by Grace Tripathy

Tue 19 April 2022

Congratulations, you’re in charge of your team now! The dynamic at work is changing, but don’t worry, you got this!

If you want your direct reports to respect you, it’s important that you first show them the respect that they deserve.

Actively treating all of your workers fairly, demonstrating your value for them through your words and actions, listening to their concerns and addressing them as best you can will set you apart as a leader that they can trust and respect.

Garrett Mintz, founder of Ambition in Motion, discusses the way that the best leaders are the ones who dole out credit and take accountability for things that don’t go the way that they’re supposed to.

“It’s a beautiful thing when the leader doesn’t care who gets the credit,” said in a TikTok duet about leadership with Garrett Mintz and Josh Lewis, Management Consultant.

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At Ambition in Motion, we don’t control the content of one’s work but we can have an impact on how people interact with each other at work.

At your company, you are in charge of your direct reports! The respect that you receive from them must be earned, and it begins with your ability to be confident in your actions and malleable to your new work environment.

How can I get my direct reports to respect me as a leader?

- Give out Credit

- Take Accountability

What does it mean to take accountability?

Being “accountable” is more than just taking responsibility, or being reliable.

Several veins run through a truly accountable leader.

Accountability is a skill that requires leaders to own up to a team’s actions, decisions, and mistakes. It’s also the ability to follow up on the commitments you have made within an organization and its people.

As a leader of others, you are actively representing your organization, and promoting the quality of work that you aim to produce and to be produced by others. When things do not go according to plan, take the initiative to be the first to shine a light on the opportunity to grow, as a team.

What does it mean to give out credit?

The best leaders give credit to others, they don’t take credit for themselves.

When you represent a team of people, one of your biggest goals is to encourage them to be the best that they can be. Just as your team is learning and growing, you are also learning how you can help them best grow and reach their highest potential by remaining malleable to their work processes. Every member of your term plays an important role in the execution of your overall goal; the more respect and power that you give to them, the more success you will find.

However, mistakes happen. A leader who assumes the blame, and passes the credit, send a message that mistakes are OK and that when they happen, it will be an opportunity to learn and grow. By inspiring those in your charge, your employees will emulate your best traits, which will include assuming the blame for themselves.

The best leaders inspire others and give credit.

Why is it important that I give credit and take accountability?

Giving credit and taking accountability sets yourself apart from the team, as a guide toward your team’s overall success. The more emphasis that you put on guiding your team, rather than showcasing your leadership (by taking credit or blaming others for mistakes), the more respect you will gain from your direct reports. Check out these leadership tips:

Encourage your team

Earning your team’s respect starts with building a trusting and positive community within the team.

Encouraging and promoting others to do their best and work together also boosts productivity because it makes employees feel less isolated and helps them to feel more engaged with their tasks.

By creating a positive and supportive work environment, your direct reports will not only trust and respect you, but they will also work harder to produce good results as they aim to live up to the high standards that you hold for them.

2. Recognize and praise good work

Although it’s important to give credit to your team, public praise is great for both recognition and learning. When you publicly share specifically what was great and why it was great, not only does it have more meaning for the person being praised, but it helps the whole team learn something new.

Remember to provide details about what the person did, the impact, and the context so that the whole team learns.

When you recognize good work, you remind your team what you’re working towards, and what they’re doing right, which in turn, inspires them to keep doing better. This plethora of inspiration and praise allows for a more open-minded environment for idealization between you and your direct reports.

Looking for a more efficient way to evaluate performance reviews within your company? Ambition in Motion offers the software, AIM Insights reports, ensuring visibility over all ongoing activities: task performance, manager performance, organizational citizenship, team performance, and goals for direct reports. Click here to learn more about how you can simplify your performance review process!

3. Correct in private

Although praise is an extremely important part of your relationships with your direct reports, it is normal for things to go wrong sometimes! However, it’s important to correct people’s mistakes in private, and then later emphasize to the team what they should avoid, without calling anyone out personally.

Private criticism is important in order to be kind and clear. Radical Candor is not the same thing as “front-stabbing”, and it’s much kinder to criticize someone in private.

Public criticism can feel unnecessarily harsh. Private criticism will also be clearer because it’s much less likely to trigger a person’s defense mechanisms.

4. Acknowledge workplace adaptation

Yes, you have new direct reports!

Yes, the workplace dynamic is different now. Own it!

As a new manager, it’s important to remember that just as your team is learning to adjust to you, you are also learning to adjust to them and your new position.

Do not be afraid to emphasize this learning curve to your team. In order to create a culture of respect that encourages growth and high levels of success, it’s your job to make learning a part of your daily routine in the workplace.

Learning helps people keep a broad perspective.

An important part of your job is to know that your direct reports are counting on you to guide them. When mistakes are made, it is no one’s fault (including you), but as a manager, you make a promise to your team to lead them in the right direction as best you can, meaning you must learn to take accountability for team mistakes. However, this is a positive part of your job! Not only will you take accountability for mistakes, but you will do it with pride, and emphasize a learning curve in everything that you do, and everything that your team does; mistakes are OK!

5. Be transparent about your motives

Transparent communication is the act of both good and bad information being shared upward, downward, and laterally in a way that allows all to see the why behind the words.

A workplace with transparent communication is a more collaborative and trustworthy workplace, with information being openly shared between employees and across levels of the organization.

Transparent communication also allows employees to be more innovative since they are more informed. Additionally, transparent communication encourages others to communicate openly and increases the sharing of ideas.

When transparent communication is present between you and your direct reports, you allow the workplace to be collectively informed about the true happenings within the organization in order for them to align their actions accordingly, ultimately making your job easier and removing any confusion about the team’s overall goals.

These leader tips will help you set the grounds for a positive, encouraging work environment.

Real accountability requires leaders to take responsibility and pride in the art of encouraging and guiding their employees. Being an accountable leader is not as easy as it may sound, but it is necessary to bring genuine value to your team of employees and your organization as a whole. However, taking responsibility and giving out credit whenever possible will set you apart from other leaders, and enable your direct reports to respond positively to your leadership.

by Malhar Lakshman

Mon 18 April 2022

What is a performance review?

Performance reviews are periodic processes in which you as an employer, or a manager, document and evaluate your direct reports’ work in a set of given time. These can feature either qualitative data, quantitative data, or a combination of both. An effective performance review recognizes both strong and weak areas of performance, provides solutions to some of these areas deemed to need improvement, and sets goals to achieve by the time of the next performance review.

The term “Performance Review” primarily refers to the documentation or analysis involved in evaluating an employee’s performance. However, as mentioned before, the ideal review is also a process. Therefore, the term also includes any meetings or discussions in relation to this evaluation.

Why is a performance review important?

Performance reviews are extremely useful for a company due to the potential impact that they can have. Through an effective review, a manager can successfully have an intentional conversation with an employee and help improve performance, and more importantly, keep a stream of feedback between the two tiers of hierarchy. Compounded with regular discussions about employee progress, an individual can feel much more satisfied in knowing how their supervisor views their work, and how they can progress.

When should a performance report be written?

Many managers often struggle in recognizing when to write a performance review. To properly identify when to write such a device, it is important to realize the concept of Recency Bias. Recency bias is defined as a cognitive bias that favors recent events over historic ones. An example of this would be how a lawyer’s final closing argument in court is said to be one of the most important moments in law due to it being the last, and therefore favored, event that the jury hears prior to being dismissed to deliberate.

To put this into the context of business, imagine that a worker has completed a very important project in January, with constant work through the rest of the year, and a below-average performance in December. Should a manager write this employee’s performance review in December, what would be the first thing to go through their mind? In most cases, it would be the latest event, which in this case would be the aforementioned poor performance in December. The report would probably focus on this, and therefore, would not be a good metric to evaluate an employee with. Therefore, it is extremely important to remain cognizant of this bias and recall the other tasks, in this case, the project completion, and add them to the review. A performance review that is clear of recency bias is much more reliable, and also more accurate.

Once you have identified the concept of recency bias, and have taken steps to ensure avoidance of such, you can write this review at your convenience. Performance reviews are best written at the conclusion of a financial or business year but can also be written more frequently as well to create a constant stream of feedback – for leaders using AIM Insights, the data is optimized for monthly reviews. Regardless of when this report is written, it should not be the sole way that an employee is evaluated. The key thing to remember here is that an employee has no way to improve without receiving feedback or constructive criticism. If someone doesn’t know that there is a problem, how would they be able to fix it? The same applies to the employee review. Provide feedback, whether it be through a Slack message, or a text, or even a chat over coffee. This way, an employee would not get blindsided by a bad review.

How should a performance review be conducted?

Ideally, a review is started from the very beginning of the period to be evaluated and defined by management. This boils down to recognizing what an employee has been assigned, and then what they are completing. Workforce performance management software such as AIM Insights can be used to help automate this process. The primary responsibility of the reviewer is to take notes throughout the entire period to ensure the best possible review. This helps with avoiding the aforementioned recency bias conundrum. As mentioned before, this review should be compounded with regular conversation or meetings, to allow for improvement. Once it is time for the actual written report, use benchmarks and performance indicators. In some businesses, it may be the number of sales, or the number of customers recruited. Regardless, quantitative data is objective, and can often assist in writing the rest of the report. Use thresholds and compare them to the employee’s progress to determine acceptability.

After this review is written, a meeting should be set up to discuss this with an employee, with prior delivery of the review. While this discussion may be difficult, it is important to recognize that this is to help improve performance, as well as employee mood. Remember, keep it constructive, juxtaposing both praise and improvement recommendations. With these tips, you should be well on your way to writing the perfect performance review. Best of luck!

by Garrett Mintz

Mon 11 April 2022

Last week I hosted an executive symposium with local leaders on How to develop leaders in your organization. Shortly after the panel discussion started, a new topic emerged: who is in charge of building culture within an organization? This revealed some interesting disagreements between panelists, and so we explored this topic further.

One of our panelists was Herb, an executive coach and former COO of a major healthcare system. Herb posited that culture-building originates with the CEO and trickles throughout the organization.

Mindy, another panelist and Chief People Officer at a venture capital-backed software company, partially agreed, but expanded the role to include the rest of the executive team. She believes that it starts with the executive team and then needs to be effectively communicated throughout the organization.

And Bernie, the CEO of a small construction company, went further. He argued that everyone helps build the culture of the organization.

CEO, executive team, or everyone at the company? Which of these arguments is actually right? I decided to seek input from the broader community to find out more.

I conducted a modest-sized poll on LinkedIn and asked them who was responsible for building culture at their work. I heard from over 150 professionals, and the consensus pick was that everyone is in charge of building the culture – i.e., they agreed with Bernie.

But are they actually right?

Bernie is the CEO of a 25-person company. He uses quarterly meetings to bring the entire team together to reevaluate their core values, core focus, and goals, and he finds this to be an irreplaceable part of his company culture.

His fellow panelists, Herb and Mindy, pointed out that a 25-person company can handle an activity like this, but scaling that concept up to hundreds or thousands of people is not feasible. Either nobody gets heard, or the process rapidly grows cumbersome because the time to review each person’s perspective takes forever.

Furthermore, Mindy argued that an executive team should already be having these conversations regularly and connecting with each other as core values or core focus change.

Herb pointed out that having a CEO who prioritizes and values these regular meetings isn’t always going to be in the cards. Instead, many companies rely on standard operating procedures to be profitable. By plugging people into roles and following the company guidelines, the company should still be profitable for those roles, regardless of any specific employee’s unique contribution.

But, for a culture to adapt, scale, and thrive, there needs to be a CEO who is cognizant of the need to actively adapt and reevaluate culture if the company aims to constantly drive forward.

Herb subscribes to more of a command-and-control leadership style from the CEO position, but Bernie and Mindy disagreed with that prescription. They argued that the responsibility to identify the proper pivots and seek new ideas is a shared task, not exclusive to the CEO.

One thing that everyone could agree on was that there is no one-size-fits-all solution for building an effective culture, but whatever culture you have built, it must be readily understood, inspiring, and not general and exclusively aimed to benefit the organization.

What does this mean?

By “general and not exclusively aimed to benefit the organization”, means that the culture can’t simply be:

‘Our mission is to grow and be the best',

or ‘We aim to deliver returns for our shareholders and increase the return on investment from our business development efforts',

or ‘We strive to be an ever-evolving company that constantly does better work for our clients’.

These types of generic or self-serving visions for a company’s culture lack substance, and the employees can tell.

By “readily understood” and “inspiring”, this means that the culture needs to be about something greater than the individuals in the organization or the organization itself. It needs to be about something greater; a culture that, with the support of others, with consistent reminders about what everyone is doing this for, and with flexibility for adjusting as new information comes to light, can potentially come true inside that company.

For example, Bernie’s vision is that we exist to improve people’s lives. We collaborate with like-minded clients, design firms, and trade partners on the construction of unique spaces. We operate with humility, curiosity, diligence, and confidence. We believe our success will continue as we put others first, remain perpetually relevant, and execute best practices. We believe in a better construction process, one where you will LOVE YOUR HOME AND ENJOY THE JOURNEY.

Personally, I liked Bernie’s vision, but some aspects felt a little generic. Contrast this with Mindy’s vision, which spoke more strongly to me, particularly because it was shorter and more clear while still being aspirational.

Mindy’s vision is a world where the vast majority of people are excited about going to work. When they are there, their expectations meet reality, and when they come home, they feel fulfilled.

Her team’s cultural norms and rituals are based on this higher goal of helping people enjoy work more. Because of these efforts, their team is amenable to the times when they need to put in the hard, extra hours because their work fills their cup instead of emptying it.

When Mindy’s team loses their North Star (e.g., feelings of burnout, confusion, frustration), they can refer back to their vision for inspiration or use that vision for reason to gather clarity. Her team’s vision is for the vast majority of people to enjoy their work; when a team member feels the burnout, they feel empowered to speak up about it and try to address the issue rather than quietly applying for jobs outside of the company in search of greener pastures.

If you feel like your company’s culture falls into this overly general category, or isn’t particularly inspiring, or isn’t reminded to you consistently, that’s an okay thing to feel and perfectly normal. But, it doesn’t mean that you are powerless to do anything about it.

One of my biggest takeaways from the panel was that although the CEO and executive team may be the core people coming up with the vision, everyone is required to set and reinforce the tone of the culture and the vision set forth. CEOs and executive teams are burying their heads in the sand if they think that culture only goes top-down; culture-building is a team exercise, and nobody is on the bench.

This means that if you are confused, concerned, or unclear as to your company’s culture or vision, you should broach your leadership team for guidance or ask to set a plan. If your leadership team does not have a vision, the first step starts with you.

I hope you enjoyed learning about one small insight from Ambition In Motion’s first Executive Symposium. If you are interested in attending any of our future Executive Symposiums or learning about our Executive Mastermind groups, please feel free to reach out to me on LinkedIn.

by Garrett Mintz

Mon 17 January 2022

Leadership is an aspect of work that is about to have a major overhaul. It is a skill hardly covered in higher education, yet people are expected to step up when their name is called to fill in management positions.

Many universities have downgraded Management from being a standalone major to a co-major or a minor. When I was a student, I didn’t think much of this at the time, except for the fact that this decision dissuaded fellow business students from pursuing the field of study because it meant doing just as much work as a normal major but having the label as “co” attached to it, making the degree seem less significant.

From my understanding, their reasoning was that most college students aren’t hired for management roles right out of college, so other degree fields are more immediately relevant to employers making hiring decisions. The notion was that these young professionals will learn and develop management skills as they enter the workforce and be ready to step up.

The issue with this mode of thinking is that most companies promote based on individual contributions within their role, and they provide little guidance to middle-management on how to be an effective leader. On top of that, the skills that make somebody a great individual contributor are not the same as the ones that make somebody a great manager. The result is burnout, and not just for the managers. Both employees reporting to untrained managers and the managers themselves suffer from the stress. A new manager that’s in over their head can go wrong in a variety of ways. They might expect their new direct reports to all perform at the same high level that the manager (thinks) they did at the time. On the other hand, they might fall prey to ruinous empathy. They want to be the cool, approachable manager, but they lack the skills to maintain discipline and have direct, potentially uncomfortable conversations with team members. This stress feedback loop between managers and direct reports rapidly degrades engagement and company culture.

A recent Gallup report found that burnout for people managers increased from 27% in 2020 to 35% in 2021. The effects of manager burnout are distributed across a whole company. Frequent turnover and changes in leadership completely erodes psychological safety in employees, which in turn contributes to more turnover. These feedback loops are insidious problems and only grow more difficult to fix as they gain steam.

The point is that companies need to begin thinking about increasing their training and development resources for their mid-level managers if they want to be a viable business in the years to come. The cost of hiring, training, and then re-hiring digs too much into the narrow margins most companies have allocated for maintaining long-term profitability. And for companies that are breaking even, getting started now is imperative!

When reviewing whether the company found the right manager (hired or promoted), sometimes you find it didn’t work out. It is too easy to simply chalk it up to “poor fit” or that the person did a bad job. This lets the company off the hook for their hiring choice when there’s another side to this story. The manager that didn’t work out in that position may think that “the company didn’t give me the resources to be a good manager and put me in a position to fail”.

The truth is probably somewhere in the middle.

I believe that being a really good manager isn’t some inherent skill that people pick up naturally. It is a learned skill that can be developed and honed over time. And this skill can’t be learned in sprints; it’s learned through a marathon of consistent, focused practice on improvement. Consistency is the key.

When people talk about their boss being a “bad manager” and vent about all the bad things that their boss is doing, I would care to argue that in almost every case, the manager is not intentionally being a bad manager. Nobody comes to the office thinking “how can I ruin your day?” and then just go ahead and do it. Pure intentions can’t hide the effects of poor execution.

People have off-days.

Whether they are burned out from work, stressed out from something personal, or just on edge and unsure why, people have off-days. When you are an individual contributor, having an off-day is easier to keep to yourself. It’s easier to mostly contain that negativity, or at least keep it from being an issue for your coworkers.

But, when a manager has an off-day, there is a magnifying, exponential effect because they have an opportunity to negatively impact everyone that reports to them.

If you string enough of those off-days in a row together, you create a toxic culture. And, unsurprisingly, toxic cultures don’t make off-days less frequent. If you are a new manager, and things aren’t going how you planned, this can be deeply frustrating. You didn’t intend to create a toxic culture, and your work style and preparation didn’t change from being a great individual contributor, but your performance as a leader of people continues to dwindle. The most important thing you can do is to start working on improving it now.

So, here are a few things you can do to maintain your A-Game as a leader.

Read Leadership Books (least expensive)

To know what a good leader does on a regular basis, it is important to learn from those that have studied the best leaders. There are about a million of these books, but to get you started I’ll share a few that have influenced my thinking. I am a big fan of Simon Sinek’s Leaders Eat Last, Dale Carnegie’s How to Win Friends and Influence People, Jocko Willink’s Extreme Ownership, Brene Brown’s Dare To Lead, and Kim Scott’s Radical Candor. Eventually, you’ll have your own list of the books that most influenced you on your path to becoming a great manager.

Join an Executive Mastermind Group (moderately expensive)

Executive Mastermind Groups can vary based on industry and title, but in general, they are a group of leaders coming together to learn from each other, share their challenges, and identify solutions to the challenges they are facing. They are a great outlet when you want to have a sounding board outside of your spouse, friends, or coworkers. My company, Ambition In Motion, actually runs executive mastermind groups, both for executives and middle managers – if you are interested in learning about them, feel free to reach out. The way I look at it is that we, as leaders, are all scientists testing hypotheses and trying to find the best ways to lead our teams. 90% of what we try probably won’t work, but these mistakes teach us how to get better at finding that last 10% that’s your key to success. If we can all bring our failed and successful leadership experiments together, we can exponentially improve our leadership and speed up our learning curve.

Review your team’s data (moderately expensive)

In my last article, How to Have An Effective 1:1 with a Direct Report, I wrote about how to have an effective 1:1 and what metrics can help you understand whether your message is getting through to your team. You need to be sure that your message is being received the way you intended. If you can understand how your team is receiving you as a leader through data, you are much more likely to make tangible improvements as a leader over time than if you aren’t measuring anything at all.

Get an executive coach (more expensive)

Getting an executive coach can give you a ton of personalized attention and focus to pinpoint the exact area you are challenged with. Executive coaches can question your way of thinking and acting and reframe your leadership style to serve your team in more impactful ways.

You can also combine all of these suggestions together to give yourself the best opportunity to improve.

Overall, leadership is undergoing a major overhaul and as current or future leaders, we must take steps to prepare ourselves for what is to come so we can lead our team the best we can.

by Garrett Mintz

Thu 6 January 2022

Work Orientation is how you derive meaning from work

Everyone has their own way for deriving meaning from work. We call this your Work Orientation. Research has helped show that people generally fall into one of three major categories based on how they find meaning at work. Some people are:

Career Oriented – or motivated by professional growth like getting promoted or learning new skills that support career advancement.
Calling Oriented – or motivated by the fulfillment from doing the work and making a positive impact on the world with their work.
Job Oriented – or motivated by gaining greater control over work/life balance and gaining material benefits to support their life outside of work.

Work Orientation is fluid, meaning it likely will change throughout your life and be impacted by both personal and professional events. Work Orientation is also on a spectrum, meaning that you aren’t necessarily purely career, calling, or job oriented, and many people have mixed orientations.
Next, I’m going to share tips on how work orientation affects your work, either as a manager or as an employee, and how you could leverage this information to create a better, more sustainable work environment.
Career Oriented
As a Career-Oriented Professional
If you are a career oriented professional, it means you are motivated by learning new skills and getting promoted. In a work setting, it can feel frustrating and uninspiring when you don’t have a clear path that you are working towards or if you feel like you have been passed up for promotions or opportunities. When this happens, you need to take the matter into your own hands and advocate for yourself.
Advocating for yourself to your manager about your professional aspirations can seem daunting because you don’t know how your manager is going to react. But, for you to get the most enjoyment from your work, it is critical that you clearly communicate your goals to your boss in a respectful way (so they aren’t surprised when you share your goals with them) yet in a meaningful way (so they can start working with you on a plan for where you would like to go professionally).
To get you started, here is one way that you could ask your manager for a meeting like this. Once you set the meeting, you can use these questions and suggestions to help you broach the topic with your manager:

Hi {manager name}, I was wondering if we could have a conversation sometime over the next week or two so I can share with you some of my professional goals and collaborate with you on how our team goals can align?
- This may seem like a daunting question to ask your manager, but a good manager would much prefer you be upfront with them about your career goals. This helps you work towards your goals and helps you find ways to simultaneously align with the team goals. A good manager knows that for career-oriented people like you, these tough conversations are crucial to keeping you from feeling underappreciated, confused as to how you fit in with the team, and potentially wanting out of this role.
What are some of our biggest team goals over the next year? How can I contribute in a positive way to help the team succeed?
How do you see my position evolving over the next 6 months to a year?
Who is somebody on our team (or another team you have worked on) that you feel did a great job of effectively rising through the ranks of the company by being a great team member? What did they do that helped them stand out?
Some of my professional goals are {xyz}. I was wondering if you think it could be possible for me to work towards some of those goals over the next year? If so, which goals make the most sense for our team? If not, what do you think would be a realistic goal for me over the next year?

Managing a Career-Oriented Professional

Career-oriented professionals need to have a timeline that they can work towards. If you lead a career-oriented professional, ambiguity is your worst enemy.
“Great job!” and “I appreciate the hard work” only go so far with career-oriented professionals.
Eventually, they need to have some form of concrete outcome that they can work towards, or they will become disengaged and leave.
Therefore, it is critical that during discussions with this direct report, you should be considering their professional goals and help create a path for them to look forward to.
You may be thinking to yourself “I don’t have control over who gets promoted, how can I still provide a path?” The answer is that, regardless, you should create some form of roadmap for your people to look forward to that is within your control. For example, I have seen call centers provide different tiered titles to professionals based on their tenure and effectiveness like Customer Support Representative I, II, and III. Perhaps the pay is slightly higher, or unchanged, but the job title embodies the progress for that employee. What matters is that your career-oriented direct reports are very achievement-focused so having something to look forward to is vital to your effectiveness in leading them.
If you are still struggling with creating a roadmap for your career-oriented direct reports, the easiest way to start is brainstorming. Jot down all your ideas on how you might be able to create a roadmap for them and share those ideas with your boss. If your company is investing in you by providing you with AIM Insights for your team, more likely than not they are invested in helping you identify the best solutions for your direct reports.
Here are some suggested questions you can ask your career-oriented direct reports to better understand their goals and aspirations:

In terms of your career, what would your ideal professional situation be in 10 years? (10 years is a good length of time because it’s distant enough to remove potentially troubling topics like switching companies or taking over someone’s role).
What are some experiences you would like to have while working with us?
Who do you know whose career path you would like to emulate? Could you elaborate on their career path and what they did?
{Share your ideas as to tasks they can work on and when and convey how those tasks helps them achieve their goals while also helps achieve team goals} After sharing some of those ideas with you, do you think those tasks would align with some of the professional goals you are working towards?
I would like to schedule another conversation with you in a month. Over the next month, I would like us both to brainstorm additional tasks you can work on that will help you achieve your professional goals and help our team achieve our team goals. Does that sound okay with you? (then put the date and time on the calendar for the next meeting!)

by Garrett Mintz

Thu 6 January 2022

Work Orientation is how you derive meaning from work

Everyone has their own way of deriving meaning from work. We call this your Work Orientation. Research has helped show that people generally fall into one of three major categories based on how they find meaning at work. Some people are:
• Career Oriented – or motivated by professional growth like getting promoted or learning new skills that support career advancement.
• Calling Oriented – or motivated by the fulfillment from doing the work and making a positive impact on the world with their work.
• Job Oriented – or motivated by gaining greater control over work/life balance and gaining material benefits to support their life outside of work.
Work Orientation is fluid, meaning it likely will change throughout your life and be impacted by both personal and professional events. Work Orientation is also on a spectrum, meaning that you aren’t necessarily purely career, calling, or job oriented, and many people have mixed orientations.
Next, I’m going to share tips on how work orientation affects your work, either as a manager or as an employee, and how you could leverage this information to create a better, more sustainable work environment.
Calling Oriented
As a Calling Oriented Professional
If you are a calling-oriented professional, it means you are motivated by changing the world through your work. Your professional life and personal mission are intertwined. In a work setting, it can be frustrating if your work loses its clarity as to how it is changing the world. Eventually, you will become burnt out if you don’t receive clarity and reinforcement as to how your work is positively impacting the world.
Advocating for yourself and asking your manager to have these conversations can seem daunting, especially if your manager does not share your work orientation. But, for you to gain value and meaning from your work, it is critical that you have regular conversations with your manager about why the work is meaningful to you and find ways that reinforce and build more meaningful work practices. Your fellow coworkers may not also be calling-oriented and may not share your drive for changing the world through your work. But that is okay as long as you can work with your boss to stay cognizant of your impact and nourish your drive to continue making a difference.
Here are some suggested questions and suggestions you can use to help you broach the topic with your manager:

Hi {manager name}, I was wondering if we could have a conversation sometime over the next week or two so I could dive deeper with you into our work and how our work impacts the people we serve?
- This may seem like a daunting question to ask your manager, but a good manager would much prefer you be upfront with them about your motivation for work. This helps you build a shared perspective and helps you find new ways to approach team goals. A good manager knows that for calling-oriented people like you, these tough conversations are crucial for understanding the meaning of your work and finding new ways to change the world.
What is the biggest benefits people gain from the work we do? How does our work positively impact their lives?
Can you share with me any recent testimonials from our clients about how our product/service positively impacted them?
What are some of our goals for further impacting our clients in the future? How can I get more involved in having a positive impact on our clients?
Some of my goals for impacting the world through work are {xyz}. I was wondering if you think it could be possible for me to work towards some of those goals over the next year? If so, which goals make the most sense for our team? If not, what do you think would be a realistic goal for me over the next year?

Managing a Calling Oriented Professional
Calling-oriented professionals are motivated by the belief that they are positively changing the world through their work. As a manager, you may not be calling-oriented and that is okay.
But it is critical that you nourish this drive from your calling-oriented direct reports, or they will leave to seek out work that better satisfies their calling to change the world through their work.
Calling-oriented professionals need regular confirmation that their work is making a difference. It can be easy for them to get lost in the minutiae and lose focus as to why they are doing the work. If your calling-oriented professionals lose focus on the “why” to work, they will become disengaged and eventually seek out better prospects. For example, I have seen calling-oriented professionals leave nonprofits because they lost sight of the positive outcomes driven by their work.
Calling-oriented professionals will bend over backward to do a great job, so long as it’s clear that their hard work is making a difference. Calling-oriented professionals often can stay highly engaged, even for seemingly grueling work with long hours and not incredible pay, because truly believe in the value of the work they are doing. Often, this includes their manager regularly reinforcing how their work impacts the people they serve.
Just to be clear, eventually, there comes a point where a calling can only get you so far. Work orientation is fluid and can change, and this shift can make previously acceptable conditions no longer tenable for a calling-oriented professional. When you are asking your people to do too much, consistent reinforcement will eventually run dry, often the case in startups with a charismatic founder. Their work orientation will adapt, and they will demand more from their work before being ready to switch back into that calling-oriented workstyle. But, if you are leading calling-oriented professionals, it is critical that you nourish their drive for impact regularly and creatively. "Regularly” is doing a lot of heavy lifting here, but once per month is a good benchmark, especially if you can find new ways to connect your employees to the greater value of their work.
Here are some suggested questions you can ask your calling oriented direct reports to better understand their goals and aspirations:

In your perspective, what is the best way we impact our customers?
How could see us making an even greater impact on the world?
How could you see our business growth goals also impacting the world?
Throughout a typical month, what typically reinforces to you that we are on track and continuing to impact the world in a positive way?
I would like to schedule another conversation with you in a month. Over the next month, I would like us both to brainstorm additional ways we are impacting the clients we serve and ways we can be more innovative at better serving them – even if they all aren’t realistic at the moment. Does that sound okay with you? (then put the date and time on the calendar for the next meeting!)

by Garrett Mintz

Thu 6 January 2022

Work Orientation is how you derive meaning from work

Everyone has their own way of deriving meaning from work. We call this your Work Orientation. Research has helped show that people generally fall into one of three major categories based on how they find meaning at work. Some people are:
• Career Oriented – or motivated by professional growth like getting promoted or learning new skills that support career advancement.
• Calling Oriented – or motivated by the fulfillment from doing the work and making a positive impact on the world with their work.
• Job Oriented – or motivated by gaining greater control over work/life balance and gaining material benefits to support their life outside of work.
Work Orientation is fluid, meaning it likely will change throughout your life and be impacted by both personal and professional events. Work Orientation is also on a spectrum, meaning that you aren’t necessarily purely career, calling, or job oriented, and many people have mixed orientations.
Next, I’m going to share tips on how work orientation affects your work, either as a manager or as an employee, and how you could leverage this information to create a better, more sustainable work environment.
Job Oriented
As a Job Oriented Professional
If you are a job-oriented professional, it means you are motivated by work/life balance and using your professional development to gain greater control and freedom over your life. In a work setting, it can feel frustrating when your company wants to keep pushing additional responsibilities onto you without considering your input on how this affects your workload, compensation, or balance.
Advocating for yourself can be difficult because it might be counter to the culture that is set at the company. If your manager and everyone around you is working 16-hour days, you may feel like a slacker when you finish up after only 10 hours. But, for you to get the most value from your work, particularly with regard to your long-term engagement, it is critical that you broach this topic with your manager or you will become burnt out.
Here are some suggested questions and suggestions you can use to help you broach the topic with your manager:

Hi {manager name}, I was wondering if we could have a conversation sometime over the next week or two so I can gain some clarity on my role and set some expectations for the upcoming months?
- This may seem like a daunting question to ask your manager, but a good manager would much prefer you be upfront with them about your need for work/life balance. This helps you enact greater control over your situation and can ensure that you have a say in your work/life balance. A good manager knows that failing to have these conversations with job-oriented professionals can lead to overwork and potentially an exit from the company.
I am struggling with creating boundaries between work and life and I was wondering if you could help me clarify my goals so then I can feel like I am holding up my share of the work?
- Job-oriented professionals excel at finding ways to do great work when the rewards are connected to their desire for control over their work/life balance. Leaving early doesn’t mean leaving with work left undone; it means you want to find new or better ways to do your part so you can reap the fruits of your labors.
Right now, my current workload is impacting my ability to {xyz – spend time with family, play videogames, spend time with friends, etc.} and that is really important to me. Would you be open to helping me structure my work schedule so then I could get my work complete and optimize my ability to {xyz}?
If I feel a task assigned to me is too much for what I have the capability to handle, how would you like me to communicate that to you?
What is the most important aspect of my work and what do I bring to the team? How can I optimize my time to be most impactful?

Managing a Job Oriented Professional
Job-oriented professionals are motivated by work/life balance and gaining control over that balance. You may have a different work orientation than somebody that is job-oriented and that is okay. Being job-oriented doesn’t mean you are lazy or disengaged, it just means you want work/life balance. Pursuing the next promotion or making an impact on the world are not significant motivators for you. This simply presents a different way for an employee to find their motivation for work, and it doesn’t mean that calling or career orientations lead to better work. In fact, after studying thousands of professionals and their work orientation, our team has found that no single orientation has greater engagement than another. Essentially, job-oriented professionals are just as engaged as everyone else.
What is critical, as managers of job-oriented professionals, is that we understand that and are conscientious of that when we add work to their plates.
When managing job-oriented professionals, it is critical that we set clear expectations with them regarding how much they expect to work, their compensation for that work, and how their work should be prioritized. Good managers must do their best to maintain standards and adapt compensation (not strictly monetary) to match changes in workload. Job-oriented professionals will be particularly frustrated when new, arduous tasks disrupt their expectations, and this leads to disengagement or leaving the company.
For job-oriented professionals, their work is not their entire life, and that is okay! Job-oriented professionals want consistency. They want to know their work or workload isn’t going to drastically change overnight so they can put their mental energy into their life outside of work.
For example, some managers of job-oriented professionals give them incredible amounts of autonomy with their work with very clear expectations. These managers know how much time it takes the average person to complete the task and what quality metrics are necessary. They support motivation for job-oriented employees by providing incentives for great work like pay bonuses, greater control over hours, or even intangible rewards like a manager’s trust when picking projects.
However, you don’t want to cheat the system because your employee will notice, not even including the broader effects of dishonesty at work. Job-oriented professionals expect a fair deal and will respond fairly. So if you are offering half-measures or offering poor incentives, they will take notice. “Fake” rewards (e.g., offering to let them leave early for completing a task impossibly fast) will only build distrust. They are not going to fall for that trick a second time and they are going to lose trust that you have their best interests at heart.
What is critical to job-oriented professionals is clarity as to what you expect from them and that they are in agreement that your expectations are reasonable for them to complete.
Here are some suggested questions you can ask your job oriented direct reports to better understand their goals and aspirations:

How do you feel about your current workload? When do you feel like you are working too much? When do you feel like you are working the right amount?
What aspects of your work could benefit from greater clarity from myself or other team members?
Who on the team do you feel is working too many hours?
What aspects of your work do you like the most?

by Garrett Mintz

Sun 28 November 2021

I was fortunate enough to be invited as a guest on the IBJ podcast a month ago to discuss the topic of the Great Resignation and why people are making career changes in droves. One of the consistent themes my fellow guest, Mandy Haskins, and I identified was how critical of a role that the manager plays in whether people stay or go.

One of the most important components for being a strong manager that engages their team and helps them feel connected to the work is their ability to have effective one-on-one meetings with their direct reports.

This article is going to explain why having one-on-one meetings between managers and direct reports is so critical to being a strong manager. Next, I’ll present some tips on how to have effective one-on-ones and how you can assess the quality of those important meetings.

Gallup came out with research that identified that 70% of employee engagement variance is based on the relationship between the manager and that employee. The adage “people don’t quit jobs, they quit bosses” is absolutely true. And the best way to ensure that you are consistently connecting with and having a pulse on your people is by having regular 1:1 meetings with direct reports to understand their feelings about work and their own path within the organization.

What is 1:1?

A 1:1 is time taken between a manager and direct report to discuss updates between each other and their overall feelings about the work. However, not all managers treat these meetings with the same significance. Some managers define a 1:1 as a quick chat about upcoming tasks. On the other hand, some other managers create an agenda to discuss key components of the employee’s work, keep notes from previous conversations to follow up on, and share a vision for the employee (and have the employee share a vision with them) that includes their role in the organization and their role within the particular team or department.

The problem here is that the difference between the former and latter examples of 1:1’s is vast: you simply can’t get a good read on the situation without putting in the work to have effective 1:1’s. So I wanted to take some time to identify what an effective 1:1 looks like, what you should be discussing, and how you can assess the value of those meetings over time.

What does an effective 1:1 look like?

An effective 1:1 is a meeting between manager and direct where report the manager has asked the direct report to share some updates about their work and tasks to the manager before the meeting has started (i.e., updates on goals, perceptions of task performance, team productivity, team cohesion, and feelings about their ability to help others without being asked - organizational citizenship). This key step gives the manager context on to what has been accomplished since their last meeting and how they are feeling about work from a high level.

When the manager and direct report meet, the manager has questions prepared to ask their direct report that will help the manager better understand any gaps between the manager’s perspective and the direct report’s experience. For example, consider a case where a direct report shared before the 1:1 that they are feeling a little down on their task performance this month. However, their manager feels that the individual did a fine job and didn’t notice any signs of lower task performance. Effective managers can learn more about the cause of this gap in perception by asking questions like these in the next 1:1 meeting:

· What areas do you think you performed well this past month and what areas do you think you could improve?

· What aspects of your work do you like most? How do they play into your strengths and vision for where you'd like to be?

· How do you feel about your work and the people you work with?

· What areas of your work would benefit from greater clarity from myself or other team members?

What is critical about the questions a manager has prepared for the conversation is that they are not simple yes/no questions, nor are they “why” questions. Yes/no questions are not as effective in a 1:1 because managing and understanding your direct reports requires some curiosity from the manager to get useful answers. Binary questions leave out the details that provide needed context and understanding between manager and direct report.

“Why” questions are also not as effective in a 1:1 because they insinuate that something needs to be justified. For example, if the manager would have asked “Why do you think you performed poorly over the past month?”, the subsequent response involves backtracking and providing a justification for why they scored themselves the way they did. It puts the employee on the defensive and hampers shared understanding. It also disincentives’ employees from being honest in future conversations and doesn’t lead to any greater understanding between manager and direct reports. What/How/Who questions are much more effective for 1:1’s because they emphasize curiosity and help a direct report feel comfortable sharing an honest assessment of themselves, their team, and their experience.

How does one measure the impact of a 1:1?

Management simply doesn’t allow for some one-size-fits-all scientific solution. Management is more of an art that needs to be adjusted on a case-by-case basis to fit their direct reports, their work, and work culture. At Ambition In Motion, we have created a tool that helps managers better understand their direct reports’ core feelings about work over time (updates on goals, feelings about their task performance, feelings about the team productivity and cohesion, and feelings about their ability to help others without being asked - organizational citizenship) called AIM Insights.

One thing we have found to be really effective with the tool is when we measure the correlation between the number of 1:1’s had and their employees’ change in responses month-over-month trends for those core feelings on work. When there is a positive correlation, that would mean that the more meetings that manager has with that direct report, the higher the direct reports’ scores are (which means they should have more 1:1’s with that employee). When there is a negative correlation that would mean that the content and quality of those meetings need to change to help improve that employee’s feelings about work.

Of course, there are other factors that can impact how an employee is feeling at work, beyond their relationship with their manager, so this can’t solve every challenge an employee is facing at work.

However, refer back to the Gallup statistic – 70% of employee engagement variance is based on the relationship between manager and direct report. Measuring this every month can help a manager find the right communication style and cadence that works best for each direct report. This, in turn, can help managers better understand their employees, improve their engagement levels, and increase retention. As the relationship between employees and employers continues to change and evolve, I’m sure that the “winners” of the great resignation will be the managers who adapt and thrive: they will keep their best employees, develop up-and-coming stars, and provide a prime landing spot for anybody that’s sick of the old paradigm.

by Garrett Mintz

Sun 26 September 2021

Attracting and retaining talent in the summer of 2021 has been incredibly difficult – so much so that LinkedIn and other news outlets have dubbed this time period as the “Great Resignation”. I have personally interviewed dozens of executives and consistently heard sentiments like this:

“Business is booming, but we can’t find people to staff the demand we are receiving or keep the people we have!”

Some executives I have interviewed have blamed working from home and the general burnout from the increased uncertainty as reasons for this. Other executives blame generous unemployment benefits as the reason for these hiring struggles.

This article won’t serve as a deep-dive into why the Great Resignation is happening. Instead, I’m going to focus on solutions and highlight one major way we can handle this challenge to our businesses’ viability.

According to a Gallup survey, 75% of employees who voluntarily left their jobs did so because of their bosses, not because of the position itself.

In other words, the adage ‘people don’t quit jobs, they quit bosses’ seems to ring true for people who are quitting – and with workers quitting at an incredibly high level at the moment, it is paramount that we, as leaders, do more to equip our managers with the tools and resources to be better managers.

There has been significant research into measuring work engagement and its impact on retention and productivity from teams – and if your team isn’t measuring engagement, I would highly recommend starting now. But new research is showing that there are 5 additional criteria that should be measured to understand the level of satisfaction employees have at work and their productivity.

1. Team Cohesion – Employees’ self-assessment of how well the team has been working together in terms of their camaraderie

2. Team Productivity – Employees’ self-assessment of how productive the team has been

3. Task Performance – Employees’ self-assessment of how productive, they personally, have been

4. Manager Performance – Employees’ assessment of how effective their manager has been at leading them

5. Organizational Citizenship – Employees’ self-assessment of their ability to be helpful to the team outside of their explicit work duties

Caveats about measuring this data:

1. It should be measured monthly, at a minimum. Feelings about work and productivity change rapidly and asking annually, bi-annually, or quarterly is not enough to garner an accurate picture.

2. It should be measured on a team-by-team basis, not a general overview of the entire company. The dynamics that occur within teams are more relevant and critical to an employee’s sense of belonging and willingness to stay at a company. Company-wide metrics are far too broad to be useful.

3. Managers should be provided with tools for enacting change based on these metrics. For example, conversation prompts and suggested questions for 1-on-1 meetings with direct reports can help managers address these issues early. Collecting data without immediate action diminishes the employee experience instead of enhancing it.

If you can measure this data on a month by month basis for each and every manager and their respective teams and equip your managers with suggested questions and conversation prompts to discuss with their direct reports based on the data, you are significantly better equipped to elevate the employee experience and feelings of belonging at work.

Why?

Because employees’ feelings of burnout and dissatisfaction with managers don’t happen because the manager is purposefully trying to sabotage the team or individual employees. These negative feelings typically happen because of poor communication between the manager and their employees. Most bad managers think they are good managers.

When an employee receives poor communication from their manager, there are consequences. It may cause them to do work that is not what the manager actually wanted, or to feel they are being treated unfairly, or to feel they aren’t receiving ample feedback (or too much unnecessary feedback), or just feel uncomfortable or dissatisfied with the manager in any way. When this happens, it is VITAL that the manager understands this frustration right away and have a conversation to rectify it (Kim Scott, the author of Radical Candor calls this “challenge directly while caring personally”).

If a manager doesn’t rectify the situation and this feeling of dissatisfaction from the employee festers, they are going to become actively disengaged, bring down other employees because of their dissatisfaction, and eventually leave.

If you are a CEO and you believe that having an “open door policy” or “clear lines of communication” is enough to gather this information, you are making the MASSIVE assumption that your managers’ direct reports have the same level of psychological safety as your direct reports have with you. You are also assuming that your employees have personality traits in which they are comfortable being optimally objective with everyone they interact with across all levels of an organization.

Overall, now is the time to equip our managers with the data and the tools necessary to build strong teams. Providing a robust system through conversation prompts helps managers understand how their direct reports are feeling about work in terms of their team cohesion, team productivity, task performance, manager performance, and organizational citizenship. If we can do that, we are much more likely to increase retention and the productivity of our teams.

A quick final note, my team and I at Ambition In Motion are working on tools and ways to research these 5 core areas that increase work satisfaction and productivity across all employees. If you are a manager that is interested in collaborating or learning more about our research, please feel free to send me an email at [email protected].

by Garrett Mintz

Sun 8 August 2021

Over the past 2 months, I have interviewed over 50 senior-level leaders and CEOs of companies in the Louisville and Indianapolis communities, and this article shares their perspectives on the key trends and challenges facing local industries and businesses. This article omits specific names and companies to keep the focus on the industries, trends, and challenges facing our community.

Below are the industries and types of companies interviewed:

From the diverse perspectives of these industries and companies, there were 5 key challenges that emerged from these interviews: 1) Labor shortages, 2) Inflation and rising prices, 3) Supply chain and inventory management, 4) Workspace management, and 5) Finding new ways to sell.

This article will focus on these key challenges and share stories on how different types of companies reacted to these challenges and are creating opportunities from them.

Labor Shortages

The number one challenge posed by the executives I interviewed was labor shortages.

From blue collar to white collar, from entry-level to highly experienced roles, finding the right people to fill those roles has become a challenge for many companies.

Two questions become apparent: 1) Why did this happen? and 2) What did the most successful teams do to keep their teams?

When the pandemic first hit, many companies laid off their less-essential employees because of the uncertainty as to what would happen next. Some companies were able to get creative, and they found ways to pay people hourly and retain their benefits for their employees, but the most common response was to either furlough their employees or let them go.

Other companies kept their entire team on-staff and full-time, despite the reduced demand. Those companies definitely took a financial hit, but the stability and continuity paid off when business turned back around and they were ready to go.

However, the teams that thrived during the past 18 months were the ones that completely leaned in to the necessary changes and rapidly pivoted at the onset of the pandemic. Some companies fundamentally changed their business model and were able to successfully deploy their teams and leverage their skillsets into a different vertical. Some of those pivoting efforts became total successes – i.e., creating entirely new business lines and driving strong revenues. Others saw ephemeral successes that temporarily worked but eventually fizzled out (e.g., distilleries changing from making spirits to hand sanitizer during shortages). There are also other pivot-stories that didn’t work out but provided great lessons and helped exercise their innovative muscles for pivoting, changing, and thinking creatively. Compared to stagnant companies that were caught flat-footed, even the unsuccessful pivots had long-term benefits on the companies that sought to adapt to the new challenges.

Trend Observed: If you are a leader and you are ever faced with an existential scenario where your core business has completely fallen off, the businesses that thrive in these conditions are the ones that accept the need to pivot immediately and start trying new things, while the stagnant or stubborn companies get stuck in the churn that accompanies momentous change.

Most teams did not pivot immediately, and nor could they afford to hold steady, so most teams ended up with furloughed or laid off employees.

Paired with strong unemployment benefits during this time period and the lapse in hiring new employees from April through November of 2020 (for many companies), that 8-month gap disrupted the typical job turnover and growth cycle and led many to delay going back to work.

For companies that hire recent graduates, finding hires has been a struggle as well because of how many students delayed or altered their college education plans due to COVID. With fewer students graduating and a strong need to hire out of college, being attractive to candidates has become crucial for getting the best candidates.

For companies seeking to hire highly experienced (high salary) roles, finding and identifying the right person has been difficult because of the lack of in-person interviewing and onboarding. Most companies have found ways to make virtual onboarding work (and some even thrive), but when it comes to hiring for a highly sought-after role, some companies have become more risk-averse towards making a hire with less experience because of the high expense of making a mistake. Plus, with it being so difficult to fill less experienced roles with an organization, the promotional track for some companies’ employees have been delayed because companies need continuity for these key functions during this chaotic period.

However, we are seeing the light at the end of the tunnel! There are companies that have filled all or most of their hiring needs during this time without substantially raising their wages offered. Two of my interviewees found a way to successfully attract great candidates to their firms. One company was a management consulting firm, the other, a large hospitality company, but both used similar tactics. Their secret: focus on the brand and making the brand fun, enjoyable, and attractive. They observed that their benefits weren’t terribly different from comparable firms with similar hiring needs. However, these firms leaned their marketing resources, internal communications, and overall brand statement towards having fun and doing good work, they were able to fulfill all or most of their hiring needs. One other interesting observation about both of these companies was that they both also provided opportunities for either temporary work or changing work. For example, the hospitality company hired their employees with the expectation that they would only work for the summer. For these employees, this was great because they had a very clear end-date for their employment with the company which caused them to feel like they weren’t making a massive commitment by starting work with the company. For the management consulting firm, they constantly switch their new employees on the type of working they are doing (e.g. a rotation). So, the employees knew that if they didn’t like the work they were doing, they were going to switch in a few weeks and if they did like it, they knew that they could always come back to that work.

Trend Observed: The (usually) unstated precept from leadership to employees that “You should be grateful to have a job” is gone. In fact, in many ways it has inverted to become “You should be grateful to have me.” People’s motivations have shifted away from simply working to get a paycheck. For many people, work is an outlet to socialize, collaborate with great teammates, use their brain in fulfilling ways, and get some time away from the house. If you are a leader and you are struggling to hire and are feeling pressure to raise your wages and benefits past what is feasible, you might find greater success in attracting candidates by developing your company culture to be more fun in the eyes of your current and prospective employees.

Inflation and Rising Prices

Since many companies are struggling to make the right hires, or in some cases just hire enough employees to do the work, companies are following the logical conclusion and raising wages.

Paying for wages is the largest expense for most companies. Therefore, when wages rise, margins rapidly diminish. So, the only major way for companies to get back to their previous margins is by raising the prices for their goods and services.

Make no mistake about it – this is inflation.

Inflation isn’t necessarily horrible, but it can be if you don’t know how to handle it or if you are in an industry that regulates how you handle it.

For example, there were many small business owners that I interviewed that were apprehensive to raise their prices to avoid offending their legacy customers with sticker shock. Many small business owners also have fewer resources for determining when or by how much to raise their prices.

With inflation reaching a peak compared to the previous 15 years, it might be difficult to determine when the right time is to raise prices and project how inflation will change in future years.

If you are a business owner and you are trying to figure out how to keep your salaries competitive, retain margin, and not offend your customers with price increases, you are not alone. Some ways business owners have handled this situation is by assessing how often they will adjust prices. By increasing the frequency of price adjustments, you can decrease the effects of sticker-shock that may coincide with increasing prices. If you are apprehensive to changing your prices frequently, then you need to project inflation’s trends and bake in extra margin now to buy time for once the margin dwindles over time.

There are some industries that don’t have the luxury of easily adjusting their prices. For example, in healthcare, many insurance companies have already determined the price of certain procedures and medications. Hospitals and healthcare companies are then forced to work their business model around the predetermined prices. This model works well when there is little to no inflation, but when inflation weakens the value of a previously competitive salary, companies must choose between more difficult hiring, or reducing their margins by offering higher salaries.

One question that comes up frequently around this topic is: What happens when the unemployment benefits end and all of these people flood the market seeking a job?

Most of these open roles will likely be filled, but it is unlikely that the companies will be able to drop their salaries back to where they used to be. At the start of the pandemic, some companies were able to get away with “hero pay” in which employees were temporarily paid a higher salary. It was mutually understood by both parties that the salaries would eventually revert. However, most companies have already adjusted their wages, some by 20-30%, and they are not branding this wage as “hero pay” or any other form of temporary high pay based on need, meaning that these salaries are here to stay – but so is the inflation that comes with it.

Trend Observed: If you have the freedom to adjust your prices, it is probably best to rip that band-aid early and have a plan around how often you are willing to adjust your prices and clearly communicate that to your team. Your team needs to be in the loop on the plan or they may become frustrated at being stuck in the dark regarding the changing prices. If you don’t have the freedom to adjust your prices (e.g. in an industry that has regulation), you need to begin lobbying and having the conversation around having more flexibility around adjusting those prices. This will likely take a very long time to happen, but what alternative do you have? You either get to a point where your staff is completely overworked and underpaid (compared to other work opportunities), and either your people leave or you eat the losses because the business is losing money (to keep wages competitive) for the hope that one day the prices will adjust.

Supply Chain and Inventory Management

The pandemic has put to the test the just-in-time inventory management system. Just-in-time inventory management is the notion that companies hold inventory for the least number of days before the item is shipped to the customer. By limiting the amount of time inventory sits in a warehouse, waste from spoilage, breaking, and mismanagement is significantly diminished, and this allows companies in supply chain and logistics to work more efficiently.

But what happens when you have one part that is missing? You have a car that consists of hundreds of different parts and is completely assembled, but it is missing 1 semiconductor chip. What happens? The answer is that you have thousands of cars sitting, unable to be shipped because they are missing 1 part out of hundreds.

Why is it so difficult to get one measly semiconductor chip (or any other product or material that is leveraged in just-in-time inventory)? Aren’t there competing manufacturing companies that can find the part they need?

The answer is complicated. With the world economy opening up and allowing for companies to procure materials from anywhere at the cheapest price, the supply chain is growing more complex. Combined with just-in-time inventory management, this means that manufacturing companies hold only for their immediate needs. When a global pandemic hits, different countries are impacted in diverse ways. Some countries can’t let raw materials get shipped out, or some countries can’t get raw materials in for their factories. Others can’t operate at maximum capacity because people are sick. This all makes the seemingly brief delays pile up, turning an interstate into a traffic jam.

Another massive issue in all of this is the overall lack of organization of many of the ports in the US. Many ports in the US, before the pandemic, were operating in a way where some shipping containers would never get processed and left in potential space available for unloading new boats. That extra space was taken for granted and containers just kept getting stacked up over years. Well, when the pandemic came, not only were boats still arriving in US ports, but the people to operate those ports weren’t coming to work because of COVID. Essentially, this giant game of catch-up for unloading cargo becomes exacerbated because the decreased workforce around the ports means that parts come into the US more slowly (or not at all) and the entire supply chain becomes compromised.

One supply chain CEO I interviewed was able to project what was about to happen and benefit from his forward thinking. He observed what was going on in China in January 2020 and decided to stock up on the raw materials he needed for him to provide his products, and this gave him an advantage later.

Most inventory management systems observe low demand (e.g. March, April, and May of 2020) as a sign to order less in subsequent months. When demand drastically swung back, companies were caught on their back foot trying to catch up. The supply chain CEO I spoke with projected this would happen, went to his clients to inform them of what was going to happen, and was able to get his clients to pay early for materials for the rest of the year based on this projection.

Trend Observed: Most inventory management systems focus on microeconomic, short-term factors for making inventory decisions. And although this works 95% of the time, it is extremely important to project for macroeconomic factors that could have a long-term impact on inventory and supply chain management overall.

Trend Observed: The other trend observed was the importance of diversifying sources for raw materials. Obviously quality control, price, and a drive for simplicity play a factor in business decisions, but if your business is solely reliant on one provider for your raw materials, you are leaving yourself liable to changes in their market conditions which inevitably impact your business.

Workspace Management

Work from home, hybrid, or the traditional office set up. Which is best?

The answer is that it depends on your company and your work situation.

Every leader I spoke with had to adjust their working situation some way or another. Some leaders went to their employees and took a vote of what they would like to do. Some leaders immediately started having their teams work remotely. And some leaders had to implement sanitation and safety measures to keep their teams working at the office.

Now that people are starting to feel more comfortable opening up socially, many companies are starting to come back to the office, but not all in the same ways.

Some companies are directly coming back to the office and generally returning to the status quo. However, many other companies are finding creative ways to either get out of or diminish their leases. For example, one executive that I interviewed partitioned off half of his office and is now leasing out that space to drive some additional income and allow his staff to continue hybrid work – partly from home and partly from the office setting. Other companies are simply letting their lease lapse and partially converting that funding to support coworking spaces for sales conversations or board rooms for big meetings, but otherwise allowing everyone to work from home.

If you own commercial real estate, it isn’t all doom and gloom. There is an opportunity in supply chain. As mentioned in the previous segment, this notion of just in time inventory is falling out of favor meaning that manufacturing companies and companies that work with raw materials are starting to buy larger warehouses to store more raw materials. Some large logistics companies are even looking at leasing or buying old malls and converting them into warehouses and supply chain centers.

Trend Observed: Companies are finding unique ways to optimally deploy their teams into work environments that are efficient and work for them, and there isn’t just one trend everyone is following for finding the best working situation for their team.

But back to the original question as to what is best: working from home, a hybrid model, or at the office. The jury is still out. However, I have found it strange how many CEOs are clinging onto anecdotes and feelings when deciding between working in the office versus remote or a hybrid.

There is a lot of data that has shown that working remotely has led to greater productivity from teams, particularly for output and qualitative data around satisfaction at work. Remote work hasn’t led to greater productivity for every team, but between my interviews with executives and the research articles I’ve read on this topic, most teams were more productive working remotely.

However, many CEOs and leaders that I have interviewed have taken their team back to the office. I believe that the data on best practices for determining work location will become clearer in the future, but I have only seen a limited amount of data showing the advantages of in-person over remote. When I have interviewed CEOs that have taken their teams back to the office, the traditional response I have heard is “this working situation works best for us” or “everyone seems much happier at the office compared to at home” or “we have been able to collaborate much better at the office”. Like I mentioned before, I believe the data could come, but none of the CEOs that I interviewed referenced any sort of comparative analysis on productivity differences between remote-work versus in person.

For the most part, this ends up being just conjecture and feelings and not rooted in metrics. My biggest surprise is how many of these CEOs dove fully into working from the office without offering a hybrid model to ease this transition.

Trend Observed: If you are transitioning back from working remotely to the office, it is really critical that you consider some metrics you can measure to assess whether one works better for you. If your team is currently working remotely and you are contemplating coming back to the office, you must have a system in place for measuring productivity, so you can understand what happens when you come back to the office.

Finding new ways to sell

Finding a new way to sell was critical for many companies to stay alive during the pandemic. From restaurants transitioning from legacy ordering via a server to online orders, to companies expanding delivery to include curb-side drop-offs right into one’s car, companies have had to completely transition the way they operate and sell their goods and services.

Here are some of the most interesting stories about how companies have had to change the way they sell.

One of the executives I interviewed works for a large pharmaceutical company. One of the biggest challenges she faced was retaining her high-level account executives who sold their medicines into doctors’ offices.

Since many doctors embraced telehealth, they left their medical offices and started working from home. For small pharmaceutical companies who relied heavily on in-person meetings with doctors to sell their medicines when doctors have a free moment to chat, they now had to find alternative ways to get their voices heard. Therefore, they started poaching account executives from larger, established pharmaceutical companies to harvest their rolodex of relationships and for the opportunity to drive business from those account executives.

This forced these larger pharmaceutical companies to focus more heavily on the doctor experience and having multiple points of relationship with their company, not just one individual account executive who might convince the doctor to take their business elsewhere.

Another executive I interviewed creates software and learning programs for governments working on educating and rehabilitating people after they have been arrested for a crime. Most of these classes were in-person and expensive for local governments to run. Since most local governments have limited budgets for this type of work, and they must keep offering these services, they were in a bind. This executive decided to offer his software and learning programming to governments for free with the caveat that those who were arrested would pay for the classes. He was able to help these governments get COVID-compliant, continue offering these services to their citizens and still save money.

Other executives I interviewed decided to take full accountability of the entire process of their service. For example, one executive whose company helps roll out the COVID vaccine and testing in low-income areas. This executive’s work went beyond providing the vaccine and the tests, but also renting the portable facilities to create a comfortable environment for their clients to get tested and vaccinated. Another executive in the consulting space provided free consulting to businesses and startups trying to find traction in the pandemic, because he realized that he could boost his brand and name recognition by being helpful to others that may want his services but couldn’t afford them (yet!).

Trend Observed: Never waste a pandemic! When consumer behaviors are changing rapidly, there are opportunities to solve problems and build relationships with people that could become fruitful both immediately and over time. If you are a leader, it is critical to take time to step back and observe the trends that are happening so you can leverage your team’s skillset and product to help solve a challenge faced by the constant changes in consumer behavior. If you don’t, you may miss out on an opportunity, or worse, get left behind.

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