fear erodes profits: transform leadership for success knowledge management at
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FEAR ERODES PROFITS: TRANSFORM LEADERSHIP FOR SUCCESS Knowledge Management at Kent State University June 6, 2013 www.mdaszko.com 408-398-7220 [email protected]. Our Aim Today:. To Provoke Current Thinking about Fear and Trust; To build more Awareness - PowerPoint PPT PresentationTRANSCRIPT
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FEAR ERODES PROFITS:
TRANSFORM LEADERSHIP FOR SUCCESS
Knowledge Management at Kent State University
June 6, 2013
www.mdaszko.com408-398-7220
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Our Aim Today:
To Provoke Current Thinking about Fear and Trust;
To build more Awareness about how fear impacts people, productivity, & profits;
Look at what Fear is Costing Us—In Our Lives & Businesses
Shift Leadership Thinking and Actions: How to Reduce Fear & Build Trust
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Reality: Why discuss fear?• “23 out of 24 businesses go out of business. America has
an amazing tolerance for inefficiency.” Dr. Russell Ackoff
• What percentage of companies listed on the Fortune 500 list when it was first published in the 1950’s exist today?
• Some Fortune 50 companies today have an average 40% turnover rate. What does that say?
• Workplace bullying is a sharp increasing trend.
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The Leadership System that creates fear is the same system that creates crisis, bullying, unemployment, civil unrest, & poor economies
in our world.
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Definition of Fear• “An unpleasant, often strong emotion
caused by anticipation or awareness of danger; anxious concern.”
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Fear is not a rational topic• People’s fears are real.• Your fears are different
than mine—there’s variation in everything!!
What are yours?
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Can fear motivate?
Is fear an effective motivator?
• Self-imposed
• Threat of danger
• Short-term
• Intrinsic vs. extrinsic
motivation
Intrinsic(from within)
Extrinsic(from outside)
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What We Will Discover Together; Increase Our Awareness:
• 100’s of kinds of Fear • Fears’ Impact on People;
• Fears’ Impact on Your Organization;
• Fear Erodes Profits—and much more;
• The Job: Identify & Reduce Fear, & Build Trust
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What We Say We Want --- What We Get• Challenging work• Great workplace• Recognition,
appreciation• Teamwork• Collaboration• Fair pay and benefits• Able to learn, share
ideas
• Fear, politics, win-lose, lose-lose, internal competition
• Bullying, incivility
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What kinds of fears and challenges
do you experience?
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What kinds of fears and challenges
do you experience?• Job security; losing a job or business• Change• Uncertainty; the unknown• Skilled workforce• Speaking up• Making mistakes• What’s happening in the world
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Fears• Not enough skilled labor• Too many employees
retiring• Government regulations• Consumer confidence• Lack of customers• Lack of credit availability• Healthcare Issues• Competition from a Big or
an Innovative Business
• Cash Flow• Over-staffing; under
staffing• Poor leadership• Global Competition• Bankruptcy• Pay for Performance
rating• Taking a risk
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Fears• Saying “I don’t know.”• Making mistakes• Failure• Missing deadlines• Losing a home or business• Exposing weaknesses• Death• Losing face• Loss of respect• Not fitting in• Low performance/appraisal
• Public speaking• Making a bad decision• Not having the right
answer• Looking stupid• Not being understood• Not being able to learn—
fast enough• Unhappy
customers/investors• Loss of control
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What is the impact of fear on people?
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What happens to people?• Analysis paralysis: they stop making
decisions or sharing suggestions.• Get overwhelmed, stressed, and reactive.• Get quiet and stay to themselves.• People are criticized, judged & blamed.• They get defensive and complacent.• They sabotage data or results.• Lose their passion, energy, & commitment. • People compete; don’t trust others. • Win-lose or fight/flight attitude/behaviors.• They use aggressive or passive-aggressive
behavior.• They hunker down. They quit.
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How Does Fear Impact An Organization?
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What Happens in the Organization?• Failures & mistakes are hidden.• Productivity plummets;• Work, information, & communication do not
flow; data is distorted;• Absenteeism & turnover increase; recruiting
and hiring costs increase.• Creativity & innovation decrease;• Inefficiencies, waste, and complexity
increase.• Quality wanes; reputation suffers.• Customer service suffers.• Employees don’t feel appreciated, and
morale deteriorates.
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What Happens in the Organization?• Commitment to new learning, trying
new things, taking risks, helping each other decreases;
• Employees do not jointly problem solve or engage;
• Blame errors on others; finger-point; accuse people;
• Get a reputation for an abusive, dysfunctional, toxic culture.
• Bullying and incivility are accepted and increase. People lose their soul.
• Go out of business.
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Fear Creates Scarcity & Failure• Lack of personal feelings with Passion
• Lack of a creative, collaborative
changing, culture with an aim• Less service, Quality, commitment to
learning, improving, and innovating TOGETHER for customers
• Less revenues, profits, competitive edge, and growth; lower stock price
• Eventual poor reputation, more struggles, turf wars, & demise.
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Where is Fear?
• Fear also exists and thrives in the silence of organizations.
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COST OF FEARThousands?
Millions?Billions of $$$?
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“The most important measures are unknown and unknowable.”
Dr. W. Edwards Deming
“If you can’t measure it, you can’t manage it.”(myth)
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The Cost of Fear: Measures
• Creativity & Innovation Loss• Collaboration Loss• # of Patents• High Turnover• Internal Competition• Cost to Recruit/Train New Hires• De-motivated Employees• Loss of Market Share
• Immeasurable• Immeasurable• Measurable• Measureable• Immeasurable• Immeasurable• Immeasurable• Immeasurable
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Costs:lives,
good work,our jobs,learning,
self-esteem
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Does anyone care about profits?
$$$$
The Bottom
Line,Results
Greed,Arrogance
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Management Fads and most “Best Practices”create fear, internal competition, finger-pointing, blaming, bullying, and toxic work environments. . .
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Management Fads & “Best Practices”
that Create Fear• Holding Individuals
Accountable for the Outcomes of the System
• Quotas, Targets (6 sigma)• Incentives: Carrot & Stick• Arbitrary Numerical Goals• Performance Appraisals• Pay for Performance• Motivating Employees
• Ranking & Rating• Unclear Purpose &
Direction• Lack of Understanding
about the strategies and resources needed
• Busy work that creates complexity and waste
• Power Point Paralysis
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Integration of Destructive Fads• WANT/EXPECTATIONS:• Collaboration, Team!• Self-motivated worker• Problem solver• Excellent communicator• Shares ideas, creative• Happy, hard working• Hire passion/”fit”/live wood
• WHAT WE DO:• Rank and rate• De-motivate, intimidate• Tell, micro-manage• Judge, blame, accuse• Give incentives, quotas• Hold indiv. Accountable for
the System’s outcomes• My way or the highway
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Our Aim Today:
Our Current Thinking is provoked;
We are more Aware: about how fear impacts people, productivity, & profits; the many management fads that cause fear; the costs of fear
Shift Leadership Thinking and Actions: How to Reduce Fear & Build Trust
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Transform Your Thinking & Organization:Begin the Journey
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Point #8: Drive out fear! and build trust!
“We can’t have quality, creativity, productivity, innovation, collaboration (or an interest in
serving customers) if people in our organization can’t share information and tell
the truth.
We can’t improve organizations when people are afraid to participate, contribute, or
cooperate.”Dr. Deming
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SystemsSystemsThinkingThinking
UnderstandingVariation
UnderstandingVariation
UnderstandingUnderstandingVariationVariation
Theory ofTheory ofPsychologyPsychology
Theory ofTheory ofKnowledgeKnowledge
A Management Philosophy for A Management Philosophy for TransformationTransformation
“System of Profound Knowledge” (Deming)
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Search for Fear—reduce it! HOW?
THINK and Planthrough the lens
of the SoPK; create a plan to
develop trust
ASK QUESTIONS to understand
CHALLENGE Current
beliefs and assumptions
DEVELOP LEADERSHIP to serve employees and customers
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VALUES:VALUES:
VISION/COMPELLING PURPOSE/AIM: “What are we trying to VISION/COMPELLING PURPOSE/AIM: “What are we trying to accomplish TOGETHER?”accomplish TOGETHER?”
METHODS/STRATEGIES: “By what methods will we achieve our aim? METHODS/STRATEGIES: “By what methods will we achieve our aim? What resources will we need to support these methods?”What resources will we need to support these methods?”
Strategic Compass--each question below is inter-dependent with all of the other parts
CUSTOMERS/MEMBERS: “Who are we serving (internal and external?) CUSTOMERS/MEMBERS: “Who are we serving (internal and external?) What do they need? How do we know?”What do they need? How do we know?”
MEASURES OF PROGRESS AND SUCCESS: “How do we look at data over MEASURES OF PROGRESS AND SUCCESS: “How do we look at data over time and in context for better decision-making to achieve better time and in context for better decision-making to achieve better results and have better control of our work?”results and have better control of our work?”
What do we stand for? What do the words, policies, and behaviors we use reflect?
All parts of the system must work together to achieve the Aim
Marcia Daszko & Associates
www.mdaszko.com [email protected]
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Trust Creates Productivity and Profits
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Leaders Develop a New Vision, Direction, a Compelling Purpose and Inspire People
What does the organization look like?
How do people engage, interact, serve & care?
What behaviors do we want?
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How Can You Build More Trust and Lead and interact in a better way?
What will create trust?COMMON AIM
TRUST
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How Will You Define Success in the Future?
What direction are you going?
What is your Plan?
(use the Plan Do Study Act model)
What do you need to think and know to lead a culture of trust and
build joy in work?
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What We Say and What We Do
• The beliefs and assumptions (what we Think and may say)
• The structures (what we design; are they fear-full?)
• The policies and procedures (what we create)
• “I don’t care what you say; I only watch and believe what you do/act (how you interact.)”
The Top
VP VP VP
MANAGERS
WORKER WORKER WORKER
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True Scenario: A company full of fear• The Challenge: $30 million co. Declining sales and profits, 50%
turnover per month; managers blame each other• The Assessment: executives finger-pointing; explosive work
environment; lack of systems, processes and communication flow; huge fear; a crisis situation.
• Current Direction: on their way out of business• The Commitment: Open to Learning, question, lead & transform• The Change: Power of Purpose; commitment to learning & new
thinking; Reduce Fear & Build Trust; Improve and Serve all customers; Create new systems: only leaders are accountable.
• The Result: Growth from $30 to $200 million; no turnover. Leadership, joy and pride in work developed throughout co.
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Take-Away’s:What Is Fear Costing You?
• Become more Aware of fear and its Impact;• Work to reduce fear & create a
plan/systems to build leadership thinking and a culture of trust;
• Get an outside assessment of the fear-causing management fads, “best practices”, leadership thinking, systems and behaviors that impact your bottom line, profits, culture, and your health. Where do you stand? What is fear costing your organization?
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Take-Away’s:What You Can Do
• It is leadership’s job to reduce fear and build trust.
• Develop all employees’ leadership.• Create forums for open conversations to
discuss issues and solve them Together.• Create plans to improve communication
and work flow.• If the culture is out of your control and toxic,
get out Fast.• Find a place where you can thrive.
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HELPFUL RESOURCES
Driving Fear out of the Workplace by Kathleen Ryan and Dan OestreichFeel the Fear and Do It Anyway by Susan JeffersLeadership and Self-Deception, Second edition. by The Arbinger InstituteThe Essential Deming. Edited by Dr. Joyce Nilsson OrsiniLove ‘Em or Lose ‘Em by Sharon Jordan-Evans and Beverly KayeDrive by Daniel H. PinkFree, Perfect, and Now by Robert RodinFlash Foresight by Daniel BurrusThe New Economics by W. Edwards DemingDeming’s Profound Changes by Dan Robertson and Ken DeLavigne Out of the Crisis by W. Edwards DemingPower by Jeffrey PfefferThe Leader’s Handbook by Peter ScholtesIntrinsic Motivation at Work by Kenneth ThomasThe Goal by Eliyahu GoldrattArticle: “What Profound Leaders Need to Know,” www.mdaszko.com