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Recruitment - are you robbing Paul to pay Peter?

June 30th, 2010

The Peter Principle states that “in a hierarchy every employee tends to rise to his level of incompetence.” It was formulated by Dr Lawrence Peter and Raymond Hull in their 1969 book by the same name.

 

I call them “the brand dead” or “brand spectators” who fur up the organisation’s arteries. Most MDs tolerate a Peter or two. But when conditions change, Peter and pals can very quickly poison your brand from within. When the big battalions are mobilised and change is demanded, the Peter’s, not the market conditions, are your worst enemy.

 

Consider the impact a Peter can have on your recruitment drive.

“Hire people who are better than you are, then leave them to get on with it . . . ; Look for people who will aim for the remarkable, who will not settle for the routine.” The late David Ogilvy, advertising executive

“If you pick the right people and give them the opportunity to spread their wings—and put compensation as a carrier behind it—you almost don’t have to manage them.” Jack Welch, former chairman and CEO of General Electric

 

Ogilvy and Welch point the way towards recruitment nirvana – making the most of the fact that it’s an employer’s market to recruit experienced; challenging; maverick; game changers who will stimulate the innovation you need.

 

But the Peters will desperately cling onto the status quo, recruit in their own image and reinforce the employer brand which failed to spot the issues which have since marched all the way around the corner and into your boardroom.

And if you’ve encouraged Peter-style behaviour within your intermediaries and recruitment agents, you’re in deep trouble as they will doubtless perpetuate a protectionist culture.

 

When you get a moment, just take a look at the various recruitment and blogging forums and consider how many really good people are out there at the moment. Listen to what they’re saying about the recruitment practices of the Peters. Ask yourself whether you know who your Peters are and whether Peter can be motivated to change?

But most of all question whether your recruitment strategy is paying Peter by robbing Paul and the impact this is having and will have on the performance of your brand.

 

 

 

 

The Lamentable Rise of Foie Gras Communication

June 10th, 2010

 

Never in everyday pursuit of corporate endeavour have so many been force fed by so few.

 

The proliferation of communication channels given the rise of social and technological media means your average employee claims to be nearing communication saturation point. But are they? I would suggest that the appetite for effective communication has never been more keen, yet effective communication is still in very short supply.

 

Lest we forget, communication is essentially an outcome, not an input. As I had to make a point of reminding a group of senior civil servants while running Team Briefing workshops recently, “success isn’t measured by volume, pace or quantity. Good communication is a product of whether the message has been received, understood and has resulted in the necessary action”.

 

For a number of years now, when I’ve conducted communication audits for clients, employees across sectors have complained about being bombarded. Despite the rather trendy discussions about the difference between internal communication and employee engagement, message management and push communication appears to be increasing.The biggest culprit is the dreaded email.

 

The Evils of email Management

 

Having just carried out an audit of internal communication channels for another public sector client currently undergoing major change, I’ve been struck, once again, by a bizarre, and frequently seen contradiction.

 

In answer to the question “How would you prefer to be informed of changes”, a whopping 76% of respondents voted for face to face communication.  Of those 76%, some 68% wanted that communication to come from their immediate line managers.

 

The second preference was for some form of internal social media allowing them the opportunity to provide feedback and debate in an interactive, real time environment.

 

However, when we looked into the Communication Department’s communication method of choice, they prioritised:

 

  1. Lunch Meetings with the CEO and senior team
  2. email bulletins
  3. voicemail
  4. publications

 

In fact, as the change programme gathered pace and brought with it “right sizing” and major structure changes, the top two methods fast became the only “official” channels.  Sadly team briefings led by line managers, once a norm, had faded to sporadic bursts.

 

It’s perhaps understandable that a number of line managers and supervisors had taken a backward step when faced with extremely difficult message management.  But in this case, it was soon very clear that abdication on this scale reflected deep-seated leadership issues.  Their CEO, in Hero Leader guise, although well intended, was clearly undermining his leaders. They had also lost faith in their communication function which, disempowered, was simply stepping aside by pressing the forward and cc buttons. 

 

But what’s the problem with push communication?

 

There clearly isn’t a single answer to this question but a glance at this famous learning effectiveness pyramid illustrates the power of face to face interaction with warm-blooded peers. 

 

The simple fact is that top down, cascade bombardments, usually delivered by email these days, are synonymous with lecturing.  They allow the originator to tick an activity box but are largely ineffective and simply reinforce one-way messaging. Cascades create a wider push communication culture as the approach is seen to be sanctioned from the very top.

 

As employee engagement requires:

-         interaction

-         involvement

-         feedback

-         opportunities to check understanding

-         emotional connection

 

by cascading swarms of messages the organisation promises one thing yet delivers another. It’s disingenuous and creates deep seated resentment.

 

Most of us learn much more effectively in interpersonal environments, when we’re involved and can interact with others. This is one of the reasons why line managers and immediate supervisors are increasingly important communicators. When they have the opportunity and take the time to commit to Facetime rather than Facebook, employees are enlightened and reassured by the example being set as well as the opportunity for face-to-face discussion, debate and reflection.

 

We all appreciate the merits of electronic communication. But despite the simple temptation of “compose, click and send” and the sophisticated charms of new-wave social media tools and techniques there really is no replacement for good, old fashioned, face to face, eyeball- to- eyeball communication. This is especially true during testing times when people lose what appetite they may have had for Foie Gras and deeply resent the fact that there’s no comfort food on the menu.

 

Ian Buckingham (ian@by2w.co.uk) is the founder of the Bring Yourself 2 Work Engagement Fellowship www.by2w.co.uk.  He is the author of Brand Engagement – How Employees Make or Break Brands  http://www.palgrave.com/products/title.aspx?PID=281268. and Brand Champions (due Oct 2010)

 

 

Ten Step Recovery Plan for Financial Services Brands

June 7th, 2010

During the run up to the recent election, like many people, I watched the public debating forums and was shocked by the apparent paucity of basic knowledge amongst pundits and public alike about the key issues which recently sent world financial markets and economies into a tailspin.

Most blame the regulators and national governments. But the current recession has very little to do with regulation. It has predominantly been caused by the brand schizophrenia conveyed by much of the financial services sector.

That’s a fairly punchy statement, so let me deconstruct it.

Many of the more informed critics and commentators of the sector typified by Will Hutton who has been a leading writer on matters financial for over 30 years, and Richard Edelman (of Edelman Trust Barometer fame) point to a fundamental breakdown in trust between:

  • the institutions and customers
  • institutions and shareholders
  • the institutions and other institutions

but most importantly, in my view, the institutions and their employees.

Governments rather belatedly appear to have “rumbled” the core structural cause, namely the convenient blending of the high risk investment banking operations with the steady cash cow of retail operations. It’s going to be tough disentangling them. But even as the structural wrecking crews move in, the critics are missing a more insidious issue. Deep seated culture management issues are at the core of the financial services brand management problem.

The media, in the main, has targeted the once heroic and now infamous senior leaders. But if we allow ourselves to obsess about hunting tabloid scapegoat caricatures of “Fred the shred” and his peer group we’re in grave danger of very much missing the point. The shortcomings of the directors/lapsed hero leaders themselves and problems the City faces are merely the symptoms of a much more invidious infection – the notion of the so-called performance culture tied into quarterly stock market reporting .

Not so long ago finance was a relationship business. Customers expected to retain a relationship with their manager for many years. Staff expected to remain loyal to one brand for most if not all of their careers and relied on fostering internal relationships and networks. Even in the corporate sphere, commerce conducted business to business was largely relationship based. Even investors including pension fund managers had a stable relationship with banking stocks, the steady and guaranteed incremental performers.

These relationship patterns all changed after Big Bang.

But as the financial institutions evolved rapidly in many respects to reflect the increasing demands of investors; the march of process automation; cost saving outsourcing and off-shoring and what I believe to be the mis-interpretation of the performance culture concept caused cultural schizophrenia.

The core problem is that the brands failed to evolve to reflect their operational reality. They still promised values like listening; integrity and stability to staff and customers yet were acting very differently both in the markets and arguably more importantly within.

Employees who were accustomed to five year strategies and three year plans became tied into the life cycle of executives with 18 month bouts of tenure. They were encouraged to take risks pursuing incremetal rises in targets despite market conditions heading in the opposite direction and we’re now witnessing some of the consequences as the OFT and FSA belatedly show their teeth.

Notions of customer service were subverted in part by apparent exploitation of customer inertia. HR had nearly all of its developmental edge undermined by process re-design. Six monthly performance contracts replaced annual reviews and increasingly locum and short term contracts began to phase out loyalty bonuses and expensive benefits packages.

None of the factors like these would be sufficient on its own to unilaterally bring about a catastrophe of such scale. But together these elements have slowly poisoned the well of goodwill, often through internal communication that is essentially disingenuous at source. Increasingly the words and figures failed to add up for staff and customers alike summed up in increasing spin like the ABBEY re-brand which, let’s face it, was never going to turn banking on its head.

Now, even the hitherto untouchable Masters of the Universe like Goldman Sachs, are witnessing unprecedented levels of market criticism and scandal. When the premier brands are tarnished, the financial services sector really is running on empty.

So what’s to be done?

This is a case where the “hair of the dog that bit you” isn’t going to put things right. The FS companies have to change they way they manage their brands. These steps may help:

  1. Leadership teams should take a back to basics approach to stakeholder engagement, look beyond shareholders and ensure that the story of the evolution of their vision; mission and strategy and brand development approach are all in harmony. The power of giving customers and employees a real voice, listening hard and then acting should not be underestimated.  
  2. The link between culture and brand needs to be recognised and so-called EVP/employer and commercial brand brought sharply back into single focus
  3. A brand valuation should be prioritised and current and recquisite culture analysis undertaken to start to develop a  future organisation culture that is fit for purpose 
  4. Brand coalitions need to be created consisting of at least Marketing/HR and the CEO’s office to ensure that the brand promised is the brand employees are capable and willing to deliver 
  5. Internal communication needs to be professionalized and encouraged to shift from push communication, technical gimmicks and director led Town Halls to encourage more intimate, local, face to face, engagement, up down and across the organisation 
  6. Measurement: The annual employee survey should be discontinued and replaced with regular pulse takes and a suite of measurement tied into a balanced scorecard for which all leaders are accountable 
  7. Performance management has to refocus on accountability over the medium term rather than encouraging short term “win at all costs”  
  8. Training and development and organisation development strategies must embrace the values and behaviours stemming from the brand rather than re-inventing them 
  9. Line managers and first line supervisors are undoubtedly the modern pivots around which the organisations revolve. They should be recognised and rewarded as such and development support provided accordingly 
  10. The FS organisations need to take a long and hard look at the consultancy and professional services supertankers who have been advising them about how to put right problems which they arguably played a large part in creating. Are they flexible, fleet of foot and even impartial enough to help facilitate the engagement levels to bring about the necessary change?

 It’s not entirely doom and gloom out there for the sector. Performance figures seem to suggest that, although much damage has been done, the worst is over – for now. There are some leading lights including brands like First Direct, which was remarkably ahead of its time and innovators like Virgin who are influencing the sector from within.

The hitherto unfashionable mutuals are leading the way with their values based management approaches and word on the street is that even some of the investment banks are attempting to simplify and synchronise their organisation development; brand development and communication functions.

But when you consider the adverse impact that the global financial services brand meltdown has had on world economies, it’s a worrying time. As profits bounce back, will the fresh finances fuel much needed investment in the brand infrastructure and investment in managing the organisation culture that underpins brand?  Or will the budgets be spent on advertising to entice customers and investors back through the doors, lured by false rhetoric about a performance culture that is ultimately unsustainable?

So which brands will bounce back the fastest? Will we ever see a financial services brand topping the FTSE; brand charts and employment leagues by keeping the promises  made to its own people and the market?

Whatever happens next, it’s undeniably time for some joined up and fresh thinking within this critical sector.

Is Trust Dead?

June 4th, 2010

I was at a dinner party thrown by a former HR director friend recently and as I arrived at his house was struck by the number of high performance cars on the driveway and then, once I was introduced to his guests, was equally surprised by the fact that most were from the HR community.

Now, I’m not deriding folk for their success. It just took a little getting used to, especially as most of the conversation revolved around the financial benefits associated with acquiring a reputation as a downsizing expert and “being the last one to turn out the lights” before moving on.

It’s clearly wrong to claim that re-sizing has become the raison d’etre of the modern HRD. But this perception wasn’t helped by the dinner party conversation about what it really means to trust and whether trust has any place at work?  

One premise was that the last two years has seen employees’ trust in their organisations fall dramatically and that organisations need to work at ways of re-engaging and re-establishing the psychological contract. The opposite - and prevailing view - was that there are certain things in business that have to remain secret, that being open and honest is often impossible and people should be mature enough to accept that.

The concensus was that trust has no real place at work any longer and that a healthy scepticism should prevail recognising that the employer/employee relationship is “a marriage of convenience”. Neutrality was seen as preferable but is it possible or even desirable to remain neutral in a vocational environment you devote the largest portion of your life to?

I appreciate that many of the HRDs I seem to meet these days are vassels for the process re-engineers and have become de-sensitised to emotions in a similar way to soldiers on the frontline. But is this a reflection of behaviour born of survival or how they really believe things should be?

Trust is a fairly fundamental emotion. If there’s no trust there’s no psychological contract between employees and the employer. Without that there’s no “extra mile” and no relationship development.

I guess you can have a relationship or marriage of convenience based on neutrality, without passion; empathy and drive. But then you can also join Victorian role playing societies to escape from reality.