The 80/20 Rule of Leadership

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There’s an old leadership theory of human behavior called the 80/20 rule, which states that 20% of the people in an organization produce about 80% of the results, while 80% produce about 20% of the results. If you manage sales people or volunteers or a team of employees where you expect results, then you are likely to find that these numbers – give or take 10% or so – to be accurate. In terms of the culture, about 20% if the employees create about 80% of the culture, and visa versa. This can happen at any level. I have seen front line service people, passionate about their work and about service, have a greater impact on the culture than a senior executive. The pull will always be toward the group or the individuals who are underachieving by your standards, or to attempt to change the ratio to prove to yourself that you can be a leader who can get the same results from all of your employees or volunteers.

What I’ve learned is not to mess too much with the ratio. It seems to be human nature. Even if you go and fire the 80% I’d bet that you will find that 80% of the remaining group will drift into being the under-performing group.

Rather than change the ratio, I’ve learned an important leadership principle to respond to the 80/20 rule: be conscious of spending 80% of your time with the 20% of the result producers, and 20% of your time with the under performers. Remember: the pull will always be toward to people who complain the most and who produce the least, so be careful not to get drained by the energy of this group. Your “top 20%,” on the other hand, are what I call your “critical employees,” the people who ultimately keep the organization running, the leaders (who may or may not have a title) at every level. Keep your primary focus on these people. Make sure they are recognized, supported, and duly rewarded, because they are critical to your future.

I was recently facilitating a leadership development program with a group of managers who run laboratories in our health care system. This was a group of scientists developing the people skills for building a strong organizational culture. As I drew white dots on a slide of an organizational chart representing these “critical employees,” a manager jumped up and said, “I know what those white dots are.They are the white blood cells, the cells of the immune system that defend the body against both infectious disease and foreign materials.” These cells, called Leukocytes, are found throughout the body, making up about 1% of the blood of a healthy person. We all concluded that, considering that the body only needs about 1% of its blood to fight off toxic substances in the body, leaders are fortunate that they have 20% of their employees to develop a healthy organizational immune system. If you want a healthy, vibrant workplace, take good care of your organizational immune system.

On another note, while thinking about white blood cells and immune systems, I came across the best article I have read yet on the fear of the H1N1 flu that is sweeping across our country. This article, was written by a good friend of mine, Brooks Tower, who is not a medical person, but he is a thoughtful person. While we all have to be concerned and take whatever precautions we can to do our part to prevent the spread of any kind of virus, reading this article may give you a new perspective on H1N1.

Finding Balance And Health In Your Culture: Wisdom From A Yogi

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Did you ever have a bad day where everything seemed to go wrong? Although our tendency is to blame something in our external environment, it is the state of mind that you bring to your work or your life that determines whether the day is “bad” or “good”. You can train your nervous system to be depressed or angry or pessimistic, just as you can train yourself to be hopeful, loving, and optimistic. That is, you can teach yourself to let life get you down or choose to use whatever life sends you to find a lesson that will move you forward.

The same is true with cultures. Have you ever been in an environment that is not as productive as it could be or living up to it’s potential? How often have you been in an organization where you found that there is far more talent, brainpower, wisdom, and resourcefulness than the job required or even allowed? Just as people can be ruled by emotions, cultures can take on an emotive “state,” because cultures are made up of people.

Culture is essentially an interplay of energy and yoga, the practice of moving into stillness and focusing your energy, can be instructive in understanding organizational culture. According to yoga there are three basic qualities or energies: rajas, tamas and sattva. Rajas is the energy of action, change and movement, while Tamasic energy is associated with a state of inactivity and inertia, heaviness and darkness. Sattva is light and uplifting and indicates a state of harmony and balance.

In order to find balance, we must start on a journey towards sattva. We do need rajas and tamas energy, but in their proper proportion and at their proper time. If we didn’t have rajas we would not have energy to move towards sattva.  If we have only tamas, we become “lazy” and never get anything done. However, we all want more balance and harmony in our lives, both corporately and personally, so we must ingest more sattva both mentally and physically.

In Yoga, as in life, the greatest obstacle to our growth towards a state of sattva is the continuous fluctuations of our minds.  The mind is always busy and it can flow in two directions – upwards towards sattva or downwards towards negativity. Patanjali, a great yoga sage from 200 BC gives a simple method for turning to sattva. He says when negative thoughts are encountered we must immediately replace them with the opposite positive.  Simple, but not easy! This is a practice of the mind. It is hard work and takes practice!

This has many implications for corporate culture.  We must not entertain negative thinking.  Gossip, slanderous talk and negativity of any kind work to undermine a positive mental framework, and makes most of us ineffective and generally miserable. A first step, and something infinitely practical is to breathe. A simple practice of mindful, deep breathing can be performed in any office, anytime of the day, in any meeting, at any moment, and thankfully it can be instituted without scrutiny or negative consequence.

We all make a difference to the environments we live and work in. Having ways to connect with sattvic energy can be a way to positively impact those around you. A healthy, balanced culture starts with you.

Note: Thanks to Jeff Lichty, my Yoga teacher (www.ashtanga-yoga-victoria.com) for writing this article with me!

Transforming An Organization Into A Community: A Leadership Vision

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Leadership is about transforming your culture into a community. A community is a place where work is meaningful, not just menial, where you support people to be genuine contributors, not just “task doers,” where people are honestly valued, rather than used up, where you invite intentional conversations, not just superficial exchanges.

Communities are places where “units” are transformed into “neighborhoods”, where there is a sense of belonging, shared vision, pride, ownership, and a commitment to service; where “command performance” is replaced with a bone deep commitment to courageously seek participation.

Community is where paint-by-number management programs are replaced with a profound, yet simple respect for realness, honesty, and respect for the dignity of everyone, which in turn results in an authentic expression of the human spirit.

Fostering this kind of culture is akin to being a gardener. While results are paramount, culture can’t be legislated, controlled, motivated, or coerced. No plants ever grow better because you demand that they do so or because you threaten them. Plants grow only when they have the right conditions and are given proper care. Creating the space and providing the proper nourishment for plants – and people as well – is a matter of continual consideration and vigilance.

Three questions emerge from this vision for your consideration and reflection.

  1. Who is responsible for creating this kind of culture in your workplace?
  2. Who are the leaders in your organization?
  3. How do you go about transforming the culture of an organization?

 

The 80% Principle Of Leadership: Managing By Making Room

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An astute executive passed along some good wisdom not long ago. “The problem with leaders today is that they expect 100% from their good people, and not enough from their poor performers.” This statement initially puzzled me, but after he explained what he meant, I was inspired.

Let me illustrate the principle with an example. This weekend I asked my sales manager to work three hours overtime to participate in a webinar on social media and give me an assessment of what the instructor was offering. I rarely ask Laurie to work overtime, but she jumped at the opportunity to go the extra mile. When considering the “80% Principle”, there are three potential scenarios when you ask an employee to go the extra mile. If you are stretching people to the max, expecting 100% from them all the time, pushing them to do more with less, thus demanding that they are on 100% of the time, and then ask them to take on an additional project that requires overtime, you have no room for the additional request. In this case they will probably do it for you, but likely with either resentment or stress or both. And if you have been expecting your good people to give 120% and then ask them to work overtime on a project, they likely start looking elsewhere for a job (if they haven’t already).

The alternative is to give them some room on a day-to-day basis. Don’t stretch them to the maximum. Only expect 80% so there is some space, some room for creativity, innovation, engagement, fulfillment, or connection. You will also likely find that when you only expect 80% from your best people, you’re going to get 100% anyway. But that additional 20+% comes from within them, not from you. This kind of relationship breeds commitment and loyalty from those you depend on. Laurie is a part of this third scenario. I expect 80%, she gives 100%, and is always willing to go to 120% when the need arises. The second part of this formula has to do with underachievers, those who are succeeding, but at less than 80% of their capacity. It is important to get tougher with these people. Don’t ignore them. You get tougher through clearer expectations. Fit people; don’t fix people. Get people into the right roles and then get them to 80%, not 100. But if, through coaching and support, this doesn’t work, then help them move on in their career.

Three actions:

  1. Track your own energy level. Take a careful inventory of yourself: How stretched do you feel? How much room is in your work life (or personal life) to slow down, be creative, think, connect – with your staff, your colleagues, your customers? Have the courage to respectfully negotiate for some space in your work life to express what matters most. If you are stretched to the max, you will convey tension in all your relationships.
  2. Have a conversation with your team members about how stretched they feel. Ask your direct reports or those you serve if there is any room in their work life. Negotiate respectfully for some space.
  3. Take an inventory of your direct reports who are operating at less than 80% capacity, and have the courage to face this. Be sure you have done everything you can to offer support to those within your stewardship. Have the conversation. Bring clear accountability agreements into your relationships. They must have high standards, clear expectations and ways to measure results, support requirements, and consequences. People need two things from their boss. They need to know you care, and they need performance measures. Be tough on people, be clear with people, but do it with love. No one ever takes pride in doing something easy.

 

Authenticity and Art: Making the Connection

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My father was a “closet artist.” He had a beautiful, artistic side that was repressed because our culture led him to believe that to be successful you had to have an office job, so he was an administrator. Suppressing his artistic, authentic self nearly cost him his life, sending him into an early retirement from the office job and into a decade of depression. It was not until he returned to university at the age of 65 to study art that his spirit awakened.

I am working on a project with the world-renowned artist, Murray Phillips, to teach the leaders in an organization how to use art to be more connected with their authentic selves and those they serve. We had a brilliant conversation this week about the role of art in one’s life, about the value of connecting with our artistic self, about honoring the artist within us, and about how all this makes us better people and better leaders.

“You don’t say that someone is ‘very’ physical,” said Murray. “We simply are physical. It is not a matter of degree. It’s part of the human experience. So why should we say that a person is ‘very’ spiritual, or ‘very’ artistic? These too, are part of the human experience.” Everybody is artistic because everybody has something to express. Try not expressing anything for twenty-four hours and see what happens. You may find yourself losing energy, becoming despondent, or you may even feel like you will burst. You will then need to write a letter, draw a picture, garden, or embark on a project.

“Art,” according to Murray, “is a language, a language that we can learn. It is a mistake to think we can communicate everything verbally. In the language of art, words don’t exist.” This is why art can be used to express a range of emotions – grief, joy, inner peace – that words cannot reach. As we learn this language of art we connect with our authentic self and the world around us in new, expanded ways, thus deepening our capacity to influence others with greater presence, and most importantly, enjoy this experience we call human more fully.

One of the indicators of a hurried, troubled, stressed world is that we disconnect from art and then stop noticing the beauty, wonder, and awe of life. This  then limits our full capacity  as human beings. Being disconnected with our authentic self, with our humanness, separates us from each other and from the environment. What we separate from we neglect or destroy.

What are you doing to learn, deepen, and express the language of art in your life? What are you doing to stop and notice beauty around you? When was the last time you were in awe?

For a taste of Murray Phillips’ beautiful work (along with John Gilliat’s brilliant guitar playing), take five minutes to stop and watch: http://johngilliat.com

Enlarging The Lives Of Others: The Work Of The Best Leaders

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As we “spring ahead” and begin to think about the coming season of growth and renewal, I have been contemplating how we can encourage and support others by “enlarging” them. In the following article I offer some suggestions I hope will “enlarge” your outlook and actions.

“Believe in your heart of hearts that your fundamental purpose, your reason for being, is to enlarge the lives of others. As you enlarge the lives of others, your life will be enlarged. And all the other things we have been taught to concentrate on will take care of themselves.” – Pete Thigpen, Former President, Levi Strauss

Last week I had the privilege of touring the plant of a client who hired me to help improve the culture of his organization. As we wandered around, the CEO introduced me to everyone we came across – in the halls, the offices, the labs, and on the shop floors. But he didn’t just know everyone’s name and title. He made a point, whenever possible and appropriate, of making a brief – and positive – comment about everyone. When he introduced me to the janitor, the caretaker’s eyes widened and brightened as the CEO told me how he puts pride into everything he does and that he’ll be greatly missed when he retires next month after more than a quarter century of service. Every employee smiled as they were introduced and the CEO said something positive about the unique contribution they individually made to the well-being of this company.

This CEO understands a fundamental responsibility of leaders: to enlarge the lives of every one of their employees.

As I think of my own staff, I realize that I often take them for granted. I give them work to do, put pressure on them to deliver on their accountabilities, and attempt to give them support to do their work. But do I actually make a conscious effort toenlarge their lives? We all get into our routines, our habits, our mundane patterns. In a world of incessant demands, it is easy to lose touch with the people around us and the real work of leadership.

Here are seven ways to enlarge the lives of others:

  1. Care. Enlarging the lives of people isn’t a technique. You can’t fake it. People will see right through you. We all get busy and forget to notice people. Your staff will forgive you for forgetting. What they won’t forgive you for is not caring. Enlarging the lives of people involves caring about people, not manipulating them. People are uplifted and better by being around people who care about them.
  2. Serve. Serving means having a commitment to people’s growth as much as finding the resources to help them get their job done. Serving means making the success of others more important than your own. Serving means making others look good and being willing to not take the credit. Great leaders know that you can’t necessarily make people happy, but you can help them take pride in themselves and their work – by seeing their worth, beyond what they may see in themselves.
  3. Make Time. Enlarging the lives of others takes time. Take time to learn names. But more than that, take time to learn about what matters to people you serve, the names of their family members, and the kind of things they do when they are away from work. Leadership is more than just wandering around. It’s tuning in. It’s paying attention. It’s being in touch. Carry a notepad and make a note of what’s important to the people on your team.
  4. Challenge. If you are going to enlarge the lives of others you have to push them beyond their comfort zone. You have to set a standard that stretches them. And you have to encourage them. “You can do this;” “I trust you;” and “I believe in you;” are enlarging statements. Then model the way. When was the last time you encouraged someone to go beyond what’s easy? When is the last time you did something for the first time?
  5. Accountability. Collin Powell, the former US Secretary of State, once said that“everyone on a team knows who is and who is not performing and they are looking to you as the leader to see what you are going to do about it.” You don’t enlarge the lives of people when you let them off the hook or hold back from having the difficult conversations. Set clear standards and hold people accountable. It enlarges the lives of everyone.
  6. Safety. Enlargement is about creating an environment where people can grow. Bruce Lipton, a cellular biologist, says that a cell has only two options in life: to grow or to protect. If the cell perceives its environment to be toxic it will go into protection mode. When it perceives its environment to be nourishing, it will enlarge. To enlarge the lives of others, you must create an environment that is physically and psychologically safe – safe to work without harm, safe to make mistakes without fear, safe to be honest without retribution, safe to be yourself without judgment.
  7. Appreciation. Appreciation is about acknowledging (both privately and publicly) effective, productive action. Appreciation is recognizing people when they take special care in a delivery, when they go out of their way to fix a glitch in a product, when they make a customer feel extra special, when they send the order out early, when they go the extra mile. Appreciation isn’t empty praise. Appreciation is genuine recognition when someone makes a difference. It’s about catching people doing things right rather than succumbing to the seemingly natural tendency to criticize. Say thank you. What you appreciate, appreciates.

When you are mindful and intentional about making these actions a habit, the lives of people around you will naturally enlarge. As you help people grow in this way, it will inevitably come back to you in the form of commitment, loyalty, and results. As you enlarge the lives of others, your life and your organization will be enlarged. And all the other things we have been taught to concentrate on really do seem to take care of themselves.

What are you doing to enlarge the lives of others? Your staff? Your co-workers?  Your customers? Your family and friends? I’d love to hear your success stories.