tag:blogger.com,1999:blog-86929105747149318322024-03-13T11:02:30.589-05:00Corporate Leadership - In The 21st CenturyThe entries in this blog are an extension of my qualitative research on Criteria for CEO Selection in U.S. For-Profit Firms, and my first book on Corporate Leadership Selection: Impact on American Business, Employees, and Society.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.comBlogger29125tag:blogger.com,1999:blog-8692910574714931832.post-40048281846184109922010-12-05T03:47:00.002-06:002010-12-05T03:51:49.511-06:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)Workplace Diversity<br /><br />According to a study at Cornell University (2010), Workplace diversity is a people issue focused on the differences and similarities that people bring to an organization. It addresses issues specified legally in equal opportunity and affirmative action non-discrimination statutes. Too often, organizational perceptions and beliefs around workplace diversity are centered on our demographic differences. Issues related to demographic differences include, but are not limited to: age; disabilities; gender; lifestyle; nationality; race; religion; and sexual orientation.<br /><br />In theory, diversity is considered to be inclusive of everyone. In many ways, diversity initiatives complement non-discrimination compliance programs by creating the workplace environment and organizational culture for making differences work. However, diversity also includes our differences such as profession, education, parental status and geographic location. Furthermore, workplace diversity relates to our competencies, business acumen, training, and experience.<br /><br />Managing a diverse workforce is not a science; it is an art. There is no roadmap or a “how to guide” on successfully leading a diverse team. Add the strategic operations of a virtual workforce where members of the team are dispersed in numerous locations across town; across the oceans; or across the globe (and language differences are introduced), and the challenges increase (Shen, Chanda, D’Netto, Monga, 2009). Diversity is about learning from others who are not the same, about dignity and respect for all, and about creating workplace environments and practices that encourage learning from others and capture the advantage of diverse perspectives (Cornell University, 2010).<br /><br />The manner in which our demographic differences are addressed is not the same as how our professional areas of expertise are addressed. Briefly consider the following real-life scenarios in the Corporate America environment. First, the workplace/team building celebrations at the end of December are no longer called Christmas parties, but holiday parties. Second, many companies have opted to change their vacation benefits from including religious or cultural type days. They merely give all employees a specified amount of “personal” days (typically 2-3 weeks) to use as deemed appropriate. These behaviors demonstrate an atmosphere of inclusiveness and respect for employees.<br /><br />On the other hand, consider the workplace dynamic of how the values and opinions of employees with different professions are managed. Are the viewpoints and opinions of leaders in the finance or accounting or operations department regarded and respected in the same manner as the viewpoints and opinions of leaders in the HR or IT departments? Are employees in every department even invited to participate in key decision making discussions? Involving those with different viewpoints can help to provide a competitive advantage, and possibly present innovative advancements not considered in the past (Lockwood, 2005; Tetteh, 2008).<br /><br />Conversely, intolerance and lack of acceptance of workplace diversity (in all of its forms), can lead to harassment, discrimination, and possibly violence. Simultaneously, lack of acceptance can lead to poor employee morale and poor team productivity. In a publicly held company, lack of team productivity and effectiveness; or negative news about employee relations can lead to devaluation of the corporation’s stock price (Cook, Glass, 2009).<br /><br />Because there is no definitive process for managing a diverse organization, each leader must conscientiously observe and develop these practices through their experiences. However, this development must begin with a comprehensive list of other attitudes, behaviors, and values the leader must already possess in their “toolbox” of skills such as: honesty; integrity; and communication. Without this existing skill set, a leader will find the challenge of building confidence and trust and managing a diverse team a difficult task to accomplish.<br /><br />Hiring, developing, promoting, rewarding employees based on their diverse backgrounds instead of on their knowledge, skills, abilities, and competencies will not lead to an effective workforce. Although this short term, situational/transactional leadership practice may suffice to comply with Equal Employment Opportunity regulations, the probability of producing a high performing long term, sustainable team is minimal. There is a viable pipeline of competent and capable professionals within the U.S. workforce – both inside and outside of the corporation. It is the responsibility of corporate leaders to openly demonstrate and champion the diversity initiative by investing the time and effort to identify, invite, and include those with different backgrounds into the organization.<br /><br />More information on Workplace Diversity and its effect on team productivity and business operations can be found in :<em> </em><br /><p><em>Corporate Leadership Selection: Impact on American Business, Employees, and Society.</em></p>Input and feedback to this blog is always welcome.<br /><br />References<br /><br />Cook, A., & Glass, C. (2009). Between a rock and a hard place: managing diversity in a shareholder society. Human Resource Management Journal, 19(4), 393-412. doi:10.1111/j.1748-8583.2009.00100.x.<br /><br />Lockwood, N. (2005). Workplace Diversity is Leveraging Power of Difference for Competitive Advantage. HR Magazine. (50, 6).<br /><br />Shen, J., Chanda, A., D'Netto, B., & Monga, M. (2009). Managing diversity through human resource management: an international perspective and conceptual framework. International Journal of Human Resource Management, 20(2), 235-251. Doi: 10.1080/09585190802670516.<br /><br />Tetteh, V. (2008). Diversity in the Workplace. Research Strategies Business. P. 1-15.<br /><br />Workplace Diversity (2010). Cornell University Library. Retrieved December 1, 2010 from <a href="http://www.ilr.cornell.edu/library/research/subjectguides/workplacediversity.html">www.ilr.cornell.edu/library/research/subjectguides/workplacediversity.html</a>Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-12620668314137654422010-08-31T12:12:00.000-05:002010-08-31T12:13:48.793-05:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)Whistleblowing<br /><br />Whistleblowing is an employee action of reporting what they perceive to be unethical, immoral, or illegal corporate activity to an outside third party. The third party may be the media (i.e. newspaper, radio, television, etc.). It may be a governmental agency accountable for regulating the corporation’s activities. The third party could even be interested groups and citizens in the community the corporation operates in. Our society and culture craves access to instant information. Technological advancements have catered to these desires with mechanisms such as: corporate grapevines on the internet; You Tube; Facebook; and “tweets” on Twitter to report positive and negative information – along with accurate and inaccurate information – on corporate behavior and activity. This blog entry discusses the whistleblowing activity and the future career prospects for employees who follow their conscious and report corporate behavior to outside third parties.<br /><br />Minimizing the Risk of Employee Whistleblowing<br /><br />Organizations can minimize whistleblowing by giving employees an avenue to share concerns and express dissenting viewpoints on the company’s activities. This can be done in a manner where issues can be discussed and resolved within the company, instead of outside the company. Whereas this belief may curtail whistleblowing of perceived unethical corporate behavior, it will not (nor should not) deter whistleblowing of illegal activity. Here are a few examples of illegal activity, and non-compliance of governmental regulations which will warrant notification to other parties, preferably authoritative and regulatory entities:<br /><br />· In order to minimize the expense of managing and properly disposing of waste material, a manufacturing company dumps its waste into landfills or in a nearby lake, river, or other large body of water;<br />· In an effort to minimize operational expenses, a food company “cuts corners” in governmental safety rules for sanitation and maintenance of equipment used in processing and/or packaging food;<br />· While maximizing profitability and shareholder value, a company purposely misrepresents its statements of financial position.<br /><br />An Ethical Dilemma<br /><br />There are no “gray areas” in the examples listed above. However, there are numerous scenarios where a perceived wrong doing by one employee may not be viewed in the same manner as another employee. In this situation, one’s personal values and beliefs come into play. One employee may feel it is “acceptable” for a lending institution to charge exorbitant interest rates to its customers. Another employee may feel it is good business sense to charge as much as legally possible. Another example would be corporate offshoring. Many U.S. companies now offshore a part of their operations to other countries where labor costs are lower. A question of ethical behavior centers on normalization of employee salaries. “Should a company pay the same rate and offer the same benefits to employees in other countries that they offer to employees in the U.S.”?<br /><br />U.S. corporations specifically state one of the reasons for offshoring is to take advantage of a qualified, yet cheaper labor market in other countries. However, this management strategy is done at the expense of U.S. workers, and arguably contributes to forcing its own citizens into poverty. A degree of “right or wrong” can be found in the reactions of the organization’s various stakeholders. Further, the magnitude of reaction may be determined by who is doing the whistleblowing. Typically, this activity is done by a disgruntled employee. And their audience may be dissatisfied consumers.<br /><br />Nonetheless, if the organization is paying lower salaries to employees in other countries, the company is chastised for contributing to the U.S. unemployment statistics. If the organization is paying equal (or higher) salaries to employees in other countries, the company is chastised by shareholders and the investment community for not maximizing their potential profitability.<br /><br />Future Implications<br /><br />Debate around the benefits and shortcomings of whistleblowing will continue in the foreseeable future. On the one hand, consumers and organizational stakeholders should be informed about corporate practices which may cause harm to the public. On the other hand, so called “watchdogs” or disgruntled employees may be sending erroneous or inaccurate reports of corporate wrongdoing, which incites the public, but has minimal basis for further investigation.<br /><br />There is one final point on whistleblowing. If one reviews any cases of where an employee publicized unethical, immoral, or illegal corporate activity during the past 10-15 years, you will find very little has been reported about the current career or professional life of the employee who reported the incident (if in fact the whistleblower has been successful in finding/maintaining a similar type position). A question to ponder: “Can a whistleblower expect to have a career in an organization (any organization) after publicizing corporate wrongdoing”?<br /><br />More information on corporate leadership behavior can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing).<br />Feedback to this blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-27430596473966037522010-07-31T23:04:00.001-05:002010-07-31T23:07:36.659-05:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)CEO Succession – An Example from British Petroleum (BP)<br /><br />On July 27, 2010, the Board of Directors at British Petroleum (BP) announced that Robert Dudley will replace Tony Hayward as Group Chief Executive Officer, effective October 1, 2010. This blog entry will share some of the existing literature and research findings on CEO selection. The intent of this entry is not to place BP, its board, or its managing executives in a negative light, but to compare the BP real-life scenario to theory and practices in the leadership selection process.<br /><br />Corporate Board Responsibility<br /><br />First, and most important, I extend my deepest and sincerest condolences to the families and loved ones of those who lost their lives in the explosion from the deepwater drilling. Hopefully, the BP Board of Directors and executive management team has done the same in addition to setting up a $100 Million Fund for workers and families impacted. It can be difficult in trying to place a price on the loss of human life. On the one hand, $100 million is a significant amount of money. On the other hand, $100 million to a company that consistently reports annual profits in the tens of billions of dollars is miniscule.<br /><br />The corporation’s board of directors is accountable for CEO selection. Selecting a Chief Executive Officer is a crucial decision an organization makes. CEO selection is a reflection of the organization’s identity – its culture, people, strategy and structure, and environment. Simultaneously, Corporations are faced with the challenge of developing leaders, but corporations have not developed enough talented leaders to successfully fill the internal pipeline with CEO level candidates. As a result, a number of corporate boards now make it a requirement for the current CEO to help develop and groom a successor. Further, corporate boards now evaluate and compensate CEO’s on their ability to execute this critical assignment. Yes, company performance is a major measuring stick, but so is executive development to ensure longevity and sustainability of corporate operations.<br /><br />Internal CEO Selection<br /><br />In order to promote an executive from within the company to the level of CEO, there has to be a succession planning process and an executive development process where internal candidates are groomed for the CEO position. According to Mr. Dudley’s biography and accomplishments listed on the BP website, he has been extremely successful in his various roles. There are only a few executives within a corporation that would possess the knowledge, skills, and abilities to develop the company’s next CEO – the existing CEO; a prior CEO serving on the corporate board; or a corporate board member who has CEO experience from an outside company. The BP website did not give any information if Robert Dudley was developed and groomed by his predecessor, Tony Hayward, or by other board members. The information given was that the existing CEO is being replaced, and the new CEO has been chosen from within the organization.<br /><br />From an alternative viewpoint, “promoting from within” is a positive sign to an organization’s employees. It demonstrates that hard work and appropriate employee development will be rewarded with additional responsibility and authority. A crucial selling point to newly recruited executives is the ability to grow and move up within the company. If a corporation does not have the development and succession planning processes in place to help their employees advance, talented executives from outside of the organization may be skeptical about joining such an organization.<br /><br />Societal Perspective<br /><br />During the past two months, one of the questions I have asked in both graduate and undergraduate business classes is “because of the BP accident in the Gulf of Mexico, will you still purchase products and services from the company?” The classes included were: Organizational Theory and Behavior; Management and Supervision; Critical Thinking; Organizational Analysis; and Introduction to Research.<br /><br />Although this approach constitutes a highly informal survey, the responses were an overwhelming “yes”. The general consensus was if consumers were to boycott or refuse to buy goods and services from every company that makes a mistake, there would be very few companies to purchase any goods and services from. The amount of adult learners who emphatically stated that they would not use BP products and services was minimal. There were more respondents who stated that they did not give any consideration to the leadership selection or practices of the gasoline stations they went to. The only concern was one of the prices of the gasoline.<br /><br />Final Thoughts<br /><br />An additional critical role of the corporate board of directors is to protect the investments of the corporation’s shareholders. The board is responsible for reviewing the corporate strategies and processes for providing a return on shareholder investment. When selecting a new CEO, the board is communicating to the investment community their confidence in identifying the right leader.<br /><br />Selecting an external CEO implies the organization is changing its direction and possibly its overall corporate vision. Selecting an internal CEO implies the existing direction and vision is fine. Monitoring the fluctuations in BP stock prices will give a clear indication of the investment community’s perspective and acceptance of the newly appointed leader. Of course, the true societal and investment community reaction will be seen at the end of the 4th Quarter of 2010 when Robert Dudley has been in the role for 90 days.<br /><br />More information on CEO selection and can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing).<br /><br />Feedback to this blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com1tag:blogger.com,1999:blog-8692910574714931832.post-14078501981676139422010-07-11T07:26:00.001-05:002010-07-11T07:27:47.410-05:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)Luring and Retaining Top Talent – The Compensation Game<br /><br />The entries in this blog have always pertained to current issues and management trends of the 21st Century business environment. This bi-monthly entry will address an interesting activity which has been highlighted in both the business world and the sports world with much anticipation and fanfare – LeBron James and the creative incentive packages this star athlete has been offered. These salary packages and perks can readily be compared to the salaries and perks offered to “star” executives and top talented employees at numerous corporations.<br /><br />Similarities and Differences in Management Approach<br /><br />Some of the reported salary terms and perks presented to LeBron - also known as LBJ - were $30 million/year in salary; a lifetime supply of beer (not sure if there are many people who make $30 million/year that can’t already supply themselves with enough beer for a lifetime); and a personalized episode of a cartoon show called Family Guy. These were some of the “goodies” the Cleveland Cavaliers offered in order to keep their top talent. There was no mention if there was any communication between the organization and LeBron James to see if these were the types of compensation and perks that he was looking to receive.<br /><br />According to the Wall Street Journal (July, 2009), some of the biggest banks (who also received federal financial assistance) offered multiyear/multi million packages, not only to retain their own talent, but to also lure top talent from competitors. This trend of offering salaries at the top or above the “normal” pay scale has drawn additional scrutiny for a couple of reasons. First, when major banks and lending institutions requested federal financial assistance, was compensation for luring and retaining top talent the primary intent? Second, it is one thing for profitable and successful organizations to offer hefty compensation packages. It is something different for unprofitable and unsuccessful companies to also offer similar types of salary packages and perks. However, the attitude and behavior is almost necessary by the smaller and less profitable organizations if they want to try and remain competitive. In the sports world of the National Basketball Association (NBA), this is equivalent to currently unsuccessful franchises like the New York Knicks or the Los Angeles Clippers offering LeBron James $30 million/year.<br /><br />The notable differences observed between offering huge salaries in the business world and the sports world is the business world’s concept of a hefty salary is $2-3 million/year, whereas the NBA is offering $20-30 million/year. In the business world, the leader’s integrity is questioned for making such offers. In the sports world, the leader’s sanity is questioned. A final observation is the federal government is paying close attention and is considering a means to regulate compensation in the business world. The federal government has not considered regulating compensation in the sports/entertainment world – yet.<br /><br />Pay to Play<br /><br />From another perspective, organizations that choose not to compete for top talent with large salaries and exorbitant perks stand to lose out. In the business world, loss of top talent may result in poor productivity and effectiveness. Loss of talented employees may also mean a loss of investors or a lower valuation of the company’s stock. In the sports world, the loss of top talent could result in a loss of fan support or maybe a relocation of the sports franchise. In both cases, a leadership decision of opting not to play along can be just as costly as conceivably overpaying a highly talented star.<br /><br />There are no guarantees that bringing in top talent from another organization will result in success. The environment and surroundings that helped the star in the prior environment might not be in place in the new environment. Establishing a cohesive and highly productive unit occurs over time by working together with other teammates; not in the negotiation or selection phase which is conducted by the organization’s leader(s).<br /><br />Nonetheless, the ultimate winner or loser will be the customer and/or sports fan. Some way, somehow, the organization will devise a means of relaying the expense to those who use, view, or enjoy the organization’s products and services. Compensation entails a number of components: base salary; short-term incentives; long-term incentives; employee benefits (i.e. health, medical, tuition reimbursement, etc.), and perquisites or perks. Because the organization’s objective is to make a profit, the employee compensation expense is transferred to the customers/fans by raising the price of the goods and services offered.<br /><br />Final Thoughts<br /><br />Based on one’s ethical values and beliefs, offering large salary packages to talented “stars” may be inappropriate management behavior. How can a company justify hefty salary increases and bonuses, especially if the company is not profitable? However, some may view the tactic of offering large salary packages and bonuses as a savvy business decision, or as a necessary evil. Organizational leaders in today’s business environment must carefully walk that fine line and make choices.<br /><br />First, a leader must decide if they are going to actively engage in the competition to lure and retain top talent. Second, a leader must decide to what extent (or just how much) they are willing to offer and invest in a talented player. But most important, a leader must determine how to COMMUNICATE their decisions to the rest of the organization and its stakeholders in order to ensure the desired productivity and effectiveness of the team is not diminished. It is a very challenging task to navigate. On the one hand, it can be very successful and result in a championship or increased profits. On the other hand, the decision has the potential for chaos, low morale, and team dysfunction. It can be a distasteful, unsavory situation to be in. Those on the outside looking in will have mixed emotions; some will like the decisions; some will not. But in the words of my sons’ generation, “don’t hate the player – hate the game.”<br /><br />More information on the selecting and retaining top talent can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing).<br /><br />Feedback to this blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com1tag:blogger.com,1999:blog-8692910574714931832.post-81805374426842938782010-06-30T09:52:00.002-05:002010-06-30T09:55:29.938-05:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)21st Century Leadership in Action – Part II<br /><br />As a faculty member of the University of Phoenix, I had the distinct honor of being on stage at the 2010 Commencement Ceremony. The commencement was held in Phoenix, AZ on June 25th & 26th, and the keynote address was delivered by former U.S. Secretary of State, Dr. Condoleeza Rice. Whenever a keynote address is delivered, members of the audience will have distinct memories (and selective hearing) of what they hold to be valuable. This blog entry will highlight my interpretations – strictly from a leadership perspective.<br /><br />Leadership Traits<br /><br />First, and most important, Dr. Condoleeza Rice displayed the charisma, ingenuity, and poise we expect from a head of state. Dr. Rice clearly articulated a shared vision of U.S. diplomacy and global responsibility as a major player on the international scene. Whether respected, revered, or reviled, the U.S. has the potential for influence (i.e. military, political, financial, and social) in numerous countries throughout the world. <br /><br />Dr. Rice spoke of her personal development and training in international studies at the University of Denver, which helped prepare her for her role as Secretary of State. She reminisced about that development and training as she recalled her meeting with Russian leader, Mikhail Gorbachev. As a global leader, developing confidence and trust is an important characteristic just like in the corporate business environment. During her time as Secretary of State, Dr. Rice was successful in conducting extremely crucial negotiations and agreements with foreign leaders built on trust and ethical standards. <br /><br />A Message to the Graduating Class<br /><br />Second, Dr. Rice specifically detailed expectations of college graduates. I did observe that other speakers such as the University Phoenix President, Dr. Bill Pepicello, mention the commencement ceremony does not represent the end of the journey, but the beginning. Dr. Rice emphasized the fact that as college educated members of society, we must reject/refute the negative perceptions that exist around leadership values, beliefs, attitudes, and intent. <br /><br />As a lifelong learner and faculty practitioner adept in conducting research, I found this statement from Dr. Rice very inspirational. The degree of rhetoric and fallacies we encounter on a daily basis has cluttered our collective critical thinking process, and deterred logical, rational decision making. Technological advancements have also contributed to how we access and interpret information. It is not uncommon to read negative and inaccurate comments made on news company’s front page websites. As an example, sites such as MSNBC.com, CNN.com, Yahoo.com and others will report a news story and provide the opportunity for readers to reply and post their thoughts. I might add the spelling, punctuation, and grammar of some of those respondents also leaves a lot to be desired. Nonetheless, conducting research and viewing any topic from the perspective of both sides will increase the probability of getting truthful and accurate details.<br /><br />In her address, Dr. Rice also discussed what she viewed as overcoming obstacles. She briefly discussed her early age desire of becoming a renowned pianist. After meeting much younger, more talented pianists, she realized it was time to resort to “Plan B” and a change of career aspirations. In the real-life business environment, we are constantly faced with unforeseen and unexpected events. Sometimes, our success is dependent upon how quickly we identify and alter our course of action. 21st Century leaders who do not readily react to unforeseen and unexpected changes in their environment stand the risk of failure.<br /><br />Finally, Dr. Rice exhorted the class to also “reach back and help others because someone reached back to help you.” I found this part of the keynote address inspiring as well. It is critical for business leaders to establish and maintain strategic alliances. Building such relationships enables the organization to realize increased business opportunities, which otherwise may not have been possible. Reaching back to help others can be a mutual benefit. On the one hand, an established and successful business leader can help others develop and become future successful business leaders. On the other hand, the mentor can simultaneously work on their skills in developing and grooming future leaders. <br /><br />Concluding Thoughts<br /><br />There were other enlightening speakers involved in the commencement. Mr. Neil Bush (son of the 41st President, George Bush, and brother of the 43rd President, George W. Bush) spoke on the Points of Light Foundation, and its importance in improving social literacy. Mr. Randy Jackson (of American Idol fame) also inspired the graduating class by quoting the Serenity Prayer (“God, grant me the serenity to accept the things I can not change; the courage to change the things I can; and the wisdom to know the difference.”).<br /><br />One final comment that stuck out from Dr. Rice’s address was in her opening remarks. She mentioned that she has fond memories of her own commencement ceremony at the University of Denver. She could remember sharing the day’s events with family and friends. She can also remember receiving her degree in International Studies. However, she could not remember ANY of the comments from the keynote speaker. Dr. Rice then stated that the members of this class would not remember the comments of today’s keynote speaker either. This is one time I sincerely hope and truly believe our beloved former U.S. Secretary of State is wrong. <br /><br />More information on the leadership traits can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to this blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com1tag:blogger.com,1999:blog-8692910574714931832.post-4926538077635254182010-06-15T07:33:00.001-05:002010-06-15T07:36:27.893-05:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)21st Century Leadership in Action<br /><br /> During the past year, I have utilized this blog to address some of the pressing issues which business leaders of the 21st Century must be able to identify and resolve in order to ensure a reasonable level of corporate success. These monthly/bi-monthly entries focused on business leaders’ attitudes, behaviors, and values with the current day challenges of globalization, workplace diversity, and technological advancement. The following entry demonstrates 21st Century business leadership in action.<br />In March 2010, I was accepted as a member of Boardroom Bound – a 501(c)(3) National Public Service nonprofit, whose mission is to foster good governance, independence and diversity in the 21st Century boardroom. Boardroom Bound’s objective is to develop business leaders for future service in nonprofit, private business and publicly traded boardrooms. Boardroom Bound strives to fill the boardroom pipeline with highly qualified women and minority business leaders who are prepped to resolve business dilemmas such as balancing the quest for short term profits, long term sustainability, community social responsibility, and environmental citizenship. <br />Field research and personal experience have shown that the attitudes, beliefs, and values from leadership at the top of the organization will trickle down and become the attitudes, beliefs, and values of the employees within the organization. In this blog entry, I would like to share the following letter to Crain’s Chicago Business magazine from the Boardroom Bound Founder, Linda K. Bolliger about Diversity on Boards. More information on corporate leadership can be found in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing) now on sale through Amazon.com, Borders, and Barnes & Noble. For more details, please click on the icon of the book on the left side of this page. <br /><br />Feedback to the weekly blog entry is always welcome.<br /><br /><br />OpEd: U.S. companies should make boardroom diversity a national economic imperative<br /><br />LINDA BOLLIGER is chairman of Boardroom Bound in Northbrook.<br />By: Linda Bolliger January 18, 2010 <br />The Securities and Exchange Commission should be congratulated for proposing measures addressing the poor business and governance practices instrumental in the 2008 Wall Street meltdown that nearly sacked the global economy and diminished America's standing in the eyes of the world. <br />In a July report, the commission solicited public comment on the need to address diversity policy and disclosure practices in boardrooms by publicly traded companies. It adopted it as a ruling in December. This new regulatory development is a natural evolution of diversity best business practices. <br />Since the 1954 Brown v. Board of Education case ended racial segregation in schools and public facilities, corporate America has invested billions of dollars in developing diverse human capital. Today, it is wrestling with the law of unintended consequences, as this same human capital knocks on its boardroom doors for admittance. <br />The corporate cries and pleas of difficulty in finding qualified, diverse candidates apparently fell on deaf ears. The recent ruling for publicly traded companies to report on boardroom diversity policy and disclosure is an additional arrow in the regulatory quiver to address the corporate board homogeny, cronyism and lockstep thinking that gave us the era of CEO-centric boards, from which America remains hung over. <br />These non-diverse boards produced today's excessive executive pay and risk-management issues. Finally, this era will fade as more diverse perspectives help American business compete effectively in a 21st-century global marketplace. <br />Now that the SEC has addressed this issue, it is counterintuitive for companies to ignore it. Companies that disparaged Sarbanes-Oxley legislation enacted in 2002 as too costly, time-consuming and intrusive sang the same tune in their public comments last year when the SEC proposed the diversity amendments adopted in December — despite the fact that members of diverse groups already represent the largest untapped resource for corporate board service. Protestations aside, when mining this talent pool became the law of the land, it became the corporate community's responsibility in both the workforce and the boardroom. <br />The real issue here is not "whether to" but rather how quickly corporate leaders can accept that diversity has become a requisite part of doing business. Ensuring recruitment of diverse director candidates and preparing next-generation business leaders to provide quality governance are key 21st-century business imperatives for protecting America's future standing in the global marketplace. Our national economic security depends upon companies fostering inclusive, quality governance. <br />Bravo to those companies that already diversified their boardrooms; and kudos to the SEC for proposing ways to nudge others to push diversity best practices in the corporate boardroom where they belong. <br /><br />©2010 by Crain Communications Inc.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-46378491562355542092010-05-30T09:44:00.002-05:002010-05-30T09:53:52.357-05:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)Corporate Mergers and Organizational Leadership<br /><br />During the first-ten years of the 21st Century, organizational leadership and corporate strategy has embraced the concepts of mergers and acquisitions. Whereas the intent may be to form a larger and perhaps stronger, more efficient business entity, the consequences of corporate mergers (and rumors of corporate mergers) has possibly contributed to a few of our countries most pressing problems such as: fluctuating corporate valuation and corporate greed; mistrust of big business; companies “too big to fail”; and unemployment. This blog entry will address the corporate merger scenario and review its impact.<br /><br />Corporate Merger Objectives<br /><br />A corporate merger occurs when two separate, independent companies agree to combine their resources (i.e. assets, liabilities, capital, customers, employees, etc.) and become one company. There are a number of reasons why corporations may agree to merge. The current trend of corporate mergers reveals three potential benefits to the companies involved. <br /><br />First, a merger can help increase market share. A corporate merger can facilitate the growth of two smaller companies into one larger company. By absorbing a competitor, there is increased market power to set prices for corporate goods and services. A second, desired result of a corporate merger is improved financial performance of the combined entities. Corporate expenses can be reduced by eliminating duplicate operations. Two accounting departments can consolidate into one accounting department. Two marketing or technology or sales teams can consolidate into marketing or technology or sales team. <br /><br />Third, an opportunity for corporate tax relief is possible. For example, a profitable company may buy an unprofitable company for the purpose of using the unprofitable company’s operating loss for reduced tax liability. There are federal regulations and government oversight on the volume of losses allowed, nonetheless, this is still an acceptable corporate strategy.<br /><br />Disadvantages of Corporate Mergers<br /><br />The existing literature and research on corporate mergers has not identified very many positive benefits of this strategy for the communities, citizens, and employees the corporations serve. However, a number of disadvantages and challenges around corporate mergers have been discovered. The ill-conceived notion that corporate mergers produce a larger, improved business entity has resulted in documented cases of failed mergers. This is especially visible where companies with unrelated technologies; misaligned corporate missions; and disparate management styles attempt to consolidate operations. The same reasoning, objectives, and justification for merging companies can also be the liabilities and disadvantages of merging companies.<br /><br />A corporate merger can increase market share for the newly established company. It will increase market power for setting the price for the company’s goods and services. It may also influence pricing throughout the company’s industry. However, the goal of every company is to make a profit. Increased market power to set prices does not result in lower prices for consumers, but higher prices – and profits for the company (and in some cases, with poorer quality of merchandise). There are no corporate leaders who report their company has set market prices which will lower their corporate profitability!<br /><br />The second justification for corporate mergers of reducing/eliminating operating expenses is a highly desirable objective. However, reducing and eliminating duplicate operations inevitably translates into workforce layoffs. There are no corporate leaders who report their company has merged with another company in order to hire more employees! The existing labor market and economic environment is fragile. With the U.S. Department of Labor reporting unemployment well over 10%, the labor market cannot withstand more corporate mergers at the expense of increased unemployment. <br /><br />Finally, the strategy and belief of executing a corporate merger to benefit from reduced tax liability is egregious. There are numerous challenges in identifying innovative and creative initiatives to improve corporate profitability. In today’s business environment, there are also increased challenges in identifying “ethical” innovative and creative initiatives to improve corporate profitability. Using company resources to find unprofitable corporations to possibly merge with will not result in a long-term, profitable company. It will merely offer a short-term tax break, with higher prices on its products and more employee layoffs.<br /> <br />Implications for Leadership<br /><br />The advantages and disadvantages of corporate mergers is a topic of debate. A study published in the Journal of Business Strategy (July, 2008) found that the target companies in corporate mergers lose 21% of their executives each year after an acquisition for approximately ten years. Because of the loss of executives, there is an impact to leadership continuity. With ever-changing leadership, there is also potential for the lack of knowledge transfer; mixed signals on corporate values, beliefs, and attitudes; and confusion among employees about their role in a newly established company.<br /><br />When corporations merge, employees in both firms may become stressed or overcome with anxiety. “Survival” in the reorganized, merged company becomes the top priority of employees. They become concerned over job definition, accountability, responsibility, and security. During a corporate merger, there may be signs of uncertainty, or lack of communication on corporate direction. This malady may be particularly prevalent when companies of disparate goals and objectives combine. Employees observe who is selected to remain with the new organization; who is selected to be let go by the new organization; and who is chosen to serve in leadership positions in the new organization. In fact, employees will spend more time observing this phenomenon and discussing it among their peers than they will spend toward actually improving/increasing their productivity and effectiveness.<br /> <br />This scenario is an opportune time for the company leadership to clearly and honestly communicate with the environment in which it operates. Leadership must explain in detail what changes are being made; how/when the changes will be implemented; and how employees (as well as the communities and customers the organization serves) will be affected. Without such communication, employee productivity and effectiveness will suffer, and lack of communication will further exacerbate the challenges corporate mergers present. More information on the effects of mergers can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to this blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-21546440097782500582010-04-12T12:39:00.000-05:002010-04-12T12:40:31.045-05:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)TEAMWORK<br /><br /> There is no “I” in team. Implementing and maintaining a “team first” culture in the workplace may be the difference between realizing the desired benefits of productivity; high employee morale; and solvency versus the undesired results of ineffectiveness; lack of employee trust; and uncontrollable operating losses. This blog entry will address the concepts of teamwork and its impact on the company’s bottom line.<br /><br />Teamwork Defined<br /><br />Regardless of the type of workplace environment, communication, coordination, and cooperation among team members is an essential component for organizational success. Employees must contribute to an organizational atmosphere of working as a cohesive unit, valuing/respecting each other, and placing the achievement of the group over personal aspirations. Leaders must instill a culture of team building, valuing diversity, and recognizing/rewarding employees who demonstrate these behaviors.<br /><br />The positive implications of teamwork can be seen in entities such as sports teams, medical staffs, five-star restaurants, and surgical teams to name a few. Whereas many companies have exerted significant effort and resources to foster teamwork and build high performing teams, there is still opportunity for improvement. Misdirected attitudes, values, and beliefs of individual performance are still prevalent in the workplace. The “me first” mentality is still a malady which permeates the work environment and our society. Our education system; our political landscape; our entertainment industries; and even our family structure emphasize personal accomplishment. Yet, we are expected to cast aside these possibly innate characteristics and assimilate, collaborate, and achieve team goals. Consider the fact that a job promotion is typically given to one individual – not to an entire team of individuals.<br /><br />The Impact of a Lack of Teamwork<br /><br /> Sports teams that display a lack of teamwork may result in a team loss (or championship). Medical staffs that display a lack of teamwork may result in inadequate health care (or a botched surgical operation). Business workplace groups that display a lack of teamwork may turn into undesired operational business results. All such behaviors can have a negative impact on the bottom line – monetarily.<br /><br />In some cases, a company’s normal course of business operations may inadvertently facilitate an environment non-conducive to teamwork. An example would be the insurance industry. On one hand, there are insurance sales agents. The insurance agent’s role and responsibility is to sell insurance policies and generate revenue. On the other hand, employees in the insurance risk management department are responsible for mitigating and limiting the liability and potential financial loss to the company. The risk management team may very well deny insurance coverage to an agent’s potential client if there is a financial risk to the company. Leaders with such challenges must devise consensus building and collaboration scenarios that will benefit the company as well as its employees.<br /> <br />Team Building Practices<br /><br /> Research has shown three practices (at a minimum) to be highly successful in curing the maladies of unproductive and ineffective teams while boosting employee morale, confidence, and trust. First, leaders must communicate what the goals and objectives of the team are. Employees are more apt to produce when they are aware of what is expected. Second, leaders must empower teams and involve teams in the decision-making process. Employees and teams who help with making decisions on the initiatives they are expected to execute are much more successful than employees and teams who are not a part of the decision making. <br /><br /> Third, leaders must recognize, acknowledge, and reward teams who consistently demonstrate the expected behaviors and attitudes. Recognizing employees publicly for their teamwork and success in accomplishing an initiative; acknowledging the professionalism and work ethic of a team; and/or offering monetary rewards to team members enhances team morale. In addition, when these leadership techniques are done in front of other employees within the organization, it serves as a catalyst for increased teamwork and productivity and for more employees to emulate the behaviors.<br /> <br /> More importantly, executing these techniques will minimize the negative, dysfunctional activities of low employee morale; lack of productivity; and the possibility of employee sabotage or harboring ill-will towards other employees. Further, the organization may see curtailment in other organizational ailments such as employee absenteeism and employee turnover which also adversely affect the company bottom line. More information on delivering feedback can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com1tag:blogger.com,1999:blog-8692910574714931832.post-59552539590580003142010-03-22T10:06:00.002-05:002010-03-22T10:10:20.693-05:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)FEEDBACK<br /><br /> One of the most valuable items a leader can give to employees is feedback. Providing open and honest evaluations of employee performance may have a positive effect on workplace productivity. This blog entry will address the art of effectively communicating and delivering feedback to employees. <br /><br />Positive Feedback<br /><br />Delivering positive feedback can be a pleasant experience for both the manager and the subordinate. Managers take great pleasure in giving good performance reviews, or informing an employee on a regular basis that they are doing a good job. In addition, employees feel a sense of accomplishment when they are told they are doing a good job. In today’s business environment of corporate downsizing and job terminations, a “vote of confidence” from the organization’s leadership may also offer a sense of security for employees. <br /><br />However, no employee is perfect. Every employee has an area which can be improved. A manager who has observed an employee’s strengths and weaknesses should be able to clearly communicate those observations in a constructive manner. Any manager who cannot communicate on employee’s strengths and weaknesses is doing a disservice to the employee as well as the organization. An opportunity for enhanced productivity and effectiveness may be missed. <br /><br />Negative Feedback<br /><br /> Conversely, delivering negative feedback can be stressful and discouraging. If a manager has clearly defined employee expectations, and those expectations are not met, negative feedback should NOT come as a surprise. If the manager has not clearly defined employee expectations, the employee may or may not know there is a need for improvement. Moreover, the manager has adversely impacted organization effectiveness and productivity by not addressing the issue in a timely manner. <br /><br />As a result, the manager’s timing in providing negative feedback is critical. Waiting for an annual employee performance review to provide negative feedback will not serve the purpose. Allowing an underperforming employee to continue underperforming until the performance review exacerbates the issue. And of course, ignoring poor performance has no positive value. If other employees notice poor performance is being ignored instead of corrected, employee morale and respect for the manager will also suffer.<br /> <br /><br />Techniques for Delivering Negative Feedback<br /><br /> Another consideration in delivering negative feedback is how. Chastising an employee in front of their peers or clients will not produce the expected result. In fact, there is potential for an employee to take a defensive, retaliation-type stance. Research has shown a common practice for delivering negative feedback is a one-on-one discussion with the employee to state what was wrong; what can/should be done to improve; and how improvement will be identified. <br /><br /> A prevalent feedback technique is known as the “sandwich” approach. With this method, the manager first states what the employee has done correctly. It is followed with what the employee has done incorrectly (and what must be changed). Then the feedback is completed with positive comments about the employee’s performance. This technique demonstrates the manager’s ability to observe employee performance. However, it may be ineffective in driving the desired changes if the employee focuses more on the positive comments than on the areas which need to be improved. <br /><br />Leadership/Management Accountability in Delivering Feedback<br /><br /> Whatever method is used for delivering feedback, it is critical the manager’s message is understood by the intended audience – the employee. The manager/leader must ensure the employee understands what is expected. Further, it is the manager’s/leader’s responsibility to remove barriers that prevent employees from being successful. If an employee needs additional training to perform their job, the manager must help to remove obstacles that would prevent the employee from getting the required training. Finally, the manager must monitor and communicate employee progress in meeting expectations. The result of following this technique at a minimum will be enhanced communication between manager and employee. To a greater degree, it will improve overall organizational effectiveness. <br /><br />More information on delivering feedback can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-34195603871811413502010-03-11T08:14:00.004-06:002010-03-11T08:19:26.069-06:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)DELEGATION<br /><br /> Delegation is defined as assigning responsibility and authority to others for carrying out tasks. Delegation is also described as empowering employees to make decisions, and/or choosing another person/group to represent the leader in executing an activity. This blog entry will address the art of delegation and highlight some of the characteristics of both effective and ineffective delegation practices. <br /><br />The Role of Leadership and Delegation<br /><br />The pillars of leadership consist of: communicating a shared vision; involving others to execute that shared vision; monitoring and measuring progress in achieving the goals and objectives; and acknowledging and rewarding success in accomplishing the goals and objectives. These leadership pillars are all embodied within the techniques of delegation. Although the gist of leadership and delegation is to get work done through others, this leadership tactic serves additional purposes as well.<br /><br />First, delegation facilitates employee development. On the job growth can be accomplished. Subordinates are given the opportunity to obtain first-hand knowledge and experience. Leaders, managers, and employees who successfully execute delegation activities help sustain succession planning and individual growth. Succession planning and grooming a successor is an important step for all leaders. Consider the fact you may hinder your own promotion potential if you have not developed your replacement.<br /><br />Second, delegation demonstrates the leader’s confidence and trustworthiness of employees. Research has shown employees are more productive and effective when they feel valued. Employees develop a sense of value to the organization when they are involved in the decision-making and they are trusted to execute their role. Employees who are not involved in decision-making, or are not trusted to execute tasks are not highly productive; and may even have low self esteem and lack pride in their organization. <br /><br />Third, effective delegation will enable communication. Once the leader has selected the individual to delegate to, the task must be clearly described. The leader must explain what is to be accomplished; what the expected results are; and why the task must be accomplished. The leader and the employee must then discuss the resources needed to accomplish the task (i.e. training, money, equipment, other employees, etc.). Next, the leader and employee should “agree” on the timeline for completing the task. This crucial step ensures the employee understands what the task is, and also confirms the leader has clearly communicated expectations. Note that the leader does not totally walk away from the task at this point. The leader is still accountable for the completion of the task, and must be willing and able to help remove any barriers that may prevent the employee from successfully completing the task.<br /><br />Finally, the leader must acknowledge and reward the employee upon successful completion of the delegated activity. In today’s economic environment, rewards and recognition is not always of a monetary nature. Sometimes, employees are more satisfied with a day off of work; or more development opportunities; or public acknowledgement from the leader than receiving a few extra dollars.<br /><br />Ineffective Delegation<br /><br /> The art and concepts of delegation may seem simple. However, there are a few pitfalls which may deter this vital leadership practice. <br /> <br />1. If a leader does not clearly communicate and define the task, the employee may not achieve the desired result (“managing ambiguity” is another skill which will be addressed at another time) <br /><br />2. Micromanaging or over managing – not giving employees the opportunity to demonstrate their knowledge, skills, and abilities will de-motivate employees. Micromanaging also shows a lack of trust and confidence in employees. While some employees may be comfortable with leaders who micromanage, the majority of employees will seek career opportunities elsewhere. Sense of value and sense of accomplishment are big motivators for high-potential employees.<br /><br />3. Encouraging or coercing employees to execute unethical, immoral, or illegal activities is wrong. Corporate Social Responsibility and leadership integrity have forged into the limelight of the business environment. There are legislative acts in place to curtail unethical behavior and lack of privacy such as: Sarbanes Oxley Act; HIPAA; FERPA, etc. Asking an employee to engage in an activity that violates these laws is unacceptable.<br /><br />Implications for Leadership<br /><br /> Effective delegation can be the impetus for sustaining a productive, high potential organization. It can promote the bonds of trust and confidence between leaders and subordinates. Delegation will also enable and enhance communication. <br /><br /> A workplace environment that does not support or execute effective delegation practices may be unproductive. Some of the symptoms identified in such an unhealthy environment are: unmotivated employees who feel no pride or sense of ownership in their organization; frustrated employees who feel they are not given the opportunity to apply their expertise; lack of development and grooming for future organization leaders. These symptoms may also lead to the more common maladies and dysfunctional behaviors of employee absenteeism, tardiness, and turnover. <br /><br /> One final consideration on leaders who are “leery” about delegating tasks. Some leaders may feel if an employee is too successful in accomplishing a delegated activity, that employee may eventually supplant/replace the leader. Developing and grooming your replacement is part of a leader’s job. If you do not have a replacement, you may not be able to get a promotion to further your own career aspirations. Having highly successful employees should not be feared, but embraced. Some leaders may feel they do not have capable, competent employees within their staff to delegate important activities to. If this is the case, the employee is not the one at fault. The leader who hired the employee has possibly (probably) selected the wrong person for the organization. <br /><br />More information on leadership and delegation can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-86956344872218608872010-02-14T13:41:00.004-06:002010-02-14T14:19:12.680-06:00What's UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)Workplace Diversity - Across Age Boundaries<br /><br />In June and July 2009, I addressed the issues around workplace diversity in terms of multiple generations within the workforce (The Changing of the Guard - Parts 1,2, &3). Those blog entries focused on workplace practices of age discrimination against employees over 50 years old. Those entries may represent research bias and a 'slant' towards elderly workers. This bias is possible in part because I fall into the 50 and over crowd. However, sound ethical research consists of reviewing an issue from multiple perspectives. I would be remiss to not provide the other side of this topic. As a result, this entry will attempt to discuss age discrimination in the workplace from the perspective of the younger generation.<br /><br />Inaccurate Presumptions<br /><br />When the term age discrimination is discussed, it is typically presumed that an older worker has been treated wrong because of their age. It must be noted that there are also younger employees discriminated against because of their age. Having taught multiple aspiring business leaders and managers during the past five years at the University level, the stories of disrespect and discrimination shared by younger employees are just as unethical, immoral, and horrifying as older employees - in some cases even worse.<br /><br />Younger employees (i.e. recent college graduates; less than five years in their first job; age range approximately 21 - 29 years old) say they have experienced at least one of the following behaviors, attitudes or stereotypes at work:<br /><br />> Their opinion on work-related issues is not valued or solicited;<br /><br />> They are not taken seriously because they attempt to inject innovation or change;<br /><br />> They are told that they do not have the knowledge or experience to be successful;<br /><br />> In some cases, they are feared because they DO have the knowledge, skills, and abilitities to be successful that their older counterparts do not have;<br /><br />> Their salaries may be lower than other co-workers doing the exact same job, and with the exact same responsibilities.<br /><br />Upon Further Review<br /><br />In my June/July 2009 blog, I also mentioned the fact that older workers would be hesitant in spending their discretionary income on products and services of a company who released them. It may be reasonable to assume younger workers would feel the same way about a company who discriminates against them as well. Young workers also have significant discretionary income. TV video games, music and movie sales, and cell phone sales can attest to the selling power of our younger workers.<br /><br />In the prior blog, I displayed short-sightedness as I expressed my concern about effectively executing knowledge transfer processes with younger or newer employees in the organization. If technology and technological advancements provide a competitive advantage, and the younger workers have the appropriate technology savvy, knowledge management/knowledge transfer may very well produce the desired results. From my own personal experience, I can recall receiving on-the-job-training as a newer employee in the corporate world at the age of 21. I also recall successfully applying the business processes and procedures I was taught at the age of 21 years old. For me to think that I could be an effective employee at 21 years old over 30 years ago, and that today's 21 year old can not is narrow minded.<br /><br />Implications for the Future<br /><br />Similar to other forms of workplace discrimination, stereotypes based on age will continue to exist. Unfortunately, the amount of time employees invest in such behaviors and attitudes has a direct negative correlation in organization productivity and effectiveness. Many companies today are struggling with profitability(and survival). Business leaders must make every effort to implement and support a positive, healthy work environment which entails acceptance - regardless of one's demographic background. A non-inclusive work environment and organizational culture is counter productive. Aging is inevitable. Business leaders must ensure the knowledge management process includes all employees and values their opinions and ideas. <br /><br />Any practices opposite of inclusion and valuing diversity will fail. Additional review and investigation of workplace diversity initiatives may also help leaders identify another potential 'point of failure' in operating a truly high potential and effective organization. More information on workplace diversity can be found in Corporate Leadership Selection: Impact on Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog is always welcome and highly encouraged.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-17058505901238815072010-01-31T22:32:00.003-06:002010-01-31T22:34:15.857-06:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)Identifying and Resolving Business Issues<br /><br /> This entry discusses the “art” of identifying, addressing, and resolving business issues. Every organization has unforeseen or unexpected issues and challenges. Failure in providing solutions to business issues may adversely impact the organization in terms of employee morale, productivity, and effectiveness. <br /><br />Identifying Business Issues<br /><br />I characterize business resolution as an art (as opposed to a science) because the human element is involved. Business issues are typically not a part of the normal daily operations. To resolve them, someone within the organization must initiate a response to curtail, eliminate, or maybe even escalate the issue depending upon a desired or expected outcome. <br /><br />In today’s business environment, some of the prevalent business issues are:<br />• A decrease in profitability or stock valuation<br />• Insufficient communication on a newly-implemented strategy<br />• Turnover of talented people (yes, talented employees will leave a poorly run company in a bad employment environment)<br />• Lack of vision from the organization’s leadership<br />• Employee fear and anxiety as a result of corporate downsizing.<br /><br />A business issue can be generated from both inside and outside the organization. A business issue may arise from an external variable such as an economic downturn; a natural disaster which may hinder normal operations and business continuity; or even a shift in societal perceptions of the business or the business industry (i.e. banking and lending institutions). Business issues may also arise from internal variables such as union disputes; lack of skilled employees within the workforce; or changes in employee morale. <br /><br />One basic activity in problem solving is to identify the root cause of the problem. Implementing a business solution without addressing the primary cause will be expensive and potentially result in a re-occurrence of the problem. For example, hiring a new organization manager that is not a fit in terms of culture, values, and attitudes may negatively affect employee productivity and effectiveness. Resolving the issue may be more than replacing the manager who was not a fit. The root cause may be addressing the leader(s) who felt hiring this manager was a good idea. <br /><br />Another example would be reducing employee accidents in a manufacturing company. Whereas ensuring the equipment and working conditions are safe will help, the main issue may be providing sufficient training on the proper handling and operation of the equipment. Every issue must be thoroughly investigated, along with its risks and opportunities, to accurately address resolution. <br /><br />Employee Involvement in Problem Solving<br /><br /> Whatever the scenario, research has shown involving employees in the problem solving process has a positive effect on morale and productivity. First and most important, involving employees ensure those closest to the issue can offer resolution ideas from their first-hand experience. Second, involving employees demonstrates leadership confidence in their staff. Third, involving employees ensures that they have “skin in the game”, and a vested interest in an accurate, effective solution. <br /> <br />Failure in Solving Business Issues<br /><br />Applying the aforementioned strategy will greatly enhance the probability of business resolution. Conversely, neglecting the strategy of involving employees will result in failure. Some other things that will prevent business issue resolution and adversely affect productivity, morale, and effectiveness are: <br /><br />1. Focusing solely on solving the problem at hand rather than addressing the issue that initially caused the problem. Fixing the immediate issue while allowing the true root cause to remain is expensive. The same problem may occur again. <br /><br />2. Every organization should instill a discipline of problem resolution which includes a common, systemic approach to problem solving. When a problem arises, all members of the organization should be well-versed in the organization’s process and policy toward resolution. This common approach will facilitate success because employees will have the knowledge and experience on delivering the common organizational procedure.<br /><br />3. Finally, the organization must accurately assess the risks and benefits of problem solving and business resolution. Will solving one problem result in compounding another problem? Will solving a problem allow the organization to readily return to a state of business as usual? Will issue resolution of a business problem have a positive impact on employee morale and productivity? <br /><br />More information on leadership and resolving business issues can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com1tag:blogger.com,1999:blog-8692910574714931832.post-70362677291711989992010-01-11T09:37:00.002-06:002010-01-11T09:40:24.100-06:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)Leadership Vision and Integrity<br /><br /> For some, the definition, role, and responsibility of the leaders of the organization and the managers/supervisors of the organization are blurred. The leader of the organization and the managers of the organization are not the same. One of the primary roles of a leader is to establish and clearly articulate the organization’s vision. This blog entry will highlight the importance of communicating the organization’s vision, and setting organizational direction. <br /><br />Shared Vision<br /><br /> Leaders are visionaries. They envision a better tomorrow. They are also innovative. Leaders seek to change things from the way they are to an improved state. Business leaders monitor, measure, and analyze the existing state of the organization, and set the course for organizational improvement. <br /><br /> Human nature facilitates doubt, cynicism, and resistance to change. Because of this inevitable behavior, leaders must be adept in explaining why embarking upon a change in the status quo is in the best interest of all organization constituents (i.e. employees, vendors, suppliers, shareholders, community, etc.). As a result, leaders must communicate a “shared vision”- one that has value and benefit for all of those affected by the proposed change.<br /><br /> Leaders who ask the organization to buy into a future that will have an adverse impact on organization constituents are futile. As an example, a business leader whose vision is to increase shareholder value, but does harm to the environment – or society in general may fail. Moreover, a leader whose vision is to increase organization profitability by reducing operating expenses via employee layoffs will not be successful (in the long-term). Finally, if the organization leader’s vision is rewarding or fulfilling to only the organization leader or a select few in the organization, the overall productivity and effectiveness of that organization will suffer. <br /><br />Leading Change in Times of Change<br /><br /> We live in a world of constant change. We are currently driven by a technology-based environment. Five years ago, maintaining business networks and social networks through facebook, twitter, etc were non-existent. Ten years ago, conducting business via webcams and international conference calls was in an infancy phase. Over twenty years ago, offshoring jobs to other countries with a workforce of arguably comparable skills, but lower salary and employee benefit demands had not been fully implemented. <br /><br /> In today’s business world, we expect our leaders to offer a shared vision for five to ten years in the future when the business climate over the next two to three years is uncertain. As future, aspiring leaders, you must examine past experiences (your own personal experiences as well as the experiences of others in leadership roles). What types of change have you envisioned in your personal life? What types of barriers did you overcome to achieve your objectives? How have you gone about soliciting support from others to reach a common goal? Having a feel for what has and has not worked in the past may serve as a guideline for communicating and leading future initiatives. <br /><br />Involving Others – Seeking New Ideas<br /><br /> Leaders are also proficient at involving and empowering others to achieve a shared vision. Leaders recognize that new ideas and support for innovation can come from anywhere and almost anyone. Therefore, leaders strive on communication. The flow of information and the interaction between those who share the leader’s vision is essential. However, seeking new ideas and steering away from the norm also means taking risks. When taking risks, there is always a matter of trust and confidence involved. <br /><br /> As a result, carefully entwined with a leader’s vision and innovation is their credibility. Few things endear employees more than the credibility and integrity of the leader. As a leader, you must always do what you say you will do. If you have always kept your word, and established a pattern of successful innovation in the past, this will minimize employee doubt concerning the future. <br /><br /> Organization leaders with a high degree of credibility and integrity typically find themselves surrounded with employees who are proud of their organization; speak favorably of the organization to others; and feel a sense of belonging and ownership in helping the organization achieve the shared vision and reach what may otherwise appear to be insurmountable goals and objectives. Consequently, leadership vision and innovation can be achieved through communication, examining past experiences, involving others, and consistently performing with a high degree of integrity. On the other hand, not communicating (or miscommunication of) the vision, not involving others, or not acting with integrity is a guaranteed recipe for failure. Failure in implementing innovation may result in poor employee productivity, effectiveness, and morale. It may also result in a poor or undesirable reputation among the other organizational constituents. And these dysfunctional behaviors inevitably hit the organization bottom line and the primary organizational goal – profitability. <br /><br />More information on leadership and vision can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com1tag:blogger.com,1999:blog-8692910574714931832.post-35175159164830997252009-12-29T13:07:00.001-06:002009-12-29T13:12:45.006-06:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)Goal Setting<br /><br /> At the end of each year, we inherently reflect upon our accomplishments for that year. Have we been successful in achieving what we set out to do? Have we exceeded our expectations as well as the expectations of others? If we have not met expectations, what will be done to improve? After evaluating our performance, we focus our sights toward setting goals for the upcoming year. This week’s blog will address the goal setting process within the business environment, and offer tips for crafting viable individual goals and an individual development plan. <br /><br />SMART Goals<br /><br />A widely accepted business practice is developing “smart” goals. This acronym defines goals as: specific, measurable, achievable, realistic, and timely. Developing goals is essential to both the manager and employee for evaluating performance and establishing a plan for continuous development and improvement.<br /><br />First, your goal must be specific. It must be clearly defined and address what will be accomplished; how the goal will be accomplished; and why the goal will be accomplished (i.e. what is the reason or what is the benefit of achieving the goal). Second, the goal must be measurable. Short-term or periodical milestones should be identified to evaluate progress in meeting the goal. Periodical milestones help gauge progress and determine if the goal will be completed as planned, or if there is a need to readjust and reforecast the goal. <br /><br /> Third, the goal must be achievable. Have you set a goal that will challenge you? Do you possess the knowledge and skills to complete the goal? Setting a goal that is not attainable may adversely impact your morale and motivation. To help ensure an achievable goal has been established, it is a sound practice to have agreement between manager and employee on the set goal. Fourth, the goal must be realistic and results-oriented. The goal must be relevant to the organization, and can be achieved with the appropriate employee knowledge and available resources. Fifth, the goal should be timely. Every goal should be defined with a timeframe for completion. Again, the timeframe should present a challenge and precipitate a sense of urgency in providing a tangible, quality result. <br /><br />Alignment of Employee Goals and Organizational Goals<br /><br /> The next step in the goal setting process is critical. If your goals are not aligned with your organization’s goals and objectives, it does not matter how “smart” they are. You will not receive support from the leaders and managers in your organization to meet those goals. Further, you may (will) encounter significant resistance and disdain towards conducting activities that will benefit your personal growth and development at the expense of the organization. In this scenario, you have not established a smart goal, but a “dumb” goal. A dumb goal can be characterized as one that is: Detrimental to the organization’s objectives; Undermines the organization’s objectives (and/or is unreasonable); Mis-aligned with the organization’s objectives; and is Broadly defined without enough specifics to be understood or accurately evaluated. <br /><br /> Part of the leader’s role in the organization is to reward employees who consistently demonstrate the organizations’ desired behaviors and attitudes, and who deliver the organization’s desired results. Developing and attempting to execute “dumb” goals will provide the opposite leadership reaction. Employees who are not aligned with the organizational goals, objectives, and mission will be alienated and will not be rewarded. <br /><br />Implications of Setting “Dumb” Goals<br /><br />The organization objective is to make a profit. If your individual goals and individual development plan does not align with the organizational goals and objectives, you will not have the support of your management team in achieving those goals. If your personal goals require financial assistance, or time away from the job for classroom training, you may not receive that assistance. Moreover, the degree of resistance could result in termination. For example, your organization’s goal for 2010 may be to improve profitability by decreasing operating costs. The desired method for cutting costs may be reducing staff and eliminating unnecessary tasks. If your personal goals and individual development plan do not support this organizational goal, you could find yourself as part of that planned workforce reduction. <br /><br /> In order to receive support for individual goals and development, you must first understand the organizational goal; ensure your individual goals will contribute to the success of the organizational goal; and clearly articulate the expected results and benefits to the organization of accomplishing your goal. In addition, make sure to include periodic milestones in order to review your progress. These milestones can serve as an ideal mechanism for communication and interaction with your manager/leader on your work performance. <br /><br /> Finally, the goal setting process must be an open, honest dialogue between manager and employee. All established goals should be agreed upon – by both parties. Lack of communication leads to ineffective and unproductive employees. Open and honest dialogue ensures that both manager and employee have a vested interest in successful completion of the goal, and facilitates a much simpler and stress-free end of year performance review.<br /><br />More information on goal setting and the performance evaluation process can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com2tag:blogger.com,1999:blog-8692910574714931832.post-1024409287840542752009-12-13T10:12:00.001-06:002009-12-13T10:16:24.817-06:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)Employee Performance Reviews<br /><br /> As the end of the year rapidly approaches, managers focus on the employee performance evaluation process. For both managers and employees, performance evaluations have unfortunately precipitated undue stress and uncertainty. This week’s blog addresses performance evaluations as a beneficial mechanism for employee communication, motivation, and development. <br /><br />Communication<br /><br />Open and honest communication between employee and manager is an essential component of organizational effectiveness and productivity. One of the basic leadership guidelines is to clearly articulate and communicate the organization’s mission, goals, and objectives to all employees. When conveying the organization’s direction, this communication can be done as a town-hall meeting, a formal/informal group discussion, or on an individual basis. But once the communication is done, feedback on one’s performance in meeting expectations is typically one-on-one. <br /><br /> To be effective, communication must also be done consistently. An end of year performance review should not be the one and only time an employee receives feedback on their performance. While there are no set guidelines on how often feedback is given, some organizations and managers have experienced significant success in conducting weekly or monthly performance discussions with employees. Further, there are highly motivated employees who are willing to take the initiative and ask their manager to provide input on their (the employee’s) performance. Conducting such informal reviews and providing employee feedback minimizes any potential “surprises” in the end of year performance review. <br /><br />Employee Performance Reviews and Employee Motivation<br /><br /> Another leadership cornerstone of organizational effectiveness and productivity is to reward employees who consistently perform their duties above expectations while demonstrating the desired behaviors and attitudes of the company. The employee performance evaluation process may help to administer monetary rewards, employee recognition, and promotion opportunities. If an employee’s performance is producing operational and/or financial success for the company, the performance review is an appropriate avenue for discussing individual rewards and recognition for hard work. <br /><br /> On the other hand, the performance review discussion is also the appropriate avenue to discuss any work-related deficiencies and the need for improvement. When discussing employee work deficiencies, managers must provide specific examples of what was done wrong; what the impact of the poor performance was; recommendations on how to improve; and a sincere commitment to help by removing any barriers that impedes the employee from doing a good job. If the negative impact of poor performance and the consequences of continued poor performance are clearly explained, it may serve as an incentive to the employee for immediate improvement. If the negative impact of poor performance is not communicated, the result may be continued poor work performance, and poor operational/financial results.<br /><br />Employee Performance Reviews and Employee Development<br /><br />The third and final benefit of the employee performance review process is to identify employee development opportunities. Employees who are passionate about doing a good job want input on how they are doing and how they can continuously improve. Highly motivated and high potential employees also have individual development plans. These development plans describe their strengths, weaknesses, and individual goals and aspirations. <br /><br /> An important manager role is to understand their employees’ individual goals and ensure employees’ individual goals align with the organization’s goals. Communicating and aligning organization and employees goals should be done at the beginning of the year between manager and employee. Expectations and desired results (for both sides) should be discussed and accepted at that time. If there is agreement, acceptance, and alignment of the performance expectations at the beginning of the year, the performance evaluation discussion will be easier with minimal degrees of stress, anxiety, and uncertainty. The next blog entry will discuss the goal setting and individual development plan in more detail. <br /><br />More information on employee performance reviews can be found in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-4500796520820037442009-11-30T11:20:00.000-06:002009-11-30T11:21:55.445-06:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)Technology and the Human Resource Function<br /><br /> During the past 25 years, the organizational HR role has experienced a change in how it is utilized. Large and small companies alike have undergone a transformation in the HR role and the use of HR professionals. The Society for Human Resource Management (SHRM), with over 250,000 members, has provided development, training, certification, and guidance on the values and benefits of having qualified HR professionals in the company. Given the opportunity and leadership support, HR personnel can successfully lead (and have successfully led) organizational development and organizational learning initiatives. This week’s blog will discuss three areas of how the organizational HR role has evolved, and the implications for future HR contributions as a result of technological advancements. The three areas are: personnel administration; external hiring; and management of corporate policy violations. <br /><br />Personnel Administration<br /><br />Corporate HR staff remains accountable for employee administrative functions such as: overseeing payroll disbursements; processing hiring and termination correspondence; and developing personnel reports (i.e. company demographics, employee training metrics, and possibly company newsletters associated with public relations activity). Although HR staff may enter employee salary increases in official company records, this information is typically determined by line managers and/or leaders not in the HR department. In large companies, this information is automated and HR is not involved in the process at all. Further, there are computer software programs implemented in some companies that will allow employees to resign from the company without involving anyone else within the company. <br /><br /> In prior years, organization development and training required coordination of face-to-face classroom sessions which would impact employee productivity. Technology advancements have introduced convenience into employee training. Webinars, webcams, and online classes are used to help companies train employees, yet minimize their time away from work. The amount of effort and human intervention in conducting organizational training and development may be reduced. <br /><br />Hiring External Employees<br /><br /> The second change in the HR role is in the external hiring process. In years gone by, HR played a significant role in the recruiting, interviewing, and selection process of new employees. HR personnel solicited candidates through want ads; participated in career fairs; scheduled interviews; and contributed to selection decisions. HR still participates in these activities; however, the degree of participation has changed. Soliciting talented professionals is done by websites like monster.com and career builder.com, and external search firms that use technology-based search engines to acquire and manage employee resumes and employee databases. These hiring activities are still done with guidance from HR.<br /><br /> Line level managers have taken a more active role in the hiring process. Whereas HR will solicit job openings and select interview candidates (based on keyword searches in one’s resume), the hiring managers determine who will be interviewed and selected. When selecting technology professionals, HR’s role may be reduced, especially if the HR professional has no knowledge or expertise of the technical skillset being sought. To streamline the interview process, it is a common practice to conduct a phone interview with prospective employees before investing time and energy in the face-to-face interview. To further streamline the process, companies may even employ the services of an external hiring agency to find the right candidate. Using an external agency may result in bypassing the HR department altogether. External search agencies have the appropriate experience in identifying talent. However, external search agencies may not understand the attitudes, behavior, and culture of the organization they are hiring talent for. This may lead to additional organizational productivity challenges.<br /><br />Oversight and Prevention of Employee Wrongdoing<br /><br />The third change in the HR function is how employee violations of corporate policy are handled. Employee violations of sexual harassment, discriminatory hiring and promotion practices, workplace violence, misuse of corporate resources, accessing inappropriate websites, and contributing to a threatening work environment were previously reported, investigated, and curtailed by HR. In today’s heightened security environment and concern over financial risk, major corporations have established an Office of Ethics (or some companies call it the Compliance Office). <br /><br /> It is important to note the corporate office of ethics does not generate any revenue for the corporation. The office of ethics is comprised of legal professionals. Their sole objective is to mitigate risk to the company. Either the office of ethics or the HR department may communicate information on corporate policy and corporate compliance. Employees may even report violations to either department. However, investigation, possible prosecution, and reporting of corporate wrongdoing are handled by the office of ethics. Also note that reports of wrongdoing are not typically shared. Where HR may have played an essential role before, the office of ethics is now the focal point for such issues.<br /><br />Future Implications for the HR Role<br /><br /> The corporate HR role has changed. Technological advancements have replaced the need for a number of activities that previously required human intervention. In large, multi-million dollar companies, HR professionals may see their role diminishing. In small to mid-size companies, the HR role might be done by non-HR professionals. These smaller sized companies may be able to benefit from having an HR professional. Technology may help to streamline the HR function.<br /><br />Without subscribing to a purely quantitative measuring stick in defining a large company versus a small company, perhaps an easier depiction is whether the company has an office of ethics or not. If a company has established an ethics office with legal professionals, it implies that there is a substantial amount of financial risk for employee wrongdoing. But it also may imply that the company acknowledges the fact that there will be employees who do not adhere to the corporate policy, and that there will be a need to minimize the financial penalty for such wrongdoing. The HR professional may not be trained in mitigating this risk, but they may be beneficial in its oversight.<br /><br />More information on employee morale and productivity can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-79664776672014024582009-11-23T11:35:00.001-06:002009-11-23T11:37:55.058-06:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)Addressing the U.S. Unemployment Rate<br /><br /> Since January 21, 2009, President Barack Obama and his administration have attempted to rectify a multitude of issues plaguing our nation. He should be commended for his efforts. The next challenge on the administration’s agenda is the U.S. unemployment rate. According to U.S. Department of Labor Statistics, the reported unemployment rate has surpassed 10%. This number is based on unemployment claims. It does not include those who are unemployed, but have not filed for unemployment assistance. <br /><br />This week’s blog highlights two critical elements that must be addressed in order to reverse the existing unemployment trends. The two critical areas identified are corporate mergers and acquisitions; and offshoring jobs to other countries. The attitudes and behaviors in Fortune 500 companies when laying off American workers may influence the attitudes and behaviors, and operations of small to mid-size companies – thus adversely affecting the overall health of our economy.<br /><br />Mergers and Acquisitions<br /><br />I am fortunate to have spent over 30 years in Corporate America. The business strategies, operations, and relationships I experienced are priceless. During the very first-six months of my career as an educated (yet somewhat naïve) junior executive, I noticed the stiff competition within the industry I worked. In a meeting with my director, I asked why our company didn’t merely acquire or “buyout” one or two of the smaller companies within our industry. This would increase our market share and decrease a percentage of our competition. The response I received was “federal regulatory agencies would not permit a company of our size (and influence) to grow too large. It may result in an attempt to monopolize the market and/or deter fair competition and trade.” <br /><br /> The acceptance of multi-billion dollar corporate mergers and acquisitions has evolved in the U.S. corporate landscape. Thirty years ago, federal agencies were more vigilant in monitoring corporate operations that could potentially harm fair trade and competition. During the past eight years, less government oversight has facilitated a trend in merging, acquiring, downsizing, offshoring, and eliminating businesses. The banking and lending industry is an example of how merging/acquiring companies within that industry have affected our economy. <br /><br />The Case Against Corporate Mergers and Acquisitions<br /><br /> Corporate mergers and acquisitions are not good for the U.S. economy for three reasons. First, when two separate companies exist and compete in the marketplace, there are two separate groups of employees at each company. In addition, competitive pricing provides consumers with viable options. When those two companies merge, there is no longer a need for two employees doing the same job. Someone is eventually released. <br /><br /> Second, the released employee may feel resentment toward the company and choose to purchase goods and services from another company within the industry. Even worse, the released employee may no longer have the financial resources to purchase goods and services from any company, thus decreasing revenue generation throughout the industry. Third, if there is no competition (or limited competition) within an industry, a company may price goods and services however they deem appropriate for being profitable (i.e. price gouging) – without any consequences. As a result, the business strategy of merging/acquiring other companies is not a means of maintaining a sound U.S. workforce and strong economy.<br /><br />The Dilemma of Offshoring U.S. Jobs<br /><br />The primary goal of every business is to make a profit. Companies must generate enough revenue to cover its expenses. A popular company strategy is to “offshore” a portion of the organization to a business entity in another country. This entity may be an affiliate of the corporation or a separate entity altogether. A company may implement this strategy in an effort to reduce employee operating expense by utilizing a workforce whose salary, healthcare, and medical expenses are far less than the expense incurred in using the American workforce. Further, the company may have identified favorable tax laws in another country or a workforce with comparable knowledge, skills, and abilities as the U.S. workforce. <br /><br /> This strategic approach provides a short-term benefit. The salaries and healthcare expenses for U.S. workers are eliminated which will result in improved profitability. However, just like in the case of corporate mergers and acquisitions, the attitudes and behaviors of released employees may result in a drastic reduction in revenue, thus defeating the objective of downsizing in the first place. <br /><br /> Based on leadership’s prior behavior, integrity, and interaction with their environment, the method(s) by which a company executes an offshoring or downsizing initiative may result in a “boycott” of the company. This may be done not only by released employees, but also by released employees’ friends and family members; vendors; suppliers; and possibly even employees chosen to stay at the company (the anxiety and questions of who’s next to be released can be de-moralizing). Above all, the reaction of the investment community will determine corporate long-term success of failure. If the company’s investors are not comfortable with the potential profitability of the company, the company will fail. <br /><br /> Therefore, any incentives, plans, or other attempts to reduce our national unemployment rate must consider addressing these existing ineffective corporate practices. These practices have significantly contributed to the unemployment rate, and will continue to do so. Finally, this “big company” approach to laying off workers has trickled down to the small and mid-size companies, and the national unemployment rate is higher than the reported statistic of 10% because of it. <br /><br />More information on employee morale and productivity can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-79163751656934527842009-10-25T06:22:00.002-05:002009-10-25T06:29:01.084-05:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)Employee Morale During Corporate Downsizing<br /><br /> The focus of successful business leaders is to develop and maintain a motivated, energetic workforce that is capable of delivering desired business results. Simultaneously, business leaders must keep their finger on the pulse of the organization to accurately interpret and react to an ever-changing economic environment. In today’s turbulent economic climate, this challenge relies on a leader’s ability to maintain/improve team effectiveness and team productivity even though some members of the team have been released. This week’s blog addresses the difficulties of maintaining high employee morale during a period of company layoffs. <br /><br />Innovative Downsizing Strategies<br /><br />Once the downsizing/employee reduction decision has been made, major corporations have used one of three (or a combination thereof) means for reducing employee operating expenses. Sometimes, companies “outsource” a portion of their organization to another company that specializes in the operation being downsized. For example, instead of maintaining a marketing department or technology support team, a company may eliminate these roles internally and enter into a contract with another company to perform them externally. The primary advantage corporations realize from this activity is elimination of employee payroll expense, healthcare, and medical benefits. The amount paid to an outsourced contract firm is far less than employee payroll expense. <br /><br /> Another popular company strategy is to “offshore” a portion of the organization to a business entity in another country. This entity may be an affiliate of the corporation or a separate entity altogether. The advantage to the corporation is a significant reduction in employee operating expense by utilizing a workforce whose salary, healthcare, and medical expenses are far less than the expense incurred by using the American workforce. There is concern over standardization of employee compensation and employee engagement practices in other countries (however, that discussion falls in the category of corporate social behavior and ethical business practices – to be discussed in a future blog). <br /><br /> A third strategy is to merely reduce the existing workforce. While the U.S. Department of Labor quotes the unemployment rate at approximately 10%, some companies have reported layoffs and labor reductions well in excess of that percentage. Corporations have vigorously attempted to maintain high productivity levels with fewer employees. Some companies have even tried to do more with fewer employees. In the cases where a company reports success in this endeavor, they might not necessarily share information on employee morale - which may have been severely impacted. <br /><br />Employment Fluctuations – A “Natural” Behavioral Pattern<br /><br /> Fluctuations in employee staffing is a natural evolution. Companies grow and increase their workforce. Companies shrink and reduce their workforce. Companies aggressively manage their workforce and “prune” out those who do not consistently meet the expectations of their role. Nonetheless, employee morale is also a natural behavior. The stress and anxiety level of those chosen to stay is arguably just as high as those chosen to be released. Most corporations utilize outplacement services to help workers through the layoff process. These services can offer assistance with filing unemployment insurance claims. Outplacement services can also provide guidance and assistance in “re-tooling” employees for other job opportunities.<br /><br /> Employees that have not been eliminated may deal with stressful issues such as: “why was this employee selected to stay and that employee was selected to go”; “will there be another layoff”; “will I be eliminated next”; “how much more work am I expected to deliver”; or “have I been given the appropriate training to carry an additional workload”. These are all “water cooler” and hallway discussions that inevitably decrease the amount of time employees are effective and efficient in completing their tasks. Leaders must play an integral role in reducing chaos and maintaining productivity during this time.<br /><br />Open and Honest Communication<br /><br /> In order to maintain an effective work environment, leaders must confront the issue with integrity, honesty, and vision. Every company has goals, objectives, values, and a mission. In a time of layoffs, leadership must consistently re-iterate the corporate goal; the role employees play in achieving the corporate goal; and any reassurance possible that the remaining employees are a valued part of the corporation’s future. If the company’s leadership has consistently operated with a high degree of integrity and honesty in the eyes of their subordinates, the probability of successfully maintaining morale and productivity will be higher than if leadership is perceived as dishonest, untrustworthy, and unethical. Further, the leadership behavior and attitudes displayed when executing an employee reduction strategy is not only observed by the company’s employees. Corporate vendors, suppliers, competitors, and investors are also closely monitoring these activities. It is truly a difficult scenario.<br /><br />More information on employee morale and productivity can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-68037750229892688172009-10-13T11:30:00.000-05:002009-10-13T11:31:12.186-05:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective) <br /><br /><br />Corporate Leadership Development<br /><br /> Leadership development is the crux of long-term success of business operations. It focuses on identifying, evaluating, and improving the knowledge, skills, abilities, and competencies of those chosen to lead the organization. Leadership development may also “shape” one’s values and attitudes in conjunction with the organization’s values and attitudes. Finally, leadership development addresses one’s ability to lead others. <br /><br /> Across all industries, there are leadership development programs. There are leadership development programs in most major universities. In our technology-based society, there are also seminars, webcams, virtual classrooms, newsletters (and yes blogs) on leadership and leadership development. With so many avenues for leadership training and development, the question still remains why are there so many organizations with poor, unqualified leadership?<br /><br />This week’s blog highlights the role of leadership development; those fortunate to be selected for leadership development; and the consequences of poor selection of leadership development candidates.<br /><br />The Role of Leadership Development<br /><br />First, and most important, I will address the age-old question: “Are leaders born or are leaders developed?” While there is significant and far reaching research that shows one may be born with viable leadership traits, I am firmly in the group that believes leaders are developed. Regardless of the leadership traits, skills, or innate patterns one demonstrates, you must still undergo an “experiential process” to develop, enhance, and perfect those skills. Retention of leadership concepts through training classes has been estimated in the range of 10-15%. There must be a comprehensive, “hands-on” approach of transferring knowledge and developing leadership skills.<br /><br />Some researchers argue that leadership traits can be observed at childhood. Some children “naturally” take the lead and demonstrate leadership behaviors with peers in their social environment (i.e. school; extracurricular activities; other siblings, etc). However, demonstrating leadership skills at an early age may highlight those who are willing to follow just as much as highlighting those who are willing and able to lead. Part of human nature is to consider ideas and solutions from others when/if we do not have an idea or solution of our own. <br /><br />Second, leadership development helps the organization fill the pipeline with capable, qualified leaders to ensure continuity of business operations. In a time of economic downturn, many companies look for ways to minimize expense. Unfortunately, one of the first areas to get cut is training and development. The short term effect is potential increased profitability from eliminating an expense. The long term effect is a potential organization in disarray without developed leaders in place to provide vision, clarity, and direction as the organization navigates through a highly competitive business environment. Finally, how can an organization successfully select and retain talent if they have no program for developing that talent (any volunteers for working in an organization that cannot or will not provide you with development and training opportunities)?<br /><br />Selecting Leadership Development Candidates <br /><br />The next crucial component in leadership development is determining who will be selected for leadership development. It is imperative the organization has a fair, un-biased employee performance appraisal process in place to accurately evaluate employee performance and potential leadership candidates. Multiple reports provided by the U.S. Equal Employment Opportunity Commission (EEOC) identify biased, unfair (and illegal hiring practices). Further, EEOC reports documented substantial financial penalties organizations have paid because of unfair employee promotion and employee salary practices. If the selection process for leadership development emulates these dysfunctional practices, the long term consequences will also result in financial disaster. <br /><br />The cost of replacing incompetent, unqualified leaders is expensive. The organization must retrace its steps: re-state the leadership qualifications and the role it is trying to fill; re-identify and re-evaluate viable candidates; and re-select a leader. Without internal leadership development, the organization may seek external leaders. Though an external leader may have the competencies to be successful, will their values, attitudes, and beliefs align with the organization? The possible damage to organization morale, team effectiveness, and employee productivity may be impacted. Employees will lose trust and confidence in the organization if their existing leadership cannot display integrity and ability in selecting good talent. Finally, heightened vigilance for not adhering to government regulations will result in hefty fines and potential negative reaction from the investment community – which all organization’s proactively seek to avoid. <br /><br />Implications for Aspiring Leaders<br /><br /> The role(s) of the leadership selection process and leadership development are not new. They have been in existence for decades. For those aspiring to become leaders in today’s business environment, the following tips will be beneficial:<br /><br />• Invest time and effort in your individual development plan. Make sure you conduct an accurate self assessment of your strengths and weaknesses.<br />• Discuss your self assessment with your manger/leader and devise a plan to help improve your skills – together. <br />• Seek input on how to get selected (or considered for future selection) into the organization’s leadership development program. You will not become a leader within that organization if you are not included in this development. You may successfully deliver significant initiatives for the organization which will result in other types of rewards and recognition, but it will not result in a leadership role. <br />• Follow up with your manager/leader on a specified period of time to ensure you are adequately fulfilling the goals, objectives, and milestones in your individual development plan in conjunction with the organization’s goals, objectives, and milestones. If there is not alignment, your priorities will not translate into the desired results.<br /><br />If you are meeting/exceeding the expectations of your role within the organization, and following these guidelines do not result in leadership development for you, you might not be a fit for that organization. More information on leadership integrity can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog enDr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-65395230111206491332009-09-27T23:55:00.000-05:002009-09-27T23:56:28.964-05:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective) September 27, 2009Corporate Leadership and Integrity<br /><br /> In our 21st Century business environment, integrity is arguably the top characteristic of successful leaders. The integrity of corporate senior leadership (i.e. CEO’s, Presidents, Vice Presidents, Corporate Board Members, Senior Managers, etc.) is closely monitored – and scrutinized – by employees, vendors, suppliers, stockholders, and other leaders. In addition, senior leadership integrity may be emulated by those who aspire to become senior leaders. <br /><br /> The definitions of corporate leadership integrity differ for one primary reason: there is no universal acceptance of what ethical, moral behavior is. For example, a corporate leader’s interpretation may be different from that of an employee, a vendor, an investor, or the citizens of the community in which the business operates. Most definitions of integrity I have researched include the following:<br /><br />• Acting in an ethical, honest, and moral manner;<br />• Your actions and behaviors when everyone is watching compared to when no one is watching;<br />• Standing up and speaking out when you encounter unethical, immoral behavior of others.<br /><br />This week’s blog, albeit rather short, will address some of the challenges of corporate leaders and integrity. <br /><br />Current-Day Business Issues and Integrity<br /><br />The temptation of financial gain and notoriety from corporate success is great. Sometimes the fine line between ethical, moral, and legal activity becomes shaded. Corporate stockholders and the investment community expect a constant and predictable return on investment. If a company delivers a 5% ROI in a quarter, the company must devise and produce additional efficiencies to deliver another 5% ROI the following quarter – or risk stockholders selling their stock. Sometimes finding innovative ways to consistently increase ROI results in unethical, immoral, or maybe even illegal behavior. <br /><br />Senior leaders, specifically CEO’s wield significant clout. CEO’s of our Fortune 100 companies may influence our cultural, environmental, and social values and attitudes. I encourage you to research the activity and impact of the senior leaders of Enron and WorldCom during the past 10 years as a reference to the societal consequences of leadership integrity and behavior. Also examine the Sarbanes Oxley Act of 2002 for requirements of corporate leaders to help prevent future improprieties. <br /><br />Considering the ramifications of unethical behavior, stakeholder reaction is mixed. On the one hand, stakeholders become disappointed, disgruntled, and frustrated when they hear reports of unethical behavior from their leaders. In addition, the level of trust in senior leadership is lost. Think about what your own personal feelings were when (if) you experienced such dysfunction. Think of how such news impacts your morale about the company you work for. On the other hand, some stakeholders find solace in the fact that their leaders are human and can make mistakes like the rest of us. Yet, some stakeholders are envious of leaders and aspire to become a leader. These stakeholders may even look to emulate the senior leadership behaviors they observe, regardless if the attitudes and behaviors are considered to be ethical or not. <br /><br />Seeking Feedback on Your Leadership Integrity <br /><br />If you currently serve in a management or leadership role, and you firmly believe that you consistently act in an ethical manner, I encourage you to seek input from others. Feedback is a gift. Just like you provide open and honest performance feedback to your employees and suppliers, they can also offer you open and honest feedback on your performance and behavior. If obtaining this valuable information is a challenge, then try a method by which subordinates, peers, and vendors can provide feedback confidentially. Whatever ethical means is used, you want to get this input and compare it to your own self assessment. You may find that your attitude, behavior, and values meet the expectations of those you work with. But you may also find out that you attitude, behavior, and values do not. In any case, please remember and adhere to the following acronym: DWYSYWD (do what you say you will do). Always keep your word. Leadership integrity and trust can be difficult to build, but it is very easy to tear down. More information on leadership integrity can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-10347480817686395812009-09-14T12:12:00.005-05:002009-09-14T12:15:42.060-05:00Employee Layoffs - The Corporate Downsizing InitiativeWhat’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)<br /><br /><br />Employee Layoffs – The Corporate Downsizing Initiative<br /><br /> The primary goal of every business is to generate a profit. When a company’s expenses exceed its revenues (or when the financial projections may result in an operating loss), a common, acceptable leadership strategy is to reduce expenses. In today’s fragile business environment, employee layoffs – also known as “downsizing” – is one of the more prevalent practices used to reduce operating expenses. This week’s blog will address the challenges of downsizing, and highlight the dilemma leaders potentially encounter with this initiative.<br /><br />Downsizing and Leadership Decision Making<br /><br />Leaders face three tough challenges once the decision to downsize has been made. First, how much of the workforce must be released. If too many employees are released that daily operations cannot be maintained, leaders may seek to bring back released workers. Another option would be to contract temporary workers to fulfill a specific need. The advantage of using knowledgeable, skilled contractors is that the desired work gets completed and there is only a short-term expense to the operating budget (once the job is complete, the contract can be terminated. In addition, there are no healthcare and medical benefits to be paid for temporary contractors). The disadvantage of using temporary contractors is their lack of knowledge about the company and its culture. There may be a need for new employee orientation which could affect productivity. On the other hand, if too few employees are released, leadership will have the unenviable task of subsequently releasing more people. The impact of multiple downsizing activities is low employee morale of the remaining workforce, and their lack of confidence and trust in their company’s leaders. Employees become more concerned over who will be let go next (particularly themselves), than actually producing the results they were hired to deliver. <br /><br />The second decision in employee downsizing is determining who to let go. Downsizing the more experienced “knowledge workers” within the organization results in lower productivity and facilitates team inefficiency. Downsizing the “younger” less-experienced workers has the long-term effect of not developing talent and not filling the pipeline with a capable workforce for the future. Yet, daily business operations must be sustained while handling this challenge. Further, the main objective – the primary goal of generating a profit – must drive the process when making the layoff decision(s).<br /><br />Many companies have identified that downsizing the more experienced, long-term employees reduces payroll expense, healthcare and medical claims, and pension costs. However, this results in only a short-term expense reduction. The expense of training and developing inexperienced (and sometimes unqualified employees who ultimately are let go) offsets the anticipated gains of releasing higher priced workers. <br /><br />Where feasible, a significant effort has been made to either offshore jobs to other countries, or to hire workers from other countries into domestic operations at a lower labor wage rate. This desired lower labor wage expense also takes into consideration the cost (and employee utilization) of healthcare and medical benefits. One of the most heated debates on American quality of life and U.S. citizens’ rights is access to healthcare and medical help. This societal issue is a tremendous opportunity for leadership in the business community to step up and be a part of the solution (corporate social responsibility and corporate citizenship will be discussed in a future blog).<br /><br />Open and Honest Leadership Communication <br /><br />The third leadership decision in the downsizing process is when and how to communicate to employees they are being let go; in addition, how and when to communicate to the remaining employees newly defined roles, responsibilities, and expectations as a result of the layoffs. Whereas many companies are agree with the need to downsize, there are vast differences in their techniques in carrying out this delicate and sometimes difficult task. Fear of negative responses and repercussions such as: verbal abuse; physical abuse; lawsuits; damage to company property; and slander of company reputation have facilitated the use of technology to carry out the communication activity. What should be a personal face-to-face discussion, albeit a tough conversation is now being done by telephone, or by email, or other electronic non-personal means. In my book on Corporate Leadership Selection, I briefly discuss a software package that when implemented, will draft employee an termination letter; calculate employee severance pay; and discontinue employee access to the company’s resources (i.e. computer, building access, and other security related material). <br /><br />Although downsizing is a “necessary evil”, there are more personal and professional means of conducting this difficult leadership activity. From a personal perspective, I have not experienced or participated in these leadership behaviors. However, more information on others’ experiences with downsizing can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-84355499171818410292009-08-24T00:10:00.004-05:002009-08-24T00:14:47.880-05:00What's UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)University of Illinois Board of Trustees - Application Admissions Activity<br /><br /> In July 2009, the University of Illinois Board of Trustees were reported to have tampered with university admissions applications and admitted lower qualified (or maybe even un-qualified) applicants based on clout. Alleged charges also focused on a potential violation of the Illinois Ethics Act rules on nepotism. In August 2009, the University of Illinois Chairman of the Board of Trustees resigned. From a leadership perspective, the implications of this behavior by the members of the board of trustees goes much further than the perceived notion of admitting non-qualified students into the university. This week’s blog will address some of the ways the University Of Illinois Board Of Trustees’ activity may impact society in general. <br /><br />Concerns of Using the Concepts of Clout in Academic Admissions<br /><br />OK, there is the possibility that a “few students” did not meet the university’s admissions qualifications, but were admitted anyway. First, how long has this activity been going on? Once admitted, have these students demonstrated their ability to grasp the knowledge to pass the classes in their respective schools of study? Or do the concepts of clout extend to the classroom and the academic assessment process as well? Has anyone (inside or outside of the university) monitored the progress of students who did not meet admissions standards to see if they met the graduation requirements – yet were still allowed to graduate? Or, do the concepts of clout and privilege supersede the concepts of meritocracy and fairness? <br /><br />In accordance with privacy and confidentiality regulations, no student names were given – and rightfully so. However, there are dire future circumstances if unqualified students were admitted to the university; graduated from the university; and placed in professional careers throughout our “fragile” business environment which is already challenged with immoral, unethical, illegal behavioral trends. Some potential pitfalls are discussed below. <br /><br />Potentially Societal Impacts<br /><br />There are no details of the academic progression of students allegedly admitted without meeting the university standards. Nonetheless, here are a few things to consider of how some of our society’s widely used industries can be affected. These considerations are highly theoretical, but not beyond the realm of possibility. What happens if a student is admitted to any university; does not meet academic standards but still graduates; and starts a career in the field of medicine or pharmacy? Is it possible that our healthcare industry, that we care so deeply about, has practitioners that received their degree based on something other than their competence? <br /><br />What about the fields of law or political science? What about criminal justice? If unqualified or under-qualified graduates infiltrate this sector of society, will we appropriately sustain our means of governance? Can we maintain our way of life which has been in place for over 330 years? Will the practice of “who you know” be the acceptable norm of American society?<br /><br />Finally, our existing business environment withstands reports of malfeasance and unethical behavior on a daily, weekly, monthly basis. Facilitating a process where those without adequate training and development are placed in executive/leadership roles is a recipe for continued disaster when public confidence in corporate behavior is already waning. Yes, the criteria for assessing leadership readiness are subjective, and will vary among companies. However, nurturing a process that allows college admission; college graduation; and executive placement based on clout and nepotism, rather than competence and qualifications should not be condoned. <br /><br />Summary<br /><br />Again, there is no evidence that the activity of the University Of Illinois Board Of Trustees has resulted in the aforementioned scenario. But there are no documented reports that show it has not. Given my 30+ years of experience and observation of leadership behavior, I am hopeful that these potential challenges are wrong. The consequences of selecting the wrong leaders within an organization can be expensive. The consequences of selecting an undeveloped or unqualified leader can be even greater. <br /><br />More information on corporate leadership can be found in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). <br /><br />Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-82840411846164399372009-08-10T00:10:00.002-05:002009-08-10T00:15:24.018-05:00What's UP - (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective) August 9, 2009What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)<br /><br />The U.S. Government Financial Stimulus Package : A 90-day Review <br /><br />During the first quarter of 2009, the U.S. Government’s approach to reviving the American economy was arguably the most pressing issue in our country. My initial blog entry on May 17th provided an unbiased perspective on the stimulus package initiative. I wrote of a “three-pronged approach” that the government was using to fix our economic woes: assistance to multi-billion corporations who asked for assistance; b) state and local municipalities that needed financial assistance in repairing, roads, bridges, and other aging infrastructure components; and c) providing financial assistance directly to American citizens. This blog entry will review the progress of the stimulus package during the past 90 days.<br /><br />Financial Assistance to Multi-Billion Corporations<br /><br />On May 17th, I reported that some of our most prestigious and profitable multi-billion dollar corporations requested (and received) financial assistance from the U.S. government. Since that time, some of these same corporations have returned to Washington D.C. and asked for more financial assistance. Further, some of these same companies have also reported quarterly profits for the 1st quarter of 2009.<br /><br />There is still a “mixed bag” of reaction from the investment community. Some of the companies have seen their stock price remain flat, while other companies have seen their stock price return to levels prior to the Summer/Fall of 2008. Thus far, the U.S. Government’s desired outcome from providing financial assistance to multi-billion corporations has not materialized. There appears to still be room for significant improvement.<br /><br />Financial Assistance to State and Local Municipalities<br /><br />Financial assistance to state and local governments for repairing the country’s roads, highways, and bridges appears to be working. In the past 90 days, I have only traveled through 10 states. However, I did observe significant construction repairs in all 10 states. I have not found any reports of inoperable roads, highways, or bridges that have been recently repaired. With the amount of attention given to the economic stimulus plan, any failure (or rumors or speculation of failure) would be front-page news across the country.<br /><br />In addition, this part of the economic stimulus initiative is also helping to keep construction workers employed. As a result, there are signs that providing, financial assistance to state and local governments is delivering the desired results of improved roads, highways, and bridges as intended. Further evidence of success in this initiative will be available during the winter months when changes in the weather have the potential to impact travel. Removing snow and dumping salt on icy interstates will give a better indication of success in repairing roads and highways.<br /><br />Financial Assistance Directly to American Citizens<br /><br />The final portion of the economic stimulus initiative was to devise a way of giving financial assistance directly to the “average American citizen”. There have been government checks sent to citizens; there have been tax cuts built into citizens’ paychecks; there have been multiple avenues and opportunities for small to mid-size businesses to apply for – and receive – financial assistance. All of these attempts have produced marginal results. However, the one activity which has proven to be successful is the “Cash for clunkers” program. Automobile buyers have the opportunity to receive up to $4500 when trading in a “qualified clunker” for a new car. The U.S. Government subsidized this program with $1 billion. Within four days, American citizens had traded in their clunkers for new autos and fully exhausted the $1 billion. The program was viewed as such a success the U.S. Congress approved an additional subsidy to continue to support this effort in stimulating the economy.<br /><br />As a result of the auto sales, and the government’s willingness to support the program, financial assistance directly to U.S. citizens is providing the desired outcome envisioned. It will be extremely interesting to see the impact to the U.S. economy if the same fervor applied to the automobile industry is applied to the U.S. job market and the unemployment rate.<br /><br /> More information on corporate leadership can be found in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-9859960008601249882009-07-27T01:56:00.003-05:002009-07-27T02:00:09.129-05:00What's UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective) July 26, 2009What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)<br /><br />The Changing of the Guard – Part III <br /><br />This week’s blog is the third entry of a three-part series on workplace diversity, aging, and the corporate workforce. The changing of the guard is inevitable – turnover occurs. Employees may leave the company for a better opportunity elsewhere. Corporate downsizing as a result of a merger, acquisition, or offshoring of jobs may result in the termination of valuable, knowledgeable workers. Recently hired employees may prove to NOT be a fit for the organization. Or in some cases, employees simply retire. The method in which the organization handles the knowledge management process and the termination of “senior” employers with the knowledge and experience to help the organization achieve its goals and objectives will be crucial.<br /><br />Existing Literature on Age Discrimination and Workplace Diversity<br /><br />Two of the recommendations stated in the conclusion of my book on Corporate Leadership Selection are derived from the existing research on workplace diversity and the aging American workforce. First, U.S. corporations must develop an inventory skills database of the current knowledge, skills, and abilities within the company. Second, U.S. corporations must have a comprehensive succession planning process in place to ensure the corporate pipeline is “stocked” with capable, competent executives who will maintain (and potentially improve) corporate operations.<br /><br />A skills inventory of the organization’s workforce will identify the existing employee competencies. This can/should be used in conjunction with the organization’s long-term strategic plan. It will highlight any gaps between the organization’s future plans and the human capital needed to get there. For example, if the organizational goal is to transition its existing business applications to a new technology, it is imperative that there are knowledgeable workers involved that know the business application’s capabilities AND the new technology to support those business applications. Merely terminating “senior” employees with the business application knowledge will not help the organization effectively implement the new technology. The short-term gain of reduced salary by terminating the experienced worker(s) will be negated by the learning curve and training expense of developing inexperienced employees.<br /><br />In addition to the inventory skills database, a comprehensive succession planning process must be in place. Executed properly, succession planning serves as a duel process of identifying potential, future organization leaders and overseeing organizational knowledge transfer through talent management and employee development. However, these initiatives may not be successful if the workers with the experience have been released from the company. External consultants and trainers may be able to teach the concepts of the new business application or the new technology, but they can NOT teach employees about the organization’s culture, values, and attitudes.<br /><br />Consequences of Age Discrimination in the Workplace<br /><br />U.S. corporate culture has evolved into one of persistent vigilance. Ethical leadership behavior is closely monitored both inside and outside of the organization. When the aforementioned inevitable turnover (job elimination) occurs, leadership must conduct this activity with the highest degree of integrity by retaining employees based on their competence and future contributions to the company.<br /><br />There are two significant, negative impacts to the organization when terminating, or not hiring, employees based on their age. First, age discrimination is against the law. There are legal consequences, often with substantial financial penalties, for not complying with federal regulations. Second, employee morale of the remaining workforce will be low – productivity will suffer. Although no research studies have been observed to substantiate the impact to employee productivity, a viable case can be made that an ample portion of time allotted to getting work done will now be spent in conversations on leadership behavior in eliminating competent, knowledgeable workers based on their age.<br /><br /> In today’s technology-based environment, there are corporate “chat rooms”, websites, “You-Tube”, and yes, blog entries to communicate corporate activity. Inside the corporation, the use of technology to discuss leadership’s attitudes and behavior is not needed. The amount of time and energy spent in “hallway talk” and conversations around the water cooler about leadership practices can offset any anticipated cost savings of any corporate decision.<br /><br /> As a result, the best mode of operation is for organizational leaders to execute employee selection and employee termination with a high degree of integrity. Further, these decisions must be made based on knowledge, competence, and future potential contributions to the organization, instead of based merely on the age of those considered. More information on corporate leadership can be found in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com0tag:blogger.com,1999:blog-8692910574714931832.post-79134373277860683682009-07-12T12:24:00.003-05:002009-07-12T12:26:34.215-05:00What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective) July 12, 2009The Changing of the Guard – Part II <br /><br />From 1989 to the present, several studies have been conducted on age discrimination in the workplace. Manufacturing and construction workers were most often subject to workplace age bias. However, other industries such as information technology, business consulting, and marketing (white collar professions) are also victims of this phenomena. This week’s blog will address the concept and practices of age bias. This is Part II of a three-part series on workplace diversity, aging, and the corporate workforce.<br /><br />Age Discrimination Practices<br /><br />Research studies have found that workers at the age of 50 years old and older experience varied degrees of age discrimination. Some of the types of discrimination identified were termination (yes, employees have been fired merely because of their age); harassment from other workers not in their age range (as of yet); and exclusion from even being considered for hiring. Some of the reasons used to exclude older workers were: inability to fit the company profile; not having the required skills to do the job; lack of drive; not a self-starter; set in their ways and not willing to learn new things; too intimidating to younger workers, and financial costs (insurance and medical benefits would be too expensive for the company to incur).<br /><br />In some reported cases, women were subjected to further discrimination. Companies viewed married women over 50 years old as secondary family earners. The concept of interviewing, selecting, developing, and promoting candidates based on their competence and potential benefits to the organization has been summarily discarded.<br /><br />Age Bias in the Workplace – A Perplexing Concept<br /><br />Selecting, or more prominently in today’s work environment, not selecting a viable employee based on their age is a difficult, perplexing concept to grasp for four reasons. First, the basic premise of the recruiting, interviewing, and selecting process is to gather a pool of talented, knowledgeable, and competent candidates and select the best candidate(s) from this pool. If competent workers are omitted because of their age, the talent pool (and the organization’s talent pipeline) may be incomplete. Second, the crucial knowledge transfer process cannot be effectively executed if the personnel involved in the process do not have the knowledge. This is not to say that employees under the age of 50 years old are not knowledgeable. However, there is something to be said for the proverbial “voice of experience” which can readily be identified in employees with 20 – 30 years of work expertise. Further, when the details of workplace discrimination spread through the workforce, team productivity and employee morale suffers. There is more effort put into gathering information and opinions about this activity than actual work being done.<br /><br />Third, age discrimination in the workplace is extremely short-sighted. Workplace diversity in all forms is sound business savvy. Do corporations really want to omit and discourage the age group with the most discretionary income from purchasing their products and services? Given the existing economic business environment, American corporations are best served by catering to all customers and including them in the workforce - regardless of demographic background. Finally, the practice of age discrimination defies the golden rule (do unto others…). Regardless of one’s other demographics, EVERYONE will age and eventually become a member of the 50 and over age group.<br /><br />I have received confirmation from a number of executive search firms, staffing agencies, and consulting companies that their corporate clients do not want employment candidates over the age of 45. The agencies are being instructed (implicitly and explicitly) to only present candidates in a certain age group. I have not conducted any research to identify who in the organization’s leadership ranks have made this demand. However, research has shown that the average age of corporate board members (which typically includes the CEO) is over 50 years old. It would be interesting to know what level of corporate leadership has initiated and supported this demand. It would also be interesting to know what their current age is.<br />“To Be Continued”<br /><br /> There is a significant impact on corporate stakeholders and society based on how corporations manage workplace diversity. The next bi-monthly entry (Part III – Changing of the Guard) will address a viable means for preventing age discrimination in the workplace, and how adapting and embracing a diverse workforce which includes knowledgeable, competent workers over 50 is successful. More information on corporate leadership can be found in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). Feedback to the bi-monthly blog entry is always welcome.Dr. Reginald J. Gardnerhttp://www.blogger.com/profile/06000833474601459003noreply@blogger.com2