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You don’t have to compete on price alone…

“Highlight your competitive advantages so you do not have to compete on price alone.”
This is a Management Objective™ we frequently give to our clients, and, in today’s environment of rising costs and slowing macroeconomic growth, businesses are instinctively practicing it.

 

The automotive industry is an obvious case. Have auto sellers been touting “low, low financing” lately, or promising the lowest purchase prices available, backed up with a pledge to undercut any competitors? No. They are focusing on the buyer experience, and the word “inventory” factors heavily in their advertising:

“We won’t be pushy – plus, we actually have cars!”

The industry’s well-publicized supply chain woes being what they are, this is indeed effective messaging; it conveys the availability of something that competitors may not be able to offer.

Today it is especially important to “not have to compete on price alone” because prices are high across the board. US consumer inflation – calculated as the percentage change between the latest month of pricing data and that same month from one year earlier – was at a 40-year high in March, coming in at 8.5%. At 15.2%, producer inflation was at a 47-year high. As producers are arguably under a tighter squeeze than consumers, there is little they can do with prices besides raise them.

US consumer price index

Putting your business in the position to be competitive in areas outside of pricing seems obvious – even simplistic – but there is more to the Management Objective than just that.

Notice what it does not say: “Do not compete on price under any circumstances.” It is true that significantly undercutting competitors on equivalent products or services may be difficult – and counterproductive, profits-wise – in the current environment. It is also true that consumers will likely grow more price-conscious as macroeconomic growth slows in this inflationary environment. Alternative products or services with a lower cost basis may be welcome options for some customers for the next several quarters.

As for competitive advantages, be creative. While unique products or product features make for obvious competitive advantages, sometimes the value proposition is outside of the product itself. In a recent advertisement, a seller of higher-end garden and tool sheds poked fun at its larger-scale competitors, dubbing them “wasn’t us companies.” Such companies, the ad explained, typically use separate contractors for the delivery and installation of their products. Then, when something inevitably goes wrong with one of those ancillary services, the larger company will make an aggravating (but truthful) claim: “Wasn’t us.”

Meanwhile, the higher-end shed seller delivers and installs the shed itself, offering customers a one-stop shop for accountability.

The current environment represents a new experience for many of today’s business leaders, who may not have been in the workforce or even alive the last time inflation was this high. However, ITR Economics’ depth of bench includes both lived experience and unmatched expertise in this area. We count it among our own competitive advantages.

These ideas are good whether you get the bonus of older employees or not.

For companies and organizations, there is a surprising silver lining to the dark cloud of inflation which jumped 7.9% over the past year—the highest spike since 1982.

The Dark Cloud

New Inflation Forecasts

First the bad news: According to a report last Friday by Bloomberg, “Economists have boosted their U.S. inflation forecasts—again—and downgraded expectations for economic growth through most of 2023.” This, Bloomberg said, underscores the “growing risks to the outlook as the Federal Reserve tries to curb the fastest price growth in decades.”

Increased Chance Of Recession

“The consumer price index will now average 5.7% in the final three months of the year, up from the 4.5% estimated a month ago, according to the median forecast of 72 economists in a Bloomberg survey. The chance of a recession over the next year also increased to 27.5% from 20% in March. The March CPI report will be released Tuesday,” the news outlet reported.

Impact On Retirees

The recent rise in living costs is forcing retirees to turn to skilled freelance work to help supplement their income. According to some studies, more than 20% of them have gone back to the workforce as independent contractors, said Zoë Harte, the chief people officer for jobs marketplace platform Upwork.

The Silver Lining

The good news and silver lining is the fact that retirees who are returning to the workplace are providing a welcome and unexpected source of knowledge, expertise—and a competitive advantage—for companies and organizations.

recent study of 700,000 older workers in New York City by Columbia Public Health found that, for small businesses in the Big Apple, there were 10 advantages to retaining and hiring older workers.

The list includes:

 

  • Older workers are skilled and experienced.
  • They stay in jobs longer and take fewer days off.
  • They have a strong work ethic.
  • They retain a businesses’ knowledge and networks.
  • The perceived technology gap can be overcome.
  • Older workers provide that the best teams are multigenerational.
  • Older workers play a critical role in training the next generation of workers.
  • They provide customers with consistency and personal attention.
  • Older workers attract more business.
  • Older workers are part of the business brand.

 

Reality Check

Upwork’s Harte observed that “The past two years of the pandemic have created a phenomenon that we call ‘The Work Awakening’ where professionals are rethinking their careers, reevaluating their priorities, and exploring new ways of working. This approach has led people to place greater emphasis on flexibility and spending time with family and friends, and less time on commuting or an antiquated ‘9-to-5, 5 day a week’ work model.

“In this new era, remote work has become highly valued, and rather than return to a full-time job with strict hours in an office building, many older folks are turning to freelancing to increase their earning power, gain more job flexibility, and pursue their passions, while maintaining their independence and ability to make their own schedules,” she said.

“This especially applies to older workers as they reach retirement age or consider a return to the workforce post-retirement,” Harte concluded.

Profile Of Boomer Freelancers

According to a report commissioned by Upwork and conducted last year by independent research firm Edelman Data & Intelligence, 21% of Boomer workers are freelancers; 8% of Boomers who are freelancers are retired.

Boomers vary in how they classify their freelance work, this includes full-time freelancers (23%), part-time freelancers (59%), and full-time employees who earn extra income from freelance work (16%).

Advice For Business Leaders

Harte noted that “businesses that bring on retirement-aged freelance professionals to bridge the talent gap can do several things to help them acclimate and successfully navigate remote independent work.”

She said the list includes:

 

  • Adding age diversity training into their broader DEI programs.
  • Being as inclusive as possible for meetings and gatherings.
  • Being very clear about expectations and overly communicative whenever possible.
  • Building or incorporating existing tools and resources, like playbooks or training, that teach team members how best to work together as a distributed team.
  • Offering accommodations for flexible work.
  • Providing opportunities that let older workers leverage their years of expertise or tenure.
  • Reevaluating job descriptions for generational jargon and lingo (digital ninja, rockstar consultant, etc.) that could turn older workers away.

Which stage is your company? Are you being the appropriate leader for it?

The way I see it, there are four stages of growth that serve as a roadmap to guide how your focus, priorities, and key decisions change as your company grows.

The first stage, the startup stage, is normally formed by one to five employees. Then you have a grow-up stage, with six to 15 employees. When the team needs to grow from there, the company turns into the scale-up stage, with 16 to 250 employees. Finally, when a company becomes the leader of the industry, it is in the dominant stage, with more than 250 employees.

Going from one stage to the next requires you to unlearn everything that got you there in the first place and learn new things to get to the next one. It’s like driving a car– once you reach a certain speed, you need to shift gears. If you don’t, your engine will burn out.

To scale your company, understand what to expect at each stage and how to shift gears to the next one. Shifting through these four stages is called the dynamic growth model. You’ll have different priorities at each stage.

The Startup Stage

For leaders with a startup with one to five employees, your priority is product development. You’ll focus on validating the business model with the market; not just a business plan. The barrier is understanding market dynamics. Your most rewarding skills are marketing and connecting with potential customers. These skills are crucial to scale.

As a startup leader, you wear multiple hats. You could be juggling product development, technical work, selling, marketing, or even cleaning the restrooms. The people around may support you, but you are still doing the core work of everything.

The Grow-Up Stage

When you move on to the grow-up stage, you’ll have fixed expenses (salaries, rent, etc.) and begin to face cash flow and leadership problems. Here, your focus is 100 percent on sales. Your priority is to hire the right team and have clarity of roles. Your focus is delegation, predictability, and creating repeatable systems to help grow.

During grow-up, you have to become a leader who delegates and defines direction. At this stage, you are leading people one-to-one, which is fairly easy because you can take the person out to lunch or dinner and really go deep into guiding them.

The Scale-Up Stage

During the scale-up stage, the leader needs to start investing in infrastructure to speed up growth and define the industry. With a larger staff of up to 250 employees, everyone’s responsibilities must be aligned and processes must be streamlined for a company to achieve scale and become the most competitive player. An infrastructure to simplify operations is required. The success of the company relies on its leader’s execution to build a well-oiled machine.

In a scale-up business, your role as a leader becomes significantly harder. When you were a grow-up leader, your leadership role was like playing checkers. Now, you are playing chess.

Each person on your team now has varying strengths and weaknesses. You have to be much more strategic with how you leverage each team member. You’ll need to develop your coaching skills to help your people become the best team players they can be.

The Dominant Stage

When a company has an established brand, is beginning to win market segments, and salaries are getting fat, they dominate the industry. For such a company, with 250 or more employees, the priority is constant reinvention to continue growth and keep the dominant position. A common trap for these leaders is that they may settle into a comfort zone.

The leader of a dominant organization becomes a satellite around the organization. Your role as a leader is now more of a strategic innovator and change catalyst that sets a culture of growth and innovation, keeping the team out of the comfort zone, staying on top of trends, and consistently dominating your industry.

Remember, as your company grows through each stage, you have to evolve from entrepreneur to CEO. This is the leadership evolution. 

The best thing you can do if you want to grow your company is to build a company that can run without you. Your goal at every stage of growth is to get your company ready for an exit, even if you don’t want to sell it.

Put the right systems and people in place to build an asset that is worth something, even without you. This is the real secret to rapidly scale up and still have a life, without all the drama.

Are you checking these indicators to see if there is unconscious bias at play in your organization?

By Courtney Connley

Every year, company leaders spend millions of dollars on unconscious bias (UB) training in hopes of fostering a more diverse and inclusive work culture. But, studies show that UB training does not always change biased behavior. In fact, it can sometimes make the prevalence of workplace discrimination worse. According to a 2006 review of more than 700 companies, researchers found that after UB training, the likelihood that Black workers would advance in an organization often decreased.

So what is it about unconscious bias that leaders are getting wrong? And is it really possible to root out unintended prejudice at work? In a conversation with Chief Members, journalist Jessica Nordell, author of The End of Bias, explains why leaders need to do more than just raise awareness about the issue. But rather, executives need to also self-examine how their own levels of unintended bias play out in an organization, and they need to offer concrete steps for how workers at all levels can display changed behavior.

“I often hear from people, ‘Well, this is a problem for other people, but it’s not really a problem for me,'” says Nordell. “What I have found through my own research as a woman, very humbly, is that I too am capable of expressing even sexist assumptions and stereotypes towards others. We all have absorbed these ideas from culture. So becoming aware of our own ability to express bias is an important first step.”

Additionally, Nordell says it’s critical to understand just how easy it is for these patterns to impact company culture. To prove this, she created a computer simulation of a workplace in which men and women were given projects to complete and depending on whether they passed or failed the project they would be promoted to the next level. Throughout the process, Nordell and her team implemented common biases women face at work like being penalized for failures more than men, being evaluated based on past performance versus potential, or being criticized for not acting in stereotypical feminine ways. After incremental introductions of bias in the experiment, Nordell saw that following 10 years of promotion cycles, the top level of the simulated workplace was 87% men, signaling how discrimination, even when unintentional, can be detrimental to women’s careers.

“As we become more familiar with these patterns, we can see them more clearly and we can begin to root them out more directly and more aggressively,” adds Nordell.

For leaders looking to create less biased workplaces, she points to French law firm Taj as a perfect example of what should be done. Nordell explains that in 2004 lawyer Gianmarco Monsellato became CEO of the company and was tasked with turning the organization around. After noticing how one woman who took maternity leave was passed over for a promotion he started to dig deeper into other unfair practices at the company and he began to scrutinize five areas where bias could take place.

1. Promotions: He ensured that every promotion was based on an objective criteria that was transparent to everyone rather than an ambiguous and shifting benchmark. If there were a situation where a promotion was uneven between a man and a woman, then the manager had to explain. And if Monsellato found the answer to be insufficient, then the whole promotion process was canceled.

2. Pay: If there were an example of unequal pay between two individuals, then the manager had to explain it or correct it. “He said if there was an explanation it was always BS, so the [manager] always ended up correcting the disparity,” says Nordell.

3. Culture: He immediately started to check any sexist or insensitive remarks he heard by personally pulling people to the side and letting them know that their commentary was unacceptable at work.

4. Stretch assignments: He made sure that everyone had equal access to opportunities that would allow them to grow by ensuring that special projects were not assigned out based on favoritism.

5. Promotion Risks: “He found that some of the women in the organization worried that if they ascended to a leadership position they might lose some of their technical expertise as lawyers,” says Nordell. “And then if that leadership position didn’t work out, they would be out of luck because their skills would have started to atrophy.” In response, Monsellato created a new policy where anyone who was promoted to a new role could return to their previous job after six months if they discovered they didn’t like it.

As a result of his changes, Nordell says 50% of women now make up equity partners at Taj, compared to 20% at U.S. law firms.

“I think what’s really important here, and it’s something that Monsellato really emphasized, is that none of these changes were focused on changing women. They were all focused on changing the biases and the culture,” says Nordell.

What can you let go of? What could be possible if you created space?

About a decade ago, I decided to join a friend’s retreat. It was a planned weekend for people to take time out. At that time in my life, I needed to get to know new people and expand my circle of friends, so I decided to go.

I left without an agenda, aiming to just have fun.

The interesting thing was that the retreat had a significant impact on my life. I learned how to meditate more fully and contemplate things outside of my day-to-day life experience. I spent time by myself at many points over the weekend. I deliberated on the meaning of what I was doing as a business leader. I created the space for new ways of building relationships, and I found that I was drawn to different people than in the past.

Maybe because I went there with no specific goals, a space was formed for connections that I did not expect. I ended up with not only a new set of life tools but also a handful of business cards and a set of new contacts for when I reentered the “real” world.

This is the opposite of what most people do when they want to forge new business links.

For example, think about the average CEO aiming to expand the business and open branches overseas. She has a strategy of exactly how to do it and whom to make contact with. She is determined to land a list of customers or strategic partners through uninterrupted courtship and perseverance. She’ll go to a conference with that list in hand, tracking down each lead one by one.

But being so goal-oriented blinds her to the many other opportunities and possibilities all around her. The conference is filled with people she may not know, but who represent better business opportunities with a more organic fit with her own company. And yet her tight schedule means she’s unaware of what she is missing.

The new skill of mindful leadership includes the ability to assess these situations in parallel. Using courage to stop responding to opportunities in an automatic way, to start listening to our inner feelings and confusion, is not an obvious choice. This is because doing so requires us to give up control, to be uncertain, and even to be able to let go. Let me tell you what this feels like.

In the past I partnered with someone I thought will be my business partner. We had a big vision of working together. However, as the days passed by, it became clear that we were not a good fit. We thought too differently and saw the business world from different points of view. Although diversity of thought could be a good thing, there was too much of a gap between us.

In my mind, I fully understood that we were not a good fit. However, emotionally it was very difficult to let go of the vision I had in mind; it was clear that I wanted to hold on to the story I was telling myself at the beginning of our relationship.

Although it’s worthwhile to get past that barrier, it’s the most challenging thing to accomplish in real life, at least for me. We have to develop the ability to know where we are heading, without knowing exactly how we will get there. It requires us to be open-minded and willing to experience uncertainty throughout the process, all the way until the moment things start to clarify.

Letting go and accepting what is, instead of what you wish, is an emotionally challenging process. 

This is the ability to accept that things don’t always go the way we want them to go. And it is an ongoing process. In my courses I ask my students to relive this kind of experience— namely, the clinging part of us—and also the need to let go. At first I ask participants to think about a situation in which they have succeeded and were pleased with themselves and invite them to let go of the thought and instead feel it in their body, in their sensations, and in their emotions. I then ask them to bring to mind an experience in which they haven’t succeeded, in which in their perception they have failed. Then I invite them to let go of the thought and process it in their body, in their sensations, and in their emotions again.

When I do this exercise myself, I actually feel it in my body; usually these memories arise wit feelings of frustration, anger, disappointment, and more. I am happy when these feelings all go away, or when the time for the exercise is over. However, when practicing the positive experience, my body is alive with great energy that I don’t want to end. In either case, the act of acknowledging this feeling of not wanting to let go, of clinging and the desire for this feeling to stay, is part of understanding everything we experience through embodiment. Our inclination is to hold on to things that feel good or sometimes things that feel bad, depending on what matters to us at the time.

Life is continually changing, though. It’s the understanding that all things are impermanent—our negative experiences as well as the positive ones—that matters. It’s like the saying that you can’t get in the same river twice because the river is continuously changing. As we let go, we can experience life fully.

An interesting challenge to the Net Promoter Score.

Imagine the following scenario. You go in to see your doctor for your annual physical. You get blood work done. She calls you the following week: “Your lab numbers are way below where they should be. I’m concerned about your health … “

Click.

She hangs up. That’s it. No other information. No details or explanation for why the numbers are so low. And no next steps. No guidance on what you should be doing to bring the numbers up to improve your health.

I know, it sounds crazy. And yet that’s basically how Net Promoter Score (NPS) works. You ask your customers to give you a rating of advocacy, and you in turn get a single number back, akin to getting that jarring phone call from the good doctor. “I’m concerned about your (brand) health” is all you’re left with, as you stand there on the other end of the line scratching your head about what your failing NPS score means and what to do about it.

Such a befuddled situation should give any decent marketing manager worth their salt a great deal of anxiety. But it doesn’t. And that’s a problem for making smart business decisions.

We’ve come to over-rely on NPS

Over the past couple of decades, NPS went from a budding idea with some value to an overgrown weed. It’s crept its way into every nook and cranny of marketing strategy (and more recently people/HR strategy). Take a look at the Google trends for NPS search terms to see its growth, especially in the past five to seven years.

Fortune 500 CEOs embed the score in their management dashboards. Some check it every board meeting — sometimes first thing every morning. As Michelle Peluso from IBM comments, “It’s more than a metric. One could use the word religion.”

The fixation on NPS in the highest offices is worrisome, to say the least. The last thing we want our business metrics to be is religious. Reserve your Hail Mary’s for Sunday mass and last-ditch football passes. And remember the seven deadly sins of NPS next time you consider adding it to your brand health tracker.

1. NPS as a number means nothing

On their own, numbers are arbitrary. We give them life by attaching meaning to them through comparison, context, and continuity. But NPS is difficult to understand because it comes with no additional context. The best thing we have is some benchmarking. “Hey, at least I’m better than these guys!” It’s the “what” without the “why.”

What to do instead: You still need a number. But make sure that the number(s) you use has a rationale for how it’s arrived at, and how it’s connected to business relevant outcome metrics like churn, revenue, etc.

2. NPS tells you nothing about what to do next

Since there’s little evidence that NPS shows you why people give the scores they give, marketers have no idea where to start to make a score better. But they have to do something, because there’s a marketing budget and a P&L to answer to. So what do they do? They guess and implement some change, hoping it’ll move the needle on their already low NPS.

What to do instead: Take a scientific approach to determine cause and effect in your number/score. Be diligent about having any single particular initiative (cause) tied to the associated impact on your score (the effect).

3. NPS doesn’t change much over time

Related to the previous point, if the score is mostly stagnant over a period of time, it’s near impossible to see the impact of your efforts or, conversely, to notice when problems are creeping into your business. The success, or failure, of an intervention should be adequately captured by a proportionate change in your outcome metrics/KPIs. NPS doesn’t do this.

What to do instead: Use a score or number that is vetted and validated and, as a result, is amenable to change and fluctuations.

4. NPS is often used to justify decisions that are already made

Sometimes leaders will implement org change based on intuition. But they need to justify their decision to the higher-ups and shareholders because gut hunches just won’t cut it. They need to have a number to point to. Enter NPS: a simple, well-understood metric that helps a leader feel better about themself and alleviates their cognitive dissonance.

What to do instead: Make sure that in your test and learn approach you are tracking your score/number carefully. Follow the data and tweak changes according to what the numbers show.

5. NPS takes the focus away from the customer

Any good business metric should serve its purpose by helping to make the business better. NPS has strayed from this point. Even the inventor of it recently remarked in a Harvard Business Review article that practitioners abuse it “by doing things like linking NPS to bonuses … caring more about their scores than about learning to better serve customers.”

What to do instead: Remind yourself that the number/score you use should always be a means to an end, never an end itself. The number/score is a heuristic, a quick rule-of-thumb that can, ideally, point you to what matters most: improving the experience of your customers.

6. NPS makes no mention of actual purchases

The simplest understanding of an engaged customer, in most cases, is someone who will purchase again. A repeat buyer is a damn good proxy for engagement and, by extension, revenue. But NPS only asks about the likelihood of someone to recommend a brand/product. Nothing at all about the other half of the customer experience: buying stuff.

What to do instead: Make sure that your number/score is a stable and reliable predictor of actual purchasing behavior.

7. NPS is based on intention, not actual behavior

NPS is a single question on the intent to recommend/advocate. Saying you will do something is not a reliable predictor of whether you end up doing it. Saying you will tell a friend about your latest purchase does not mean you’ll bring it up to them at the next backyard BBQ hang.

What to do instead: Always track your number/score with behaviors in the marketplace, not mere intentions. For example, get the data from your customers at the exact time of purchase, because then you can rely on the fact that they bought a product or service.

All told, signs point to jumping ship on NPS. But we haven’t — and it’s been 18 years of throwing good money after bad. What gives?

Human beings … in particular, the sunk-cost fallacy. A well-known cognitive bias, the sunk-cost fallacy describes our tendency to follow through and to keep using something because we (or others) have invested time and effort into it, even though the current costs clearly outweigh the benefits. That explains our irrational fixation with NPS.

Big name brands like Bain & Company and Qualtrics have attempted to revive NPS in desperate hope that they can reinvent the ineffective metric to make it better. Alchemer, an enterprise survey platform company, recently attempted to “bring NPS to life.”

But, sorry to say, it looks dead to me. And no miracle can resurrect NPS’s lifeless body, no matter how hard we pray — or how much more money we pump into it.

Be the compassionate leader especially when the environment isn’t.

 

Research shows that employees who work for compassionate managers are 25% more engaged in their jobs, 20% more committed to the organization, and 11% less likely to burn out. But too many organizations seem not to have gotten the memo yet. They still have rigid hierarchies and treat their employees more like resources than humans, requiring excessively long hours, pressuring people for unrealistic results, and treating them as if they were all exactly the same, without regard for their individuality.

What can you do if you want to manage your team with compassion, but your leadership hasn’t bought into this philosophy? These six strategies will help you be a compassionate leader and may even convince some of your less-compassionate colleagues that they can do better.

Work out your own robust, business-focused definition of compassion.

Some aspects of compassion fall into what are sometimes called “soft” skills, but a more apt descriptor is “activist.” A good working definition is that compassion is the feeling you have when you see someone else struggling or suffering in some way and feel the desire to take action to help relieve that suffering.

It’s that desire to act and create change that differentiates compassion from empathy. For example, you might be empathetic if you feel bad because the current requirement to be back in the workplace is creating a personal hardship for your team member, but you’re being compassionate if you take steps to change the schedule so they can work more comfortably. It’s the action that makes the difference.

Model self-awareness and self-regulation.

Your behavior sets the bar. People notice how you change your position when you receive new information, how you deal with pressure, and whether you’re negotiating with another leader on their behalf. They look to see if you’re willing and have the capacity to triage priorities or make tough decisions, as well as to take responsibility, clean up your own mistakes, and ask for support or forgiveness when necessary. That’s how you model what appropriate behavior is within your group, even if that’s not true for other departments.

One of my clients got involved trying to help sort out a dispute between two team members. During the conflict, it became clear that she had offended one of them, and as part of the discussion, she expressed her regret, asked for forgiveness, and explained how she would try to conduct herself going forward. For months afterward, the offended teammate expressed his appreciation to his colleagues and acknowledged that he hadn’t previously worked with any leader who would be willing to face up to their own errors like that, and his interpersonal behavior began to improve.

Recognize that you can never be everything to everyone.

Even as you try to treat everyone with kindness and interest, you will still have to make choices about where to invest your precious time and energy. Otherwise, you’re leading yourself right into burnout territory. So choose your priorities carefully and without overpromising. It doesn’t help to make big public announcements or hang banners with mottos about the things you intend. I’ve interviewed too many employees who refer to these communications with disdain as “flavor of the month” or “just another campaign we’ll have to wait out.”

Instead, learn from your people what matters to their well-being and take specific steps to improve conditions for them and raise group morale. As you begin to make headway, you can start to point out which things are working better and then start to tackle the next area of interest. You won’t have all the answers, be able to change everything about the organization that’s bothersome to your team, or help them resolve all their struggles, so don’t create false hope or expectations — explain which things are within your purview to change. And don’t expect that everyone will be grateful for what you’re doing or how much effort you’re expending on their behalf. It’s not their job to appreciate you, but the team’s resilience, longevity, and esprit de corps are likely to increase.

For example, one manager came up with a creative gambit that did not require any official permission or resources. When her people were feeling burned out by the challenges of the work and the organizational environment, she helped them each identify a “passion project” that supported the team’s goals and then carved out dedicated implementation time. The employees got the benefit of scheduled independent time for deep work, an opportunity to learn about things that interested them, and the sense of personal commitment and achievement.

Deliver business results.

If your management feels you’re not a confident and successful leader, you won’t be able to continue taking care of your team. Know what your management expects from you, and use every business tool and organizational support you have to ensure that your team is producing, or it won’t matter how compassionate you are. The better you deliver and demonstrate effectiveness, the more organizational credibility you’re likely to develop, and therefore the more clout you’ll have to get the support you need for your team.

You might need to get creative in substituting for resources if they’re not provided. For instance, even if you’re not getting the training budget you need, you may be able to find podcasts or online tutorials on the subject that you can share with your team to help move their knowledge forward. If you’re facing a hard and challenging deadline, actively work with your team to learn who can dedicate more time now and set up internal swaps to help them manage time and participation.

Demonstrate the importance of accomplishment and accountability.

Compassion is not about being “nice” or looking the other way when there’s a problem or someone isn’t up to standard. It requires understanding the situation deeply so you can make the best business decision for all parties at the time, which sometimes means taking employees to task for work they haven’t completed or behavior that’s ineffective.

Certainly, preserve everyone’s dignity by giving them the benefit of the doubt, helping them regroup and refocus, and guiding their efforts as necessary. But make clear what your expectations are and what the consequences will be if commitments or targets are not met. It will not feel good to people if they see you behaving unfairly toward different members of the team or acting as if you have personal favorites.

Support your people through awareness and advocacy.

When there are priorities to set or challenges to face, open the conversation up to the group: “How can we support each other to get this done? What ideas do you have about how we could make our best thoughtful efforts? What’s getting in the way that I need to address?” And then take action and see how you can influence events in beneficial ways. When your people see that you’re not just blowing smoke but will actively represent their interests to others, invest time and energy to change their working conditions, and take risks on their behalf, they’ll take your other efforts more seriously and engage more deeply.

After hearing concerns from his team members, a manager I coached went to HR for backup because a vice president not in his direct chain of command was upsetting members of his team and others by violating company norms around work assignments and treatment of subordinates. Because the manager was willing to stick his neck out, HR reviewed the situation and disciplined the VP. His advocacy convinced several members of staff who were considering leaving to stick with the company during the time it took to conduct the review. They felt that he was someone who could be trusted to handle problems and someone to look up to.

. . .

Being a compassionate leader is being a good leader. It can be hard to do that when the rest of the culture seems to rely on favoritism or neglect. But if you apply these six strategies and choose your shots, you can make a difference for your people and for the business. And eventually, others outside your area may come looking to see how you’ve been so successful and learn from your actions.

These 4 Rs help build a culture of accountability.

Working from home was a must during the pandemic, and it’s now a choice that many people are making as part of their new work normal.

The challenge with having a hybrid and distributed workforce is that the cues that help create cultural norms are diluted, patchy, or even missing completely.  The banter with colleagues, the physical space of the workplace, even what’s displayed on walls, are all cultural symbols that signal ‘what’s important and how we do things around here’.

Because that’s what culture is all about. From an evolutionary perspective, cultural norms are what current knowledge tells us ‘works’ most successfully for the tribe to survive and thrive. Note what I said there – what current knowledge tells us. It can be easy to think of culture as something that is hard to change, but the reality is that culture is a learning process that uncovers what works for the tribe (your team) to successfully achieve its goals. As the tribe discovers more effective ways to ‘survive and thrive’, less effective cultural practices fall away and are replaced by newer ones that support the tribe to develop and grow.

The good news is that when we look at culture as a learning process, hybrid work practices becomes less of a roadblock. Will things need to change? Yes! Because the previous cultural norms established when we were working together physically are no longer the most effective way to take the team towards success.

So, what could this look like for accountability?

I developed a simple framework to break down the mystique of culture for my clients – the 4R Containers of Culture. The framework uses Role modelling, Routines, Rituals and Rhythms to unpack culture, so let’s see how we can use it to craft an accountability culture with hybrid teams.

ROLE MODELLING

Our brains are wired for connection, which means that the learning and cultural cues we get from observing others is significant. This is particularly true for leaders, who – because of both their perceived and real power in the group – have greater influence in setting cultural norms. Because of this, leaders need to be aware and intentional about how their interactions in meetings, one-on-ones or through email model the accountability mindset and behavioural norms they want the team to follow.

For example, openly sharing progress towards your goals – even when it’s not going to plan – will create a cultural norm of transparency and safety. Doing this for non-work-related goals, such as fitness or a DIY project, creates the opportunity for deeper connections with the team and role models that the non-work side of life is relevant and of value too. And this kind of role modelling can be done in a Zoom chat as easily as a meeting room.

ROUTINES

One benefit of cultural norms is that they help us organise and coordinate to be effective and efficient as we achieve our goals. Routines – the way we get the work done together – are what help us do this in a work environment. They are the mechanics of the team.

Working remotely can have a real impact on motivation, as we lose the in-person contact with colleagues, the feeling of togetherness, and the relational energy that comes with it. Even if we’re working on different projects, just being in the same physical space makes a difference – that’s why co-working spaces have become so popular.

One way to help create that connection and energy with hybrid teams is to run virtual ‘work caves’ where the team come together via your virtual platform (Zoom, Teams, etc.) to work individually but concurrently on important tasks. One team member ‘hosts’ by deciding on the timing of each ‘work sprint’ and ‘brain break’ exercise, and holding accountability check-ins at various points throughout (and definitely at the end).

RITUALS

If routines are about effectiveness of a group, rituals are about connectedness – that of the team members to each other, and to the goals they are working towards. Rituals support the dynamics of the team.

Hybrid work practices make it more challenging for leaders to keep their finger on the pulse of team dynamics. Without the opportunity to walk around and ‘feel’ the energy of the whole team in one location, you need to take a more proactive and structured approach to ensure team members can voice concerns, raise issues and provide feedback.

Eco-friendly cleaning-products brand Method hold a quarterly, anonymous ‘Come Clean’ survey in which team members share their feedback on how the organisation is (or isn’t) living its values and meeting its strategic commitments. The CEO then discusses the results and addresses where they might be falling down in a town hall.

An open forum like this with your team will encourage transparency, feedback and debate – all important for accountability – and, just as importantly, will make your people feel heard.

RHYTHMS

In terms of cultural norms, how frequently something happens sends a signal about how important it is to helping the team achieve its goals. With hybrid work, the accountability cultural cues and ‘nudges’ that are present in the physical work environment are seen and accessed less often by team members, which may mean leaders need to dial up the frequency of their virtual replacements.

For example, sales targets or project milestone trackers that may have been displayed on a wall in the workplace, and so could be seen at any time by everyone, could be the focus of fifteen-minute ‘progress huddles’ two or three times a week; one-on-ones that may have been monthly or quarterly over lunch now become a weekly twenty-minute check-in over a coffee. The key is to keep these short, focused, and with clear purpose.

The secret to making accountability culture work with hybrid teams is intentionality.

Leaders cannot leave it to chance.

By seeing culture as a learning process and deliberately using the Four Rs to create new cultural norms for accountability, you can lead yourself and your hybrid team to thrive and succeed.

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