The Coffee Cup As a Management Tool

An unobtrusive tool for employee development

As a manager, we are tasked with making our resources do the most, perform at the best possible rate, get the most return for our investment. Employees are an organization’s most valuable resource. Interestingly, one of the best tools a manager might find to gain the greatest access to an employee might just be a coffee cup. The simple act of taking someone to coffee gives you an opportunity to sit with him or her, listen, and learn. It is this kind of conversation that might be one of the most powerful motivators – the biggest bang for your buck. This simple act can head off conflict and violence. Sharing a cup of coffee is simple but it gives you a great opportunity to learn important information about yourself, your employees, your company, and even your competitors.

Coffee with Your Employees

Meeting with each key employee and direct report is certainly very important. However, these meetings are frequently interrupted because both you and the employee are so busy and someone always has a “crisis” that needs one or the other to deal with it. You know you’d get a lot more done if you could just do it without interruptions. So, get out of your office, take the other person out for a cup of coffee.

While I worked in Monterey Park, California, there was a small sandwich shop across the street. Although the trip across the street was like a very life-like and human form of frogger, the shop provided an excellent and close place to have a short one-on-one discussion. The options weren’t limited to this one shop, there was another just up the road. Still, your cup of coffee doesn’t have to be outside of the building. Sneaking off to the breakroom to “buy” that cup of coffee and sit at one of the tables is certainly sufficient. Additionally, there’s no chance of getting too close to an errant car.

Coffee is not Always Coffee

“Grabbing a cup of joe” doesn’t have to mean coffee, which is very good since I don’t even drink the stuff. If you or your employee is like me, or just wants a break from the stuff, there are plenty of alternatives. This isn’t about consuming coffee. The whole point is about getting away from all the distractions for a little bit, so the beverage doesn’t really matter at all. Bottle water, sports drinks, fruit juices and sodas are all acceptable. It should be something relatively inexpensive that is readily available, can be served quickly and something you can linger over while you talk.

Coffee Has no Alcohol

You certainly want to avoid alcohol. Regardless of the time of day, going out for a “beer” or “having a glass of wine” makes it more of a social event than a business meeting. Additionally, you are not going to be nearly as productive if either of you is impaired. The temptation to get the other person to relax a little so they’ll be more open with you through alcohol is unethical and dishonest. Being open and honest with your employees will produce the same results without the potential legal problems.

Listen. Really listen.

OK, you’re at the coffee shop instead of your office. It is very important to remember why you’re there. You’re there to learn something from the other person. Your purpose or the information you’re after might be one of many different things. It might be just as important to check their temperature as it is to check the coffee’s – find out if they are overstressed and why. The one common thread to all of these goals is keeping your mouth shut and letting him or her talk. Your mouth needs to be shut for your ears to be open.

Remember you left your office so you could focus all your attention on what they are saying – don’t let distractions interrupt you here either. Occasionally repeat statements of theirs back to them to show you are listening and encourage them to keep talking. Interestingly, the Japanese have a word for this. It is aizuchi.

Manage the “Coffee Cup”

A coffee break gives you a chance to get away from the distractions and interruptions.

Coffee, tea, soda, or water. The beverage doesn't matter.

Pick a beverage that is inexpensive and quick, but that you can linger over.

Cell phone and pagers should be turned off or at least ignored.

Alcohol is out.

Actively listen to the other person. That's the purpose for this getaway.

Benefits of Employee Recognition

You’ve seen the star of the week boards at your local fast food restaurant. The service industry seems to have grasp onto the employee recognition plan while other industries fall behind. Yes, employee recognition is limited in most organizations. In fact, one of the chief complaints among employees is a lack of regular recognition. Managers seem to ask why recognition should be given for people who are just doing their jobs anyway. And, we’re always so very busy. Put those two factors together and you have a work place that fails to provide recognition for employees.

Why Employee Recognition
Managers who prioritize employee recognition understand the power that comes of recognizing achievements. They know that employee recognition is not just a nice thing to do for people. The strength of employee recognition is how effectively it communicates reinforcement, rewards people for important outcomes people create for the organization.

Recognizing people effectively reinforces the actions and behaviors you want to see repeated. Certainly, an effective employee recognition system should be simple, immediate, and powerfully reinforcing. Implemented correctly, employees will feel they are appreciated. People who feel appreciated will work better and produce more.

The Good Boss makes other people feel important and appreciated, excelling at creating opportunities to provide rewards, recognition and thanks to his or her staff. He creates an environment in which people feel important and appreciated.

Employee Recognition Suggestions
Here are a few suggestions for powerfully reinforcing the recognition you give:

Put it in writing. Lay it out there in black and white. It doesn’t have to be huge and outlandish – a gaudy display. Write out the recognition – what the employee did, why it was important, and how the employee’s actions helped your organization. Give a copy of the letter to the employee, the department head and to Human Resources to file in their employee file. You can reference the recognition during your next Performance Review.

Leave ‘em A Note. Write a personal note to the employee. You might have your supervisor sign it, too. Be sure to make a copy to place in the employee’s file.

A Gift? Engraved plaques, Company Logo emblazoned merchandise, even a certificate of appreciation reinforce the employee recognition.

Money, cash, bread, lucre, dough. Everyone likes cash or something like it – gift cards & gift certificates. If you use such a form of employee recognition, it’s best to include some kind of note or letter. You want the employee to remember the recognition long after the money is gone.

Make It Public. Show the recognition in a place and at a time when others will see. Even if the employee is uncomfortable with the public recognition, you won’t get the full benefit of employee recognition without others seeing it happen. You want the other employees to know that due recognition is being offered.

Effective Isn’t About Expense
A simple “thank you” counts as employee recognition. It’s also the basic consideration everyone should be able to expect. You can make employee recognition as elaborate as you want. It doesn’t have to be elaborate to be effective, though. Recognition should not be a scarce resource. You can’t run out of it. You don’t need a big budget for employee recognition but your returns will be great.

Customer Satisfaction: Job 1

It’s quite incredible, really. One of the biggest complaints I’ve heard from the workforce have been about the most important piece of the puzzle – the customer. It is absolutely true. Customer-induced stress is the one thing many employees will list as one of their biggest concerns. Sad. Without customers, we would have no business. Whether they are internal or external, customers are the reason we go to the office every day. If a business does not have enough customers, they focus on finding more. Keeping customers happy is the key to retaining customers.

There is actually a real bottom line benefit to keeping the customer happy. Companies with the most-satisfied customers have a track record for increasing their stock values over the past few years. Additionally, these companies have seen less volatility in their stock values, had lower turnover and are able to generate more cash, bringing products to the market faster. The link between customer satisfaction and a company’s stock values is stronger than you might think.

Looking at the information found at the American Customer Satisfaction Index website, you can find plenty of information on customer satisfaction for more than 200 companies. All this information is free too. The rankings were developed by the National Quality Research Center at the University of Michigan business school.

Conducting around 65,000 phone interviews a year, the National Quality Research Center asks consumers if they’ve used certain products or services recently. They follow up with the consumers to determine their satisfaction with levels of quality, reliability, and whether the good or services met their expectations. Further, the surveyors seek information about whether the consumers have had any complaints and the likelihood they will be repeat customers. The answers are ranked and tallied, creating an overall score for a company on a scale of 1 to 100, 100 being optimal. These scores are posted with company rankings and averages for industry groups.

What is really interesting about this survey is the correlation between happy customers and the firm’s stock prices. Investors should be very interested in this as well. Some of the reasons for the correlation between happy customers and happy shareholders are obvious. Satisfied customers tend to be more loyal. They share that loyalty with their friends. Fewer complaints from the customer means the employees have to devote less time to putting out such fires and warranty costs are lower.

Other reasons for this correlation are not so readily obvious. Companies with happier customers have lower employee turnover. There seems to be a pretty strong relationship between customer satisfaction and employee attitudes, which affect customer satisfaction – a doubled edged blade.

Happier customers also tie in with greater cash generation. Interestingly, a 1-point increase in the customer satisfaction rankings relates to an increase in cash flow into a company’s coffers of about 7%. Happy customers means more predictable cash flows and lower borrowing costs.

Better relationships with the consumers provide the company with greater flexibility on pricing. They can typically get away with price increases, which helps the bottom line. H.J. Heinz (HNZ), which has a 4-point lead over its peers in the University of Michigan customer-satisfaction rankings, was able to increase prices by 6% in the first quarter. This is far beyond any other large-cap food company.

Companies with high customer-satisfaction ratings seem to have an advantage when launching new products as well. Loyal customers are readily willing guinea pigs. Take Apple (AAPL ) for example. Because of the user-friendly design of the iPod, happy iPod customers have been buying other Apple products – iPhones and Macs. Although priced higher than comparable products, the happy consumer is willing to pay the price.

Customers are the very life-blood of any for profit organization. They are the reason there is a cash-flow in the first place. Customer satisfaction is built on a foundation comprised of many aspects. Indeed, it is hard to compensate for poor quality, just as it is difficult to overcome other missed opportunities. Still, the large picture of the customers’ satisfaction level should be forefront at every level of the corporate chain.

Old or Seasoned?

I’ve been lucky enough to have worked with people of all ages. One thing I have noticed, however, is the work force is aging. Some are closer to retirement than others. In fact, one thing a manager needs to learn is how to motivate and manage the talent pool regardless of the age of the employees. The manager needs to take the lead and create a climate in which all workers will remain productive and engaged. Here are a 10 tips to managing the generational gap.

1. Throw out all assumptions. The older worker is not necessarily the harder worker or more difficult to train. Each employee is an individual and should be treated as such.

2. Remember the range of ages. A 21-year old directly out of college requires different guidance than the seasoned 35-year old. The 15 year gap is no less important for the older workers. A worker at 55 and 70 have different goals and needs. As a manager, you may need to look at groups getting ready to retire (55-62), retirement age and still working (62-70), and older worker who wants to keep active or who needs to work (70+). Each group presents different management challenges.

3. Communication cannot be over-emphasized. Never assume the older worker knows what you expect of them. They do not have the same background as you. The importance of clear communication never changes. Saying, “Bill, take care of that for me” is not enough. Explicitly state what the measurements of completion and success will be.

4. Value life experience. The older worker has been around. They have seen a lot. They have done a lot. Recognize the value of their experience and learn from it. Encourage the younger members of the team to learn from it. Lessons from the “school of hard knocks” are invaluable.

5. Training and Guidance. Older workers need training as much as younger workers – just as much, just as often. The subject of the training may be different but the need is the same. Do not believe that older workers cannot be trained. They are just as receptive as their younger peers.

6. Security. Older workers probably need benefits more than the younger workers. They need medical coverage, vision care, and financial planning. Make sure your company’s benefits plan meets their needs too.

7. Motivation. Any manager’s key job is to motivate their employees. Older workers have different motivational “hot buttons” than do the younger employees. Opportunity for advancement is probably less important than the recognition of a job well done.

8. You don’t have to “be the boss”. The older workers grew up in a hierarchical society. They know you are the boss. Most of them were bosses at some point too. Get on with leading the department and don't waste time posturing. It won't impress them anyway. They've seen it all before.

9. Be flexible. Your older workers, depending on age group (see #2 above) may want flexible hours or a shorter work week. For those of them that need that, be willing to be flexible. You need their talent and technical skill so do what you need to to keep it available. Do not, however, assume that all older workers want to go home early. Some may be motivated by working the same long, hard hours that they have always done.

10. Use them as mentors. Let them coach and encourage the younger workers. Most older workers have a wealth of knowledge and experience that they would love to pass on. Give them the opportunity to do so and your entire organization will benefit.

Remember Who Actually Makes the Money

I like to remind myself that a manager doesn’t do the work. It is the work of the people that get things done. Most managers are simply overhead and are only worth their wage if they are able to make a good team work better, more efficiently, and faster – whatever it takes to make the cost lower and the profits higher.

“I believe in the honest craft of workmen. Take a look around you. There never
were enough bosses to check up on all that work. From Independence Hall to the
Grand Coulee Dam, these things were built level and square by craftsmen who were
honest in their bones.” – Robert A. Heinlein

Mr. Heinlein wrote these words in 1952. He delivered them to a national radio adience in a broadcast interview by Edward R. Murrow. Later, Virginia Heinlein read them when she accepted NASA’s Distinguished Public Service Medal on Robert Heinlein’s behalf on 6 October, 1988. The award was awarded posthumously. The rest of his statement about humanity and this great nation is posted here.

Ten New Year Resolutions

A change in the calendar year seems to be a good place to start with some new goals; personal as well as professional. There’s also a good chance some of the old dreams will make a come back with renewed vigor. Whether the New Year is bringing on new goals, new plans and new dreams or a reemphasis on some important old ones, here are ten resolutions for the professional side of life.

1. Do something just for you every single day. Seriously. People tend to get caught up in doing for others every minute of the day. If its not at work, there’s home life and other responsibilities keeping that focus shifted away from you. Resolve to set some time aside for self every single day. Exercise, relaxing, reflecting, eat an ice cream, write in a journal, garden, walk a pet. Anything that is for yourself. Make sure, however, that you’re doing something that is different than what you’re already doing all day long. This will help you feel a renewal.
   
   
2. Learn something new every day. People can get bogged down in the same old pattern of waking up, going to work, coming home, going to sleep. We get into a comfort zone and tend to forget the excitement of something new. Read an article; talk with someone about a new process; look into what others in your industry (or outside your industry) are doing differently. The opportunities for learning are grandly available due to the internet and other sources in this information age.
   
   
3. Listen. Do it more than you talk. Interesting how others will offer you “penny for your thoughts” but when unsolicited advice is offered, you’re throwing in unsolicited advice we often value it at “two cents”. That old adage about one mouth and two ears is generally true. Plan to listen more this year. Listen to all your coworkers are saying. Most of the time, people are seeking a sounding board, not advice or problem solving. When people feel completely heard out, they really feel like someone has listened to them, they’re more likely to realize action rather than feeling stuck.
   
   
4. Do something you love to do, that you do best, every day. Marcus Buckingham and Curt Coffman of the Gallup organization explain how important this is in their book, First, Break All the Rule: What the World’s Greatest Managers Do Differently. The intereviewed 80,000 managers, narrowing down the questions asked to the twelve most clearly defined happy, motivating, productive workplaces.
   
   The first three were this:
   1) Do I know what is expected of me at work?
   2) Do I have the materials and equipment I need to do my work right?
   3) At work, do I hav ethe opportunity to do what I do best every day?
   
   Those who could answer these questions positively were more likely to be happy and productive. This is a good sign of the benefits of being passionate about your work and doing something you do best everyday.
   
   
5. Don’t be so self-important. Striving for success can cause us to get bogged down in the serious, leaving no room for levity. Take the time to laugh. One of my best mentors taught me the importance of having passion for something other than work. Find pleasure in the little things. Smile when you hear stories about what all your crazy employees are doing – we don’t have to be the work-police all the time. Enjoy their little quirks and differences. That mentor once told me, “it’s all about the food.” We didn’t have to eat at the more expensive and “nicer” places. He would look for opportunities to eat at “good food” restaurants. Where the locals ate.
   
   
6. Give yourself credit and a pat on the back when you deserve it. In the Gallup study cited in #4, this was one of the questions that defined the most productive workplaces. People who had received praise or recognition for their work in the past seven days were more happy and productive.
   Employee empowerment is the mantra of our age. It seems odd, however, how infrequently employees are actually recognized for the work they do. In Benefits of Employee Recognition I talked about the importance of recognition. One way to help yourself with this recognition is to open a file of positive notes, thank you letters and reminders of success. I have one. I call it, “life’s bonus”. OK, that’s pretty weird but it is a good place for me to go to remind myself of the things I’ve done well. Assess your success after each project is completed.
   
   
7. Step out of your comfort zone. We all know when we’re in our comfort zone. We also know when something is happening that makes us a little less than comfortable. When you start making those excuses about “why” you don’t need to speak, or “why” taking a stand on an issue will just cause “trouble”, that’s when you need to find a way to step outside the comfortable box. Start by just once stating what you are really thinking. After the shock wears off, you’ll find people will admire you for doing it. Honest feedback is very important for your organization, your products, your customers.
   
   Added bonus: once you’ve started to break through these self-imposed barriers, it gets easier to do it again. You might find your carrier thriving because you left your comfort zone and made a move toward positive change.
   
   
8. Read! Reading is the key to learning and growing. Staying ahead of the curve doesn’t come through osmosis or by just doing what has always been done. Learn what is working in other places. Learn how to implement that in your workplace. Try to read widely and broadly. Learn about other things than just business too. Interestingly, reading on other subjects will many times enhance your ability in business too.
   


9. A new hobby. Doing something that intrigues or piques your interest adds a whole new dimension to your world. Maybe this is the year of a new train collection? My wife enjoys scrap booking. I enjoy writing.
   
   
   OK, this is so very important. It’s so important that I had to make it last:
   
   
10. Develop a method to track your goals. Use a planner. It can be electronic, on your computer or phone, or it can be the traditional calendar. Tracking your goals, daily engagements and to do lists will help you make them happen. So many people start out a new year with great ideas for improvement. Most fail because they do nothing to track their success. Using tools to track your goals provides the opportunity for your mind to do other more important thinking. It’s tool to help you get things done.
    

I wish you a most successful new year – happy, healthy, prosperous and outstanding. Make it happen, though, through your own actions. Don’t rely on luck or others to do it for you.

Change Management: Fear Management

Change is natural and good. Reaction to change can be unpredictable.

One very important aspect of managing change is managing people’s fear. Since change is natural and good, why is it so difficult for so many people? Many respond to change unpredictably and irrationally. However, it can be managed.

Change

Little is as upsetting to your people as change. Change has great potential to cause failures, loss of production, or falling quality. Still, nothing is nearly as important for an organization’s survival as change. A cursory search will find many examples of organizations, now extinct, that have failed to change. There’s a secret to successfully managing employees deal with change. That secret is definition and understanding. Resistance to change of any kind is based in fear of the unknown. There might also be an expectation of loss.

The degree to which an individual will resist change is determined by how they perceive the change. Is it good or is it bad? How severe is the personal impact? Personal acceptance of the change is based ultimately on how much resistance the person has and the quality of their coping skills and their support system.

As a leader, it is the manager’s job to address the resistance. Help the employee reduce their resistance to a minimal and manageable level. Do not bulldoze over the resistance.

Perception, it matters a lot

Moving an employee’s desk six inches may not even be noticed or a cause for concern. However, if the reason for moving the desk was to make room for another worker in an adjacent desk, that same employee might respond with significant resistance. It all depends on whether the employee feels the new employee is a threat to his job, or if the help is additional welcomed.

Most of the time we consider a promotion a good change. However, an employee who is uncomfortable with his ability to handle the new job might strongly resist the promotion. The employee might go to extremes to give excuses for not wanting the promotion but will never reveal the real reason.

Although you might expect a higher-level employee to be less concerned about being laid off since they have savings and investments that should support them during the subsequent job search, they may feel over extended. They might be concerned about an extended or complicated job search. Conversely, any concern for a low-income employee may be unfounded because of a nest egg they stashed away in anticipation of the cut.

Bulldozing your way through this resistance will result in failure. The employee whose desk you had to move will develop production problems. The top worker who keeps declining the promotion might quit rather than have to continue making up excuses for turning down the promotion. Overcoming the resistance by understanding the real issues, defining the change is key to success.

Definition

To begin with, you need to define the change in as much detail and as early in the process as you can. Give updates as things develop and as they become more clear. Before moving that employee’s desk, tell them what is going on. Don’t be afraid of sharing information. Information empowers the employee and helps them understand the need for the change. “We need to bring in more workers to help since our sales have increased by 40%.” One possible strategy for helping the employee deal with the change might be to get them involved. Seek out suggestions for how the space should be rearranged. Additionally, you need to get the employees to define the reasons behind their resistance.

Understanding

Understanding is also a two-way street. It’s important for the employees to understand what is changing and why but you also need to understand the basis for their reluctance.
You have to help them understand. The employees will want to know what the change will be and when it will happen, but they will also want to know why. Why is it happening now? Why do they have to change? Why does it have to affect me? As important as understanding the change, they have to understand what isn’t going to change. This provides one less thing to make them worry. It also gives them an anchor, something to grasp as they face the troubled waters of change and uncertainty.

You need to understand their fears so you can help them overcome them. What are they concerned about? How strongly do they feel about those concerns? Is the change perceived as good or bad?

Manage The Issue

Do not rationalize things. Do not waste time wishing people were different or more predictable. Focus, instead, on opening and maintaining clear channels of communication with all your employees. Help them understand what is coming and what it means to them. They will appreciate you for your candor. The will be more productive before and after the change. The change will be more of an improvement rather than just change for change’s sake.