -piece harmony.  We were specifically told to not play the tune we were writing, and would instead listen to it for the first time when we submitted it to our professor.  Following the basic rules gave great results,  and ignoring all the rules was a fast track to failure.  By following this technique we had another building block under our belts which formed the foundation for developing our own unique styles.

This technique applies to business - know the rules of business, the lessons learned through the efforts of others is tremendously beneficial.  But learning from the mistakes of others is also valuable - sometimes failures prove to be even greater lessons.  So for this post, I'd like to share two references around the topic of failure in business - How the Mighty Fall, by Jim Collins (author of the more famously referred to Good to Great), and The Seven Habits of Spectacularly Unsuccessful Executives (by Forbes.com contributor Eric Jackson)

Both articles provide wonderful examples of how not to run your company, and just like my old professor, Leonard Klein taught me - learn from the good & the bad, and along the way, you'll develop your own unique and winning style!

New Jersey Business owners - want to learn more about creating great companies?  Join us, along with other business owners January 16th at our annual Business Summit "Turbo Charge Your 2012." 

Small business has historically been one of the greatest enablers of community & societal growth.   When a company is small there is often a direct link between the personality of the CEO & the culture of the company.  Communicating the values of a company are told through a variety of mechanisms – from how an employee answers the phone, to how your salespeople represent you, to how you advertise and market your goods and services.

Things to think about:

• Through communication, leaders influence and transform.  Want to see how transformational your leadership style is?  Take the test.
• Marketing at its simplest is communication representing a message about your company.   Marrying the science of wants and needs to traditional marketing gives Neuromarketing.  To what extent do your dialogs make use of neuromarketing techniques? 
• Given the degree of talk about the good works companies do, is there a place for credentialing oneself as being a responsible company, or  is this Neuromarketing at its worst? Read about B-Corp Companies.

What do your communications say about you?

We're happy to present you with the seventh installment in our Next Level Leadership Series, where we speak with TAB members about the challenges small business owners face in today's world. Through this series of interviews, we discover how various small business owners have risen above and beyond to become our Next Level Leaders.

This week we present Rich Rossiello Sr., founder and owner of The Perfect Shift in Henryville, PA. For the Rossiellos, home is truly where the heart (of the business) is: the business began in the family's garage back in 1990, before growing to a separate shop that sells transmission parts, torque converters, overhaul kits and much more, both storefront and online. Rich Jr. would come home and help out at the shop after school, and more than 20 years later, continues his passion for the family business, working side by side with his father at The Perfect Shift.

When was The Perfect Shift founded? Did you start the business, or was it someone in your family?

1990. It was me that started it. I actually started it out of my garage, started buying torque converters from other manufacturers, and eventually we bought the equipment and started manufacturing our own.

Who in your family is involved at the shop? How long have they been part of your work team?

We’re a family business. My son works here, [laughs] since about 1990 also. He would work after school. He’s been with me the whole time.

What roles does he play?

My son [Rich Jr.] answers the telephones. People get us confused [on the phone]; they say we sound alike. We basically do everything. He works in the back with the guys, welds, and works in the rebuilding process. He’s hands-on with most of the things in the back.

What is one of the biggest challenges that you face when your family is working with you in your business?

Because you’re with each other all day, you tend to have less time together for family functions.

And he’s a good kid. If I need work done around the house, he’ll always help.

What are some of [is one] of the greatest benefits?

Just the fact that [Rich Jr. is] so hands-on, and so conscientious. When the phone rings, people want to talk to him because he’s so knowledgeable, so involved in the business. His concern is in the business: he’s always looking for something to improve, to make better.

Will you keep the business in the family when you retire?

I’m hoping that he takes it over, when the time comes. Right now, it seems that way but you never know what’s going to happen.

Does work come up at the kitchen table?

In some degree, it does come up. We do try to leave it out. I have a brother who is also in the automotive business, so in some way or another we wind up talking about cars.

What is your favorite part of being a member of The Alternative Board?

I like getting with other owners and discussing the problems together. Even though we may not be in the same field, we can still get ideas for our different problems.

As the Northeast continues its struggles in keeping our heads and hearts above water, inspiration comes from an unlikely place: the Horn of Africa, where countries are also faced with disastrous weather crises. In this case, the worst drought in 60 years has racked Somalia, Ethiopia and Kenya – and others beyond – with severe famine.

In times when it seems we cannot see beyond the mud and the dust, there come gifts that lend rays of hope. Today we salute a young leader named Andrew Adansi Bonnah, an 11-year-old boy from Ghana, who has pledged to raise money for his fellow Africans affected by the famine.

Andrew began his campaign, Save Somali Children from Hunger, in the beginning of August. He has pledged to spend his summer school break raising funds to help alleviate the rising numbers of people hurt by hunger. After setting up a special bank account for donations at the headquarters of Ecobank Ghana in Accra, young Andrew has appeared as a guest on TV shows, radio programs, and even addressed representatives of the African Union, United Nations and other donor partners.

Andrew’s energetic determination is important, so important, in the specific: in generating money to buy food desperately needed by struggling victims, in African youth committed to a better future for everyone on the continent, in understanding the factors crucial to a healthy long-term development as well as those to a short-term solution.

For those of us so far removed (if not in heart, than by physical distance), Andrew Adansi Bonnah is an inspirational leader in the general. There are lessons to be learned in working within our community, no matter how small or large we consider our community to be. To be learned in implementing not only quick fixes for our causes, but developing strategic long-term plans by understanding the many layered facets. To be learned in that hope, not matter what our world may throw us – no matter how much rain, or how little – will rise and make the sun shine.

Welcome to the sixth installment of our Next Level Leadership series! Here, we interview TAB members about issues facing industry leaders in today's business world. The members with whom we speak have risen to various challenges, proving themselves to be true Next Level Leaders.

Today we share our interview with Chuck Roberts, President and CEO of Ames, a leading supplier of elastomeric design solutions to international, high-tech customers who require molded components, protective coatings and dispensed gaskets that meet high-quality standards. After taking over as President/CEO in 2004, Chuck has helped implement team building strategies to develop a stronger culture of workers dedicated to common goals. Since its inception in 1949, Ames has committed itself to the importance of teaming, from leadership to language: employees have been called "Teammates" since 1986, and as Chuck says, "We always consider ourselves 'the Ames family'."

When was Ames founded? When did you take over as President/CEO?

Ames was founded in 1949.

I’ve been with Ames since 1976, so I have more than 35 years with the company holding positions in areas of the company over that time.  I became President and CEO in July 2004.

Did you have any prior training in team building?

Yes.  Ames has approximately 200 employees.  We always consider ourselves “the Ames family”.  We’ve considered ourselves a team since 1949.

In 1986 we entered into a new era of Quality at Ames, beginning our Total Quality journey.  In preparing for this journey we delivered much more training to the Ames Team.  Part of the training was focused on team building.

While we did a lot of teaming prior to embarking on our Total Quality journey, the Total Quality Process forced us to look at the need for more and deeper training.  We needed to help our Teammates learn how to be better team members and Teammates by showing them how to interact in a team setting, helping them improve their inter-personal skills. [For example], how to ask good questions, or if a team member is dominating a meeting how to shut that Teammate down. On the flip side of that coin, if a teammate is quiet and not contributing, how to draw them into the meeting by asking them questions.

How did you come to develop your style of coaching and motivating employees?

All of us who are part of the teaming process go through the same training and for those of us who were more involved in the training process, we became good at the techniques and become good at facilitation.  You learn those teaming skills through practice and facilitation.

Coaching and mentoring are different from teaming, but are core to building a team at any level. The more coaching I do with my direct reports, the better they understand the company vision and mission and what is required of them.  They in turn are better prepared meet with and coach and mentor their subordinates, build continuity of our vision and mission throughout the company.

At Ames, you use the term “teammates” instead of “coworkers”, “associates”, or “employees”. Why is that?

Common today are the words “associates” or “partners” when referring to a company’s employees.

We adopted the use of Teammates in 1986.  Our president at that time was a graduate of Northwestern [University], and played football for them.  He understood the importance of teams and working together for a common goal.  He wasn’t comfortable with employee or associate that were in common use at that time.  He really felt we were a family and with his likening what we do to that of a football team, he believed we were truly Teammates and that has stuck for 25 years.

We have been and are the Ames family and as I see it the Ames Team and Teammates fits very nicely together with the unity of the Ames family.  When I’m communicating with the team, I always refer to them as the Ames Team, or Teammates.  It’s an important part of the past, present and future language and culture.

The “Teammate Pledge Card”

Each year we give all Ames Teammate an Ames Pledge Card.  The Pledge Card contains key pieces of information about the company such as our Vision, Mission, and Quality Policy.  Teammates can use the information used on the card to assist in answering questions during an audit or in referring to goals and objectives. 

The card also contains a Teammate Pledge which begins:  “As an Ames Teammate I recognize that I am committed to the Vision, Mission, and Goals and Objectives of the company, I share in and constantly practice the company’s values, I strive for customer satisfaction in everything I do, I have a stake in the company success, I believe the company’s success is my success. …”

At the end of each year, I go around and ask all Teammates to sign the Pledge Card which I sign also.  The Pledge Cards are collected and entered into a drawing where the winners (15 or so Teammates) receive a $100 gift card.

Ames follows Lean Manufacturing and Six Sigma practices – does this affect your approach to Teammate motivation and/or team building?

We are reinventing Ames and in support of the new Ames creating a new culture based on execution, urgency, and accountability, the elements that will be key to our  future success in this ever-changing international business environment..

To create a new culture we need to better educate and engage our entire Team.  Today, our training has some elements of Lean and Six Sigma.  However, what is included today in these areas and others is not sufficient and why we are actively revising all our training materials.

Does Ames recognize it Teammates for their contribution to the company’s success?

Yes, we offer both individual and team awards.  These awards range from a simple written acknowledge of a Teammates effort - an “attaboy” to various levels of financial reward.

What do you like most about being a member of The Alternative Board and/or personal coaching?

It’s the input, the thoughts and perspectives of fellow TAB members, of how they see my business.  Sometime I’m too deep in the trees, not able to see the forest, and my fellow TAB members quickly see that and are able to offer an outside perspective, helping me regain the right level of focus and making all the difference.

I am a big fan of reading and education.  I enjoy reading books and then passing the education onto my Teammates and fellow TAB members.  Helping and receiving help from fellow TAB members is very rewarding and reinforces the concept of peer groups.