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Creating Abundant Organizations: Purpose, Passion, and Profits (Part 2 of 2)

This is the second part of a mini-series on the Why of Work. Read Part 1 here. So, how do leaders become meaning makers who shape abundant organizations?

Too often, we encounter leaders who formulate great strategies, structures, and processes but overlook the heart and soul that make abundant organizations which are meaningful places to work. The questions both leaders and followers wrestle with connect around the search for the why of work—the search for meaning, purpose. Finding that why infuses organizations with a sense of abundance—having enough and to spare of what matters most.

In life, meaning is tied less to belongings and more to emotional bonds, a sense of purpose, and using one’s skills to serve the needs of others. In organizations, meaning and abundance are more about what we do with what we have than about what we have to begin with or what we accumulate. They are more about finding the resources to deal with our challenges than about having unlimited resources to make work easy.

Work will always be work—sometimes monotonous or routine, sometimes stressful to the max—but we believe work can still contribute more than just money to our lives. Leaders can develop the resources to make employees work harder and to make work work for employees. There is a strong business case for helping people find meaning at work. As employees find meaning, they contribute to the broadest purposes for which organizations exist: creating value for customers, investors, and communities.

Leaders are meaning makers: they set direction that others aspire to; they help others participate in doing good work and good works; they communicate ideas and invest in practices that shape how people think, act, and feel. As organizations become an increasing part of the individual’s sense of identify and purpose, leaders play an increasing role in helping people shape the meaning of their lives.

Too many leaders focus on where they are going and how to get there, without paying attention to how it feels to those on the journey with them. When leaders make work meaningful, they help create abundant organizations where employees operate on a value proposition based on meaning as well as money. Meaning becomes a multiplier of employee competence and commitment, a lead indicator of customer share, a source of investor confidence, and a factor in ensuring social responsibility in the community. Even hard-nose leaders become interested in meaning when they see its potential contribution to bottom-line realities. When leaders grasp the why of meaning, they then seek the how.

We hope to redefine leaders’ roles to include meaning making. We hope to promote for all of us who go to work day in and day out a sense of greater abundance because we have a clearer sense of the meaning of our labor. We hope to focus not only on what needs to be done but also on how it feels to do it. We hope to turn deficit-laden thinking into abundance metaphors and actions.

Meaning at work. Leaders need to put meaning to work to help their organizations succeed in the marketplace. The search for meaning adds value in two senses. First, people are meaning-making machines who find inherent value in making sense out of life. The meaning we make of an experience determines its impact on us and can turn disaster into opportunity, loss into hope, failure into learning, boredom into reflection. The meaning we create can make life feel rich and full, regardless of our circumstances or give us the courage to change our circumstances. When we find meaning in our work, we find meaning in life.

Abundant Organizations (AOs). We refer to a company that is meaningful as an abundant organization—a work setting in which individuals coordinate their aspirations and actions to create meaning for themselves, value for stakeholders, and hope for humanity. AOs have enough and to spare of the things that matter most: creativity, hope, resilience, determination, resourcefulness, and leadership. Yes, they are profitable, but rather than focus only on competition and scarcity, they focus on opportunity and synergy. They concentrate on bringing order, integrity, and purpose out of chaos and disintegration. Rather than restrict themselves to narrow, self-serving agendas, they integrate a diversity of human needs, experiences, and timetables—creating  meaning for the employees who comprise them and the customers who keep them in business.

Market value of why. You intuitively know that you and your work team would be more productive, satisfied, and creative if work engaged not only your head and your hands but your heart and soul. When employees find meaning at work, they care enough about it to develop their competence; they work harder and are more productive; they stay longer and are more positive. And when employees are more positive, customers respond in kind. Employee attitude is a key indicator of customer attitude, and satisfied customers help the businesses they patronize to survive and thrive. Meaning reinforces employees’ passion for work because it ties what they do to a greater good that pays off in the marketplace. Passion for work is an intangible asset that has a direct impact on a firm’s market value. Meaningful work solves real problems, contributes real benefits, and adds real value to customers and investors. Employees who find meaning in their work are more satisfied, more engaged, and more productive. They work harder, smarter, more passionately and creatively. They learn and adapt. They’re more connected to customer needs. And they stick around. Leaders invest in meaning making not only because it is noble but also because it is profitable. Making sense can also make cents.

Leaders as meaning makers. How are abundant organizations created? This is the task of leadership. The crisis of meaning is always a crisis of leadership. Abundance is not only a prerogative for leaders of rich people, smart people, prestigious people, successful people. Meaning is not only in short supply for poor people, mediocre people, struggling people, hurting people. Great leaders recognize the vital importance of abundance and meaning to all stakeholders, including themselves. What do the best companies do to maintain outstanding performance? Of course they make money via excellent customer service and many other solid management practices or they would not survive. But they also tap into the elusive quality of meaning. In exceptional companies, leaders turn the meaning employees find in their work into sustained abundance. Though each company has a unique take on how to make this connection, all develop leaders who help employees find meaning at work that contributes to organizational success. Leaders have the task of creating a direction that is charged with meaning—one that resonates with not only the minds and hands but the hearts of those they lead.

Recessions of meaning. In both lean and prosperous times, an organization’s values are tested and forged, setting the stage for the future. Meaning is shaped or dissipated. Loyalties are won or lost. Talent and skill are honed or abandoned. Creativity and problem-solving skill are developed or undermined. And future sustainability is either ensured or threatened. We need AOs in deficit-dominated contexts that challenge our existing sense of meaning and in growth-dominated contexts that give rise to expansion. The search for meaning is more about how we think than about the circumstances in which we find ourselves. Deficit thinking can abound even amid plenty.

Prevalence of deficit thinking. When employees lose what they have come to count on and expect—be it a person, an income, a position, or security, identity, or direction—they are inclined to deficit thinking, a common problem when people stand to lose not only their personal treasures but also their retirement, colleagues, and jobs. Deficit thinking is probably inevitable, perhaps even helpful, in some situations, but when leaders’ thinking is dominated by an agenda of self-protection, deficit thinking itself becomes the burglar. It can lock us into a prison of our own making, a prison dominated by fear, isolation, disorientation, and competition for scarce resources. Even if we get back what we lost—even if the economy improves, the takeover is averted, or we end up with a better job than before—our deficit thinking can continue to cast an discomfiting spell over our lives. The thieves and robbers of crisis undermine the ability of leaders to foster abundance. Once we realize the precariousness of the things we depend on for security, security cannot be restored fully until our dependencies change. This is where great leaders come in.

Leaders spearhead the search for meaning in both good times and bad. In up markets, when talent is scarce, meaning matters because employees are essentially volunteers who can choose where to allocate their time and energy.

Employees who felt mistreated during a down market or whose meaning at work is found only in crisis containment are more likely to leave when things settle down and they have options. So, as we get ready for work, are we paying attention to the meaning we find in the work we do.   As HR professionals coach leaders, are they not only focusing on the technical leadership roles, but leaders as meaning makers.   Will our company build abundance by focusing on meaning as well as money.  Making meaning makes both sense and cents.

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If you enjoyed this article by Dave and Wendy Ulrich about the meaning of work, you'll enjoy them at our live learning venue even more! They will be discussing topics around this subject and much more. Join hundreds of leaders learning together how to operate their company well, all on a biblical platform at the Leadership Summit 2017 in Hilton Head, SC. 

Can't make the Summit but crave more learning? Tune in to our Convene online leadership learning portal!

Creating Abundant Organizations: Purpose, Passion, and Profits (Part 1 of 2)

This morning, you got out of bed and got ready for work. You may have found a sense of meaning, purpose, even abundance in your work today--or found world-weary tedium, frustration, and despair. Which was it for you, and for the people you lead?  What difference did your sense of work make in how you approached your work? In recent weeks, you have also visited a number of companies as a customer … from shopping at a grocery store, retail chain, restaurant to dealing with your company’s suppliers.   How long, as a customer, before you sense the attitude of employees in these companies?  How does the employee attitude in these companies affect your attitude as a customer?

Your personal approach to work will affect how your customers will approach you at work.   When you bring a sense of meaning and purpose to work, you create an abundant organization where people work to build, grow, and explore possibilities more than use what they have.

An abundant organization exists when employees find meaning, when stakeholders get value, and when the organization offers hope for society.

When employees find meaning, they have a sense of why they are working.  Friedrich Nietzsche notes: “He who has a why to live can bear with almost any how.” People who have a why to work can bear with almost any how. Organizations are primary settings not only for accomplishing assignments but also for finding an abiding sense of meaning in life. Work is a universal setting in which to pursue our universal search for meaning. Great leaders have the capacity to help employees find meaning from the work that they do.   We were in a hotel recently and talked to the person responsible for setting up for meetings (tables, chairs, media).  He was curious about our group, who we were and what we did.  He sincerely asked what he could do to make sure our group had a good experience.   Another hotel had a meeting logistics person who told us how they would set up for our meeting.   The first person finds meaning in helping clients have a good experience.  The second person wants our group to meet his criteria.  As customers, we have frequently used the first hotel.   Abundant organizations exist when leaders help employees find meaning from the work that they do.

As noted above, abundant organizations connect employees with customers so that employees have a line of sight of how their work impacts customers.  The first hotelier above knew our names, worked to know our needs, and adapted to meet what we wanted.  He found abundance in his work by serving others.   The financial impact of abundant organizations is compelling:

  • Over a 10 year period (1998 to 2008) “best companies to work for” have a 6.8 % stock appreciation vs. 1.0% for the average firm.

  • Over a 7 year period, the most admired firms in Fortune’s list of admired companies had double the market returns of competitors.

  • The probability of an Initial Public Offering (new company) succeeding goes from 60 to 79% when the new company invests in its people.

  • 61 hospitals in the UK had a 7% decline in death rate when they invested in the well-being of their staff.

  • A one-standard-deviation increase in high performance work practices yields $27,044 increase in sales per employee and $3,814 increase in profit per employee.

So, abundant organizations make meaning meaningful for employees inside and customers and investors outside.

But abundant organizations also matter to society at large.  Increasingly, organizations shape performance and reputations of countries and communities.  Business competitiveness often precedes social welfare.  Abundant organizations go beyond making money to shape positive communities.   Whole Foods Market, a grocery store chain with nearly 300 stores, has committed to community service:

We are committed to helping take care of the world around us, and our active support of organic farming and sustainable agriculture helps protect our planet. And while we assist our global neighbors through our Whole Planet Foundation’s micro-lending operations, we also step out the back door of each of our stores to support food banks, sponsor neighborhood events and donate to local non-profit groups.  (source http://www.wholefoodsmarket.com/company/)

When company’s use their organization investments to address broader society problems, they create abundance, or more, in terms of meaning and purpose.

So, how do leaders become meaning makers who shape abundant organizations? That will have to wait until Thursday's post.

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If you enjoyed this article by Dave and Wendy Ulrich about the meaning of work, you'll enjoy them at our live learning venue even more! They will be discussing topics around this subject and much more. Join hundreds of leaders learning together how to operate their company well, all on a biblical platform at the Leadership Summit 2017 in Hilton Head, SC. 

Can't make the Summit but crave more learning? Tune in to our Convene online leadership learning portal!

Leadership Restraint: The Power in Holding Back

Restraint. Likely a concept that awakens some kind of emotions or recollection of experiences for any leader. A quick scan of the news produces ample example of what happens when a leader lacks self-control, but what happens when we harness for success? Successful leaders are well accustomed with the need to push, drive, persevere, and muster. But how many of us calibrate intention, goals, and achievement through restraint? Let's explore what happens when great leaders "restrain to succeed."

1. Leaders control the desire to do it all. Maybe you could do it better, maybe not, but empowering someone else to try increases buy-in, which increases team ownership and responsibility. Good leaders are responsible. Great leaders posses the courage to give responsibility away.

And this doesn't only apply to tasks. Conversation and presence are often some of the most difficult points to entrust. Restrained leaders don't always need to have the last word. Asking a question such as, "What are your final thoughts as we conclude our time today?" leaves space for people to grow. Whether it is letting silence linger in conversation, or letting gaps linger in the company, give people the opportunity to fill space. They may surprise you with what they do with that space.

2. Leaders leave people wanting more. Good negotiators know that we are all attracted to suspense. Whether negotiating, leading a meeting, or addressing a situation, give quality of voice rather than quantity. Few, select insights leave a far greater impression than countless weightless interjections. Anyone can talk a lot but not say much. Be the kind of person who makes people hungry to listen when you open your mouth.

When you do speak up, curb the desire to show all of your cards. After placing something on the table, let it lie for a bit. Don't succumb to the desire to establish authority by saying everything you know. This stunts valuable input from others, and minimizes opportunity to clarify or adapt. Restraint opens the door to what a leader "didn't know that they didn't know," and creates space to come back later to qualify things with words and actions.

3. Leaders stay focused. When high-level performers are focused, they know the difference between what is important and what is critical. Most C-level executives have agendas and conversations crowded with "important." Walk in to meetings knowing what is critical and refrain from jumping in to distractions that, while they are important, could be handled by someone else. Staying focused also means knowing your walk-away point. In negotiating, in business relationships, even in life...know how far you are prepared to take the conversation, where you are willing to compromise, and when it is time you walk away.

In conclusion, there are many voices telling us "more is more." However, when it comes to seeing the people around us thrive, strategic leadership restraint shows us that contributing less often ends up returning more.

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If you enjoyed this article about learning the power of restraint, you'll enjoy hearing from Cheryl at our live learning venue even more! She will be speaking at the Leadership Summit this May, where we'll discuss this topic and much more. Join hundreds of leaders learning together how to operate their company well, all on a biblical platform at the Leadership Summit 2017 in Hilton Head, SC.

Can't make the Summit but crave more learning? Tune in to our Convene online leadership learning portal!

If God made your people creative, why are you still deciding everything?

If God made your people creative, why are you still deciding everything?

Does God speak to your team members or just to you? I think we all believe He speaks to everyone, but if that’s the case, why are you still deciding everything at your company? In other words, does the brochure REALLY have to be the size and color you want? Or can your team member decide the size and color? After all, God made them creative too! He made them in His image, he gave them natural talents, he gave them spiritual gifts….and he wants them to use them, so why not let them?

Can a Christian-led business Be A Toxic Workplace?

In our book, Rising Above a Toxic Workplace, we surveyed hundreds of employees (and leaders) from a wide range of industries and sectors.  We then individually interviewed dozens whose stories intrigued us.  From our research we discovered the core components that contribute to making a workplace “toxic” – a work environment that is unhealthy, and even dangerous, to the well-being of its employees. When a workplace is toxic, over time its employees experience an increase in physical symptoms – weight gain, loss of sleep, high blood pressure, and overall, the rate of other medical issues spiral up.  Similarly, on the emotional side, team members who work within a poisonous environment become more irritable and angry, agitated, discouraged, anxious and depressed.  Higher rates of drug and alcohol abuse occur, which in turn increases the absentee and tardiness rates of the employees.

The 3 Core Conditions to Create Toxic Work Environments

We found that the most toxic organizations had the trifecta of three problem areas that, when combined, made the workplace incredibly unhealthy, unpleasant, and even dangerous to the well-being of those who work there.

Dysfunctional Employees

When we use the term “dysfunctional”, we are being descriptive versus just putting a condescending label on people.  “Dys” means ‘problem’, and dysfunctional people have serious difficulties in functioning in daily life. Being “dysfunctional” can express itself in a variety of ways (and this list isn’t exhaustive).  A person may have repetitive problems in maintaining relationships.  They may not be able to manage their financial life, always spending more than they make.  Some may not be able to move forward in their career (or even hold a job) because of difficulties in coming to work regularly, on time, and completing tasks in the timeframe given.  Drug and alcohol abuse and problems controlling one’s temper are dysfunctional patterns.

Regardless of how they are exhibited in daily life, dysfunctional individuals display similar patterns of behavior.  Dysfunctional employees tend to blame others and make excuses, rarely accepting responsibility for their actions.  They withhold or distort information and communicate indirectly through others.   These individuals usually have a sense of entitlement, believing they should receive raises and promotion in spite of their inconsistent performance.  And they are masters of creating conflict and tension within the workplace.

How do you successfully manage dysfunctional employees?   First, accept that you cannot change the other person.  Then set boundaries about what you are and are not willing to do to deal with problems created. (Sometimes people must experience the consequences of their choices in order to learn.)  Finally, talk with and get support from others whom you believe are functional.

Poor Policies and Procedures

One of the core elements of a toxic workplace is that it has significant problems in the area of poor policies and procedures.  Foundationally, the workplace can feel like some combination of chaos, incompetence or anarchy.  How anything ever gets done can seem to be a mystery.

Interestingly, there are different types of problems with policies and procedures.  Some organizations have incredibly poor communication.  Communication between departments is sporadic and incomplete, and often the information people need to know in order to make good decisions isn’t readily available.  A second variation is when there are no written, standardized ways of doing things (or the written version is so old, it is no longer applicable).  Some technical experts dismiss the concern with “No worries. It’s in our heads” and this becomes a platform for control or blackmail.  The third common expression of problems in procedures and policies is when people “go around” the policies that exist.  The policies are there; it is just that no one follows them.

When a company has serious problems in this area, they severely limit the company’s ability to grow, train new employees effectively, and the management has no clue what it actually costs to produce their products or provide specific services.  Rarely will an organization like this last much beyond the lifespan of its key leader (who often is very talented and carries the organization on their shoulders.)

Toxic leaders                                                                          

The presence of one or more toxic leaders creates serious wounds in an organization.

Although hopefully you aren’t a toxic leader, you may have unhealthy leaders within your organization.  It is important to note that a toxic leader doesn’t have to be at the top tier of the organization. We have observed that a toxic leader often may be a long-term employee who “grew up” with the business (and may be a long-term friend of the founder), and they are now in a position where they are way over their heads in the ability to manage and lead those around them.  As a result, they often become managers that others have to “work around” in order to get things done correctly.

We identified ten common characteristics of toxic leaders.  It is important to understand that not all toxic leaders display all of the characteristics, but they typically display several in how they relate to others.  We believe it is important to differentiate between toxic leaders and incompetent leaders.  Unfortunately, there appear to be plenty of incompetent leaders, especially when you examine the leadership throughout an organization (managers, department heads, and front-line supervisors).  Incompetent leaders either haven’t been trained well, or have been promoted above their skill level – but in either case, they tend to not be effective in leading others.

Toxic leaders, on the other hand, may be very competent and skilled leaders (in a technical sense) but their motives are impure.  They essentially are totally focused on their interests and achievement, and will use others to get what they want.

Top Ten Characteristics of a Toxic Leader

1.     They look good (at least, initially).

2.     They’re extreme about achieving goals.

3.     They’re manipulative.

4.     They’re narcissistic.

5.     They steal the credit for others’ successes.

6.     They’re condescending.

7.     They’re inauthentic.

8.     They use others.

9.     They won’t address real risks.

10.  Before things fall apart, they leave.

How do you tell if a leader is toxic?  First, look for an exodus (sometimes, over time) of previously solid, reliable employees.  When good people are leaving, look for the rat.  Secondly, pay attention to your own sense (or a trusted colleague) of “something doesn’t seem right”.  Toxic leaders often present well initially, and sometimes too well.  But eventually the facts don’t add up – reports you hear from reliable employees don’t match what the leader is reporting.  Do not dismiss or ignore these subtle signs!  They may be an early warning signal to investigate more closely.

What can be done with toxic leaders?  Truly toxic leaders don’t change. Don’t expect them to (although they may feign commitment to do so.)  First, do damage control.  Protect yourself and the organization. Then, develop an exit plan for them as soon as you can.  Any other action is a waste of time and increases your risk for serious damage.

Warning                                                                                           

One caution should be noted:  Do not assume your organization is immune to the problems discussed above, even if your company is founded on Christian principles. One only has to read the news to see that there are many examples of Christian-led businesses and churches collapsing due to a toxic atmosphere or leader.

Conclusion      

Toxic workplaces exist in every sector of the marketplace (unfortunately, including ministry). Since organizations are comprised of individuals who have weaknesses, deficits, and areas for growth, every company is at risk for developing unhealthy patterns of behavior.  Fortunately, if the remaining leaders are able to identify core issues that led to “un-health”, it’s possible to take steps (both individually and corporately) to address the problem behaviors and become healthy again.