Search This Blog

Saturday, December 10, 2011

Motivation and Compensation: It isn't all about money

     Everyone must put food on the table and find a way to squirrel out enough resources to keep Maslow happy with his famous five “hierarchy of needs” of physical (food), safety (get out of my cubicle), belongingness (include me in the information flow), esteem (I know what is going on around here) and lastly, self-actualization (I can lead the way.) We have discussed here previously Maslow and his description of these basic human requirements to get by, get along and get ahead, but what happens when you are just stuck trying to discern what is needed to motivate yourself or your team? Usually the answer is money. Show me the money, and I will show you the results. But, what happens when you don’t have the money for a pay raise or financial incentive, or worse, you have given that to your team, but they just can’t seem to get it done without your constantly micromanaging them?
     Enter the Law of Diminishing Returns, and the idea of a Break Even Point. The Law of Diminishing Returns tells us that there is a point where even with more effort or investment, results decline. The idea of a Break Even Point tells us that input (of money) equals output of effort up to a zero sum balance. That is to say, more money does not get you more effort past the psychological breakeven point. As I was asked in an interview once, “How much money do you need?” The hidden question is “How much money will make you lazy?” The point behind the question is “How do we motivate you when we can’t or won’t give you more money?” The correct answer is: It isn’t all about money.
     To that thought, here are some ideas to think about from an article I found in Inc. and offered up by entrepreneur Ilya Pozin. His company, Ciplex, made the Inc. 500/5000 list for 2011 of America’s fastest growing private businesses. Starting this company at age of 17, Ciplex is a digital marketing and creativity agency. Writing for Inc., Pozin’s article, 9 Things that motivate your employees more than Money, really caught my attention. When it comes to motivating yourself and your team, the answer may cost less than you think. Good stuff, so grab some coffee and think about this one for a minute. And there is no charge on this one either. 
According to Mr. Pozin:
     1. Be generous with praise. Everyone wants it and it’s one of the easiest things to give. Plus, praise from the Boss or leader goes a lot farther than you might think. Praise goes even further when you praise someone in front of others.
     2. Get rid of the managers. Love this one! Let people simply work as a team. There really are just some things that you cannot buy, and getting someone to come in early or stay late is an issue of motivation, not requirement. They may not do it for you, but they will do it for the group.
     3. Make your ideas theirs. It is all in the tone or turn of the phrase. “Do you think it’s a good idea if we do it this way?” is received much better than I need this done this way now. Remember, just because you say it harshly or loudly does not make it more accurate or necessary. (Unless of course the house is on fire.)
     4. Never criticize or correct. If you want adults, be adults. If you want children, treat people like children. Pozin suggests an indirect approach to get people to improve, learn from their mistakes, and fix them. Ask, “Was that the best way to approach the problem? Why not? Have any ideas on what you could have done differently?” Then you’re having a conversation and talking through solutions, not pointing a finger.
     5. Make everyone a leader. All you limelight huggers and glory hounds beware. You need to step away from the warmth of the spotlight and highlight your top performers’ strengths instead. Pozin suggests letting them know that because of their excellence, you want them to be the example for others.
     6. Take an employee to lunch once a week. Or just randomly do something nice for someone on your team. But, please don’t play favorites.
     7. Give recognition and small rewards. They don’t need to break the bank, but small tangible awards like dinner, trophies, spa services, and plaques are good places to start.
     8. Throw company parties. Remember when work use to be fun? Remind your staff that you’re all in it together.
     9. Share the rewards—and the pain. Be honest and transparent. Ask for opinions, and require a yes or no. You should not always agree for goodness sake. It is okay to have an original and intelligent thought that is different.

     If you never have any dissention, then you are not progressing as a team, and your entire effort is at peril if you lose the figurehead leader.

Thanks for taking a read this week, and I would look forward to your ideas as well.

Thursday, November 17, 2011

Talkin' Bout an Evolution

Forgive me John Lennon and the Beatles, but just a little play on the title wording. Brian Brim is the coauthor of Strengths Based Selling, and I found a few of his thoughts in the Gallup Management Journal this week that you may find helpful too. His ideas, and those of David Liebnau, Executive Coach with Gallup, offer some insight as we evaluate change opportunities and growth here in the North Jefferson area. I was encouraged and reminded that real change takes time and persistence. In their words, we should be more patient. More will be accomplished through slight shifts than massive immediate changes.
According to Brim and Liebnau, everyone has their special way of doing things that is comfortable, your own special groove. Stepping out of your way of doing things and into another can feel a bit like putting on someone else’s shoes. Not too comfortable and certainly not that efficient. The challenge it seems is to appreciate the difference between actions and practices. Now stay with me here.
According to the writers, actions are the behaviors that you do with little thought. The actions a leader usually takes are determined by the "groove" he or she has developed over time. But how can you grow as a leader if you're forever contained in this same groove? You can't, and that is where practices come in. Practices are interventions that enable you to establish new ways of thinking, feeling, and behaving. They are essential to expand and develop your identity. To grow as a leader, you must slowly and steadily expand the groove. Adopting new practices which are slight shifts from what you already do enables you to access a different level of possible actions and create new opportunities. It is evolution, not revolution.
You don’t get out of your rhythm of what works, you just expand it.
This type of change is called slight-shift practice. It may be fairly easy too. But that's the point: When leaders are asked to do something they have the confidence to do and they see immediate success, they gain confidence from the positive feedback. Confidence and success drive them to repeat it. That's how sustainable development and wider grooves are created, and that's how great results happen. It is like a slow lazy stream that with time and persistence can become the Grand Canyon.
What small changes can you make this week that will lead you to a sea change of possibility? How about pushing back from your desk and talking with your team more about their ideas for improvement? How about dealing with problems immediately, instead of putting them off? How about delegating more to allow someone else to grow in a skill? Can you accept the challenge to just get things done without regard to whom gets the credit?
Now think about this idea in the context of our communities and growth. Think about it in the context of economic and professional development for yourself and the company that you support. Each entity be a company or a community has its own opportunity for development, and each has its own groove for certain. But what would happen if the groove or rhythm started to widen, just a little?
Will our opportunities expand if we take a few actions to partner more, to trust more, and to be more transparent? Once these first easier steps are taken, then and only then will you be able to really talk about creative change, innovation, and thoughtful risk taking.

Thursday, November 10, 2011

Greece, Debt and the Road to Your House

So, 10 doctors walk into a bar….Okay not the beginning of the best joke ever, but I did have a dinner meeting with several of my customers this week and the conversation quickly turned to politics. I would like to continue our thinking from last week’s discussion of how to best engage government and explore just how deeply our Grassroots should run. From banking, to schools, to medicine, to the local restaurant around the corner, it is important to understand how we came to be in well…so much debt.
It begins here at home. I call it trickle up debt. It becomes a pervasive mindset that in order to have something you have to pay for it later. The conversation with my customers over dinner began with a bit of finger pointing. “Look at Greece! Geez what a mess!” said one. Like many countries, the Greek government, like the U. S., relies on borrowed money to balance its books. The recession has made this harder to achieve, because tax revenues are falling with people spending less, just as entitlement and welfare payments start to rise. To be fair, using public spending to even out the bumps in an economy is what most large developed economies do right now. This is all well and good as long as the investor money keeps coming in to the system. We aren’t even close to a balanced budget here in our own country. In fact, Economist warn that to get there we would pretty much need to eliminate all spending on defense and social security. Yikes. The lesson here is that debit is not all bad. Debt that you cannot repay is very, very bad.
Unfortunately, investors have lost confidence in the Greek government's ability to walk this tightrope – so they have been demanding ever higher rates of interest to compensate for the risk that they might not get their money back. The higher it’s borrowing costs, the harder it is for the Greek economy to grow itself out of trouble. Money really doesn’t grow on trees, and while countries like the US can print more, it just works to devalue the currency.
When Greek debt downgraded to "junk" status, the cost of borrowing money became too high. Fearing bankruptcy, Greece had to turn instead to the European Union and the International Monetary Fund for money to float there debt. But, just as money doesn’t grow on trees, it ain’t cheap either. Germany and other European Union members took issue with just giving more money without constraints to a struggling Greek economy as did Washington. This time there had to be some strings attached and a tough series of public sector cuts known as austerity measures were designed to reassure international investors that the government can become credit worthy again.
Dial back a few years to the mid 2000’s when Greece was strong and solvent. During this time and prior, the Greek government took advantage of this by running in a deficit. With an economy dependent on shipping and tourism, it headed south quickly when the economy worldwide started to cool. Austerity measures have been the source of massive protests as the Greek government seeks to shake the couch cushions of its economy for loose change. Public sector pay cuts, pension reductions, new taxes on corporate profits, luxury and sin taxes, and value added tax (which is for an entirely different article) are the tools of a Government seeking to sustain itself and it has the people crying Uncle.
But, let’s get back to my doctors and our dinner conversation. Greece is a long way away, so what does that mean here in little old Jefferson County? Well, the story for Greece sounds pretty similar to Jefferson County if you get right down to it. Weak leadership, poor accountability, and simply spending and promising to spend money that you don’t have can be found across the world or even around the corner.
And what about some of the towns right here in North Jefferson County? Time will tell how the balance sheet fares out, but spending just because you have it, especially when it is on salaries and not infrastructure or improvements is just not a good idea. A recent Birmingham News article reviewed the balance sheets of two of our big towns here in North Jefferson. Both passed budget increases for 2012 with bigger coffer requirements needed to support employee raises and debt obligations. And don’t forget the add-on of “just a penny more” to your tax burden at the store.
Suddenly Greece doesn’t sound so far away.

Friday, October 21, 2011

Occupy North Jefferson County

Occupy North Jefferson. Is it that different than Occupy Wall Street? We think that our town is different in the notion of challenges and problems, but from Wall Street to Main Street, we are really quite similar. Job creation, economic concerns, debt, local government, and a desire for accountable leadership all hit a resonant cord for both communities.


Just as “All Politics is local” so I have found that “All Job creation is local.” You can’t open the paper or turn on the news and not find a discussion of the topic, so perhaps now is the time to put down the remote, fold up the paper, and stop with the finger pointing. How about a good dose of “roll up your own sleeves and get busy” instead?

In Jim Clifton’s article for the Gallup Management Journal this week, he writes that “fixing America’s problems with job creation can only be accomplished one city at a time.” Well, it that is the case, and then let us begin with our own town or towns.

Here in the North Jefferson area, we already have strong leadership in place. We may not see eye to eye, and we certainly may disagree on many topics and decisions, but that does not make our leadership weak. Clifton continues to state that “A natural order is already present, in governments and local business and philanthropic entities. Every city has strong, caring leaders working on numerous committees and initiatives to fuel their local economic growth -- let's call it the city GDP -- and to create good jobs. The feat these leaders have to pull off is doubling their entrepreneurial energy by aligning all their local forces.” That means we must stop looking at our neighboring cities as competitors, and start viewing them as allies.

In his words, “They succeed by declaring all-out war.” A war on job loss, a war on low workplace energy, on healthcare costs, on low graduation rates, on brain drain, and on community disengagement.” Those things destroy cities, destroy job growth, and destroy city GDP. Every city requires its own master plan that is as serious as planning for war.

I would add that this master plan, or community development plan, will only be affective if the leaders communicate the plan to the people of the city. It is equally important as well to embrace the success of your neighbors and help them to participate in the growth war. For certain, the last thing that you need is for an excelling city to be surrounded by declining cities.

Clifton goes on to point out that we should remember what Washington, and Government is about really. “In defense of Washington, it wasn't originally set up to be the nation's economic engine. The U.S. government has seeded whole industries through land grant universities, defense contractors, and scientific and medical researchers to name just a few. But the government has never, will never, nor should it be expected to ignite badly needed sustainable economic booms. These economic booms originate in the souls of individuals,” he writes.

How do you know if your city is on the right track for improving debt reduction and increasing jobs creation? If your city leadership is looking for more legislation, more stimulus and more (tax) money to solve your cities problem, and then you probably need to look for new city leadership first. Stop what you are doing if it does not create real, meaningful jobs. Clifton writes, “Everybody in charge of anything needs to focus on job creation. If they divert their attention, vote them out. Be ruthless. If the bike path doesn't have anything to do with job creation, there is no bike path. If rezoning improves the jobs outlook, rezone. This is what leadership should work on everyday, and it “should get city leaders up in the morning, what they should work on all day, and what should keep them from getting to sleep at night.”

As you move in to your week, think about how you work with your company, philanthropy or local government and if it is affectively working in tandem with surrounding communities. Every city needs a team of leaders that work well of course, but not in isolation. Your town I am certain is just like mine with multiple boards, committees and leadership appointments. Take a close look. Are they a reshuffle of the same stagnant minds without change for too many years? Or are you bringing in new thought leaders that learn from the old, but embrace the change of the new? Are you marching to the beat of the same old drum, or are you encouraged to at least on occasion ask for someone to change the station and say no to the same old song?

Monday, October 10, 2011

Management vs. Leadership

Management vs. Leadership. Is there a difference? Managers focus on processes, leaders however take the special role of, well, leading. Leading people. Having a vision. Making the hard calls, and sticking through tough times.


In that vein, I came upon information this week on the Kaufmann Foundation. The Ewing Marion Kauffman Foundation is often referred to as one of the largest foundations in the United States—or as the world's largest foundation devoted to entrepreneurship. What strikes me as particularly relevant to our area is the idea of the Tug Boat leverage philosophy that comparatively small organizations like the Kaufmann have accomplished. According to the mission of this organization, which keeps the noted company of the Bill and Melinda Gates Foundation, is the idea of the small leading the many. Some of us work at massive organizations striding forth to remake the world, but many pull from a talented few people engaging with many, many others to make a difference together. You get the image of this giant ocean liner being pushed along by the seemingly tiny tugboat.

So where is your fit for this leadership mind set? I did a bit of searching to take a deeper look at this idea of Tug Boat Leadership and I came upon the writings of Geoffery Webb and his site called Leading on Purpose.

Webb has a few suggestions for us to consider on leading intentionally.

1. Small moves have big impacts. Unless absolutely needed, tugs don’t over-steer their vessels with dramatic movements. A little here and a little there is all it takes. Likewise leaders should be looking ahead, anticipating changes, and responding with strong, small moves to set their organizations on their best course. We see this in organizations with low attrition rates where they take the loss of an employee personally. Companies stay competitive when they take the time to retrain employees and keep that “Corporate Memory” in house and not lose it to another organization. Retraining and reinvesting in employees can go a long way to rebuilding the loss of loyalty that is so pandemic today.

2. There’s no autopilot. Many leaders seek to find a comfortable status quo, a place of rest where they can sit back and relax. There is no autopilot for a tugboat—or for a leader. Guiding an organization through ever-changing environments takes constant vigilance. The moment you think you’ve “figured it out” is the when you—and your organization—are most at risk. Your company or team needs constant tending, and keeping a strong focus on your mission is critical. Plunge head first into change and make it happen. Or as Winston Churchill said, “To improve is to change; to be perfect is to change often.”

3. It’s not about you. Tugs know that they exist to serve a purpose. Their job is to safely move vessels weighing thousands of tons through challenging waterways. Ultimately, as a leader, it’s not about you either. It’s about moving your organization, your employees, your customers, your clients safely through the hazards around them. Now that is a “Gee Whiz” concept for many leaders who forget that the job is to help the team. The job is to grow the city, build the company, and never once take the credit. Think it is all about you do ya’? Well how affective will you be when you are the only one standing on the field in the uniform?

Take some time to think about how you are doing as a leader, or a manager, as these two roles are really hard to separate. And remember, take care of your customers or someone else will.

Wednesday, September 28, 2011

AdVISE: Northern Beltline/ I422 and Growth for the North J...

AdVISE: Northern Beltline/ I422 and Growth for the North J...: The Alabama Department of Transportation (ALDOT) has scheduled two public hearings to allow the public to be heard on the issue of the North...

Northern Beltline/ I422 and Growth for the North Jefferson Area

The Alabama Department of Transportation (ALDOT) has scheduled two public hearings to allow the public to be heard on the issue of the Northern Beltline.
This important public meeting is for just that, The Public. This is your time to speak publically on your opinions and to become fully informed on the information to date surrounding this important regional project. In advance of the meeting please seek out information by visiting the dedicated website of www.finish422.org for more insight.

As we have discussed here before, the idea of a beltline dates back to the 1960s. Through the unified voice of ALDOT and the Coalition for Regional Transportation progress on the Northern Beltline project is being made.

Paul Vercher is the Chairman of the Board for the Directors of the Coalition for Regional Transportation. Board members include Applied Research Center of Alabama, Birmingham Business Alliance, Brasfield & Gorrie,

Drummond Company, Energen/Alagasco, Greater Birmingham Association of Home Builders, Saiia Construction, Thompson Tractor, US Steel, and Vulcan Materials. Vercher works for US Steel and joined the company to fill the newly created role of manager-state governmental affairs and will manage the company's governmental affairs activities at the state and local levels in Alabama, Arkansas, Oklahoma and Texas.

There are dozens of official resolutions of support from our area to include Gardendale, Fultondale, Graysville, Adamsville, Brookside, Kimberly, Warrior, Tarrant, Morris and more. “These tangible signs of support are evidence of the broad and diverse coalition the Northern Beltline has garnered throughout our region,” said Vercher.

Like the economic and jobs growth spurred by I-459 in the southern and eastern parts of the Birmingham metropolitan area, I-422 (Northern Beltline) will do the same for the western and northern areas of Birmingham and Jefferson County according to their website.

And don’t forget I22, which we can all clearly see coming right along. This multi-level stack interchange is planned for the location between the current U.S. 31 Fultondale trumpet interchange at Exit 266 and 41st Street interchange at Exit 264. Upon completion of I22, Fultondale will be the only city other than Birmingham, Montgomery and Mobile to be served by more than one two-digit interstate highway (I-65 and I-22).

 Ask your questions. Get your facts. Understand what this means not just to our area, but to you.