Filed in Business storytelling, Collaboration, Communication, Employee Engagement
The benefits of employee engagement
It has been proven that employee engagement is strongly linked to overall company performance.
Poor engagement leads to high staff turnover, absenteeism, bad customer service and a failure to reach strategic goals.
Good engagement, on the other hand, leads to high staff retention and attendance rates, and to the achievement of identified goals.
The benefits of employee engagement may be clear-cut, but many executives and HR teams struggle to foster it. To them, engagement is simply too abstract a concept to act on.
However, for others, such as the people at Central Restaurant in Lima, Peru, and at Disney World in Orlando, Florida, both of which I recently visited, fostering engagement is something that comes naturally.
Fostering engagement naturally
Central Restaurant, which was recently rated the world’s 15th best eatery by an academy of culinary experts, was founded by its head chef and director, Virgilio Martinez.
It was established after a crusade by Virgilio to recover ancient, forgotten Peruvian spices, produce and recipes, which are now prepared by his cooking team in a contemporary fashion.
In March, I had the opportunity to dine at Central Restaurant with my wife, Viviana. It was an amazing experience. We arrived ten minutes before our reservation, which was for 7.45 p.m.
The restaurant was not yet open, but there was already a bunch of people outside waiting in line. I heard a Peruvian man say to some French visitors: ‘Virgilio is a genius. You’re going to be blown away’.
Five minutes before our reservation time, I heard some noises coming from inside the restaurant. I peeped through a window and saw a woman speaking to the Central team. She seemed energised, and so did the rest of the crew.
There was laughter and clapping, and each employee said a few words to their colleagues. Finally, they all shouted something in unison and went to their positions.
We were let in at 7.45 p.m. sharp. Everything had been taken care of: the tables, the view, the lighting – all of it was perfect. And, of course, so were the 17 dishes from the degustation menu that were suggested to us.
Energised through story-sharing
After the meal, I spoke to one of the four waiters who had taken care of us. I told him that I’d noticed the staff had had some sort of session before opening. I asked if something special was happening that day in the restaurant.
He said: ‘Oh, we do that thing twice a day, before lunch and before dinner. All the crew meet and there is someone who leads a 15-minute reunion. We talk about each of the patrons; for example, we not only know your names, but all of us know that you’re on your honeymoon and that you are from Mexico. Also, we have a short game or story-sharing time to energise us’.
I asked the waiter if Virgilio ever attended these sessions.
‘Of course’, he replied. ‘He spends 90% of his time in the restaurant, and when he is here he actively participates in the meetings’.
Before leaving Central Restaurant, I told my wife: ‘I want to live here. This is like a perfect community. Everyone seems lively and fulfilled’.
After visiting Lima, Viviana and I flew to Orlando. We joked that having seen Pachacutec’s resort at Machu Picchu, we were now going to see Mickey Mouse’s resort.
Sharing those magical moments
Our first contact with a Disney World employee came before we’d even entered the park. Bob, a senior staff member, greeted us near the Magic Kingdom entrance and asked us where we were from. Then he gave us some neat suggestions: ‘If this is your first time at Disney World, get some “First Visitor” badges. Also, don’t forget to attend the parades: they’re pretty cool’.
During our visit, we noticed that nearly every one of the staff throughout Disney World were having a great time. Curious about this, I later called a cousin who had once worked in a restaurant in the Magic Kingdom. I asked her how the Disney company fostered the high spirits that we’d seen at the park.
She told me: ‘There was a daily activity called “Line-up” where our manager showed us customer satisfaction surveys from the day before, gave us a heads-up about daily projections, and asked us to share magical moments’.
‘Magical moments?’ I repeated.
’Yes. A magical moment is something memorable that happened for a customer. In those sessions we were encouraged to share magical moments that we or other staff members had created for a customer’.
After what I’d seen at Disney World, this didn’t surprise me. Rather, it reinforced my experience at Central Restaurant: for those at the top, fostering engagement is a daily routine.
Over the years I’ve shown a clever little animation in our workshops to illustrate our propensity to tell ourselves stories when things are ambiguous and unclear. It’s how we make sense of the world. But in running this video, perhaps hundreds of times, I think I’ve discovered another interesting use for it. It seems to give an indication of group fear. In other words, I reckon it reveals whether a group is well connected and feeling secure where members can take risks or the other end of the spectrum where there is fear, uncertainly and distrust.
Let me give you a little background on how I use the video and show you how the indicator works.
The video is about 90 seconds long. Just watch it and at the end describe what you saw happening. There are no wrong answers so whatever pops to mind.
So, what do you think the video was showing?
Just take a moment and jot down what you think was happening.
OK, most people ascribe human emotions and actions to the shapes. They say things like, “the big triangle was bullying the little triangle and the circle but the little triangle saved the circle.” Or they will ascribe roles to the shapes saying things like “the father didn’t like the boyfriend but despite being pushed away the boyfriend still went out with the girl and the father was angry.”
We like to tell ourselves a story to explain what’s happening rather than merely say they are geometric shapes moving on a two-dimensional plane. And because we tell ourselves a story we feel emotions as the story unfolds. And depending on our surroundings, we will verbalise these emotions.
So here is what I’ve noticed from showing this video to groups of people in organisations across the globe.
Read the rest of this entry »
Filed in Business storytelling, Employee Engagement, Leadership
People judge their leaders by how their actions align with their words. And how aligned these two things are then triggers stories that get told, and retold, across the organisation.
People are looking to see how the messages they hear from their leaders in corporate communications, presentations, and in the organisation’s espoused values actually align with how these leaders behave day-to-day. The term used to describe this alignment between a leader’s words and their actions is behavioural integrity.
Behavioural integrity (BI) is achieved when what leaders say and what leaders do are aligned. Research shows that employees’ perception of their leaders’ BI has huge implications for individual, team and organisational performance. Employees who perceive strong BI in their leaders show increased trust, commitment and willingness to go the extra mile, thus improving customer satisfaction, decreasing employee turnover and improving profitability. (#1)
In 2002, researchers at Cornell University conducted a survey of 6500 employees across 76 US and Canadian Holiday Inn hotels (#2). They asked employees to rate on a 5-point scale how closely their managers’ words and actions were aligned. The researchers then compared the results of the survey with customer satisfaction surveys and staff and financial records.
The results were unambiguous: the hotels whose leaders received a high BI score were substantially more profitable than the hotels whose leaders’ BI was perceived to be weaker. The analysis showed that a one-eighth of a point improvement on the 5-point rating scale could be expected to increase profits by 2.5 per cent. In the case of the Holiday Inn study, that translated to a bottom-line impact of over US$250,000 per one-eighth-point improvement.
In The Five Dysfunctions of a Team, best-selling author Patrick Lencioni argues that the foundation of a functional team is trust.(#3) Lack of trust, he asserts, opens the floodgates to four other dysfunctions: fear of conflict, lack of commitment, avoidance of accountability and inattention to results. These five dysfunctions combine to sabotage even the most well-intentioned, intelligent and motivated teams. This assertion is in line with the results of the Cornell study, which found that BI is a precursor of trust and credibility.
In other words, for employees to trust their leaders and each other – the foundation of performance – they need to perceive a strong alignment between their manager’s words and actions.
This isn’t to say that BI means ‘doing the right thing’. It simply means doing what you say you will do, acting in a way that is consistent with your values and the messages you send. We may mistrust and even dislike someone who espouses and enacts values we consider unappealing, but we will give them some credit for representing those values honestly, thus displaying high BI.
Consider this story about former Enron CEO Jeff Skilling, who is currently serving a 24-year prison term for conspiracy, insider trading, making false statements and securities fraud. One morning there was a long line of cars waiting to get into the Enron car park when Skilling’s car roared up and pushed into the front of the queue. In response to the honks of protest and frustration, Skilling just raised his middle finger.(#4)
Maybe this was exactly the message Skilling was trying to get across: ‘People from Enron don’t just stand in a queue and wait for their turn. We go straight to the front, push in, and take what is ours. And if anyone has a problem with that, we tell them where to go’. It certainly sounds like an action that was consistent with everything else he said and did while at Enron. I do think his behaviour maybe somewhat different in the Federal Correctional Institution in Englewood, Colorado?
So, why do stories about leaders’ BI get retold in organisations? Why do they trigger so many stories?
Employees look to either the behaviour of their leaders, or to stories about their behaviour, to judge their character. They want to find out who their leaders are, what they value, what they are passionate about and what annoys them. This is partly so they can predict the leaders’ future behaviour and its potential impact on them.
It’s often mistakenly believed that stories are just accounts of things that happened in the past. In fact, by revealing patterns of behaviour and personal tendencies, stories are also predictors of the future. By understanding how their leaders are likely to act, employees can modify their behaviour to reduce the risk to their own security, or alternatively to increase the likelihood that they will be treated favourably.
As author Tony Simons notes; “employees focus substantial attention on their managers partly because they depend on them for rewards, promotions, favourable assignments, resources and the like”.(#5)
This is why the stories leaders trigger by their actions are so important. They have a disproportionate impact on how people perceive their character and therefore their trustworthiness.
(#1) Simons, T. (2002). ‘Behavioral integrity: the perceived alignment between managers’ words and deeds as a research focus’, Organization Science, vol. 13, no. 1.
(#2) Simons, T. (2002). ‘The high cost of lost trust’ in the Harvard Business Review, September, 2002.
(#3) Lencioni, P. (2002). The Five Dysfunctions of a Team, Jossey-Bass, New York.
(#4) Roberston, I. (2012). The Winner Effect: How Power Affects Your Brain, Bloomsbury, London.
(#5) Simons, T. (2002). ‘Behavioral integrity: the perceived alignment between managers’ words and deeds as a research focus’, Organization Science, vol. 13, no. 1.
Filed in Anecdotes, Business storytelling, Employee Engagement, Leadership
When asked for the secret of his success in the steel industry, American industrialist Charles Schwab (1862-1939) always talked about using praise, not criticism, giving liberal bonuses for work well done, and “appeal[ing] to the American spirit of conquest in my men, the spirit of doing things better than anyone has ever done them before.”
He liked to tell this story, retold in Dale Carnegie’s How to Win Friends and Influence People, about how he handled an unproductive steel mill:
Schwab asked the manager for a piece of chalk, and asked: “How many heats did your shift make today?”
Schwab chalked a big figure six on the floor. When the night shift came in, they saw the “6″ and asked what it meant. “The big boss was in here today, he asked us how many heats we made, and we told him six. He chalked it down on the floor.”
The next morning Schwab walked through the mill again. The night shift had rubbed out “6″ and replaced it with a big “7.”
When the day shift reported for work the next morning, they saw a big “7″ chalked on the floor. So the night shift thought they were better than the day shift did they? Well, they would show the night shift a thing or two. The crew pitched in with enthusiasm, and when they quit that night, they left behind them an enormous, swaggering “10.”
Shortly, this mill, which had been lagging way behind in production, was turning out more work than any other mill in the plant.”
Schwab’s improvised just-in-time leader board was simple, quick, cheap and powerful. Leaderboards can stimulate and motivate people to succeed. Making outcomes more visible to more people guarantees more discussion about who’s successful and why. Leaderboards are therefore a terrific way to trigger stories.
Did you see Dave’s team is leading this week, did you hear about that big deal they did last week? See Tracey’s guys have gone up since last week after she had them on that training course? What do you think is going on with Gary’s team to bomb that badly?
Visible results, tied in with competition, trigger stories. This is a central tenant of the whole gamification movement
Carnegie concludes his anecdote by quoting Schwab: “The way to get things done is to stimulate competition. I do not mean in a sordid, money-getting way, but in the desire to excell.”
Obviously, no sane organisation wants a competition right out of David Mamet’s Glengarry, Glen Ross. But if it drives the right behaviours and triggers the right stories then it can be a great way to build motivation and increase performance.
Filed in Business storytelling, Employee Engagement, Strategy
In using story-work to build a brand, engage employees, or for one of its many other purposes, organisations nearly always focus on storytelling. The meme is strong because the act of storytelling is so powerful. But to focus solely on this one aspect of story-work severely limits the benefits. The most valuable application of this technique combines storytelling with story-listening and story-triggering. Together, these processes create the conditions for enduring and healthy change.
Back in 2005, I introduced the readers of the Anecdote blog to the concept of story-listening (it might even have been the first time the term was used). Story-listening is the process of eliciting and collecting stories, helping groups to draw meaning from those stories, and then, most importantly from a business perspective, creating opportunities for the stories to inspire employees to take positive, transformational action.
Story-listening may sound passive, but it does not involve people merely sitting back and listening to their company’s stories in the same way that they might enjoy their favourite podcasts. It is all about helping those who can most influence change understand what’s really happening in their organisation, and then inspiring them to do something about it. All good business story-work is purposeful.
Filed in Communication, Employee Engagement, Leadership, Strategy
How do you get your people to think about what the future could be, in a way that inspires them and starts to spark action, but also takes into account the simple fact that the future is unpredictable?
I was reminded of this challenge, yet again, last week.
We were working with a client on developing a session for a two day leadership conference focussing on bringing their strategy to life. As we were throwing round ideas on the types of things we could do, someone suggested an exercise that involved the participants spending time writing a magazine article about how things are for that organisation in 5 years time.
This triggered a recollection when we did a similar thing when I was working in the UK for the Royal Bank of Scotland (RBS). I was involved in planning and running a series of workshops for the management population of my division, working with American management guru Noel Tichy to bring his concept of ” cycle of leadership to life. These were 2 day courses, and we ended up running them for nearly 5000 leaders, over a two year period in 2006 and 2007.
On day two there was an exercise where everyone had to draft a magazine article, for the leading business magazine The Economist, with these instructions:
You are assigned to write a cover story for the Economist – dated September 21st, 2012. The story is about the dramatic transformation of RBS, and how through your leadership and outstanding execution, RBS is achieving unprecedented success. The article should be written as if it were 2012 and should discuss the challenges RBS has overcome, how that was done and what the business now looks like.
Now to understand the rest of this story you need to know that RBS during that time was one of the biggest and most successful companies in the world. In 2005 it announced a profit of $A10.27bn, up 14% from the year before, and in
2006 the profit increased another 16% to $A13.69bn. By 2007 the profit stood at a very impressive A$15.33bn and the share price stood at $A8.94.
It was held up as a major success story in the UK corporate world, and its Chief Executive, Sir Fred Goodwin, who had been knighted in 2004, was a darling of Wall Street and the city in London. The feeling was that we could do no wrong, the business would just keep growing and growing, and become even more and more successful.
People spend an hour crafting these beautiful magazine articles talking about RBS and its success five years in the future. They then worked in three’s sharing each other stories, before three or four of the best ones were shared with the whole group. I remember they talked about things like how RBS now had 500,000 staff (up from its 120,000 at the time), that its market share has gone through the roof (i.e. its share of the credit card market was now 80%, up from 20%), that the world’s most innovative companies came to RBS to learn how to do it, and that its profit had just hit A$30bn a year.
At the time I thought the exercise was very useful. It created energy in the room, made people feel good about themselves and the organisation and all of what was mentioned seemed realistic and achievable.
On the 19 January 2009, RBS announced a loss of AS41.65bn, the biggest ever annual loss in UK corporate history. On that same day the British Government increased its holding in the bank to 70%, and the share price stood at less than 14 cents. Tens of thousands of people lost their jobs, businesses within the RBS Group were sold and Sir Fred resigned, he was vilified by the British press, and his house was even attacked by angry protestors.
There is no way in 2006 or 2007 that we could see this downfall happening. It was completely realistic to think of continued success and global domination. The exercise seemed to do exactly what Tichy had wanted it to do, and people were still talking about months after the events. But every single prediction that 5000 people made about the future proved to be wrong.
How do you get your people to think about the future, and what it could be, but which also takes into account its unpredictability? How do you manage and deal with that paradox? Was the exercise we did at RBS ‘wrong’, or did it achieve what it wanted, if its purpose was to get people excited about RBS’ future, and reinforced to them why they wanted to be there. Is it more of an engagement technique than a strategic visioning exercise?
I would really like to hear your views on exercises like this and your experiences of dealing with the challenge of trying to envisage a rapidly changing, unpredictable future and the value in doing so.
I heard this story from one of our workshop participants. We were talking about values and how they play out in practice. Their organisation, a government department, has ‘fun’ as a stated value.
With that in mind Janet (not her real name) thought it would be fun to take her team on an outing to the newly opened Museum of Old and New Art in Hobart. She mentioned her plan to her manager who suggested she should write a memo outlining her plans. The memo was sent to her manager’s manager and the text was edited and massaged and eventually it was sent all the way up to the head of Janet’s division.
That was six months ago and she has never heard a thing about it since.
What would you say is valued in this organisation?
A company that values ‘fun’ should be teaming with ‘fun’ stories. It’s a little difficult, however, to have ‘fun’ stories without fun experiences.
We’ve developed a story-based approach for embedding values. Send us an email if you would like to explore using this approach in your organisation.
So called ‘motivational speakers’ don’t motivate people to change behaviour.
Throughout my career I have been involved in organising, planning and developing a huge number of away days, events, conferences and the like. When you start working on ideas for the agenda, more often than not someone will suggest getting a ‘motivational speaker’ along. This suggestion is normally met with everyone getting very excited, throwing in ideas of who they could get and checking budget to see if it is possible. Everyone that is, except me.
Why am I so resistant to this idea? What it is about the whole concept of ‘motivational speakers’, whoever they may be, that I just don’t seem to get or be enthused by?
Simply put I don’t think they do what they say – motivate, and especially motivate people to change.
I have personally seen some fantastic speakers at different events over the years, and heard about many more. People who have achieved amazing feats. People like David Hurst, who was the first blind person to climb Mount Blanc, or Li Cunxin, the sixth of seven sons born to peasants in rural China who became one of the world’s greatest dancers. I still remember to this day the stories told by Ben Hunt-Davis about how to ‘make the boat go faster’ as they were preparing for the Men’s Rowing Eights at the 2000 Sydney Olympics, which he subsequently won the gold medal in.
Let’s look at Ben Hunt-Davis’ presentation in some more detail.
Ben did a fantastic hour long presentation, where he told story after story about how he and his team mates changed from finishing, at best, fourth in European and Olympic events to finally becoming the first British winners of the Men’s Rowing Eights since 1912. He told the whole ‘big narrative’ of the journey to winning the gold medal, as well as telling stories of specific moments along the journey.
The stories were memorable – I can still remember a very specific Barry Manilow song one of his team mates sang when they were preparing for the Olympic final even today. They were entertaining, amusing and told beautifully with all the elements we discuss in our Storytelling for Business Leaders courses about the elements of a great story. People even a year afterwards could still recall some of the stories in a huge amount of detail.
However all of this did not equal motivation to create real change for the audience hearing. It did not mean that three days after the event, when people were back in the office, that it had any impact on their behaviour one little bit.
On the website advertising his speaking services, it states that Ben; “can use his story to greatest effect explaining not only how he achieved his goals but how other can achieve theirs.” A bold claim, and one that just doesn’t stack up.
I am no way criticising Ben here, you can take your pick of speakers and websites that claim to create motivation by coming to speak at your next event. But what I am challenging is this belief that you will actually get any change in behaviour from having one of these speakers along. There are a number of reasons why I think this is the case.
For a start there is too much of a gap between the sender and the listener. Winning Olympic gold, being a world class dancer, or climbing Mount Blanc while blind are just too far from the understanding and realities of most of the people they will share their stories with. It is too easy for the audience to sit back and say; “that’s great, fantastic, but I’m not like them, and they don’t know what its like for me“. In some ways it almost does the opposite because it doesn’t build a key element of personal behaviour change – self efficacy.
Self efficacy is a term coined by renowned psychologist Albert Bandura and relates to a person’s belief in their own competence and ability to undertake a task. Hearing one of these speakers does not build self-efficacy and belief that you can achieve something more – it may in fact do the opposite.
Also, although these speakers may create a short burst of inspiration that do not give people a specific set of behaviours to focus on to create change. They can not be role models for the achievement of change in the specific environments they go to speak in, as they are not part of the team / area / organisation.
If people do feel inspired after hearing these people, this inspiration to change, doesn’t seem to withstand the twin ‘attacks’ on voicemails and a full inbox back at work.
So, if you want to be entertained, hear some great, very well polished stories and potentially be inspired, by all means hire one of these speakers. However, if you really want to create change in your organisations please think twice about doing that, and instead focus on say, amplifying the great work someone in your organisation is already doing. Cheaper and a lot more effective in creating real, long term, sustainable change.
My engineering friends would say it like this…good intentions are a necessary but insufficient condition for success.
In my working life I have only ever met a handful of people who deliberately set out to humiliate, disempower, demotivate or otherwise disengage staff. Yet these are exactly the effects that many managers/leaders have. How can this be?
The answer, of course, is the ‘knowing-doing gap’. Its the difference between what we intend as a result of actions and the impact that we have on people. But, can managers really be so lacking in self-awareness?
Apparently the answer is yes! In this article (registration required to access it) Lucy Kellaway from the London Financial Times describes an 18-month survey asking CEOs to list their 3 worst features. A staggering 97% list weaknesses that are really strengths, like ‘I’m too trusting and accessible’. Lucy’s conclusion is that the three worst traits of chief executives are a lack of self-knowledge, a lack of self-knowledge and a quite extraordinary willingness to give themselves the benefit of the doubt.
The Economist recently published this story:
So, step 1 needs to focus on getting leaders to acknowledge their faults and to focus on their impacts rather than their intentions. This is the first objective in our leadership programs. We expose participants to an equal number of positive and negative examples around engagement and the impact of manager behaviour. Participants are asked to identify what they think are the best examples and the ones that are worst. We also ask them to identify any examples where, as a manager, they have done this themselves or something like it. They identify these anecdotes by placing a blue dot on them.
The results are spectacularly conclusive. Over 75% of the blue dots are placed on the positive examples. Another way of saying this is that the participating managers consider themselves nearly four times more likely to generate positive experiences than negative ones. If this assessment were accurate it would probably be a pretty good place to work and employee engagement would be high. Unfortunately, in all four cases, employee engagement was moderate at best (between 40% and 60% of staff being ‘engaged’).
Our next step is to show these leaders a tag cloud (produced using Wordle) of the tags for all the examples collected in their organisation. A tag cloud of the aggregated data is shown below.
As the tag cloud shows, on average staff relate four times as many negative experiences as they do positive ones. This is almost the inverse of the managers’ self-assessment. For many leaders this comes as a revelation – they need to change their behaviour for staff engagement to improve. They need to look past their intentions and focus on the impact they are having in the workplace.
The data has been collected from over 250 leaders from four large organisations between 2008 and 2011.
Is really listening to someone about your listening abilities, or is it about your motivation to listen? Is it about the ‘skills’ of listening or is it the desire to want to listen that makes the difference?
I have been running a series of workshops lately where we do a very simple listening exercise that gets the participants to actually feel what it is like not to be listened too. The exercise takes it from being a purely rational/logical thing (i.e. “I know that not being listened too isn’t nice“) to one where they actually feel the anger, frustration and almost diminishing sense of self worth that comes when you are not being listened too.
At the end of the exercise I do a de-brief and one of the questions I ask is; “What do you think is more important when you listen – your ability to listen, or your desire to listen?” You can see people have this light bulb moment as they realise it is not the ability side of listening that they are struggling with, it’s the motivation to want to listen in the first place.
When asked they can all tell you what you need to do to be able to listen better, from a skills perspective – mirror body language, lean forward, make eye contact, avoid distractions etc. etc. A good outline of some of these were covered in a blog Shawn did in May last year.
However, these things only become useful if you want to listen in the first place.
For me listening, really listening to someone, is an issue of motivation first and foremost. Once I want to listen to you, then my skills and abilities to listen can really kick in.