Overcoming the 5 Critical Mistakes of Small Business...

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Overcoming the 5 Critical Mistakes

of Small Business Leadership

A Special Report

By

Leadership & Workplace Communication Expert

Skip Weisman Weisman Success Resources, Inc.

P.O. Box 5094 Poughkeepsie, NY 12602

845-463-3838 www.WorkplaceCommunicationExpert.com

Avoiding the 5 Critical Mistakes of Small Business Leadership

© Copyright 2012 Page 1 of 6

Introduction If you’re like the many small business leaders that contact me frustrated and confused trying to motivate employees to higher performance, you are in the right place. In this report you will learn the five biggest mistakes small business leaders make trying to motivate their team members. In a recent meeting with a prospective client, a small but well respected not-for-profit, its executive director expressed just this frustration. She was hoping to promote better communication, enhance focus on teamwork, and breakdown of the silos in their organization. When I asked how many people she had on her staff she said “seven,” including herself. Can you imagine silos in an organization with just seven employees? Something was not right. In further investigating the situation, I believe addressing the five mistakes of small business leadership outlined in this report will go a long way towards turning around the work environment at that small not-for-profit, and at your company, too. Large or small, these strategies, when consistently applied can transform results. The five mistakes are: 1) No “Championship Game” Vision

2) Investing too little time in the hiring

process 3) Focusing on the wrong performance

metrics 4) Investing in antiquated employee

motivation strategies 5) Trying to implement a “family

atmosphere” Now I’ll explain each mistake in more detail and give some ideas for turning them into assets.

Small Business Leadership Mistake #1 No Championship Game Vision

To perform at the highest levels employees do not need external motivation. They need inspiration. Too many business leaders struggle trying to motivate employees using antiquated, 19th century strategies you will read about in Mistake #4. This section is about creating the inspiration necessary to create the internal motivation that drives high performance for all the right reasons. To do this I recommend pretending your company or organization is an athletic team, and it’s the first day of training camp for a new season. Doing so will allow you to emulate the inspirational focus every athletic team starts out with at the beginning of its season, the vision of winning a championship. Whether it is the Major League Baseball, World Cup Soccer (football to those of you outside North America), or an Olympic team, the focus is on winning a championship (or gold medal in the Olympics). Despite the overwhelming salaries some professional athletes command (and probably because of them), the drive to win a championship and being seen as the best in their field, is really the driving force of the best athletes. Achieving something extraordinary in collaboration with teammates is what inspires champion athletes. That’s what your employees want too, if you’re recruiting and hiring the right team members (see Mistake #2). Therefore, I encourage all small business owners, regardless of the size of their organization to create an inspiring “championship game” vision so everyone on the team wants to be part of helping achieve it. Creating an inspiring Vision Statement is not an easy exercise and it’s not an answer that will come easily to most. Creating an organization’s “Championship Game”



vision will take deep thought and reflection and will probably go through a number of iterations before it feels right. Here are some examples of an inspiring vision statement: 1) To become the Disney of professional

baseball

2) To become a global Leader in fostering mental “wellness”

3) To be the premier fire & safety equipment

provider in our region 4) To land a man on the moon and return

him safely to earth before the end of this decade

5) I have a dream that one day this nation

will live out the true meaning of its creed: ‘We Hold These Truths to Be Self-Evident; That All Men Are Created Equal.”

The second component to this exercise is to replace your organization’s Mission Statement with a Purpose Statement. This may seem like semantics, but I believe there is a huge difference between most mission statements and my concept of a purpose statement. A mission is something to be done or fulfilled. It takes effort and action. Mission statements also often offer a lot of words and little in the way of inspiration. A Purpose Statement on the other hand is a short, concise, one-sentence phrase that spells out the organization’s reason for existing. It says exactly why and how the world is better because the organization exists. Here are some examples of inspiring Purpose Statements: 1) Our Purpose Is to Instill a Sense of Hope,

Empowerment & Self-Determination in All People With Mental Illness that Fosters a Transition to Mental Wellness.

2) Our Purpose is to Create Magical Moments and Memories for Our Community.

3) Our Purpose is To Be the First Line in

Protecting Our Community’s Life and Property During a Fire Emergency.

4) Our Purpose is to Create Exceptional

Environments & Exceptional Buildings That Enhance Our Community.

The best way to create your organization’s reason for existence is to get as many employees as possible to contribute ideas and then build a consensus around some themes that can be refined down to the ultimate purpose statement. Most of my clients who have gone through this process have found the end product energizing. Try it! Small Business Leadership Mistake #2 Investing Too Little Time in the Hiring Process I can tell you from my 20 years experience hiring all levels of personnel, the interviewer is often less prepared (I often was) than the interviewee. How much time do you spend preparing for the average interview? The biggest mistake people make is not being clear on what type of person they want on their team beyond the resume basics of education and experience. For that reason few interviewers ask the right questions and ask even fewer follow up questions to dig deeper into situations where the prospective employee can show their value. Too many interviews are a meet and greet, with a drive by from a senior executive who might have to give final approval. Even second and third interviews tend to be more focused on the technical details of the work rather than going deeper into the prospect’s fit within the company’s culture. If that is the reality for many small business leaders, what do you do when you’re pressed for time, and stressed to fill out the team and get it back into the field?



Just like in school, there is no substitute for doing your homework. You need to invest a little more time on the front end of the hiring process before, during, and after the interview. Here are 3 things you must do as part of any successful hiring effort: 1. Gain Clarity

Get clear on the type of person you want to bring in to your organization. You may think you are already doing this but chances are, if you’re doing what I used to do, at best you are creating a ‘job description’ that lists a series of tasks and responsibilities, along with position requirements such as education level, certifications, years of experience and skills. You probably have little in terms of specific attitude and talent requirements, other than ‘self-starter,’ ‘good team player,’ etc. You need to get more specific regarding the attitude and talents you are looking for. Some of these may be published in the recruitment materials. Other criteria will be private for evaluation use only and will help you craft your interview questions. All of my clients integrate these three tools into their hiring process; a. My 5-part position assessment tool called

the SKATE Hiring Model. SKATE is an acronym representing, Skills, Knowledge, Attitude, Talent, Education & Experience. There is a second piece of the SKATE exercise that includes identifying both the “musts” (these are the non-negotiables and deal breakers) and the “shoulds” (these are qualities that would be nice to have but are not vital to the role or culture).

NOTE: The SKATE Model is flexible so that you can weigh each characteristic at different levels depending on their importance to a particular role (e.g., attitude may be more important for a customer service representative than someone stocking inventory, who may need greater emphasis placed on skills and talents, etc.)

b. My SOAR Personnel Profile. This is a self-assessment tool given to prospective employees as part of their application and interview process. SOAR represents - Strengths, Opportunities, Aspirations, Results.

The SOAR Profile is also used after hiring as part of my client’s performance management/appraisal system. Many of my clients have found it provides useful insights into employees and prospective employees that they would not have learned about otherwise.

c. Customized behavioral interviewing questions designed specifically for:

i. The specific position for which you are hiring.

ii. The attitudes and beliefs for the culture fit you are looking for.

2. Apply Behavioral Interviewing Questions Once you are clear on your SKATE Model’s musts and shoulds, and you have prospects complete a SOAR profile, it is relatively easy to design customized behavioral interview questions to get the responses you need. Behavioral interview questions are open-ended and situational in nature, for example, “Tell me about a time when you participated on a team that failed to achieve its goals. What do you think you personally could have, or should have, done differently that would have made a difference in your team’s results?” For samples of more behavioral interview questions for other situations, e-mail me at [email protected]

3. Use Personality Assessments

There are a number of different assessments you can use with varying levels of investment, sophistication. I’m partial to the Harrison Assessments. I’ve found them to be extremely comprehensive in their reporting and methodology. Although the investment is slightly more than others on the market, I’ve found them to be quite effective in benchmarking candidates against the traits



of high-performers inside and outside a company for similar positions. You can also use the simpler, yet detailed personality profile, which measures the candidates tendencies against 12 different pair of paradoxical traits. (For a free sample of the Harrison Assessment Personality Paradox report, e-mail me at [email protected])

During the early stages of your interview process make sure you are setting the performance and behavior expectations in the mind of your prospective team member. Paint a picture for the work ethic and attitude that is the best fit for your desired workplace culture so the individual understands what is expected. Individuals that cannot thrive in the workplace culture you describe will self-select themselves out of contention, leaving you with better candidates to choose from. Small Business Leadership Mistake #3

Focusing On the Wrong Job Performance Metrics

This is somewhat related to the Mistake #2 in that it requires a rethinking of the job description and its structure. Most job descriptions are a list of tasks and responsibilities, such as; answering the phone, creating reports for directors meetings, sending invoices, tracking and collecting receivables, etc. Such a list becomes the expectation for job performance. It does little to inspire or motivate a person to become a team player because the company does little to nothing to articulate that contributing to teamwork is something they will be evaluated on, until they are. Employees meeting the expectations of a basic job description become little more than robots going through the motions, disconnected from the bigger picture their employer is trying to accomplish. Instead, companies need to develop a comprehensive performance management system that begins not with a traditional job description but with a Position Results Document. This document identifies the specific results an employee is expected to achieve during a three to six month performance period.

This document would include measurable results. For example, the invoicing and collection of receivables example could become something like, “invoicing customers within 7 days of contract execution and maintaining 80% of receivables within current status and no more than 2% of receivables beyond 60 days.” You can see how much more specific this becomes. It provides real, measurable KPIs (Key Performance Indicators) for their individual role. With this approach you can also have a deeper discussion as to the value those results provide, giving an employee a greater connection to their contribution to the company’s success. For some positions it is easier to create quantifiable, measurable outcomes but virtually any position can develop specific KPIs that have meaning for the individual employee, while providing high value to the organization. The most important thing to understand about what I’m suggesting here is that instead of job descriptions being created by the business owner or someone assigned to an human resources role they are not qualified to fill, the Position Results Document is developed in a collaborative effort with the employee. Imagine, if a company was able to create a “Position Results Documents” for every position in the company, then it would be on a path to create a workplace based on results and the frustrating, challenging and sometimes resentment creating performance appraisal conversation becomes a productive, fact-based discussion geared toward specific performance improvement. In these performance discussions a two-way dialogue manifests that identifies real and imagined roadblocks to achieving the desired results. With this approach the employer becomes a partner in helping the employee overcome their challenges. These discussions, which will be structured as short, compact two-way discussions, will also occur much more frequently. Weekly is ideal, semi-weekly acceptable and monthly at a minimum. If you are getting anxious wondering where you will get this extra time, I will argue that you are already having many non-productive, on the fly



conversations which will be replaced by more direct, focused, and productive conversations. Additionally, because your people will be more productive, you will reduce your need for continual follow up. You will also gain new level of confidence in your ability to lead your people, and their capabilities. You will also find yourself tolerating less of the behaviors you do not want on your team. Team members that cannot, or will not, step up to the new performance standards will either self-edit themselves out of the organization, or you will do it at the most appropriate time. As with my other clients you will know when the time is right to make the move.

Small Business Leadership Mistake #4 Investing in Antiquated

Employee Motivation Strategies Since the industrial revolution in the mid-19th century many different motivational theories have been espoused. Frederick Winslow Taylor’s efficiency models, Abraham Maslow’s Hierarchy of Needs, and Frederick Herzberg’s Hygiene & Motivational Factors,(among others) each have application in various types of work environments. You will also find personality assessments like Myers-Briggs, DISC, and the Harrison Assessments help quantify and clarify different ways of communicating to motivate. These motivational strategies all are valid but none comprehensive enough to work all the time. If you look more deeply in each, many can be viewed as manipulation, not motivation. These theories can help bosses manipulate the work environment, compensation packages or work schedules in an attempt to motivate their people. Usually, business leaders default to using financial compensation in terms of salary increases, bonuses, extra time off with pay, etc. as motivation. Most of my clients frequently lament that those modes of motivation have created an entitlement workforce where financial motivations become the expectation causing morale and motivation to decline when they do not perpetuate into the future. Additionally,

virtually all report that morale and motivation boosts that do occur, are extremely temporary. The 21st century technology revolution has given human beings, already creatures hard wired for freedom and autonomy, an ability and desire to control even more of their circumstances. This is now spilling over into the work environment more than ever. Therefore, it behooves business leaders to look to more contemporary ways to provide that control and autonomy within the work experience. In 11-years working with business leaders in all size companies to create motivated work environments the #1, most important lesson I’ve learned is that in most work environments there are too many de-motivators present. And, because we are dealing with the variety of personalities the human race offers, the de-motivators far outweigh and over ride most of these traditional motivational strategies. In his book DRIVE: The Surprising Truth About What Motivates Us, Daniel Pink, identifies three specific things that reinforce what I’m writing about here, and when implemented will eliminate the many de-motivators present in far too many workplaces:

• • Autonomy – Employees want more control over where, how, when, and with whom they do their job.

• • Purpose –Employees want to know how their company makes a difference in the world, and how their role within the company makes a difference.

• • Mastery – Employees need continual stimulation. Continual personal and professional development addresses this need and helps the employee get better at things the they are doing and like to do. According to Pink, the employers that create a work environment offering those three components will attract and retain the best and the brightest.

Small Business Leadership Mistake #5 Trying to Implement a “Family Atmosphere”



Earlier this year I had several meetings with different chief executives who proclaimed that even though they were not family businesses, they had a “family atmosphere.” They told me everybody in their company was really close and they didn’t want to do anything to upset that. With that as the preface I asked, “then why are we talking?” They proceeded to tell me about all the problems, frustrations and challenges they were facing. After those discussions I realized that it wasn’t a “family atmosphere” they were actually after. It was a metaphor they were using to explain the type of workplace culture they were trying to create. What they described was a work environment that tried to offer flexibility and be focused “family first’ when employees needed it. This spilled over, however, into a lack of performance, and a failure to have a system that held everyone accountable to a consistent standard. This approach tends to create a low-trust work environment, where although some employees have good relationships with certain others, there were cliques and silos getting in the way of effective teamwork and company performance. If this family atmosphere approach worked the symptoms we were discussing would not be present. I’m not sure a family atmosphere is something to aspire to. Many families are dysfunctional, as are many family-owned businesses. By dysfunctional I mean that rarely are difficult conversations taking place between family members, leaving many vital things unsaid. When conversations do take place, many people report an unpleasant experience. Let’s try something different. The way to create the ideal work culture is to define it and then put the strategies in place to make it happen. The core components of a successful workplace culture include these communication and operational values: • Respect • Empathy

• Compassion • Specificity, and • Genuineness Once you commit to implementing those values, call your culture whatever you want, but I’d recommend staying away from family atmosphere, even if you are a family business. If you are a family owned business, chances are your workplace culture may be very similar, and applying these recommendations will work for you, too.

Summary These are the 5 critical mistakes I see small business leaders make that limit their company’s results and create unnecessary stress. I can tell you that there is one critical skill small business leaders must master in order to make these strategies stick in the workplace. Your communication must always be prompt, direct and respectful. Communicating this way lines up with the 5 core communication values of a Championship Culture identified in the previous section. When organizational leaders are the exemplars of this type of communication, it becomes easy to integrate throughout the culture by coaching and training others to communicate this way as well. The one thing that prevents this from becoming part of most organization’s cultures is a lack of communication skills in this area. This causes the avoidance of addressing issues that need to be addressed sooner rather than later, and having those “difficult” confrontations. If this is an issue in your work environment there are three very effective trainings you may want to consider:

• Influencing With Integrity • Personal Problem Solving &

Confronting Without Conflict • The Performance Conversation

If you think having your employees learn those skills would make a difference at your company, I encourage you to give me a call at 845-463-3838 or e-mail me for more information at Skip@WorkplaceCommunication Expert.com.

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