If you’re buying a business there are a many factors you’re assessing – looking at past performance as well as potential future success.

When looking at the potential upside, have you asked yourself what kind of culture would I be inheriting?

Let me give you a simple analogy -

When you inherit an extraordinary culture, you have a state of the art plane, and a runway with the immediate potential to fly to great heights.

When you inherit a toxic culture, the plane is still sitting in pieces, never mind a runway.

How much of a price reduction should you negotiate if it’s toxic?  What’s going to be the cost (financial and emotional) and time frame to turn the culture around?

How much more should you consider offering if it’s a fabulous culture?  What’s it worth to you to be ready to take off on day one?

Now how do you know if the culture is fabulous or toxic?  Ask the seller and chances are “it’s great!”  But how do you really know?

This is where Choose People can help – we measure employee happiness, we measure “do the employees at this company feel good about coming to work.”  Do they want to be there?  Are they excited to be there? Or are they simply warm bodies? Or even worse, are they full of resentment and disgruntled?

Lastly, if it’s an incredible culture we can tell you why so that as you takeover you keep in place those facets that are working.  And if it’s toxic, we can give you a roadmap as well as timeline for turning it around.

Remember the movie “Money Pit?” – a house can look beautiful on the outside and be a disaster waiting to happen on the inside.

Do your cultural due diligence.

We know that appreciation and acknowledgement of those who help us is important in all aspects of our lives, and yet in the workplace we struggle with gratitude the most.  Do you say thank you for the obvious – “thanks for coming in on time?”  If you thank one person, do you need to thank the one sitting next to them too?  Do I need to write a thank you note?  Does there need to be some sort of reward to go with it too?

In some workplaces, appreciation is so rare that people wonder if anyone sees/cares about their hard work.  On the other end of the spectrum, you have managers who say thank you so often that it can becomes meaningless or appears inauthentic.

Meaningful appreciation and recognition includes the following characteristics:

1. Informal – doesn’t need to be written or part of the “employee of the month”
2. Timely – as soon as possible after the help has been received
3. Unexpected – super powerful when people don’t expect to hear from you
4. Personalized – what did they specifically contribute) that was helpful?
5. Genuine – feel/convey the gratitude when you express your appreciation – don’t just say it to say it
6. Verbal is ideal, as well as face to face (tone and body language speaks volumes) – though timely is more important, so if you can’t see the person within 24 hours of the impact of their help, then use another mode of communication
7. And lastly and most importantly Say What it Meant to you – so often we simply say “Thank you!” or via text (when it’s apparently not even worth spelling out) “Thx!”  I too am guilty of this with friends and family.  But when it comes to work relationships where bonds may not be as strong or intent not as clear, it’s important to take the time to say what it meant to you (or the company) to have their help.  Express the impact of their contribution.  Here are some examples…Thank you:

• • You made my whole day
  • Because you dealt with that issue, it made it possible for me to have uninterrupted time to finish a critical project that’s been on my plate
  • Because you went above and beyond to meet the deadline early, the client was thrilled and referred us another one which means we’ll meet our sales goals for the week
  • Because you stayed late, it meant I could go see my daughter’s soccer game, she was so happy to see me in the stands
  • Your leadership and integrity in this situation has meant that we won’t lose such a key account
  • Because you figured out this problem we’re able to truly move forward on the new product line that will give our company an incredible strategic advantage

So right now, take off of your “to do” list that thank you note you’ve been meaning to write, walk over to who you want to acknowledge, with gratitude in your heart look them in the eye, thank them and express the impact of their help.

And no, it doesn’t need to be accompanied by a gift card (this can sometimes even cheapen the contribution made by the individual.)

Real deal appreciation trumps a gift card every time.

On January 3, 2008 Room & Board, which sells hand crafted American-made furniture created their Guiding Principles – principles they incorporate daily in their operations.  These principles are not only inspiring, they are also down-to-earth and provide a true compass during decision making. For anyone who is looking to revamp, recreate or reconsider their foundation (purpose, mission, values) – this is an excellent example of what’s possible when thoughtfulness, vision and authenticity unite.  With their permission, I have replicated verbatim these principles:

OUR PURPOSE

We need to provide for ourselves and those we love. That’s the very basic premise that brings us to work each day. But beyond the obvious economics of work, we believe that our endeavors should have meaning.

It’s our belief that a comfortable home and good design are an enhancement to people’s lives. Building relationships with our customers and helping them create homes they love, gives us great satisfaction.  When we can share this passion with individuals with whom we enjoy working, there is nothing better!

SETTING THE STAGE

Your past work experiences may have been quite different from what you’ll experience at Room & Board. We do things differently. We challenge you to think in new ways; about how your role is defined, the relationships that you build, and your connection to the business and the outcomes that you achieve.

OUR GUIDING PRINCIPLES

Respect and Relationships

Respect is foundational to our work environment. Everyone is expected to build relationships based upon mutual respect and collaboration; with one another as peers, as well as with our customers and vendor partners.

Our work doesn’t happen within the structure of an organizational chart. Real work happens within relationships. That’s why it is so important to understand how you affect others, including your peers. You should be comfortable providing consistent and meaningful feedback to everyone in the organization and openly receive insights shared with you.

Our vendor partners play a significant role in our success. We should treat them as true partners, respect their point of view and hold them to high standards. Our shared goal is mutual long-term success.

We share this one world and whenever possible, we expect each of us to make deliberate and responsible decisions to protect it.

Individual Accountability

Use good judgment when making decisions and apply principles, not rules to each situation.

Each of us should have a passion for our work and a commitment to our career. Engage with curiosity and lead with questions each and every day. You actions, not your title, will define your success.

We trust one another to work hard to keep our work commitments. Each staff member must remain accountable to the needs of the business while at the same time being afforded the flexibility to balance his or her personal obligations.

We push to innovate. With such a progressive mindset we understand that mistakes will be made. If they’re not, we probably aren’t trying hard enough. When you make a mistake accept it, communicate the reality of the situation and, with those you have effected, collaboratively decide how best to move forward.

We seek many voices when making decisions. Be open and honest when sharing your voice and expressing a different point of view. We expect differences of opinion and those challenges strengthen the outcome. And once a decision is made we must all engage fully to make it work.

Engaging in the Business

We share financial information because to be successful, each of us needs to be proactive in our understanding of how our actions affect the financial health of the organization.

The more you seek to understand how your role is related to our business objectives and tied to the broader success of the company, the more rewarding, enjoyable and challenging the effort.

Attaining a base level of sales growth and profit is necessary for our long-term health. It allows us to reinvest in the business, which in turn gives us the opportunity to continue to grow successfully.

As Room & Board grows, it is critical that we keep it simple. Each of us should care enough to get involved in the smallest of detail. When we focus on the basics, the rest will follow.

Room & Board’s annual business planning process is meant to be fluid to allow for the changing realities of our world. Our measures are often ranges supported by a well thought-out plan. This process avoids the game playing of trying to hit absolute numbers. Once our business plan is set we’re each accountable for the things that we control to achieve the plan.

IN CONCLUSION

Defining our Guiding Principles in this way is meant to encourage meaningful conversations that help you understand our uniqueness and support your success. We strongly believe these principles create a rewarding and deeply satisfying work experience. Embracing our Guiding Principles is an expectation we have of every Room & Board staff member.

Thank you Room & Board for sharing such an extraordinary and thoughtful document!

“It’s no big deal, but I just thought you might want to know…”

“It’s not that important, but I heard…”

“I know you’re really busy, so I don’t want to take up too much time, but I wanted to share…”

“Uh, do you have a minute?  I can come back – I’m sure you’re really busy.  No really, I can come back later – it’s neither here nor there.”

This, ladies and gentlemen, is courageous communication.

This is your employee trying to tell you about an elephant in the room.  And the bigger the elephant, the smaller the crumb.

They won’t come carrying a big red flag nor a fire extinguisher or a sign that says “run for your life, the sky is falling.”  There will be no signs on their face of the absolute angst, concern and fear they’re feeling.

They think you’re blissful in your corner office – clueless to the chaos just outside your door.  People tell you want you want to hear.  They smile when you walk by, maybe even give you a thumbs up.  You’re the boss after all.

Maybe it’s someone on your executive team that’s driving everyone crazy.  Maybe it’s a project in which everyone knows the deadline is going to be missed.  Maybe it’s a huge mistake with a client or with an order.

They will only give you one bread crumb and they will wait to see how you react.   If you fail to only see the crumb and not the trail to the elephant, the employee will not give you the next crumb to follow.

When given a crumb listen very very closely.  If they say it’s not important, it is.  Then ask the questions you don’t want the answers to.  Because those are the answers you need to hear.  And whatever you do – don’t kill the messenger – THANK the courageous employee for taking the time to tell you.

This is what many of your employees are wondering.

The Executive Team as a grand brilliant plan for 2012 filled with strategies and goals.  And they are ready to lead the charge!!!! (Heads held high, looking into the horizon with looks of determination and excitement backed by multiple exclamation points!!!! of importance)

And everyone else, well they’re a little lost.

They’re glad someone’s excited, they’re just not sure how they fit in – how they fit into “The Vision for 2012!!!!”

First before answering how they fit in, answer why would they want to fit in/buy in?   Inspire and motivate the rest of the team that didn’t participate in the decision making process of the new direction of the company by including them.  Include them by informing them and answer the following:

• What were our 2011 successes?  Our weaknesses? Our learnings?
• What were the possible strategies considered for 2012?
• Why were the ones that were ultimately chosen chosen?
• How were the goals determined?
• Is there a priority to the goals, or are they all equally important?
• If we achieve the goals or don’t achieve the goals, what does that mean for the company?  for my department? for me?
• How do I fit in?  What do I need to do starting today to help the company achieve it’s goals?

Second align their everyday work.  How are they supposed to tangibly help achieve this grand vision?  There is a powerful free tool that makes it crystal clear for employees to see the vision AND see their individual role in it.   It’s called the Gazelle’s One Page Business Plan.  And if thoughtfully and thoroughly created, it creates tremendous clarity, alignment and accountability.  You can download it and the instructions for free:

One Page Business Plan: http://www.gazelles.com/gazellesGrowthTools.html – select strategy and then choose the second option – Updated: Strategy: One Page Strategic Plan

Instructions:  http://www.gazelles.com/download/documents/one-page_how-to.pdf

You’ll see it’s actually two pages.  And it powerfully marries big picture strategy on one page with company and individual implementation on the other.  It funnels from Core Values/Purpose all the way down to each individuals’ KPIs and priorities for the quarter.  It makes the master plan succinct and digestible for every employee in the company.

So if you wonder why everyone isn’t getting on board (it’s January 3rd already people!), or why their excitement doesn’t match yours, first inform and second align with tangible action.

Now you can lead the charge! (with only one exclamation point, because now everyone has their own to add – so much more authentic, rewarding and feasible)

Wishing everyone an extraordinary 2012

We often hear that unhappy employees are less efficient and thus cost money.

And that’s pretty much a no brainer when you think about it.  But it can seem kind of abstract.

Here is a true tangible tale  I was told the other day for the next time you’re wondering, what does employee inefficiency really look like?

Well it looks like this:

Eight guys work in the service department of their company.  The company sells high end residential lighting.

Most of these guys have been with the company for some time.  They would say they’re even considered some of the best and most reliable workers within their company.

They haven’t had layoffs.

And yet this team is concerned about job security.  Why?

Recently their company went through the Six Sigma process – a business management strategy that prides itself on creating efficiencies within a company.  Unfortunately the way it was implemented in this company resulted in disenfranchised employees.

Now they don’t trust the company they work for.

Now when a customer calls in and has an issue with their lighting the service team sometimes chooses to make simple fixes sound complicated so that the customer has to request that a member of the service team come to their home to fix the problem.  Job security achieved.  Efficiency not achieved.

Often the customer’s home can be a full day’s drive from the shop.  The company can be paying up to two full days’ worth of an employee’s time, plus at least a full tank of gas, plus wear and tear on the service truck.

$400 gone.

That’s what “unhappy employees are less efficient” looks like.

Insidious theft justified by hurt feelings and resulting fear.

What’s it worth to you to work in a company where you feel good about coming to work?

Grab a pen and paper and find out.

Calculate how much each of these is worth to you on an annual basis:

1. Doing work that contributes to the success of your company (knowing what you do makes a difference)
2. Working for a company that helps society through its product/service/contributions
3. Enjoying the people you work with
4. Being genuinely appreciated for your hard work
5. Working in a workplace where you trust the people you work with and know that you are trusted
6. Working in a workplace where you respect the people you work with and know you are respected
7. Being “in the know” of what’s going on within your company
8. Knowing that if you need to occasionally take care of a loved one who’s sick you can without repercussions or sideways glances
9. Having a manager or supervisor you respect, can count on and who’s fair
10. Knowing you have control over how to get your work done
11. Working where there’s truly transparency, open communication and where feedback is not only heard, but taken seriously

Now add it up.  How much?

How does that compare to your financial compensation and your benefits package?  As much?  More? Less?

Can you add the entire amount to your financial compensation in the company where you work?  (If so, go thank your CEO, supervisor and co-workers)

Do you need to subtract some in the company where you work?

Are you now in the negative?

Something to think about.

*For those readers who e-mail us at info@choosepeople.com the amount their Psychic Compensation is worth to them overall for a year (not at your current company), and the breakdown amounts for 1-11, Choose People will send you a fabulous surprise package – make sure to include your address!

To your co-workers

To your employees

To your supervisor

To your boss

These are the folks we spend an enormous amount of our waking hours with.  At this time of year we often think of our family and friends.  And perhaps your company thanks clients for their business.  And maybe even vendors for their support.

But stop, right now, and look around you.  These are the individuals who on a daily, weekly, monthly basis are part of your daily experience – who make it possible for you to have a successful company and/or who make it possible for you to work where you do.

They make it possible for you to feed your family.

Take a moment now and thank them.  It can be as simple as “In light of this holiday, I really want you to know I appreciate that I get to work with you.”  Specifics are great, but not necessary.  This isn’t a moment of feedback or kudos.  Just genuine gratitude.

So set aside your roaming thoughts of a delicious Thanksgiving meal, and reach out to 3 people you work with and give them thanks.

And I appreciate each and every company and the individuals in those companies that are working on creating and/or maintaining an extraordinary employee culture.  Thank you for your time, your energy and your commitment.

Happy Thanksgiving everyone!  Enjoy

That’s right.  Let them fail.

Why let them fail?  If you let them fail, then you gave them what’s equally important –  an opportunity to succeed,  innovate and contribute in a meaningful way.

And they will succeed.  Though often after they fail, after they learn, after they see you support their efforts.

You may wince a bit. You may even look through the slat in your fingers as you cover your eyes.  It’s not always pretty.  And at times it can be down right ugly.  But it’s absolutely critical to employee happiness – especially happiness of those who are innovators.  That engaged brilliant talent that we all so desperately want to harness.  Those who can see how your company can be better are going to want a chance to implement what they envision.  And you have to give them the room to try.

To create the room, do the following three:

1)       Give them the critical “do not cross” boundaries (try to keep it to 3)

2)      Timeline

3)      Co-create clear expectations – an idea of the ideal outcome of the project

You will be amazed at what they come up with – both in how they fail and in what they learn and how those learnings lead to new innovations and success within your company.

Avinger, a fast growing successful company out of the bay area got this one right – one of their 5 briefly worded core values is “Fail Fast.”  Fail.  Learn.  Apply new knowledge.  Repeat.

As Samuel Beckett said, “Go on failing. Go on. Only next time, try to fail better.”

In a prior blog, I said that overall Formal Employee Recognition Programs don’t work. I repeated this statement at a recent conference where I was presenting and asked if anyone had a formal employee recognition program that did work. One hand went up out of 125.

This hand belonged to a store manager at REI and she graciously shared with me (and said I could share with you!) their process for a formal employee recognition program that is truly honoring, meaningful and inspiring.

This employee recognition program is called the Anderson Award which is named after the Founders of REI, Lloyd and Mary Anderson.

In my mind’s eye these are the 5 Key Aspects that make this award successful:

1. It is a peer to peer award – employees nominate other employees
2. It takes place annually
3. About 1 in 100 employees receives this award – so it’s truly a special and unique honor
4. It recognizes team members whose contributions exemplify REI’s Core Values and support their Mission
5. Everyone except for Managers, Directors and VPs are eligible to receive this award

Here are the 5 Key Logistics of this recognition program:

1. Anyone can submit a nomination form (that then goes to the store/unit manager)
2. The manager then selects a peer committee to evaluate the nominations and select a recipient (a manager does NOT sit on this committee). The committee chair is often last year’s recipient.
3. This committee not only makes the final selection, they also decide how to announce each nominee to make it unique and innovative every year
4. The final announcement of the recipient, as well as the honoring of nominees, occurs at the holiday store meeting
5. The recipient goes to REI Headquarters for three days to interact with other recipients, all divisions and leaders of the organization AND a stone, engraved with their name, is added to the walkway at headquarters that is made up of prior Anderson Award recipients’ stones.  They become a permanent physical part of the history of the company – talk about a sense of ownership and leaving a legacy!!

A bit of local flair:

1. In the store where this store manager manages, the photos of those who are nominated are posted on a bulletin board in the entry to the break room. Of her store’s 51 employees, 20 nominations were received for 13 employees.
2. A physical, useful, engraved with “Anderson Award” will be given to the recipient at her store (don’t want to spoil it!) and the nominees also receive a physical, creative, useful award (meaning not something that’s bland and sitting on a shelf).

What can your company learn from/apply from this program?