Ready, Set, Recover! Management Best Practices as the Recession Ebbs

Leila Bulling Towne

The Bulling Towne Group, LLChttp://www.thebullingtownegroup.comcoach@thebullingtownegroup.com+1.415.744.1991 San Francisco Office+1.800.789.8449

January 21, 2010

The Facts of the Day

• US stocks ended 2009 with best gains since 2003. But wait a second . . .• President Obama asks CEOs for insight on government efficiency• Conan O’Brien receives $40 million Hollywood handshake• Cadbury accepts Kraft’s bid that values it at 11.7 billion pounds• Devastation and despair in Haiti

• JAL files for bankruptcy

• Israel and Germany hold joint cabinet session in Berlin

• US unemployment 10% in December 2009 (unchanged)

• State of the Union set for January 27

• World Economic Forum in Davos January 27-31. Theme is Improve the State of the World: Rethink, Redesign, Rebuild.

• Winter Olympics

And the Recession?

“From a technical perspective, the recession is very likely over.”

Ben Bernanke, September 2009

Maybe the Question isn’t . . .

Is it really over?

Maybe it is . . .

When will we feel it?

The Mood

Not Quite There

• Holiday shopping up 3.6% over 2008 season

• Take away the extra shopping day and a longer season and it was an increase of 1%

Our Webinar Goals

Manage with the worst behind us—and ambiguity ahead

1. What Still Works2. Mistakes to Avoid3. “New” Best Practices

What Still Works

1. Set Goals

2. Give Feedback

3. Coach

Why the Fundamentals Still Work1. Set goals

a. Ambiguity prevalent: employees must hear what is expectedb. Metrics crucial for individual, team, and company performance

2. Give feedbacka. No guessing on where we each standb. Metrics crucial for individual, team,

and company performance

SMARTie Goals

S pecificM easurableA ction Oriented/AlignedR ealistic/RelevantT imeboundi nnovativee thical

Goal Categories

1. Goal2. Deadline & Project Period3. Measures of Success4. Sub Goals, Milestones, or Steps5. Resources/Dependencies6. Goal-Change Scenarios7. Goal Owner(s)8. Behaviors/Values/Competencies9. Tasks

Why the Fundamentals Still Work3. Coach

a. You can’t do it all: delegation is essentialb. As managers we are under the microscope; allow SMEs to

shinec. Top performers want to contribute in more robust and tangible

ways

Our Webinar Goals

Manage with the worst behind us—and ambiguity ahead

1. What Still Works2. Mistakes to Avoid3. “New” Best Practices

Mistake #1: Rush to Hire

• Tempting, terrible mistake• Consider the full picture of what it costs to employ

someone: salary, employment taxes, materials, benefits, etc.

• Think about the contingent workforce• Assess what skills are essential for existing projects, for

how long, and at what depth.

Mistake #2: Failing to Think AboutNext Year—and the Year After• Day to day = deadly • Project to project = painful• Strategy counts—a lot• Verify you are spending time and resources on the next

generation of your product or service• Innovation doesn't just happen. Make it happen.

Mistake #3: “I don’t need to talkabout this anymore.”• “Now that things are ‘better,’ I can scrap all those

conversations with employees about how to stay focused and motivated during the recession, right?”

• Avoid like the plague:1. Saying nothing 2. “The worst is behind us!”3. “Don’t worry. Things are getting better.”4. “Whew, what a relief. Back to normal—finally!”

Mistake #4: Failing to EvaluateJobs• Consider evaluating who is doing what• Review job descriptions• Coach clients on how to involve employees in this

activity– “How do you see your responsibilities contributing to the bottom

line?”– “What do you feel you need to start doing?”– “What do you feel you need to stop doing?”– “What behaviors and tasks should you continue?”

Mistake #5: Ignoring Performance Issues• Is it too late to manage out? No. NEVER.• Don’t assume that the “mood” will influence

performance—positively• Bring back performance reviews

Poll

Which mistakes will your company struggle with?1. Rush to hire2. Failing to think about next year—and the year after3. I don’t need to talk about this anymore4. Failing to evaluate jobs5. Ignoring performance issues

Our Webinar Goals

Manage with the worst behind us—and ambiguity ahead

1. What Still Works2. Mistakes to Avoid3. “New” Best Practices

“New” Best Practices

1. Lessen the power of the past2. Be information transparent3. Have more people take more risks4. Make innovation the new “required” skill5. Put money back on the table6. Retain top performers as if your livelihood

depended on it

1. Lessen the Power of the Past

• Those who repeat the past are . . . Yeah, yeah• The known is nice—but it has its negatives• Avoid temptation to fall back on comfortable best

practices for compensation, promotions and title changes, and recruitment

• Strategy is a daily skill– Tangible, specific action plan– Emphasizes the future with the

knowledge and metrics of the past– Belongs to everyone– Allows no experts to make sole decisions

2. Be Information Transparent

• Stop being the feudal lord of information• Share more than you want to: hand over control• Share with employees

How you make decisions The metrics you use The expectation that questions are mandatory That it’s OK and required they make their own decisions

• Key: allow people to know more than you• Goal: grassroots employees• Fear isn’t good

3. Have More People Take More Risks• Being information transparent makes it possible• Formerly, risk taking was a management skill• Key: being nimble and acting upon a balance of gut and

good data• Start by

Speaking to the fear of failure Sharing the risks you have taken—and will take Acknowledging when risks are taken Reminding people that there will never be enough information Using a risk/reward calculator

4. Make Innovation the New “Required” Skill• #2 and #3 build on each other to create an environment

where innovation is the norm• “What can you do for me?”• Grassroots is key: capture and act upon ideas• Define what it means for your organization. For example,

how can the receptionist be innovative?• Start reading Fast Company

I Stands for Innovative

Tangible and intangible

Questions to Ask Yourself

• Are we doing the same things we’ve always done?• Do they work? If the answer is yes, how do we know

that? What evidence do we have?• How are we accomplishing those items? What behaviors

are we using?• What can be original, innovative, new, pioneering,

groundbreaking, novel, and inventive?

What do people want next?

5. Put Money Back on the Table

• As the economy stabilizes, employees will wonder, “What’s up with salaries? Are we getting raises?”

• Watson Wyatt reports 2009 raises projected to be 2.5-3% (2009-2010 US Strategic Rewards Survey)

• What is your stance? Are you prepared?• What will your managers say—if you don’t coach them?• Can’t do it? Be ready to address why. Be transparent.

Volunteer information vs. wait for an inquiry.

Practical Steps for #5

What can you afford? What is your projected growth? What were your retention efforts for top performers—so

far this year? Confer with management team on priorities Get good data Don’t forget about 401K matches

6. Retain Top Performers as if Your Livelihood Depended on Them• . . . Because it does• “Sit it out” strategy has been used by top employees• Do now:

1. Build a high potential program. Starting small is OK.2. Find executive mentors for top performers.3. Push for merit increases.4. Do the 4 Ps assessment

The 4 Ps Assessment

1. People• “With whom do you want to engage more?”

2. Practices• “What do you want to learn how to do?”

3. Processes• “What processes can you change here? What do you

want to do differently?”4. Projects

• “Identify the projects you wish to work on or lead.”

“New” Best Practices

1. Lessen the power of the past2. Be information transparent3. Have more people take more risks4. Make innovation the new “required” skill5. Put money back on the table6. Retain top performers as if your livelihood

depended on it

Poll

Which best practices will most difficult toimplement?

1. Lessen the power of the past2. Be information transparent3. Have more people take more risks4. Make innovation the new “required” skill5. Put money back on the table6. Retain top performers as if your livelihood

depended on it

HR’s Opportunity: Coach ManagersScenarios:Manager John comes to you and wants to know if since the

economy is back on track, he can give raises.Manager Reena comes to you and wants to know if she

can change Ricardo's title because she fears he will quitManager Erik comes to you and mentions that he has a job

offer for more money but he doesn’t want to leave. He wonders if he should talk to his manager.

How Do You Operate?

• The most common choice is to administer advice and swiftly direct these managers toward a solution

• Think bigger• Coach them to coach• Consider yourself the consultant

Realities Updated: January 2010

Are we in a “W”? Or maybe a “U” or a “V”? The holiday shopping season was a bit better Things are not getting easier in DC Health care is still a HUGE expense Other companies have been planning for an upturn—for a while If you sit back and wait, you’ll be left behind Turnover of top performers will be devastating If you don’t know where you’re going, any road will NOT get you

there Permanent shifts in behavior aren’t just desirable; they are

necessary Things won’t return to the way they were

What Leaders Will Do Next

• Consider sustainability (HBR Article, September 2009)• Remember: practices for hard times are, at this moment,

practices for the best times. • Get very scared about top performers leaving• Start asking, “How can you help revenue?”• Walk about the office• Keep the door open• Learn about EQ

Carpe Diem

Becoming a coach to your clients is crucial: help them move beyond the tactical elements of today and you help yourself.

“I have this naïve belief that bosses are the cure, that bosses can make organizations work better, that bosses can retain the best employees - but only when bossing is made a priority.” Bob Rosner

Thank You

Questions and comments? Share them now—or later.

For a copy of the “Ready, Set, Recover” assessment, email us shrm@bullingtowne.com.

Also, resources from past webinars (including updates) for SHRM members at www.bullingtowne.com/shrm

Leila Bulling Towne

The Bulling Towne Group, LLChttp://www.thebullingtownegroup.comcoach@thebullingtownegroup.com+1.415.744.1991 San Francisco Office+1.800.789.8449Skype: leilabtowne