Post from Leadership Turn Image credit: lusi

This is a summing up in a series discussing whether Warren Bennis’ 13 differences between leaders and managers still holds in light of today’s modern workforce.

In a comment on the prequel to this series Phil Gerbyshak said, “I agree wholeheartedly that great managers have BOTH qualities…though I know plenty of average managers who don’t have either. I’d like it required that managers have at least one half of Bennis’ qualities in order to lead a team. Is that too much to strive for?”

On day one Nii said, “Regarding the differences between a manager and a leader, I believe that the gap is closing between the two. In today’s global and technologically advanced world, managers still need to have the leadership qualities to succeed. They need to be able to take risks, inspire, innovate and challenge conventional thinking. Otherwise, they will be history.”

Day four Fred commented, “I believe to be a successful manager in today’s new work environment managers must posses the skills to be effective leaders and coaches in team oriented “open door” environments. Young employees entering the work force from High School or College do not possess the same work ethics of baby boomer’s. If managers attempt to train this new work force using the same tactics as we did in the past retention will suffer greatly. It is truly a kinder and gentler world we live in.”

I’m in passionate agreement with the consensus that managers need to marshal many so-called leadership skills if they plan to succeed today.

In a world where multiple job changes are both easy and acceptable the currency that buys loyalty isn’t money, rather it’s achieved by creating an environment that stimulates and satisfies each individual’s needs.

Finally, in a sister post over at Slacker Manager Nick McCormick says, “Too much is made of the difference between managers and leaders. I think we do it to make ourselves seem more important. “I’m a leader, not a lowly manager!””

Amen, Nick. While management is what you do, leadership is the way you think. Great management is composed of equal parts leadership and accountability. True leaders are proclaimed as such by those around them, not by themselves.

The best way to find success is to work constantly at incorporating as many to Bennis’ 26 traits as possible into your skillset and your MAP (mindset, attitude, philosophy™) and stop worrying about what you’re called.

What are your thoughts?

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Post from Leadership Turn Image credit: kikashi

Turnover is enormously expensive but turnover rarely stems from salary issues; high salaries won’t buy a strong, motivated workforce and money certainly doesn’t buy loyalty.

I’ve yet to see it fail that when people join a company mainly for the money (in whatever form) they will quickly leave for more money.

So why do people stay? What motivates them to higher levels of productivity and turns them from company employees to company evangelists?

The answer is simple.

Most of us humans have the same top four desires—although not necessarily in the same order,

• To be treated fairly.
• To make a difference.
• To matter [to boss and colleagues].
• To find a home where we can continue growing.

Yesterday, Ken Meador mentioned that average tenure is 11 years—that that can only happen because these desires are being satisfied.

How do you satisfy these desires?

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Post from Leadership Turn Image credit: Ken Meador

When I wrote about Ken Meador, CEO of TWR Lightening for my other blog I called him to clarify a few things. Ken is one of those great executives who actually return their voice mail and he and I had a great time talking—it’s always fun talking with someone on the same page as you. I asked Ken more about TWR’s culture and how it affects turnover productivity and their business. At the end I asked if he could find time to share his thoughts in writing about TWR and business in general.

Here, direct from Ken, are his comments and thoughts…

“If by turnover you are referring to the 52 employees, for us that is a relative non-issue. Effectively we have added 4 new people in the past 4 years. The average employee tenure is 11 years, with three who have more than 20 years. Those numbers speak for themselves in the form of mutual benefit, loyalty and commitment.

Because we maintain lean head count and a very flat organizational structure, we are able to capitalize on personnel strengths/experience to match or best fit in with our product diversification and market changes.

Our growth over the past few years afforded a number of promotions built on “tribal knowledge” which inherently adds value to our customer and vendor relationships.

Our increases in productivity have come in numerous ways including the understanding and adoption of lean manufacturing techniques, cross-training, fully utilizing and trusting in the investment we make in our peoples empowerments and continually fostering a “no change, no gain” attitude in the way we do business.

The pay-off for TWR Lighting, has been and continues to be that the responsibility for our continued growth is accomplished by a lot of great people who collectively manage the company, instinctively drive our revenues, positively affect our SG&A and diligently tend to our EBITDA.

As a culture ,TWR Lighting learned a long time ago that change was inevitable and sometimes harsh way of life and we could either adapt more rapidly than our competition or die a slow death.

But then, change doesn’t come from slogans or signs, it comes from embracing it as factor, and having the right people in the right places to make it happen. And for us, the changes in the market environments and forecasting to readily adapt require more than eliminating bureaucratic red-tape, it means the daily review of the cyclical or commodity nature of the raw materials we purchase, and the leading indicators in the financial markets which affect our customers or customers’ customer.

We continually strive to stay cognizant of the big-picture economic conditions which sooner-than-later trickle down to our corner of the market. Our crystal ball isn’t any better than anyone else’s, but we are getting better at understanding and utilizing cumulative information to discern our options.

After 27 years, this company still is learning daily how to walk and execute on what we know . The plodding reality is that nothing I do as a company president, nor anything we do as a culture is original or new. Most of what our culture has evolved from and practice each day is a culmination of ideologies and best practices stolen shamelessly, and put into action to the betterment of the company. Distilled, it’s purely a matter of simplify, simplify and re-simplify.

From a personal view, probably the biggest mistakes made in businesses today involve jaded and self-serving leadership that takes itself far too serious, the by-product of which is complication processes un-necessarily, saddling right-sizable employees in job functions and reporting structures un-ceremoniously and then having the gall to promote “our people make the difference” hawking customer-care initiatives to the point of glossy lip-service being funneled into never-ending voicemail hell.

What a load!! Managing businesses, even large businesses, shouldn’t be that contrived or disaffected, just be candid and open, put your people first, follow the cash and manage to it, then strategies and everything else will follow. What we do isn’t brain surgery or rocket science—then again most businesses aren’t.”

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This is a continuation of yesterday’s post.

The cost really starts mounting up based on what leaves. Yes, of course, the person in that position matters, s/he was a unique individual with a unique set of skills—that can’t be duplicated, but it can be replaced. But the loss of a certain position at a certain time can wreak corporate havoc costing millions. For example:

• The engineer whose missing piece of the project delays delivery and launch of the product.
• The product marketing manager tasked with a new product launch.
• The admin no one noticed or worried about, who, in actuality, was both the department glue and grease.

Notice there are no senior managers listed. Think about it, if the VP of engineering leaves it may garner comment in the media and create headaches for the CEO, but it won’t delay the product.

But is turnover really as bad as I’m making it out? And if it is, can there really be enough ROI to offset it? I can almost hear the skepticism (and worse) echoing through cyberspace.

Frederick Reichheld, founder of Bain & Company’s Loyalty Practice and author of Loyalty Rules!, and other loyalty books, shows in carefully researched studies that a 5% improvement in employee retention translates to a 25%-100% gain in earnings.

So there’s your proof!

The solution overview I promised can be summed up in two letters, CC—culture and communication—and one guiding principle: People who join your company for money, will leave for more money.

I’ll elaborate on CC next week, but the principle needs no explanation, it speaks for itself.
Have a great weekend!