Terms come and terms go, but their meaning stays fairly constant.

Managers used to strive for employee buy-in, ownership, commitment, involvement; today it’s engagement.

Management has worked to develop that behavior for decades, whereas the way to achieve it is as old as humanity.

Disengagement is costly, “Gallup estimates it costs the US economy about $300bn a year and that 17 per cent of employees are “actively” disengaged. These employees each cost their employers $13,000 a year in lost productivity.” That was last year and I’d bet that 2009 will be worse.

Managers of organizations with a high level of engagement know that achieving that is as simple as 1, 2, 3—4.

The 4 acts of engagement are

1. respect;
2. encouragement;
3. support; and
4. rewards.

This isn’t exactly secret management knowledge. There are thousands of books, hundreds of classes, dozens of blogs and forums all teaching variations on this theme.

So if it’s that simple, why isn’t it put into practice more often?

MAP (mindset, attitude, philosophy™) is the reason. MAP shapes a person’s actions.

If you don’t really believe in the value or numbers 1 or 2, you can talk all day and your people will hear what you say as hollow, i.e., no authenticity.

Number 3, support, includes skills training and career development, but how do you provide these when money is tight or, even in good times, when your company doesn’t believe in it?

Ingenuity—not just yours, but your group’s.

Your people aren’t dumb, they know when the company can’t/won’t fund training, but there are tons of ways to work around that, such as building up a broad departmental learning library and sharing their own expertise with each other during organized brown bag lunch sessions.

Number 4 also usually involves money, as it should. But when there’s an authentic, provable lack of funds to provide significant rewards, every company can find enough, monetary and otherwise, to prove that they value their people’s contributions.

Again, people aren’t dumb. If the CEO, execs or their boss fly first class or receive a bonus after telling people that the company can’t afford raises or rewards, it shouldn’t be a surprise when they disengage and eventually leave.

That’s it; not rocket science, but you must do it consistently, sincerely and with great enthusiasm—no matter what else is going on.

Image credit: arte_ram on sxc.hu

Most managers know that lousy customer service is one of the fastest ways to reduce the bottom line.

But what most managers forget in the daily press of doing way too much with drastically reduced resources is that their employees are also their customers.

As I’ve said in the past, one of the hats every manager wears is employee service manager (ESM) and reviews are a critical part of that.

Done right, reviews are a positive experience for both manager and employee; in some cases even a time to bond.

If the goals in January were done well, which means that they had a deliverable date and were quantified and measurable, then evaluating how someone is doing is simple.

An article in Business Week discusses the added weight being given to mid-year reviews as a result of business turmoil in the current economy.

In fact, the only goals that are fair to employees and managers alike always include those three points.

As a manager you should never forget…

As an employee you should always request…

• Due date
• Quantified action
• Measurable results

And while a good review means that you’re honest and authentic with your people, that doesn’t translate to abusive or destructive.

Offering

• recognition of what the person does well; and being
• candid about areas that need improvement

are two hallmarks of a good review.

The third is no surprises, which means that you’ve been giving candid feedback throughout the year.

Skipping any of these is setting you and your people up for review hell.

For more specific assistance, read how to give performance reviews and how to give a disciplinary review.

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Image credit: ZedBee|Zoë Power on flickr

According to Wikipedia, “An engaged employee is a person who is fully involved in, and enthusiastic about, his or her work.”

What I have for you today is employee engagement on steroids, in action at a place called Nucor Steel.

Way back in May 2006, Business Week wrote, “In an industry as Rust Belt as they come, Nucor has nurtured one of the most dynamic and engaged workforces around.”

I’ve written more about Nucor and its culture several times, but it’s come to the fore again.

On January 2, 2009, the Charlotte Business Journal named Nucor CEO Dan DiMicco Business Person of the Year for 2008.

First, a bit of history,

“Ken Iverson, Nucor’s pioneer and guiding spirit, stepped down as chief executive in 1996… Earnings remained flat through 1998, when board dissidents forced Iverson out of the chairman position and off the board. Nine months later, they ousted John Correnti, Iverson’s handpicked successor as CEO.

The board made DiMicco CEO in September 2000. Nucor’s four other executive vice presidents and CFO Terry Lisenby, were candidates for the top job that went to DiMicco. But all stayed, sharing his basic vision for a bigger Nucor built on reinvestment in mills, exploring new technology and market niches, strategic acquisitions and international growth through joint ventures.”

And a pay system that many (most?) companies should adopt, “…it’s not only the workers who get paid mostly on performance. Managers all the way up to the top executives have a relatively low base pay supplemented by specific performance goals.” But they won’t, because most management, as well as the rank and file, believe they should be protected from the results of their actions—unless, of course, they’re positive.

The team took over in 2000 just as the dot com bomb blew up the economy and now, just eight years later Nucor is the largest steel maker in the US.

It’s another economic meltdown; Nucor has $2 billion in cash, so I expect it will emerge even stronger.

All of this is still more impressive when you consider that Nucor actually makes something—as opposed to pushing money around—and their product contains neither chips nor software.

If you want to know more about what truly engaged employees do, how real leadagers act and what a culture should be. Take the time to read the articles—then tweak as much as possible to use in your company.

Image credit: flickr

Engagement is a hot topic, especially now, but it isn’t a new one—think buy-in, ownership, commitment, involvement, etc.

The term may change, but the behavior has been consistently on management’s radar for decades.

Whereas the way to achieve it is as old as humanity.

Disengagement is costly, “Gallup estimates it costs the US economy about $300bn a year and that 17 per cent of employees are “actively” disengaged. These employees each cost their employers $13,000 a year in lost productivity.”

But, as any successful manager knows, engagement is as simple as 1, 2, 3—4.

The Big 4 are

1. respect;
2. encouragement;
3. support; and
4. rewards.

It’s not as if this is secret management knowledge. There are thousands of books, hundreds of classes, dozens of blogs and forums all teaching variations on this theme. I most recently read it again here. (Be sure to read the comments.)

So is it’s that simple, why isn’t it put into practice more often?

MAP (mindset, attitude, philosophy™) is the reason. MAP shapes a person’s actions

If you don’t really believe in the value or numbers 1 or 2, you can talk all day and your people will hear what you say as hollow, i.e., no authenticity.

Number 3, support, includes skills training and career development, but how do you provide these when money is tight or, even in good times, when your company doesn’t believe in it?

Ingenuity. Not just yours, but your group’s. Your people aren’t dumb, they know when the company can’t/won’t fund training, but there are tons of ways work around that, such as sharing their own expertise with each other during organized brown bag lunch sessions.

Number 4 also usually involves money, as it should. But when there’s an authentic, provable lack of funds to provide significant rewards, every company can find enough, monetary and otherwise, to prove that they value their people’s contributions.

Again, people aren’t dumb. If the CEO, execs or their boss receives a bonus after telling people that the company can’t afford raises or rewards, it shouldn’t be a surprise when they disengage and eventually leave.

That’s it; not rocket science, but it must be done consistently, sincerely and with great enthusiasm.

Image credit

Doing more for less. Productivity is always important, but it’s especially critical as the economy toughens.

The 40 year-old Institute for Corporate Productivity (i4cp) is the world’s largest private network of corporations focused on improving workforce productivity.

Although i4cp requires membership to access much of its data, the Trendwatcher archives are free and loaded with useful information.

The research that caught my eye shows that “the most productive organizations furthest outstripped the average ones in four areas:

• Culture: 79% of the most productive organizations say that, to a high or very high degree, the cultures of their organizations help raise employee productivity.

• Leadership: 76% of highly productive companies said that, to a high or very high extent, leadership in their companies raises productivity.

• Employee engagement: 59% of highly productive organizations use engagement practices to a high or very high extent. Engagement means that workers are mentally and emotionally invested in their work and in contributing to their employer’s success.

• Employee health/wellness programs: Although It could be an anomaly, “People like to work for organizations that send strong signals that they care for their employees. These particular programs may be sending those signals more than most other types of initiatives do,”

How does your company rate in each of the four areas?

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Image credit: srbichara   CC license