Archive for January, 2010

Morale and Making it Work for You: Case Study

Monday, January 25th, 2010

A study by researcher Sirota Survey Intelligence has found that firms with strong employee morale outperform similar companies with medium to low morale on the stock market.

In a special report, Business Week Online featured an article entitled, The Art Of Motivation: What you can learn from a company that treats workers like owners. Inside the surprising performance culture of steelmaker Nucor. The feature story described the high level of commitment exhibited by the steelmakers’ workers to get a troubled plant up and running. An excerpt reads:

No supervisor had asked them to make the trip, and no one had to. They went on their own. Camping out in the electrical substation with the Hickman staff, the team worked 20-hour shifts to get the plant up and running again in three days instead of the anticipated full week. There wasn’t any direct financial incentive for them to blow their weekends, no extra money in their next paycheck, but for the company their contribution was huge. Hickman went on to post a first-quarter record for tons of steel shipped.

The article goes on to say that Nucor has nurtured one of the most dynamic and engaged workforces around. Perhaps most compelling is “Nucor’s 387% return to shareholders over the past five years handily beats almost all other companies in the Standard & Poor’s 500-stock index, including New Economy icons Amazon.com, Starbucks, and eBay. And the company has become more profitable as it has grown: Margins, which were 7% in 2000, reached 10% last year.”

At Nucor, the core of motivation is about a steadfast focus on its people. That has boded well in the form of a loyal and productive workforce and increasing profitability. At times, “workers and managers exhibit a level of passion for the company that can border on the bizarre.”

One of the main motivators for Nucor’s employees is a bonus that is tied to the production of defect-free steel. While an experienced steelworker at another company can easily earn $16 to $21 an hour, a Nucor steelworker gets a guarantee of closer to $10. However, with the bonus structure that Nucor has put into place, by producing defect-free steel, an employee’s entire shift can triple the average steelworker’s take-home pay. Nucor gave out more than $220 million in profit sharing and bonuses and their steelworkers had a record salary that year. These two processes institute both a pride in workmanship and pride in ownership of the company.

More and more companies are following suit. Large supply chain and warehouse operations are now offering bonus for speed and seeing a record increase in productivity. Other industries offer rewards for zero-downtime and zero-defects. It all boils down to allowing the employee to share in the company’s success and showing how each individual contributes to the overall health and success of the organization.

On balance, the key is getting your associates to buy in to the fact that the company exists only because they are there producing quality products and services. Small business is not a Nucor with the kinds of revenue they have, but small business can create a culture of engagement and “ownership” also by just engaging their associates in the process. At O2 Media, where I am the President & CEO, every time we have a strategic shift, we have used the brainstorming session process to get our key associates engaged in our thought processes. It is amazing how many great ideas we get, but more importantly, our associates then “own the changes.” It takes time, but it is an investment that pays phenomenal dividends.

Read more about our case study and the Art of Motivation:
http://businessweek.com/magazine/content/06_18/b3982075.htm

My Quote of the Week-
Pity the leader caught between unloving critics and uncritical lovers. – John Garnder

The Elusive Balancing Act: Work Life/ Personal Life

Monday, January 11th, 2010

It’s the topic that seems to defeat all working spouses and parents.  It’s the topic that has been the subject of monthly feature articles in various magazines for more than 30 years.  It’s elusive, and regardless how sophisticated our business models become there is one challenge that plagues those of us in the workforce.  It is simple at its core and yet complicated to manage.  It is unparalleled in its scope and it is quite simply this, “how do I find a balance between my work-life and my personal / family life?” 

This is not another article of tips on how to manage your time better or juggle schedules.  As a CEO and an author on leadership, my perspective is quite different.  I don’t think the issue is time or finding enough of it.  I think the problem is you not knowing when you’ve actually found that balance.  You cannot determine whether or not you are being successful unless you establish success criteria

First, there must be some metrics around this “balance”.  How will you determine success?  Is it a pure measure of time spent in each area?  Or is it a quality versus quantity issue?  Ah-ha, now we are stepping into the grayer area.  In order to determine whether or not you have completed a project successfully, it usually must be completed on time and within budget.  Pretty straightforward, right?  That time and budget are set up at the beginning of the project and then managed to completion.  So, how will you know that you’ve struck that magical balance in your entire professional life, unless you set goals or success criteria in the beginning? That means, you must decide what success is defined to be for you, in each aspect of your life. You must decide what professional success is, and that is not very easy. You must actually also decide what you are willing to pay in the way of “sacrifice” or “tradeoff” in the rest of your life-work balance. Career success, does not come without a price. It takes substantial time, energy and emotional commitment to become a winner in your professional life. Are you willing to pay that price? If not, then you need to be prepared to accept a level of achievement that is short of “stardom.”

Now, don’t think I’m over-simplifying this.  There is another component that really makes balancing work and home life challenging.  Again, if I use my project example, usually management or your customer defines the success criteria.  As a project manager, your responsibility is delivering that project within the criteria set by your customer.  But in the case of your work-home life balance dilemma, who determines the metrics for success?  Well, because it’s usually not you yourself, that’s where the difficulty lies.

If you have a work-life, you probably have a manager or supervisor and likely may also have a customer.  If you have a home life, you likely have a spouse or significant other, children, siblings, roommates, or even pets.  Each of these parties demands your time (quantity) and your attention (quality).  Each party must be satisfied in order for you to be successful, and the two are in direct competition with each other for both your time and attention.  They are defining your success criteria for you.  That’s where the “balance” comes in.  That’s why that balance is so elusive.  Each of the two entities has vastly different success criteria.  In order to for you to be “successful” at home, you must sacrifice either quality or quantity in the workplace—and vice versa.  Because you are loyal to each, chances are that if one “succeeds” the other will suffer.  Therefore, it will be nearly impossible for you, as an individual, to be truly satisfied or feel successful.  Does that mean that a balance doesn’t exist?  I am not saying it doesn’t exist.  I am saying it entirely depends upon the demands of your work-life and your personal life. 

In short, the work-life balance is decided by evaluating the tradeoffs in your life and work. During my life, I have been blessed with a life partner, a loving wife, who helped me balance my commitment to her and our family, while allowing me to focus on my work passions. We have been a team, and the tradeoffs that I made, were ones she bought into. Hence, conflict between work and life never really existed, because my work and life were intertwined and my wife bought into what I was doing at work and became a part of the decision process. Candidly, if you are all blessed with this type of relationship, balancing your work-life balance will be a “piece of cake.”