Cheloha Consulting Group
Cheloha Consulting Group
September 23, 2011
Leading & Managing your Business: Dealing with People Randall S. Cheloha, Ph.D.
Plumbing, Heating, and Cooling Contractors Association (PHCC) Minneapolis, MN C O N F I D E N T I A L | www.ChelohaConsulting.com
Introduction & Background Presentation Goals Introduction/Background
I. Understanding Human Nature II. Leading a Business III. Managing People
IV. Managing Yourself V. Succession Planning
© 2011 Cheloha Consulting Group. All rights reserved,
1
Introduction My Goals: Share insights, learning, ‗truth‘ accumulated over time in working in the trenches of organizations; not academic, not theoretical; but practical and applied
Education Session: Teach, share, answer questions My hope for you: ‘Finding the Pony’
© 2011 Cheloha Consulting Group. All rights reserved,
2
Maps/Models to Plot your Course The map is not the terrain You need to know where you are and where you are going
Circumnavigate/Triangulate: What makes sense? How manage/lead people. It‘s very conceptual, abstract, and amorphous? The nature of CONSTRUCTS… – Human Nature – Leadership – Personality – Company Culture – Brain Function – Emotion
© 2011 Cheloha Consulting Group. All rights reserved,
3
Points to Remember Human nature remains the same Have a theory to understand people
Brain physiology: Reaction time of amygdala (50 milliseconds); via cortex (500 milliseconds) Most reactions/perceptions/insights are hard-wired by age 5 We are all MASTERS of Projection Nobody is perfect Create a work environment where Progress on Meaningful Work can Occur
Chances are, as a boss, you get in the way
© 2011 Cheloha Consulting Group. All rights reserved,
4
Fast (1) & Slow (2) Brain Circuits: Our Reactions
Cerebral Cortex
Hippocampus
Thalamus
AMGYDALA The Event, The Trigger Reaction © 2011 Cheloha Consulting Group. All rights reserved,
5
I. Understanding Human Nature Human nature remains the same over time (HBO: TheTudors, Rome) Working Theory of Personality (and leadership style flows from personality) Relationship of values, attitudes, and behavior
© 2011 Cheloha Consulting Group. All rights reserved,
6
A Framework for Human Behavior and Personality Assessing Capability 1) Values (drivers)
2) Strengths 3) Weaknesses/Development Needs/Blind spots 4) Multiplier Effect: Work Ethic
© 2011 Cheloha Consulting Group. All rights reserved,
7
Making the Right Hiring Decisions Draw on a Quality Feeder System: Local Schools, Tech Schools, Personal Network, Apprenticeships Screening: Multiple Methods/Multiple People – Interviews -- Tests – Partner/Apprentice -- Probation (6 months) Provide Immediate Feedback
Frequent Performance Reviews Right hiring decisions saves 90-95% of management work Productive people can be 200-300% more productive
© 2011 Cheloha Consulting Group. All rights reserved,
8
Mathematical Equation for Assessing Human Capability
((V + S – (DN))) * WE = CAPABILITY
Key: V-VALUES S-Strengths DN-Development Needs/Weakness/Blindspot WE-Work Ethic © 2011 Cheloha Consulting Group. All rights reserved,
9
VALUES: What do you want from Work? 1) Aesthetics (Quality control) 2) Affiliation
3) Altruistic 4) Commerce ($$) 5) Hedonism (Salesmen) 6) Power (B of A) 7) Recognition (Strokes) 8) Science (Engineer/Technician/Craftsman) 9) Security (Loyal, hierarchy-Utility) 10)Tradition (Loyal, hierarcy-Utility)
© 2011 Cheloha Consulting Group. All rights reserved,
10
STRENGTHS (What you bring to the party!) Adjustment/Emotional Stability (the governor) Ambition/Drive (work ethic)
Sociability Interpersonal Sensitivity – Insight? Read people? Avoid confrontation?
Prudence/Judgment: – Mistakes lead to experience; the experience that accumulates when we learn from our mistakes produces judgment Inquisitive
Learning Approach
© 2011 Cheloha Consulting Group. All rights reserved,
11
Development Needs/Weaknesses/Blind-Spots (lo scores are STRENGTHS) 1) Excitable—ups and down in moods; emotional; expressive (lo=EQ) 2) Cautious--risk averse, avoid making decisions (lo=Decisive) 3) Skeptical—mistrustful, vindictive (lo=builds trust with others) 4) Reserved—introverted; poor communicator; insensitive to morale (lo=communicator) 5) Leisurely--passive/aggressive, mean (lo=responsive) 6) Bold-narcissistic feelings of entitlement (lo=modesty)
7) Mischievous-careless about commitment, loose ‗honesty‘ (lo=integrity) 8) Colorful–reactive, manage by crises, center of attention (lo=good judgment) 9) Diligent—over controlling micro-manager (lo=delegate, empower)
10) Dutiful-eager to please boss, ‗brown nose‘ (lo=provide support, independent)
© 2011 Cheloha Consulting Group. All rights reserved,
12
Mathematical Equation for Assessing Human Capability
((V + S – (DN))) * WE = CAPABILITY
Key: V-VALUES S-Strengths DN-Development Needs/Weakness/Blindspot WE-Work Ethic © 2011 Cheloha Consulting Group. All rights reserved,
13
Understanding Types Types: Salesmen? Craftsman Plumber? Loyal/Dedicated employee?
© 2011 Cheloha Consulting Group. All rights reserved,
14
Salesman Values – Hedonism, Commerce, Recognition
Strengths (time in the Marriott lobby) – Ambition – Sociability – Interpersonal Sensitivity Development Needs (Quantity vs. Quality) – Bold – Mischievous – Colorful – Diligent (lo)
© 2011 Cheloha Consulting Group. All rights reserved,
15
Craftsman Plumber Values-Aesthetics, Science, Security, Tradition Strengths: – Emotional Stability – Prudence/Judgment (rigid, don‘t listen, defensive; detailed) Development Needs: – Skeptical (challenge authority) – Reserved – Diligent (hard working; too a fault)
© 2011 Cheloha Consulting Group. All rights reserved,
16
Loyal Employee/Does what you tell him to do! Values: Affiliation, Altruism, Recognition, Security, Tradition Strengths: – Emotional Stability? – Interpersonal Sensitivity – Prudence (it looks like it) Development Needs: – Cautious – Leisurely/Passive-Aggressive – Dutiful
© 2011 Cheloha Consulting Group. All rights reserved,
17
Relationship of Behavior, Attitudes, Values
Iceberg Analogy Behavior: What’s Visible
Attitudes VALUES
© 2011 Cheloha Consulting Group. All rights reserved,
18
Entrepreneurs/Owners/Founders: What Makes You Special? (re. Economist Joseph Schumpeter) The Rare Alchemy of the Driven Entrepreneur (WSJ, 8.26.11) Characteristics: – Have the will to found a private kingdom, usually (although not necessarily) a dynasty. - Henry Ford, Bill Gates, Warren Buffet, Steve Jobs, You - Example of business cards: Edison, Ford, Carnegie,… – Will to conquer; the impulse to fight; to prove oneself superior to others; to succeed for the sake of succeeding (not for the fruits of $$) - An achiever and competitor – Joy of creating; getting things done; exercising one‘s own energy and ingenuity - Drive, perfectionist, over-control © 2011 Cheloha Consulting Group. All rights reserved,
19
WHY Owners/Entrepreneurs may not be good BOSSES; their Personality Characteristics...(succession) Independent Determined & focused (stubborn, rigid)
Assume other people are the same (they‘re not) Over the top drive/strong work ethic Willing to take a risk (most people aren‘t!!)
Assume other‘s can manage themselves (many require management) Overly hands-on; need to know; detail; perfectionist Over control (micro-manager) Don‘t need many ‗strokes‘ or recognition
© 2011 Cheloha Consulting Group. All rights reserved,
20
IIa. Leading a Business (Job Description) Boss, Numero Uno, El Jefe‘: Represent the business (CCBW), Chief Cook & Bottle Washer) Finance the business and pay the bills Staff the business; hiring and firing Satisfy customers and maintain high quality standards Marketing/Business Development – print, fliers, mailings, networking, internet, ‗word of mouth‘ – Build your brand—What makes you Special?; Always ask yourself: ‘where do I add value?’ (JED) Make money!! (operate profitably)
© 2011 Cheloha Consulting Group. All rights reserved,
21
Maturing as a Leader: the Process What‘s my job/role? Maybe different than what you are best at, or what you want to do, or even what you think you should do… Continual learning from experience/mistakes/pain What‘s my real job? (Slide IIb) Do an Objective Analyses of your strengths and weaknesses How do I fill the ‗gaps‘? Delegation, new hires… – Current person being coached, the engineer—what if promoted…
© 2011 Cheloha Consulting Group. All rights reserved,
22
IIb. Leading a Business: Your Real Job Set Goals/Provide Direction (smaller vs. larger business) Communicate (you are the only one who has this unique perspective) Building Relationships (CORE) – Leadership by example is redundant – Setting the right tone for your company culture (the way we do things around here) - Telling, Policy, and Rules - Showing/Modeling - Partnering-working together side by side (raising children; Randy and trimming shrubs)
© 2011 Cheloha Consulting Group. All rights reserved,
23
IIb. Leading a Business: Your Real Job
Kaiser Permanente Health (SFO) study: – About 24% of employees (study of 39,000) reported mild to severe depression – Sick days and depression cost US $44 billion year – Health insurance is cheaper if employees take less sick days and are less likely to visit their primary care physician
What Can you Do? Happier Workers are More Productive – Gallup estimates cost of employee disengaement-$300 billion – Study of 238 workers, 12,000 diary entries – 33% of entries—unhappy, unmotivated, or both
Manager/Boss’s Job: How do you make ‘People happy’?
`
-
Remove obstacles; Provide Support; Provide Autonomy
– Create opportunity to ‘Make Progress Doing Meaningful Work’
© 2011 Cheloha Consulting Group. All rights reserved,
24
III. Managing People Providing Respect and Positive Affirmation (Golden Rule--treat your neighbor as yourself; give the benefit of the doubt; see the glass as ½ full; assume the best (Rosenthal effect)
Percent of ‗Bad Bosses‘??? (Hogan) Motivating Others – Motivation comes from the inside – But, The Boss Creates the Work Environment
© 2011 Cheloha Consulting Group. All rights reserved,
25
Making the Right Hiring Decisions Quality Feeder System: Local High Schools, Local Tech Schools, Apprenticeships Screening: Multiple Methods/Multiple People – Interviews -- Tests – Partner/Apprentice -- Probation (6 months) Immediate Feedback
Frequent Performance Reviews Right hiring decisions saves 90-95% of management work
© 2011 Cheloha Consulting Group. All rights reserved,
26
Performance Reviews: Providing Feedback and Coaching Principles of Providing Good Feedback – The closer in time to the good or bad event, the better – Direct, focused, and tactful – Supervisors focus most on recent events (vs. Annual Review) – Review again during Annual Review; no surprises – Ratio of 10:1 positive to negative – Negative feedback engenders Defensiveness and emotional ―shutdown‖ - People don‘t hear what you say after 1st negative comment, so… - Keep it brief—make your point - Check for understanding then—and then again within next 5 days
© 2011 Cheloha Consulting Group. All rights reserved,
27
How Much can People Change? NOT MUCH…Most hard-wiring in place by age 5; but we can learn/change and adapt In talented motivated and bright people a LITTLE goes a long way Frequently less ‗change‘ and more re-directing their focus/energies Sometimes it is increased Self-Awareness Analogy: Taut wire guide on young willow tree Where do Managers go wrong? Assuming things will get better if they do nothing (procrastination; avoiding conflict…)
© 2011 Cheloha Consulting Group. All rights reserved,
28
Formula for Employee Coaching & Change
1 Awareness and Acceptance 50% 3
Skill Building 25%
© 2011 Cheloha Consulting Group. All rights reserved,
2 Energy 25%
29
Realities of Coaching Needs to be positive/trusting alignment between coach and coachee for coaching to work (interests aligned); that‘s why boss/subordinate coaching is rarely effective.
‗Boundaries‘ Most emotional memories are laid down by age 5 (Doyles); if there‘s a threat, most people naturally react with emotion (amygdala)
Coaching: combine Challenge & Support People can only change a little; but that little has a big impact on behavior (willow tree and guide wire) Build off strengths; acknowledge and ‗fence off‘ weaknesses – Counter-intuitively: people change most in the area of their strengths
© 2011 Cheloha Consulting Group. All rights reserved,
30
When is it Time to Cut the Cord? Most frequently expressed regret of managers/supervisors—I waited too long, I was optimistic that things would change, I thought it would work itself out… – To be fair, apply the three pronged Readiness/Capability test: Knowledge—know what to do Skill—know how to do it Attitude—want to do it Use an outside resource (another senior employee?) Otherwise, you do yourself a favor by releasing the individual early so they can get on with their lives/career (People will thank you)
© 2011 Cheloha Consulting Group. All rights reserved,
31
IV. Managing Yourself Most common BOSS/MANAGER blind spots – Not listening – Criticize not praise – Perfectionism – Over Control; Not Delegate Managing your Emotions, Frustration, and Temper – The Brain, Functions, and Relationships Taking Care of Yourself – Stress – Managing Stress (exercise vs. ‗oral‘ satisfaction) – Depression, ‗the blues‘
© 2011 Cheloha Consulting Group. All rights reserved,
32
Symptoms of Depression (National Institute of Health)
Persistent sad, anxious, or ‗empty‘ mood
Feelings of hopelessness, pessimism
Feelings of guilt, worthlessness, helplessness
Loss of interest or pleasure in hobbies and activities that were once enjoyable
Decreased energy, fatigue, being ‗slowed down‘
Difficulty concentrating, remembering, making decisions
Trouble sleeping, early morning awakening, oversleeping
Change in appetite or weight change (up or down)
Thoughts of death, suicide, ‗suicidal ideation‘
Irritability, easily frustrated
Persistent physical symptoms, e.g., headaches, digestion, chronic pain
© 2011 Cheloha Consulting Group. All rights reserved,
33
Blind Spots; Most Common Areas for Coaching Not Listening (can‘t receive feedback about yourself; defensive) Criticize not Praise (Boss finding person‘s weak point)
Perfectionism (setting a good example; do the job right; partner/model) Over Control/Lack of Delegation (Why?) – 1. An ego as big as all of Montana; Nobody can do it as well… – 2. Control needs; I like to be in control and on top of things – 3. Subordinates are weak; now---you have a selection/staffing problem
© 2011 Cheloha Consulting Group. All rights reserved,
34
Managing your Emotions, Frustration, Temper Amygdala—Seat of Emotion; Sensory Integration Hippocampus, Thalamus—Emotional Go-Betweens; Way Stations
Frontal Cortex—Control/Inhibit Emotion Fast/Slow Circuits in Reacting
© 2011 Cheloha Consulting Group. All rights reserved,
35
Fast (1) & Slow (2) Brain Circuits: Our Reactions
Cerebral Cortex
Hippocampus
Thalamus
AMGYDALA The Event, The Trigger Reaction © 2011 Cheloha Consulting Group. All rights reserved,
36
Model: Understanding Brain Structure, Brain Functions, and Behaviour
Evolution of the Brain (A. Koestler, 1967) – ‗Automatic Pilot‘ Brain (Rat) – Emotional Brain (Smell) – Executive Brain (Judgment)
Big Changes in Psychological and Psychiatric Understanding in Last 15 Years: – Joseph LeDoux-New York Univ., ‗96 - Better Understanding of Brain Influence on Behavior - Better Understanding of Neuro-transmitters and how they work - Therapy: Best with both Relationships & Rx (scripts) - Louis Cozolino (Neuroscience of Psychotherapy) - David Siegel (Mindsight) - John Arden (Rewire Your Brain)
© 2011 Cheloha Consulting Group. All rights reserved,
37
The Ghost in the Machine: The Evolution
EXECUTIVE BRAIN
Emotional Brain
AUTOMATIC PILOT BRAIN
© 2011 Cheloha Consulting Group. All rights reserved,
38
Fast (1) & Slow (2) Brain Circuits: Reaction to Stimuli
Cerebral Cortex
S2
S2
Hippocampus
S2
Thalamus
S1
AMGYDALA
S2
STIMULI Reaction © 2011 Cheloha Consulting Group. All rights reserved,
39
Functions of the Brain Automatic Pilot Brain (Brain Stem) – Autonomic – Breathing – Circulation – Consciousness Emotional Brain (Amygdala, Hippocampus, Cingulate Gyrus) – Emotion – Integration of Range of Brain Functions – Senses – Attention
© 2011 Cheloha Consulting Group. All rights reserved,
40
Functions of the Brain (Continued) Executive Brain (Frontal Cortex); The Seat of Reason – Self-Control; Control – Inhibition of Impulses – Thinking; Complex Cognition – Judgment & Decision Making – Context/Subtleties
© 2011 Cheloha Consulting Group. All rights reserved,
41
The Ghost in the Machine: The Evolution
EXECUTIVE BRAIN •Evolves until 30’s •Control/Inhibition/Focus
Emotional Brain •Senses: Light, Sound, Balance; Hearing; Touch
•Disruptive: Computer Screen; texts; MultiTasking
‘AUTOMATIC PILOT’ BRAIN
© 2011 Cheloha Consulting Group. All rights reserved,
42
Fast & Slow Brain Circuits (Reaction to Stimuli)
Reaction 1= Anger, Lose Temper, or ‘Meltdown’
Cerebral Cortex S2
S2 Hippocampus
S2
Thalamus
S1
STIMULI
AMGYDALA
S2
Reaction 2 =Think, Consider, Context, Address Subtlety
© 2011 Cheloha Consulting Group. All rights reserved,
43
Bobby Knight (Retired and Ex-Coach, Indiana U., Texas Tech Basketball)
© 2011 Cheloha Consulting Group. All rights reserved,
44
Va. Succession Planning for the Next Generation 88% believe the same family or families will control business in 5 years Familiar Family Businesses: – Ford Motor Co. --Interface (Atlanta) – McCormick Spice Co. --SC Johnson (Racine, WI) Only 30% of family businesses survive into 2nd generation – Clifton‘s (West Coast-Finance) – Acquisition (VIC) Only 12% are viable into 3rd generation Succession planning is a process (like a snowflake-each unique) Do you have a plan? Do you have a process?
© 2011 Cheloha Consulting Group. All rights reserved,
45
Evolutionary Stages of Companies (Adizes, 1990) Self-Employed ‗Family‘—Succession can be an issue down the road; ‗letting go‘
Professional manager Mature/Bureaucratic (dying!)
© 2011 Cheloha Consulting Group. All rights reserved,
46
Vb. Succession Planning for Next Generation
The long runway is better than the short runway; start planning when in early (40‘s, 50‘s) Succession planning is very, very easy to put off: – Concerns about our own mortality; you block it out – Brings out denied/covered-up family issues – My work defines me, what will I do if it‘s gone? Impact on my marriage? – Control needs; can I let go? Will your successor be an immediate family member – Capabilities and Fit – Drive and Motivation Sell to Outsider (How value?) © 2011 Cheloha Consulting Group. All rights reserved,
47
Summary: IMPLICATIONS FOR YOU AND YOUR BUSINESS
Understand People and Human Nature – Build Relationships (leadership by example is redundant) – Understand strengths and weaknesses of your employees (model)
Lead: Provide Direction; Communicate; Create a Positive Work Environment
Provide & Receive Feedback – Listen and be open – Don‘t be defensive – Manage your emotions
Make Progress on Meaningful Work
Manage Yourself: Deal with your Emotions, Frustration, & Temper – Stress management – Depression – Over eating/drinking – Exercise to relieve stress and improve mood
Plan for succession
© 2011 Cheloha Consulting Group. All rights reserved,
48
Cheloha Consulting Group Wynnewood, PA Randall S. Cheloha, Ph.D.
610-896-9494 610-755-7879 (mobile) [email protected]
©Cheloha Consulting Group, 2011
49
September 23, 2011
Leading & Managing your Business: Dealing with People Randall S. Cheloha, Ph.D.
Plumbing, Heating, and Cooling Contractors Association (PHCC) Minneapolis, MN C O N F I D E N T I A L | www.ChelohaConsulting.com
Introduction & Background Presentation Goals Introduction/Background
I. Understanding Human Nature II. Leading a Business III. Managing People
IV. Managing Yourself V. Succession Planning
© 2011 Cheloha Consulting Group. All rights reserved,
1
Introduction My Goals: Share insights, learning, ‗truth‘ accumulated over time in working in the trenches of organizations; not academic, not theoretical; but practical and applied
Education Session: Teach, share, answer questions My hope for you: ‘Finding the Pony’
© 2011 Cheloha Consulting Group. All rights reserved,
2
Maps/Models to Plot your Course The map is not the terrain You need to know where you are and where you are going
Circumnavigate/Triangulate: What makes sense? How manage/lead people. It‘s very conceptual, abstract, and amorphous? The nature of CONSTRUCTS… – Human Nature – Leadership – Personality – Company Culture – Brain Function – Emotion
© 2011 Cheloha Consulting Group. All rights reserved,
3
Points to Remember Human nature remains the same Have a theory to understand people
Brain physiology: Reaction time of amygdala (50 milliseconds); via cortex (500 milliseconds) Most reactions/perceptions/insights are hard-wired by age 5 We are all MASTERS of Projection Nobody is perfect Create a work environment where Progress on Meaningful Work can Occur
Chances are, as a boss, you get in the way
© 2011 Cheloha Consulting Group. All rights reserved,
4
Fast (1) & Slow (2) Brain Circuits: Our Reactions
Cerebral Cortex
Hippocampus
Thalamus
AMGYDALA The Event, The Trigger Reaction © 2011 Cheloha Consulting Group. All rights reserved,
5
I. Understanding Human Nature Human nature remains the same over time (HBO: TheTudors, Rome) Working Theory of Personality (and leadership style flows from personality) Relationship of values, attitudes, and behavior
© 2011 Cheloha Consulting Group. All rights reserved,
6
A Framework for Human Behavior and Personality Assessing Capability 1) Values (drivers)
2) Strengths 3) Weaknesses/Development Needs/Blind spots 4) Multiplier Effect: Work Ethic
© 2011 Cheloha Consulting Group. All rights reserved,
7
Making the Right Hiring Decisions Draw on a Quality Feeder System: Local Schools, Tech Schools, Personal Network, Apprenticeships Screening: Multiple Methods/Multiple People – Interviews -- Tests – Partner/Apprentice -- Probation (6 months) Provide Immediate Feedback
Frequent Performance Reviews Right hiring decisions saves 90-95% of management work Productive people can be 200-300% more productive
© 2011 Cheloha Consulting Group. All rights reserved,
8
Mathematical Equation for Assessing Human Capability
((V + S – (DN))) * WE = CAPABILITY
Key: V-VALUES S-Strengths DN-Development Needs/Weakness/Blindspot WE-Work Ethic © 2011 Cheloha Consulting Group. All rights reserved,
9
VALUES: What do you want from Work? 1) Aesthetics (Quality control) 2) Affiliation
3) Altruistic 4) Commerce ($$) 5) Hedonism (Salesmen) 6) Power (B of A) 7) Recognition (Strokes) 8) Science (Engineer/Technician/Craftsman) 9) Security (Loyal, hierarchy-Utility) 10)Tradition (Loyal, hierarcy-Utility)
© 2011 Cheloha Consulting Group. All rights reserved,
10
STRENGTHS (What you bring to the party!) Adjustment/Emotional Stability (the governor) Ambition/Drive (work ethic)
Sociability Interpersonal Sensitivity – Insight? Read people? Avoid confrontation?
Prudence/Judgment: – Mistakes lead to experience; the experience that accumulates when we learn from our mistakes produces judgment Inquisitive
Learning Approach
© 2011 Cheloha Consulting Group. All rights reserved,
11
Development Needs/Weaknesses/Blind-Spots (lo scores are STRENGTHS) 1) Excitable—ups and down in moods; emotional; expressive (lo=EQ) 2) Cautious--risk averse, avoid making decisions (lo=Decisive) 3) Skeptical—mistrustful, vindictive (lo=builds trust with others) 4) Reserved—introverted; poor communicator; insensitive to morale (lo=communicator) 5) Leisurely--passive/aggressive, mean (lo=responsive) 6) Bold-narcissistic feelings of entitlement (lo=modesty)
7) Mischievous-careless about commitment, loose ‗honesty‘ (lo=integrity) 8) Colorful–reactive, manage by crises, center of attention (lo=good judgment) 9) Diligent—over controlling micro-manager (lo=delegate, empower)
10) Dutiful-eager to please boss, ‗brown nose‘ (lo=provide support, independent)
© 2011 Cheloha Consulting Group. All rights reserved,
12
Mathematical Equation for Assessing Human Capability
((V + S – (DN))) * WE = CAPABILITY
Key: V-VALUES S-Strengths DN-Development Needs/Weakness/Blindspot WE-Work Ethic © 2011 Cheloha Consulting Group. All rights reserved,
13
Understanding Types Types: Salesmen? Craftsman Plumber? Loyal/Dedicated employee?
© 2011 Cheloha Consulting Group. All rights reserved,
14
Salesman Values – Hedonism, Commerce, Recognition
Strengths (time in the Marriott lobby) – Ambition – Sociability – Interpersonal Sensitivity Development Needs (Quantity vs. Quality) – Bold – Mischievous – Colorful – Diligent (lo)
© 2011 Cheloha Consulting Group. All rights reserved,
15
Craftsman Plumber Values-Aesthetics, Science, Security, Tradition Strengths: – Emotional Stability – Prudence/Judgment (rigid, don‘t listen, defensive; detailed) Development Needs: – Skeptical (challenge authority) – Reserved – Diligent (hard working; too a fault)
© 2011 Cheloha Consulting Group. All rights reserved,
16
Loyal Employee/Does what you tell him to do! Values: Affiliation, Altruism, Recognition, Security, Tradition Strengths: – Emotional Stability? – Interpersonal Sensitivity – Prudence (it looks like it) Development Needs: – Cautious – Leisurely/Passive-Aggressive – Dutiful
© 2011 Cheloha Consulting Group. All rights reserved,
17
Relationship of Behavior, Attitudes, Values
Iceberg Analogy Behavior: What’s Visible
Attitudes VALUES
© 2011 Cheloha Consulting Group. All rights reserved,
18
Entrepreneurs/Owners/Founders: What Makes You Special? (re. Economist Joseph Schumpeter) The Rare Alchemy of the Driven Entrepreneur (WSJ, 8.26.11) Characteristics: – Have the will to found a private kingdom, usually (although not necessarily) a dynasty. - Henry Ford, Bill Gates, Warren Buffet, Steve Jobs, You - Example of business cards: Edison, Ford, Carnegie,… – Will to conquer; the impulse to fight; to prove oneself superior to others; to succeed for the sake of succeeding (not for the fruits of $$) - An achiever and competitor – Joy of creating; getting things done; exercising one‘s own energy and ingenuity - Drive, perfectionist, over-control © 2011 Cheloha Consulting Group. All rights reserved,
19
WHY Owners/Entrepreneurs may not be good BOSSES; their Personality Characteristics...(succession) Independent Determined & focused (stubborn, rigid)
Assume other people are the same (they‘re not) Over the top drive/strong work ethic Willing to take a risk (most people aren‘t!!)
Assume other‘s can manage themselves (many require management) Overly hands-on; need to know; detail; perfectionist Over control (micro-manager) Don‘t need many ‗strokes‘ or recognition
© 2011 Cheloha Consulting Group. All rights reserved,
20
IIa. Leading a Business (Job Description) Boss, Numero Uno, El Jefe‘: Represent the business (CCBW), Chief Cook & Bottle Washer) Finance the business and pay the bills Staff the business; hiring and firing Satisfy customers and maintain high quality standards Marketing/Business Development – print, fliers, mailings, networking, internet, ‗word of mouth‘ – Build your brand—What makes you Special?; Always ask yourself: ‘where do I add value?’ (JED) Make money!! (operate profitably)
© 2011 Cheloha Consulting Group. All rights reserved,
21
Maturing as a Leader: the Process What‘s my job/role? Maybe different than what you are best at, or what you want to do, or even what you think you should do… Continual learning from experience/mistakes/pain What‘s my real job? (Slide IIb) Do an Objective Analyses of your strengths and weaknesses How do I fill the ‗gaps‘? Delegation, new hires… – Current person being coached, the engineer—what if promoted…
© 2011 Cheloha Consulting Group. All rights reserved,
22
IIb. Leading a Business: Your Real Job Set Goals/Provide Direction (smaller vs. larger business) Communicate (you are the only one who has this unique perspective) Building Relationships (CORE) – Leadership by example is redundant – Setting the right tone for your company culture (the way we do things around here) - Telling, Policy, and Rules - Showing/Modeling - Partnering-working together side by side (raising children; Randy and trimming shrubs)
© 2011 Cheloha Consulting Group. All rights reserved,
23
IIb. Leading a Business: Your Real Job
Kaiser Permanente Health (SFO) study: – About 24% of employees (study of 39,000) reported mild to severe depression – Sick days and depression cost US $44 billion year – Health insurance is cheaper if employees take less sick days and are less likely to visit their primary care physician
What Can you Do? Happier Workers are More Productive – Gallup estimates cost of employee disengaement-$300 billion – Study of 238 workers, 12,000 diary entries – 33% of entries—unhappy, unmotivated, or both
Manager/Boss’s Job: How do you make ‘People happy’?
`
-
Remove obstacles; Provide Support; Provide Autonomy
– Create opportunity to ‘Make Progress Doing Meaningful Work’
© 2011 Cheloha Consulting Group. All rights reserved,
24
III. Managing People Providing Respect and Positive Affirmation (Golden Rule--treat your neighbor as yourself; give the benefit of the doubt; see the glass as ½ full; assume the best (Rosenthal effect)
Percent of ‗Bad Bosses‘??? (Hogan) Motivating Others – Motivation comes from the inside – But, The Boss Creates the Work Environment
© 2011 Cheloha Consulting Group. All rights reserved,
25
Making the Right Hiring Decisions Quality Feeder System: Local High Schools, Local Tech Schools, Apprenticeships Screening: Multiple Methods/Multiple People – Interviews -- Tests – Partner/Apprentice -- Probation (6 months) Immediate Feedback
Frequent Performance Reviews Right hiring decisions saves 90-95% of management work
© 2011 Cheloha Consulting Group. All rights reserved,
26
Performance Reviews: Providing Feedback and Coaching Principles of Providing Good Feedback – The closer in time to the good or bad event, the better – Direct, focused, and tactful – Supervisors focus most on recent events (vs. Annual Review) – Review again during Annual Review; no surprises – Ratio of 10:1 positive to negative – Negative feedback engenders Defensiveness and emotional ―shutdown‖ - People don‘t hear what you say after 1st negative comment, so… - Keep it brief—make your point - Check for understanding then—and then again within next 5 days
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How Much can People Change? NOT MUCH…Most hard-wiring in place by age 5; but we can learn/change and adapt In talented motivated and bright people a LITTLE goes a long way Frequently less ‗change‘ and more re-directing their focus/energies Sometimes it is increased Self-Awareness Analogy: Taut wire guide on young willow tree Where do Managers go wrong? Assuming things will get better if they do nothing (procrastination; avoiding conflict…)
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Formula for Employee Coaching & Change
1 Awareness and Acceptance 50% 3
Skill Building 25%
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2 Energy 25%
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Realities of Coaching Needs to be positive/trusting alignment between coach and coachee for coaching to work (interests aligned); that‘s why boss/subordinate coaching is rarely effective.
‗Boundaries‘ Most emotional memories are laid down by age 5 (Doyles); if there‘s a threat, most people naturally react with emotion (amygdala)
Coaching: combine Challenge & Support People can only change a little; but that little has a big impact on behavior (willow tree and guide wire) Build off strengths; acknowledge and ‗fence off‘ weaknesses – Counter-intuitively: people change most in the area of their strengths
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When is it Time to Cut the Cord? Most frequently expressed regret of managers/supervisors—I waited too long, I was optimistic that things would change, I thought it would work itself out… – To be fair, apply the three pronged Readiness/Capability test: Knowledge—know what to do Skill—know how to do it Attitude—want to do it Use an outside resource (another senior employee?) Otherwise, you do yourself a favor by releasing the individual early so they can get on with their lives/career (People will thank you)
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IV. Managing Yourself Most common BOSS/MANAGER blind spots – Not listening – Criticize not praise – Perfectionism – Over Control; Not Delegate Managing your Emotions, Frustration, and Temper – The Brain, Functions, and Relationships Taking Care of Yourself – Stress – Managing Stress (exercise vs. ‗oral‘ satisfaction) – Depression, ‗the blues‘
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Symptoms of Depression (National Institute of Health)
Persistent sad, anxious, or ‗empty‘ mood
Feelings of hopelessness, pessimism
Feelings of guilt, worthlessness, helplessness
Loss of interest or pleasure in hobbies and activities that were once enjoyable
Decreased energy, fatigue, being ‗slowed down‘
Difficulty concentrating, remembering, making decisions
Trouble sleeping, early morning awakening, oversleeping
Change in appetite or weight change (up or down)
Thoughts of death, suicide, ‗suicidal ideation‘
Irritability, easily frustrated
Persistent physical symptoms, e.g., headaches, digestion, chronic pain
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Blind Spots; Most Common Areas for Coaching Not Listening (can‘t receive feedback about yourself; defensive) Criticize not Praise (Boss finding person‘s weak point)
Perfectionism (setting a good example; do the job right; partner/model) Over Control/Lack of Delegation (Why?) – 1. An ego as big as all of Montana; Nobody can do it as well… – 2. Control needs; I like to be in control and on top of things – 3. Subordinates are weak; now---you have a selection/staffing problem
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Managing your Emotions, Frustration, Temper Amygdala—Seat of Emotion; Sensory Integration Hippocampus, Thalamus—Emotional Go-Betweens; Way Stations
Frontal Cortex—Control/Inhibit Emotion Fast/Slow Circuits in Reacting
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Fast (1) & Slow (2) Brain Circuits: Our Reactions
Cerebral Cortex
Hippocampus
Thalamus
AMGYDALA The Event, The Trigger Reaction © 2011 Cheloha Consulting Group. All rights reserved,
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Model: Understanding Brain Structure, Brain Functions, and Behaviour
Evolution of the Brain (A. Koestler, 1967) – ‗Automatic Pilot‘ Brain (Rat) – Emotional Brain (Smell) – Executive Brain (Judgment)
Big Changes in Psychological and Psychiatric Understanding in Last 15 Years: – Joseph LeDoux-New York Univ., ‗96 - Better Understanding of Brain Influence on Behavior - Better Understanding of Neuro-transmitters and how they work - Therapy: Best with both Relationships & Rx (scripts) - Louis Cozolino (Neuroscience of Psychotherapy) - David Siegel (Mindsight) - John Arden (Rewire Your Brain)
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The Ghost in the Machine: The Evolution
EXECUTIVE BRAIN
Emotional Brain
AUTOMATIC PILOT BRAIN
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Fast (1) & Slow (2) Brain Circuits: Reaction to Stimuli
Cerebral Cortex
S2
S2
Hippocampus
S2
Thalamus
S1
AMGYDALA
S2
STIMULI Reaction © 2011 Cheloha Consulting Group. All rights reserved,
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Functions of the Brain Automatic Pilot Brain (Brain Stem) – Autonomic – Breathing – Circulation – Consciousness Emotional Brain (Amygdala, Hippocampus, Cingulate Gyrus) – Emotion – Integration of Range of Brain Functions – Senses – Attention
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Functions of the Brain (Continued) Executive Brain (Frontal Cortex); The Seat of Reason – Self-Control; Control – Inhibition of Impulses – Thinking; Complex Cognition – Judgment & Decision Making – Context/Subtleties
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The Ghost in the Machine: The Evolution
EXECUTIVE BRAIN •Evolves until 30’s •Control/Inhibition/Focus
Emotional Brain •Senses: Light, Sound, Balance; Hearing; Touch
•Disruptive: Computer Screen; texts; MultiTasking
‘AUTOMATIC PILOT’ BRAIN
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Fast & Slow Brain Circuits (Reaction to Stimuli)
Reaction 1= Anger, Lose Temper, or ‘Meltdown’
Cerebral Cortex S2
S2 Hippocampus
S2
Thalamus
S1
STIMULI
AMGYDALA
S2
Reaction 2 =Think, Consider, Context, Address Subtlety
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Bobby Knight (Retired and Ex-Coach, Indiana U., Texas Tech Basketball)
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Va. Succession Planning for the Next Generation 88% believe the same family or families will control business in 5 years Familiar Family Businesses: – Ford Motor Co. --Interface (Atlanta) – McCormick Spice Co. --SC Johnson (Racine, WI) Only 30% of family businesses survive into 2nd generation – Clifton‘s (West Coast-Finance) – Acquisition (VIC) Only 12% are viable into 3rd generation Succession planning is a process (like a snowflake-each unique) Do you have a plan? Do you have a process?
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Evolutionary Stages of Companies (Adizes, 1990) Self-Employed ‗Family‘—Succession can be an issue down the road; ‗letting go‘
Professional manager Mature/Bureaucratic (dying!)
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Vb. Succession Planning for Next Generation
The long runway is better than the short runway; start planning when in early (40‘s, 50‘s) Succession planning is very, very easy to put off: – Concerns about our own mortality; you block it out – Brings out denied/covered-up family issues – My work defines me, what will I do if it‘s gone? Impact on my marriage? – Control needs; can I let go? Will your successor be an immediate family member – Capabilities and Fit – Drive and Motivation Sell to Outsider (How value?) © 2011 Cheloha Consulting Group. All rights reserved,
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Summary: IMPLICATIONS FOR YOU AND YOUR BUSINESS
Understand People and Human Nature – Build Relationships (leadership by example is redundant) – Understand strengths and weaknesses of your employees (model)
Lead: Provide Direction; Communicate; Create a Positive Work Environment
Provide & Receive Feedback – Listen and be open – Don‘t be defensive – Manage your emotions
Make Progress on Meaningful Work
Manage Yourself: Deal with your Emotions, Frustration, & Temper – Stress management – Depression – Over eating/drinking – Exercise to relieve stress and improve mood
Plan for succession
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Cheloha Consulting Group Wynnewood, PA Randall S. Cheloha, Ph.D.
610-896-9494 610-755-7879 (mobile) [email protected]
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