• The Laws of Influence

    Research and observation tell us that the hard skills (quantitative, data-analytical, technical, specialized knowledge) are important early in a career but that the soft skills (influence, relationship building, political savvy) are crucial for later success, especially in leadership. This is clearly the case in technology companies which are heavily populated with smart people who have typically been rewarded for being the cleverest individual problem solvers and tend to think their work will speak for them.

    From follow-up analyses of the psychological assessments of successful people (top executives and people chosen for participation in various “high potential” developmental programs), we have found that there are consistent themes in the opportunities for improvement and development in this population. Within these highly successful groups, the most frequently mentioned suggestions for development fall into two categories.


      Influence and persuasion. The recommendations under this category typically focus on such things as developing better communication skills; being more confident and effective presenting one’s thoughts and ideas, behaving in a more outgoing manner and asserting oneself more directly and effectively.

      Interpersonal insensitivity. The developmental suggestions here have to do with such ideas as toning down one’s intensity or impatience, not pushing people too hard, monitoring one’s competitiveness and aggressiveness, and developing greater insight and political savvy.

    If this is the case with among exceptionally successful people and with those seen as having strong leadership potential, the situation is even more acute with people in the ranks, with technologists and with people early in their career trajectories.

    Success in leadership and influence depends on the innate characteristics of the persuader, as well as on the person’s use of the laws of influence.

    Characteristics of Effective Persuaders

    Common sense and scientific research show that there are two fundamental qualities of people who consistently persuade and influence others successfully – credibility and likability.

    Credibility has two components: trust and expertise. If you can be counted upon to meet your commitments, and if people feel you have their interests at heart, they will trust you. If they can count on your having the knowledge and ability to come up with good solutions, they will see you as a person of expertise. In other words, people need to be comfortable that you know your stuff, and that you have their backs. That’s credibility in a nutshell.

    All things being equal, people buy from people they like. We like people who we perceive as similar to us, who make us feel good about ourselves, who seem to like us and who are consistently upbeat and optimistic. Many books have been written on how to make others like us, but Dale Carnegie’s original How to Win Friends and Influence People is still one of the best resources for suggestions on how to act to be more likable.

    The qualities that help people to achieve credibility and likability can be seen in the framework of the four I-Competencies (often thought of as Head, Heart, Guts and Will).

      The Intellectual Competency allows us to develop the detailed knowledge and the problem-solving skills to develop expertise, one of the necessary factors in establishing credibility.

      The Interpersonal Competency enables us to develop effective relationships and to communicate our expertise in a way which will increase our impact.

      The Integrity Competency enables us to build trust. This allows us to meet our commitments, follow through and work in a disciplined, conscientious manner.

      The Intensity Competency provides the drive, energy and stamina necessary to achieve results, to meet our responsibilities and to deal with the demands of the business environment.

    The General Laws of Influence

    In addition to the qualities of the effective persuader, we should consider the established principles of influence to fully appreciate and understand the nature of persuasion.

      The Law of Authority. We have a strong drive to seek out higher sources of opinion, direction and advice. People have an inclination to follow authority. All other things being equal, people in positions of authority are seen as credible. Credentials are important, but there is no substitute for being a good source of information and help for others. Over time, this is what establishes a reputation for expertise. If you work continuously to expand your knowledge and skill, this will give you a sound base of confidence and will communicate your authority. We’re strongly influenced by people who project optimism, competence, confidence and a positive attitude.

      The law of Trust. This is the other component of credibility. The best way to establish trust is to make sure you’re strong on the Integrity Competency. Once you lose trust it can never fully be regained. Every time you make a deposit to your trust asset base, it grows. But, once you make even a small withdrawal, the entire asset base may be wiped out. The keys to making sure you establish and maintain trust are simple and obvious, but too often overlooked. Among the simple things you can do to establish trust include: always follow through; don’t take credit where credit’s not due; never, ever, betray a confidence; never oversell or exaggerate; communicate as fully as possible when you have information that will affect others; take the first step by trusting that others will perform as expected.

      The Law of Liking. Think of the most credible and persuasive people you know. If you make a list of their traits and characteristics, close to the top will be something to the effect that they are likable. We’re strongly influenced by people we like. This means that you need to develop and nurture a work/social network. People who are upbeat, optimistic, positive and cooperative will be more persuasive over time.

      The Law of Reciprocity. We strive to keep things in balance. If someone does a favor, no matter how small, we feel obliged to them and are likely to help them out in some way. This is a fundamental law that is at the core of our society and all free market transactions. This is why charities include holiday stamps, small coins or other “gifts” with their solicitations. Such tokens dramatically increase donations. We operate by implicit rules of balance and fair play.

      The Law of Consistency. We are driven to maintain a positive image of ourselves. To do that, we need to appear consistent to ourselves. This is the basis for the foot-in-the-door technique and the reason sales people try to get us to commit publicly that we’ll buy a certain item “if they can only find one” before miraculously discovering just the model we previously thought was unavailable. Once we commit to a small action or agree with some part of a position, we’re much more likely to agree with larger requests or stronger positions in the same direction. We will go to great lengths to maintain our self-image of consistency and to reduce the dissonance we feel when we act inconsistently. This is the basis for rationalization. We make decisions based on emotion, then work hard to find “good’ reasons for those decisions.

      The Law of Scarcity. We want that which is rare. Less is more. If we perceive something will become unavailable or may be in limited supply, its value goes up for us. This is the basis for bidding frenzies at auctions, popular toy shortages at Christmas, speculative investment bubbles, snob appeal and many other examples of seemingly strange human behavior. We are more strongly motivated to avoid losing something than we are by the chance to gain something.

      The Law of Social Comparison. We’re strongly influenced by the groups to which we belong and by those to which we’d like to belong. We look to others to figure out how we should interpret and respond to new or ambiguous information. We care what the Joneses think and what they do. We stop to look up when we see people in the street doing that. We’re more likely to tip the bartender if she’s salted the tip jar.

    A word of caution is in order here. These principles work, but they can be misused. If you use them to manipulate or exploit, people will quickly figure it out. If people sense you’re trying to manipulate them, you will immediately lose their trust. And, as you now know, trust is an absolute cornerstone of credibility…which is a prime component of influence.

    Hodges L. Golson, Ph.D.
    Author of Influence for Impact: Increasing Your Effectiveness in Your Organization and Active Leadership: A Blueprint for Succeeding and Making a Difference.

    Call (404-237-6808) or email (info@managementpsychology.com) to explore options for selecting and developing team members who can be more successful persuaders and influencers.

  • Intelligence and Arrogance

    The Intersection of Arrogance and Intelligence

    It’s good to be competent. Being arrogant, not so much. But they’re often related. Being smart, bright and clever often leads to business success. But having these intellectual gifts also means that one gets used to being right, being perceived as a good problem-solver and being valued by others. And this leads to arrogance.

    Intelligence and good interpersonal skills (which don’t include arrogance) are two of the fundamental characteristics necessary for success in business. They are the Intellectual and Interpersonal “I-Competencies.” They can be thought of as the Head and Heart factors. (The other two I-Competencies are Guts and Will – the Integrity and Intensity competencies.)

    Plotted in a 2X2 grid, with brainpower on one axis and arrogance on the other, we see four basic combinations:

    Low intelligence, low arrogance. These people are not likely to rise to the executive ranks unless they’re related to someone in power. They may be delightful people to spend time with, but they’re not clever enough to solve complex business problems, or arrogant enough to bluff their way through. They’re too dumb to know when somebody’s peeing on their leg and too nice to tell them to quit if they realize it. Natural selection at work.

    High intelligence, low arrogance. These are the people who will solve problems, and do so in a way that’s not offensive or abrasive. If you’re in the selection and/or leadership development business, you want as many of these people you can get. But if the low arrogance is due to insecurity, you may need to do some work to encourage them to take the initiative and go to bat for their solutions. They’re likely to expect their work to speak for them and may have trouble selling themselves when necessary. They’re more inclined to be facilitative and supportive in a leadership role than aggressive, charismatic or forceful.

    Low intelligence, high arrogance. They’re dangerous. They don’t realize the limits of their ability and don’t have the good sense to ask for a second opinion. They may have been taught they were special early on, in spite of evidence to the contrary. Good for building self esteem, but not for building leaders who can deal with the challenges and realities of business. They typically don’t make good decisions, and don’t anticipate the consequences of bad decisions. People with this unfortunate combination of characteristics can make a big splash early in their careers, but they usually flame out. If they get lucky, and their unfounded self confidence propels them beyond their true abilities, they can destroy an organization.

    High intelligence, high arrogance. This is an interesting group, caught between competing forces of great potential and great danger. These people can be quite successful but they can also be destructive to morale and relationships, and ultimately to the organization. Leaders with this combination of characteristics tend to oppress or overwhelm their subordinates. If the boss is the brightest person in the room, and likely to ding someone for “dumb” ideas, people quickly learn to keep their heads down and let the boss set the course. Sometimes that works, but not over the long term. Tight ships aren’t necessarily happy ships.

    High intelligence, high arrogance leaders can win any individual battle but lose the war. They create subordinates who become adept at passive aggressive behavior. Their subordinates learn to say all the right words and show appropriate compliance, but they secretly take pleasure in the inevitable obstacles and setbacks the bright/arrogant style creates. And they will watch passively as the leader fails when they may have otherwise been glad to help out. The world enjoys seeing arrogant people get their comeuppance.

    What do you do with such a person in your organization? If he/she is the boss, maybe just grin and bear it, hoping that this too shall pass. If it gets too bad, you can always confront the boss, but don’t do it in a public arena. Of course you know that, but we forget the obvious when we’ve reached our limit. If you must confront such a boss, have clear facts, data and analyses to support your position, and state your reasons, methods and conclusions precisely. Who knows, you might just plant a positive seed. But you still may walk out with your head under your arm. If it’s really bad, maybe it’s time to ask the old Dear Abby question, “Is life better with or without him/her?” Maybe it’s time to polish the old resume.

    If the competent but arrogant person is in mid-career of beyond, the chances for change are not favorable. If he/she gets a real shock and a clear message that a change in behavior is needed, you might see some positive results from direct, targeted and crisp coaching interventions. However, these folks don’t suffer fools or relate to fuzzy touchy-feely stuff. Our experience is that coaching rarely works with someone who needs to be fixed – unless there’s a huge dose of anxiety and motivation on the part of the fixee. There’s an old joke about how many shrinks it takes to change a light bulb (one, but the light bulb has to be really motivated to change). That’s very true with bright and arrogant executives. If they’re not motivated, use the money you’d spend on coaching to find a good headhunter instead. Sure, search fees will be higher than those of a coach, but the time you waste keeping a truly toxic leader around (no matter how smart) and the damage he/she can continue to inflict will cost you a lot more.

    If the bright/arrogant person is early in his/her career, the prognosis for change is more optimistic. A bright person’s first real disappointment or failure is an ideal time to do an intervention. The two-by-four to the face early in a career is often one of the best things that can happen. Most coaches will jump at the chance to work with a bright/arrogant person who has just had the flash of insight that says “uh-oh…I screwed up and I’m not sure what to do here.”

    Arrogance is sometimes a cover for insecurity. But, at least in business, it’s often driven by the combination of early competitive success, being one of the smartest kids in the class, and having been rewarded for cleverness. If it’s due to an insecure, brittle ego, longer term counseling and therapy may help. But few business organizations have the luxury of waiting around.

    High intelligence tends to foster arrogance. It’s the rare leader indeed who has great intelligence, the humility to realize the limits of his/her competence, the courage to seek out contradictory information, the ability to correct course in the face of new feedback and data, yet still retain the confidence to stick with his/her convictions in the face of obstacles and pressure. When selecting leaders, look for high intelligence and appropriate confidence. But also look for humanity and insight. These are some of the things that can’t be taught or coached, at least in the time frames that constrain business organizations.

    Call (404-237-6808) or email (info@managementpsychology.com) for more information about selecting people who can help you continue to build your organization, and to help avoid those who may bring about more problems than they will solve.

    Hodges L. Golson, Ph.D. (Hodge) is a founding partner of Management Psychology Group and eTest.net.

  • Personality Traits: The Big Five

    The results from a wide variety of well-designed research studies have shown very strong evidence that personality affects job performance and that the links between personality traits and job performance are even stronger than previously thought.* This will come as no surprise to people who recruit, interview, make hiring decisions and train employees. Hiring managers routinely ask questions related to working independently, working with a team, getting along with others, being dependable, being motivated, and being able to deal with stress. These characteristics are all related to adult personality traits and can be measured by well-constructed personality inventories.

    Personality inventories also enhance fairness in the hiring process because the differences between majority and minority candidates (sometimes found on other types of tests) are not seen with personality measures, and minority groups perceive personality inventories as more “fair” than other types of tests.

    Personality traits are long-term and enduring patterns of behavior that are stable over time, and in a wide range of settings. Of course people can learn new skills and patterns of behavior, so personality is not destiny. However, it is related to our behavior at work and it can be seen at play in our career choices. Personality traits have been clearly shown to predict behavior on the job. There is now a consensus that personality can be accurately represented by five major traits. They are the hard-wiring of personality. This is called the Five Factor Theory. These Big Five personality dimensions are described as follows:

    Extraversion reflects such behaviors as being sociable, gregarious, assertive, talkative, persuasive, spontaneous, and driven.
    Emotional Reactivity includes such characteristics as security versus anxiety, happiness versus depression, calmness versus anger, restraint versus impulsivity, and patience versus impatience.
    Behavioral Control is related to general conscientiousness and is represented by characteristics such as being careful, thorough, responsible, traditional, conforming, procedural, organized, planful, and detail-oriented.
    Agreeableness consists of traits such as being courteous, flexible, good-natured, easygoing, cooperative, forgiving, and soft-hearted.
    Complexity is associated with characteristics such as being imaginative, innovative, broadminded, analytical, and open to new ideas, facts and data.

    There is no “right” personality. There are potential strengths and liabilities associated with extreme high or low scores on any trait. Personality assessment has no right or wrong answers. The challenge is to understand personality and its most likely expression on the job, and to use that knowledge in the most effective and helpful way to select and develop people who will help build the culture you want in your organization.

    From the earliest scientific studies to the most recent findings, there is consistent and widespread support for the use of personality measures as helpful components of employee selection and development/coaching. Well-constructed personality inventories have been shown to be valid, fair and consistent predictors of success in a wide range of jobs across a broad cross-section of employment settings. Call us (404-237-6808) to find out how adding a valid personality assessment to your selection process can help you select people who will be successful in your culture, and how it can help you develop and coach your employees to greater effectiveness.

    * A more detailed version of the above article, and a complete list of references to support it, can be found in the eTest Technical Manual. Call for more information.

  • Introduction and Launch of the New eTest Platform

    Many readers of MPG articles and newsletters are also users of the eTest online testing platform. Having been incorporated in 1996, eTest was one of the first online pre-employment testing companies. It was created to offer affordable and valid assessments to augment the services of MPG. Over the years, it has grown by providing assessment reports developed by licensed organizational psychologists to clients and other consultants in a wide variety of organizations.

    The eTest battery of psychometric instruments has been customized and validated in a broad range of jobs according to the professional, ethical and legal standards outlined by the Society of Industrial and Organizational Psychology and the American Psychological Association. eTest reports help clients make fast, effective, and accurate hiring decisions, and help them develop and coach their employees to reach their full potential. The standard eTest battery was developed from interview and testing data of more than 14,000 people over a ten-year period.

    We are pleased to announce that a new eTest platform is now operational.  The new website provides clients greater flexibility and streamlining, and expanded functionality. Brief descriptions of the standard reports are presented below, but there are also endless varieties of customized reports available for unique jobs or organizational requirements.

    The Interview Guide is a tool primarily for selection. It provides an in-depth analysis of the candidate’s personality and aptitude characteristics as they relate to the workplace. It consists of a narrative description of the individual, a set of Targeted Interview Probes (TIPs) for the people charged with making selection decisions, and a profile of the candidate’s scores on the personality and job dimensions measured by the battery.

    General personality characteristics can offer insights into how a person might thrive in a wide variety of jobs and company cultures. This report includes information on the “DNA of personality,” the factors that are consistent and stable over time and that affect our behavior in a wide range of situations. A broad professional consensus is that people can be described effectively using five major dimensions of personality (the Five Factor Theory, or Big Five):

    • Extraversion (the orientation towards people) versus Introversion (lower social drive and greater internal focus)
    • Emotional Reactivity (the tendency to be anxious, high strung or impatient) versus Stability (the inclination to be calm, patient and not easily upset)
    • Behavioral Control (which includes discipline, conscientiousness and detail-orientation) versus Flexibility (the tendency to be independent, seat-of-the-pants and less disciplined)
    • Agreeableness (the inclination to be affable, harmonious and cooperative) versus Driven (the tendency to be intense, task-focused and hard-edged)
    • Complexity (the orientation towards the world of strategic, conceptual and complex ideas) versus Conventional (the orientation towards the tactical, operational and practical)

    The Interview Guide includes the candidate’s profile on the Big Five personality factors described above and their sub-scores, job functional similarity (administrative, customer service, managerial, sales, technical, etc.); empirically-derived job-related scales (dependability, motivation, stress tolerance, etc.) and observations about the person’s problem-solving approach, interpersonal style and motivational makeup.  Sample Customer Service Interview Guide Report

    The Developmental Report provides helpful developmental feedback for the candidate.  It consists of a narrative description of the person’s personality traits, pertinent developmental suggestions and a profile of scores. It is useful as a standalone tool for further self-reflection and personal/career development, or as part of a more comprehensive program for growth and development. It includes the Personality Profile information from the Hiring Manager’s Interview Guide report, a more developmentally-oriented version of the narrative description and several targeted developmental suggestions. Sample Developmental Report

    The Leadership Report is designed for use as a developmental tool. It may also be used as another data point in selection, but should not be the sole criteria for a hiring or promotion decision. It is a narrative report providing a description of the person’s general style and likely behavior in a position of influence or leadership. It includes probable strengths and developmental suggestions to help address potential problems or gaps in leadership ability or style. Sample Leadership Report

    The Sales Report is the result of research using real-world data from a wide variety of organizations and sales jobs. There is no one best sales profile for all jobs but there are certain traits and behaviors that increase the chances for success in most sales jobs. Our research indicates that sales people, and sales jobs themselves, can be effectively and usefully described using four major dimensions:

    • General Sales Similarity (an overall scale indicating how similar the person is to people in a wide range of sales jobs)
    • Account Acquisition (the traditional hunter-farmer factor)
    • Strategic Selling (important in developing complex solutions for clients)
    • Team Coordination (necessary for marshaling an array of resources for the client)

    In combination with in-depth information about the Big Five personality factors and the empirically-derived scales mentioned in the Interview Guide, the Sales Report describes a candidate’s Interpersonal Style, Motivational Makeup, Problem-Solving Approach, Sales Leadership Style, Probable Assets, Potential Liabilities and Developmental Suggestions. Sample Sales Report

    With the launch of the expanded platform, we are introducing the new Coaching Report, a tool for use by managers, coaches and mentors to help people reach their full potential. It is a practical guide for helping the person focus on his or her goals for growth, and for developing strategies to reach those goals by fully leveraging strengths and working around gaps or limitations. While it is focused primarily on job success, it can also provide insights and suggestions for the individual’s growth as a person. It provides  strategies for coaching the person, probable assets and strengths, areas for development, general coaching guidelines and a template to help the person develop his or her developmental game plan. Sample Coaching Report

    We can develop an almost unlimited number of Customized Reports from the eTest standard battery to measure and predict behavior related to success in specific jobs or organizational cultures. If you’d like a free introductory test drive of the system and/or get more information about customizing and validating online assessment tests for your organization, call Cheryl Zink at 800-700-1315 for details. Or email us with a brief description of your needs. One of our licensed psychologists will be in touch to further explore how we may be able to help.

     

     

  • Millennials and Motivation

    “How do we motivate Millennials?” It seems every client has asked this question recently, and you can’t pick up a business magazine without seeing some article related to this question. In an attempt to separate wheat from chaff, we looked at some of the recent research to see if we could glean a few insights and suggestions for action here.

    The September 2015 issue of the Journal of Industrial and Organizational Psychology presented several articles covering a variety of points of view, but no hard data to speak of. The observations represented were about equally divided between the “There’s no there there – these are normal age-related differences” and the “There really are differences in this generation due to a variety of unusual factors.” Recent surveys (PEW, KPMG and PWC, among others) offer insights about possible generational differences in attitudes and approach to work between Millennials and other cohorts. For purposes of this discussion, Millennials (sometimes referred to as Gen Y), are people who were born roughly between 1980 and 2000. Some of the apparent differences between Millennials and other cohorts can be attributed to the normal age-related factors. However, there are several unique environmental forces that may indeed reflect genuine variances unique to this group.

    Factors and characteristics likely to shape their outlook

    This is the first generation to be born into the digital age. They didn’t have to learn the new technology. They have much greater comfort with it than the Boomers. Their median friend count on social media is 250, and 55% of them have posted a selfie. These figures are much higher than those of the other generations.

    They experience more financial challenge than other generations. Globalization (loss of jobs), debt from school loans and a long recession have made their early working lives more difficult than recent generations.

    They are less focused on institutions and on making society better than previous generations. But, paradoxically, they’re more optimistic about the future. They’re less trusting in general and more self-focused.

    They will work hard, but more to achieve their own needs and goals. They will put in the hours, but they want flexibility and control of their own time. They don’t feel the need to work from the office, and for the most part, see their first jobs more as a way to make money for their other interests.

    Many of them have been coddled like no other generation. This may have served to make them less realistic in their outlook (55% of those surveyed in one study indicated that they aspire to be a CEO). They are products of the “everyone gets a trophy” philosophy and possibly more than a few of them have suffered from the self-esteem movement. That is, they may feel too good about themselves without having actually earned self-esteem through achievement. This means that a subset of them will have unrealistic expectations, possibly more so than can be explained by youth and inexperience.

    A question posed by the recent Pew poll revealed remarkably consistent attitudes towards Millennials across the three demographics (baby boomers, GenX and Millennials themselves). All groups agreed on the biggest complaints in managing Millennials: they have a sense of entitlement; they lack focus; they spend too much time with technology. Although there may be agreement about what’s “wrong” with this generation, there is not much real research to tease out actual generational effects from general characteristics of youth. Of course the technology adds a very different set of dynamics now than previous generations encountered, but the rest is up for discussion.

    One thing to consider is the fact that the frontal cortex is not fully mature until the mid-twenties. Most researchers think that this is the area of the brain housing executive functions (including general maturation, impulse control, reasoning, planning and decision-making). It may be that much of what we perceive as generational differences is due to normal human development.

    What are they likely to want?

    Basic human needs and expectations are likely to trump generational characteristics when it comes to big things. There are three overarching motivations shared by all people:

    First, wehave strong motivations to perceive reality accurately so we can respond in our best interests. We need to stay alert and interpret things correctly so that we gain some advantage, or so that we don’t lose something. This is the accuracy goal. It causes us to be alert to what others are thinking and doing and is an underlying mechanism for the influence of groups on individuals. We often look to others (authority figures or members of groups with which we identify) to figure out how they perceive and respond to things to get clues as to how we should behave. We want to know what’s going on and what’s expected.

    Second, we are motivated to build and maintain meaningful social relationships. This affiliation goal is important even to strongly introverted people. Effective social networks are often literally the keys to survival. We tend to act in ways to gain the approval of others who are important to us. This is a fundamental motivation. It explains why we ingratiate ourselves to others, and why we follow the norms of our reference groups. If we are accepted and liked, we have better chances for survival.

    Third, we have a strong need to maintain a positive image of ourselves. This goal of consistency explains why we will often go to great lengths to behave in ways we perceive as congruent. It also explains why we can be very clever at finding ways to fool ourselves and rationalize apparent inconsistencies. We have a strong need to avoid the internal stress (cognitive dissonance) we would otherwise feel. Dissonance reduction is an important component in maintaining a positive image of consistency.

    Most normal people want to feel they are contributing in a meaningful way to a worthwhile endeavor. They like clear goals to help them gain a sense of control and mastery over their environment. They want interesting work, reward based on contribution and the opportunity to be successful. They want to know how they are doing, and how they can be more successful.

    Although there are differences across generations, individual differences are always larger than cross-generational differences. And commonalities trump both individual and generational differences. In general, communications will be most effective when we focus on what we have in common.

    With the above for context, here are some general observations about some of the things that will be important to many Millennials, and some ideas about managing and leading them.

    For their early jobs, they will probably be more focused on work as a way to get money to do the things they like to do outside the job. As with many people in other generations when they were younger, they tend to see jobs as a means to an end and as a way to help them pursue their interests. They want to earn enough to have fun. They like to know what they have to do to earn enough to live the way they want. Promises of promotions aren’t as motivating at this point.

    They are used to working in groups and therefore likely to enjoy the chance to interact with other like-minded people. They are generally comfortable working together on projects. Give them challenges (not responsibilities) to work on in teams. Give them a chance to network. Let them work together in a “learning team” format for problem solving when possible.

    They typically want more of a mentor than a boss, but they like to have a roadmap for success and advancement. They value independence and flexibility, and are likely to actively or passively resist close supervision or micromanagement. They want to complete their assigned tasks in their own way.

    They want to express their individualism, and to be seen as individuals. Being lumped into the broad classification of “Millennials” will probably not be the best way to foster their engagement.

    They want to work in a friendly, supportive atmosphere and to be given positive feedback. Negative critique may often be more effective couched as a roadmap towards greater success, rather than as “here’s how you screwed up.” Paint the picture of what success will look like in your eyes. Frequent and supportive feedback is more effective than the annual review.

    As long as they have clarity of mission and goals, letting them work together to figure out how to accomplish the task can be a powerful tool for success. But don’t expect the solution to be that they’re on site nine-to-five every day. They want control of their schedules and flexibility. They are used to using technology, so allow them to do so to the maximal extent possible.

    Conclusions

    The jury is out regarding the effects of generational cohort versus normal human maturation on the attitudes of Millennials towards work, and towards life in general. While the observations and suggestions presented above may offer a few insights and tools for managing them, it will probably be more effective to focus on solid and consistent managerial and leadership practices, regardless of the generational mix on the floor. Below are some proven strategies for effective leadership for any generation, but especially for Millennials:
    Goal clarity, and worthiness of the goal, are essential to keeping people moving in the right direction. The company’s mission and values provide the context for work, and the specific goals provide the focus. People need to understand what is expected, and that what they’re doing is worthwhile. They will work best when they understand the reasons for what they’re being asked to do.

    Resources to enable people to achieve the goal are crucial. Of course innovation can leverage their efforts, but they expect their leaders to provide them the tools they need to be successful.
    Clear and supportive feedback helps people understand how they’re doing. Feedback is often most effective when presented as “here’s what you did well and here’s what you need to do better” rather than the more punitive “you messed up by doing this” format.

    People work best when they have a sense of control. When there is a new challenge, let them have as much influence on how it will be handled as possible. This can take the following form:
    * Here’s what we need to accomplish, this is why we need to do it, and this is the deadline.
    * Here are the standards our solution needs to meet.
    * These are the checkpoints – when you need to give me progress reports and when I’ll check up on you.
    * Here’s where I can be reached. I expect you to call immediately when you need something.

    No matter what the generation, people respond to reinforcement for doing a good job. Some people like recognition, some like tangible reward, many Millennials are likely to enjoy time off, etc. The nature of the reinforcement depends on the person, so leaders need to make sure they understand each of their people and their unique motivational structure.

    In the end, there are no magic answers. People in all generations are more similar than different, and every generation has had complaints about the next one. However, there do appear to be unique factors, aside from the normal maturational stages, that shape the attitudes and behaviors of Millennials. Be that as it may, we should probably spend the bulk of our time and effort focusing more on commonalities and on the things everyone needs rather than strategizing about how to deal with real or perceived generational differences.

    Hodges L. Golson, PhD
    November 2016

  • The 3 x 5 Conversation: A Simple Aid for Growth and Leadership Development

    We all need feedback but few of us get the kind to really help us be successful on the job. And few of us do a good job of giving other people similar critique. The 3 x 5 conversation is a simple but effective way to communicate and to make sure we are focusing on the right things. It’s a way for subordinates to get calibrated with their bosses, and it’s also a structure for managers and leaders to coach subordinates towards greater success. It can work particularly well to facilitate difficult conversations about underperformance.

    A key assumption here is that the boss knows what his or her subordinates are supposed to be doing and knows what success looks like. The term “3 x 5” refers to a typical 3 x 5 note card, and to the number of topics to be discussed. Writing three to five bullet points on a 3 x 5 note card is an effective way to keep focused on the most important. Below are some examples.

    You need feedback from your boss. This is especially useful early in the transition to a new position or to a new boss. This is more conversational and actionable, and less threatening, than the typical structured performance review. It’s a vehicle for you to make sure you’re doing what is expected. In an ideal world, you’d have a good roadmap for this on the front end. But we don’t live in that world, which means we often need to take the initiative rather than waiting for instructions and guidance that may never come. Here, the initial conversation could go something like this:

    “I’d like to make sure that I’m doing everything I can to be successful. I would appreciate getting on your calendar for a few minutes to make sure I’m focused on the right things. It would be of great help to me for you to articulate your key priorities for my work, and also what success in each of those areas will look like in your eyes. I’ll bring a similar list of the things that I’m spending most of my time on and we can compare notes to ensure I’m pointed in the right direction.”

    From this conversation, you should have enough information to set some clear targets for success. Of course there may be more than the three to five priorities, so don’t put artificial constraints on the boss. But you’ll probably be able to distill the key takeaways from this discussion into a manageable set of priorities.

    You want to give feedback to a subordinate who is performing effectively. The basic idea of comparing notes in a more conversational and informal setting applies here as well. Even if you have already provided a structured performance review, this is still a good way to help successful people stay focused on the right thing. You don’t need the encumbrance of a stilted performance management/review structure. Here, the initial conversation could be something like:

    “I’d like to be sure that you have everything you need to continue to be successful in your job. At your convenience, let’s talk about my priorities for your work, and also about the key things you’re focusing on at this point. Don’t worry, this is not a formal performance review. And we’re having this talk for good reasons, not bad. I just want you have a clear roadmap for continued success. Before we get together, please list the three to five key things you are focused on at this point, the things that are taking up most of your time. Then we can compare notes to make sure that we’re in sync. No other preparation is necessary.”

    You need to give feedback to a subordinate who is having performance problems. You should be positive here, but don’t pull your punches. Even if you have not already addressed the shortcomings before, the chances are good that this person knows he or she is not performing at the level you expect. However, things need to be made explicit. Emphasize that you see this person as valuable and worth the effort to coach and develop, but that there need to be some changes. Also emphasize that if he or she is successful, you will be too. This means you have a vested interest in a positive outcome. Keep in mind Marshall Goldsmith’s ideas about feedforward (http://bit.ly/191fadX) rather than feedback. That is, don’t spend much time on his or her screw ups. Rather, communicate what success would look like in your eyes. Use the same general introductory format as above but stress that this is an opportunity for you to work together to achieve success. Set the tone that you’re providing coaching for future achievement and growth, rather than just critiquing the past.

    The session should conclude with specific behavioral steps to help him or her to achieve success. Stay focused on behavior: what needs to be done, how it needs to be done, and why it needs to be done. And be sure to include checkpoints and time frames.

    What to do with this information.

    As a subordinate, the critique and insight you receive from these sessions should be central to your career planning, skill development and ultimate success. It should have given you enough data to define your most important goals for growth. A general sequence for this would be as follows:
    1. Decide on a few (no more than three at a time, please) key goals that will help ensure your success and make your life easier on the job. These goals should be of the SIMple variety – Specific, Important and Measurable (from One Page Talent Management —  http://amzn.to/1m9b7FL).
    2. Take inventory. What resources are available, and what obstacles are you likely to face? Take into account your primary strengths and how you can use them to help you achieve these goals. Also plan for how you will deal with the Resistance (capital R) that’s always an obstacle to positive growth and change. See Do the Work (http://amzn.to/1QVot58).
    3. Develop strategies to achieve these goals and test them out in the real world.
    4. Tweak your strategies in response to tangible results and feedback from these efforts.
    5. Iterate. Keep the process going to achieve new and/or modified goals.
    As a leader, try to play more the role of coach and mentor. That is, help your people to work within the above goal-setting/accomplishment structure towards a positive outcome. Check out the references above for insights and tools for doing this.

    Good communications are essential to success in any organization. No matter how diligent you are about communications, things tend to fall through the cracks and people get lax after a while. It takes sustained and continued effort to make sure that everybody has the information they need to be successful. The 3 x 5 conversation can help keep the lines open and can help create a culture of growth and positive achievement. This tool is deceptively simple and easy to use, but it’s not a one-time fix. It’s something you’ll need to rely on consistently over time for maximum impact and benefit.

  • Active Leadership 10: For the CEO

    Wrapping up his first year as CEO, Eric feels that he’s just beginning to get his feet wet. He expected surprises and for the most part was prepared for them. In general he is pleased with the company results although there’s always room for improvement. His board has been cooperative and he has managed to build a few key alliances and supportive relation-ships with some of the most influential members. But he can’t help feel a bit of irritation with their seemingly constant needs for attention and information. It’s hard to run the company when your key lieutenants spend most of their time tracking down numbers and compiling reports for the board. It’s also irritating that many of the board members have only a superficial understanding of his business and the way it really runs. He could have been much more effective had he not been forced to fight a constant stream of regular fires and a couple of potential major crises this year. And of course the never-ending increases in governmental regulation and “assistance” has been a massive burden and distraction. It’s no surprise that he hasn’t been able to really reflect on the appropriate strategies to deal with a quickly changing competitive and technological landscape. But it appears that people have accepted him and have been willing to line up and follow his direction. That’s been gratifying and certainly made his transition easier. However, he is keenly aware that one or two missteps or bad decisions could have a major impact on his ability to maintain their confidence and to continue to lead effectively. He now realizes Shakespeare’s wisdom: “Uneasy lies the head that wears the crown.” But overall, it’s been a good year and he knew what he was getting into when he signed up. Next year, he plans to get a little closer to the ideal expressed by Chinese philosopher Lao Tze a few thousand years ago:

    ‘A leader is best when people barely know that he exists, not so good when people obey and acclaim him, worst when they despise him. Fail to honor people, they fail to honor you. But of a good leader, who talks little, when his work is done, his aims fulfilled, they will all say, ‘We did this ourselves.’

     

    Barry Switzer, legendary Oklahoma football coach, is reported to be the source of the quote, “He was born on third base and thinks he hit a triple.” Granted, there are people who are born into or who marry into successful business families and wind up running the company. Some of these people are very successful due to their own efforts, but some also remind us of Switzer’s quote. And there are some people who are particularly good at managing getting promoted on the basis of their political skills. But if you’ve had the interest and taken the time to read this far, you’ve probably been successful, or will be successful, due in large measure to your own efforts.

    As a CEO, you will hopefully find that the rewards are great. You are also likely to find, however, that there are unexpected burdens and unintended consequences akin to those noted in the introductory article.

    The CEO, more than the other top officers, is always on stage and is always held to a higher standard of behavior. Forget this at your peril. Yes, there is a great deal of adulation and admiration for the person at the top. But there is also suspicion, envy and hostility just beneath the surface. Some CEOs sense this on an intuitive level, and might feel a certain amount of guilt or dread as a result. However, others are blind to it, and believe the flattery and the positive press they get merely for having arrived at the position. But as soon as they stumble, they quickly become aware of the precariousness of public opinion, especially if they’ve stepped on too many people on the way up.

    Karma is a bitch. To make it worse, and as more than one sage has pointed out, people despise the good for being good. Of course, people who are successful, especially those who succeed due to their own efforts, are copied and admired; but they are also objects of envy and resentment.

    In general, CEOs don’t fail because of a lack of brainpower, motivation, or sense of vision. It’s usually more mundane than that. Of course, the wrong strategy at the wrong time can derail a CEO and the company. But more often it’s just lack of execution. And lack of execution can make it look like the strategy was flawed. People who make it to the top office can be tempted to assume their hard work is over. When that becomes the case, they are likely to start trying to protect their position rather than doing real work. At that point, they are in for a rude surprise. The heavy lifting in this case involves making tough decisions: making sure that all commitments are delivered according to promise, building strong executive teams, holding people accountable, and making the numbers. Failure to install the right people in the right jobs, or failure to address people problems quickly enough, creates a certain blueprint for disaster.

    Authors Ram Charan and Geoffrey Colvin have studied successful and ineffective CEOs. Their findings, presented in their article Why CEOs Fail, echo our earlier observations about the characteristics of good people in general (the I-Competencies):

    • Integrity, maturity and energy
    • Business acumen
    • Judgment of people
    • Organizational savoir-faire
    • General mental ability, intellectual curiosity, and a global mindset
    • Great judgment
    • An exceptional drive for results and accomplishment
    • Strong motivation to grow and to apply new knowledge

    So what happens to the lucky (?) few who do make it to the top spot? Be careful what you wish for. Professors Michael Porter, Jay Lorsch and Nitin Nohria summarize their observations on unexpected consequences and surprises when one reaches the top spot in their article, Seven Surprises for the CEO. Although their studies are generally focused on public companies, most of these concepts apply across the board. Below is a summary of their observations, and advice on how to handle them.

    You can’t run the company
    External pressures and volume of internal demands are much greater than before. In addition, even though your functional knowledge might have been instrumental in getting you to this position, you can’t rely as heavily on it now. You must realize that there are real gaps in your knowledge and expertise, and you have to balance the dual role of Mr. Inside vs. Mr. Outside. Despite the power of the CEO’s position, there’s often a sense of uselessness or lack of real influence.

    You can give orders, but it comes with a high cost
    Giving orders ultimately triggers defensiveness and resentment because it erodes the authority of your people. If you must constantly overrule their decisions, that’s a sign of your failure to communicate accurately and effectively.

    It’s hard to know what’s really going on
    You’re bombarded with data, and much of it is unreliable. By the time the information has reached you, it has been filtered to excess.

    You’re always sending a message
    Everything you say and do is scrutinized, analyzed, amplified, and interpreted. Not only that: it’s often misinterpreted, sometimes drastically.

    You can’t think out loud anymore
    CEOs find that it’s very difficult to manage the internal and external constituencies, while giving a consistent and truthful message.

    You’re not really the boss
    If you’re running a public company, the board has ultimate power. Managing those relationships is a drain, even when they’re very good. Even though you thought you’d be calling the shots now, you can’t stop managing upwardly. Before, you had only one boss. Now there might be ten or more, most of whom have little real knowledge about your business; but you can’t ever let your board members feel uninformed. You need to actively develop and drive the relationships, so you can transform meetings with them into participatory, collaborative discussions rather than show-and-tell sessions.

    If you’re running a private company, even if you’re the sole owner, you still must depend upon many people over whom you have little or no direct control for ultimate success. Another complicating factor is the increasingly onerous regulatory climate, at least in the US. Due to an excessive governmental appetite for control, facilitated by flawed cultures at a few large companies and their (supposed) regulating authority organizations, CEOs and boards now have to deal with such obstacles as Sarbanes-Oxley. The steady stream of new regulations and threats of litigation make boards even more dysfunctional, so conventional board management strategies don’t apply as well now as before.

    Pleasing the shareholders is not the goal
    Shareholders and analysts have a short-term mindset. They come and go. The CEO needs to keep the long term in view. The goal is to create sustainable economic value. High stock prices will eventually collapse without a fundamental competitive advantage, and long-term profitability is what matters.

    You’re still only human
    So don’t believe your positive press or other sources of flattery. You simply can’t do everything well. This is the most draining job, physically and emotionally, that you’ll ever have, and there’s no such thing as balance. There are only trade-offs. Your relationships with family and friends will change, so don’t get so caught up in your legacy that you lose sight of everything else.

    What does this mean to the CEO during daily activities? The implications of these observations offer guidelines for successfully navigating the tricky leadership and political waters that are the stuff of every CEO’s life.

    First, the CEO must lead by managing organizational context, not day-to-day operations. Many new CEOs feel worthless and powerless – entering the office with a strong pull to do something. Being active and involved is what made them successful up to this point. Now their power comes more from the symbolism of their words and behaviors as from their direct efforts to manage.

    Second, the position doesn’t automatically confer the ability to lead, nor does it provide a guarantee of loyalty. The power to really lead and transform must be earned, and can be easily lost if the vision isn’t convincing or if actions are different from the values espoused. Success depends on the ability to enlist voluntary commitment and make people want to follow you.

    The CEO and top executive team set the tone and define the organization’s culture and values through words and actions. They demonstrate how to behave.

    Finally, failure to recognize you are human, and not omnipotent, results in arrogance, exhaustion, and a short tenure. Take care of business: but also take care of yourself.

     

    Key Concepts

    CEOs typically fail because of a lack of execution, not because of a lack of vision. The CEO is always on stage, and is always held to a higher standard of behavior. There are sometimes unpleasant surprises at the top, most of which revolve around having less control than anticipated.

  • The Three Worst Mistakes in the Use of Selection Tests

    Although there are potential risks in the use of pre-employment tests, they continue to be one of the most popular and effective tools to help managers make good hiring decisions. If you currently use them, or are considering doing so, here are three things you really need to know to help you avoid legal trouble and to help you hire better people.

    ONE: Using a bad test

    By “bad test”, we mean one that hasn’t been shown as valid and reliable. Validity refers to how well it does what it’s supposed to do. Reliability refers to how consistently it measures what it measures and performs over time. A bad test may also be missing evidence that shows it’s fair to different groups of test takers. There are specific tasks a test publisher should accomplish before making a test available. The statistical procedures are clear and well-known. Once these steps have been performed, they should be clearly explained in a technical manual for the user. If you can’t get such documentation from a publisher, don’t use the test.

    TWO: Using a good test, but one that’s not related to the job

    If you’re using a highly valid test of math skills, but using it to help select people for a job that doesn’t require math, you’re looking for trouble. However, if you’ve demonstrated that strong verbal skills are related to success as a writer, the use of a vocabulary test will help you select better employees for this position. Be sure you’re choosing the right tests for the right positions.

    By “good test”, we mean one that is valid and job-related. If you don’t have enough people in a particular job to perform a proper job analysis and relate the key job behaviors to test results, make sure the test meets the validity requirements outlined above. If you do have a sufficient number of people in the job under consideration, the steps for a validation are as follows:

    • Analyze the job using all available data about the job. This includes discussions with subject matter experts, a review of all written material (e.g., job descriptions) and observation of people performing the job. This should result in the definition and documentation of the competencies needed for success and an outline of key duty areas. Based on this information, choose a good test that measures essential job competencies
    • Administer the test to all incumbents.
    • Gather performance measures on incumbents. These may include performance reviews, sales (or other quantitative) results, and any other performance and effectiveness metrics.
    • Relate performance ratings to test results. This is accomplished through the use of various statistical procedures.
    • Develop the success profile.
    • Set the cutoff score to minimize adverse impact on protected classes and ensure fairness to all.

    Larger and more successful companies generally approach testing the right way. Not necessarily because they’re more sophisticated, which they sometimes are, but more out of self preservation. Many of them have found that it’s much less costly to use good tests validated in their own environments than to pay the legal fees and penalties involved in defending themselves from (sometimes justified) lawsuits.

    THREE: Using the test the wrong way

    Even if you have the most valid and reliable test in the world, you shouldn’t rely exclusively on it. Structured behavioral interviews, reference checks, work samples and general background checks should also inform your decision.

    You should be consistent in your use of tests, interviews and all other components of your selection process. Always be sure to accommodate special needs as outlined in the ADA (Americans with Disabilities Act) and stay aware of current EEOC guidelines. You should periodically review the cutoff score used for the test to make sure it is set at the appropriate level and that you have no adverse impact. Your selection system should not discriminate on any basis but job performance.

     

    Michele I. Mobley

    Hodge Golson

  • Active Leadership 9: Getting the Culture Right

    Deborah has transformed one of the worst performing plants in the company to one of the stars. She appreciated the formal recognition as general manager of the year, but what she en­joys most is knowing she has made a real difference in the organization and in people’s lives. Although there was plenty of complexity and heavy lifting involved in the turnaround, she knows that the keys to her success were simple. It didn’t take a genius to see that people thought no one cared what happened, and that they were behaving accordingly. Just getting the place cleaned up and painted made a huge difference. The previous GM paid no attention to the appearance of the plant, and spent as little money as possible on what he considered frivolous things such as grounds maintenance and janitorial services. She saw immediately that the overall look and feel of the work environment gave a clear message that it was OK to be sloppy, and that management was not interested in anything but get­ting the widget out the door.

    Her second major change was to hold people accountable. If they did not meet their commitments on time, she gave them direct feedback about her concerns, and made sure they under­stood that there would be consequences for underperformance in the future. Most people responded well, but there were a few bad apples in the group. She removed them, and was amazed at the positive and visible changes in the attitudes of those who remained. Her acceptance speech for the award was charac­teristically low-key and self-effacing: “Thank you very much, but this was mostly just a matter of fixing the broken windows.”

    Characteristics of the organization (the nurture factor)
    The previous discussions about the characteristics of people focused on nature, or the innate factors a person brings to the organization. You certainly need the right DNA to build an effective organization; but just getting the best people is not enough of a guarantee of success. Now, we shift the focus to nurture – the characteristics of the organization that will shape behavior. Cultures re­flect unique combinations of personalities and values of their top leaders, and as a result come in a wide variety of flavors. This discussion is focused on two important factors of a successful culture: an environment that fos­ters ethical behavior; and one that also offers the chance for the growth of its people.

    What do we mean by culture? Culture is the shared values, behaviors, and norms of a group. It includes patterns of activities and symbols that give it significance and meaning. Culture, in a business setting, is the essence of how we do things around here. Culture is analogous to personality traits. That is, it’s stable over time and affects behavior consistently in a wide variety of circumstances. Cultures develop over time, and they can’t be changed easily or quickly. However, with con­sistent attention, motivation, and courage, culture can be re-defined over time. The needle typically moves slowly, but it can be advanced with the right attention, emphasis, and incentives.

    Company size and industry type aren’t consistently related to ethical culture; but the quality of work experi­ence does seem to be a predictor of good behavior. To the extent that people in the ranks feel a sense of equity, professionalism, and pride in their work, they are inclined to behave well. When they feel their efforts are not rewarded, that their work doesn’t make a difference, that others in the company don’t care, or that nobody is monitoring their behavior, they’re more likely to behave poorly. Still, we need to be careful not to over-regulate. The more onerous the rules, the more likely people are to look for loopholes. This is a tough balancing act.

    Involved boards tend to foster better decision-making. Because of this, smaller or private companies benefit from having an engaged and alert advisory board. In my own profession of psychology, most ethics cases brought to the regulating boards involve individual practitioners who work in relative isolation and who don’t seek advice from other professionals when potential ethical issues are on the table. Executives need contact with competent colleagues to make sure they’re behaving according to appropriate ethical standards and not getting on the slippery slope. People whose decisions are open to scrutiny from others are more likely to make good ones. As H.L. Mencken observes, “Conscience is the inner voice that warns us someone may be looking.” An atmosphere of collaboration in the organization helps to increase the chances that good decisions will outnumber bad decisions.

    Co-workers
    One of our fundamental needs for survival is to figure out what information means, so that we can tell whether it will help or hurt us. One of the best ways to do that is to look to people around us to help interpret that data. As noted in the earlier discussion about influence, the Law of Social Comparison explains that people we trust and identify with are a great resource to help make sure we perceive and interpret new data accurately.

    We have strong needs to identify with groups we find attractive, or that we feel are powerful, and we tend to take on their ideas and behaviors without conscious ef­fort or questioning. This is also the mechanism behind cults, delusional beliefs, and mob behavior. It has important implications for building and maintaining a desirable company culture.

    As organizations grow, the top executives will have less direct contact with people in the ranks. A top executive’s good intentions and messages about the right behavior can be lost among competing messages from the person’s peers. The peer reference group exerts great pressure on members to conform to its norms and standards, and the force is even stronger in the absence of authority. Parents become keenly aware of this as they realize that the impact of their teenagers’ peer group is greater than their own. In a work environment, the peer group is the strongest source of information about how to behave, so the peer group should be of the highest quality, and should receive the right messages from above.

    Implicit messages
    If we want to create great cultures, we need to keep in mind what author Malcolm Gladwell refers to as The Power of Context. He uses the Broken Windows theory of criminologists George Kelling and Catherine Coles for illustration. If a vacant building is left with broken windows, vandals tend to break more windows, then break into the building itself, perhaps to become squatters, lighting fires and wreaking other damage. If trash is allowed to accumulate on a sidewalk, more people begin to dump trash there, and eventually it becomes unsafe to park or walk on that street. The clear message given by these environments is that nobody cares and nobody is look­ing. We hope that people of good character would intervene, but that doesn’t happen. In fact, the research shows that the context of the situation is a powerful in­fluence on behavior, regardless of personality characteristics.

    Almost ninety years ago, human development re­searchers Hugh Hartshorne and Mark May conducted a series of classic experiments about character, clearly demonstrating that almost everyone would cheat given the right set of circumstances. They also found that preaching about it had no real effect. Somewhat later, psychologists Phillip Zimbardo and Stanley Milrgam showed that the frightening behavior of seemingly normal people in situations that pull for bad behavior (for instance, under the Nazi regime) is reproducible in the laboratory. Good people can be made to do bad things more easily than we want to believe. We might not want to hear this, but it can’t be ignored.

    Although recruiting the right people is a fundamen­tal key to building the right kind of organization, we need to remember what psychologists call the Funda­mental Attribution Error, which refers to our tendency to overestimate the importance of fundamental traits and characteristics, and underestimate the im­portance of the context and situation. A bad system can corrupt or run off even the best people. Remember: bad is stronger than good.

    The good news is that the broken windows effect can be reversed. If the environment is cleaned up (graffiti erased, broken windows fixed, trash collected) and if minor transgressions such as turnstile jumping in sub­way stations are prosecuted, the message changes. The application of this theory is at least partially credited with the dramatic crime reduction in New York City in the nineties. By changing the environmental context in this manner, the message now becomes, “we care, we’re watching, and we’ll take action.” The result is that people behave accordingly. Context is as important as character when it comes to organizational culture. Not only do you need the right people: you need to be sure they’re getting the right messages, and that the incentives for positive behavior and sanctions against negative behavior are clear, effective and enforceable.

    Leaders
    You can’t police a culture into becoming what you want, but you can provide the right examples and incentives to produce behavior you want. This is not something that can be delegated. As with most successful initiatives, culture change must start at the top. A company’s culture is a reflection of the CEO and top executive team. They must serve as clear role models and remain above reproach. Although an individual’s peer group in any organization has great influence on behavior, specific messages from the top are heard loud and clear. The ex­ecutive team must always stay aware of the Executive Amplifier noted in an earlier discussion – all messages, whether intended or not, are amplified and often dis­torted throughout the organization. And you’re always sending a message. Unfortunately, bad news gets attention. Furthermore, reports of bad behavior get around more quickly and have greater impact than those of good behavior. The CEO must invest time to coach a team to do the things necessary to develop a different culture. It takes careful investment of time and money. Although culture changes slowly, it does change over time if you reinforce the right behavior.

    A top executive needs accurate data and knowledge to make good decisions, but leaders tend to get isolated. To build strong and effective cultures, leaders need to seek out dissenting opinions and tolerate bad news. The best of them will face facts unflinchingly and respond accordingly. One of Jim Collins’ findings from the Built to Last/Good to Great studies is that the most effective lead­ers build a culture of consistently “confronting the brutal facts.” Along these lines, psychologist Carl Rogers’ wisdom is worth repeating here: “The facts are always friendly.” When you’re at the top, there are many ways for information to become garbled or spun by political agendas. The culture of the yes-man is one of cover-up and selective information sharing, which can easily lead to ethical problems for the company. You must be able to handle reality.

    How to build a strong culture: getting the context right and fixing problems
    Companies can sometimes be successful without a clear vision, but a good mission and values statement can help people keep their efforts focused and can support them to make the appropriate decisions in the absence of specific leadership direction. Companies are better off in general with some definition of their purpose and values, but if it doesn’t help people on the shop floor make decisions and execute their work in the proper manner, it’s mostly a waste time.

    A mission, values and vision statement has the ad­vantage of delivering the right message to the troops, and can help create a shared sense of purpose. But your assumptions must be explicit. It’s a good practice to pub­lish a short and clear (that is, not legalistic or ponderous) code of ethics. It should be written by the CEO, with company lawyers checking for legality and precedent, not written by the lawyers and presented to the CEO.

    Aside from developing and publishing clear vision, values, and code-of-ethics statements, the following sug­gestions can help build the culture you want.

    • Fix the broken windows. If there are ethical lapses, take care of them. Don’t tolerate bad actors simply be­cause they make their numbers.
    • Make sure everyone reads and understands the code of ethics. It’s not enough just to have a code. You need to be sure all of your people understand the code, and grasp how its concepts apply.
    • Get the incentives right. Naturally, you should reward good behavior, but it’s also important to move quickly with transgressions. Remember the hot stove.
    • A leadership development culture should include not only the selection of the right external candidates, but also a systematic program for early identification of in­ternal people with potential. It’s crucial that people who are selected for leadership development possess enough of the foundation competencies to benefit from the at­tention; but selecting the right person is only the begin­ning.
    •  Sensitize your top executives, not only to your ethical principles, but also to the unanticipated consequences of appearances. They need to manage the optics of their actions to avoid even the slightest whiff of questionable behavior. They need to understand that they’re always in a fishbowl, and that they must be clear and bright role models for the right kinds of behaviors. Remember, when we know others might be looking, we’re more likely to make better decisions.
    • Don’t preach – it doesn’t work.
    • Be visible. Leaders who are out in the organization living the culture in a visible way and reinforcing the right behavior have a huge positive impact.
    • Incorporate how into your measure of what, in your performance appraisal process. If a person con­sistently achieves strong results but does so with questionable behavior, the company suffers in the long run.
    • Pay attention to assignments. Consider them care­fully, to broaden the person’s scope. Let the employee risk fail­ure, work for a really tough boss, and work in an unfamiliar part of the business. As­sign work on cross-functional teams where possible.
    • Develop and reward teamwork skills, not just individ­ual accomplishment. Practical and useful teamwork training and insights are rarely taught and reinforced.
    • Build a feedback-rich environment. This includes the infrastructure of support and resources: formal and informal tools such as 360 feedback; meaningful performance assessment; and individual coaching to help people act on new insights. Provide your executives with developmental coaching tailored to the person and the situation. Aristotle noted that acquiring virtue is like playing a musical instrument. It requires practice and a teacher.
    • Encourage community involvement. Not only does this broaden employees’ scope and perspective, but it also allows them to serve as ambassadors for the company.

    When highly successful people are asked about the things that were most helpful to their careers, they rarely talk about training, educational opportunities, schools or seminars. Their key learning and developmen­tal experiences were more often frightening and characterized by adversity: such as being dumped into a job where they could fail spectacularly; working for a harsh, demanding or incompetent boss; or working in a new job with no preparation. They also often mention the im­portance of one or more good mentors and role models.

    This brings us back to the original point. A culture starts from the top. People watch what the leaders do. It has a much more important influence than what they say. If the top executives act like good leaders, others will try to find ways to act like good leaders. If they act badly, their people will also model those behaviors.

    Key Concepts
    Organizational culture has a strong influence on behavior. A bad system can bring down even the best people over time. Because of this, it’s imperative that leaders build and maintain the kind of culture that fos­ters the right kind of behavior, leadership development, and overall success. You can’t police a culture into what you want it to be, but you can provide the right incentives and examples of appropriate leadership behavior. Culture changes slowly, but it can change, with consistent and sustained attention from the top.

  • Active Leadership 8: Protecting your organization from the wrong people

    On her way to a promising job interview, Maria can’t help feeling a sense of loss and disappointment when she thinks about some of the reasons she is seeking a change. When she joined her current organization, a nonprofit dedicated to im­proving local communities, she was enthusiastic and convinced that she could make a real difference. She believed in the mission and she enjoyed the work. The organization has a great reputation and she was proud to be associated with it. Then things began to fall apart, a year or so after her arrival. Her boss hired a new person, a relative of another section head, who started to make trouble immediately. Maria was amazed that no one in authority seemed to notice, or if they did, that they didn’t care. The new person immediately took credit for the work of others, and immediately started to gossip and trash coworkers. Although everyone in the unit realized she was bad news, they still had to deal with her. Eventually, this began to sap the energy and motivation of the team, and Maria noticed that people were becoming less and less open and trusting with one another. What had been a great and well-functioning team just a few months before had now become a somber, suspicious, and generally dysfunctional group. She was saddened to see how much of a toxic effect one person could have on a great organization. However, since no one in authority seemed particularly bothered by it, she realized there was nothing she could do. She decided to look elsewhere, and it hasn’t surprised her to find that several coworkers are doing the same.

     

    While Jim Collins emphasizes getting the right people on the bus, corporate transformation expert Bob Miles notes that if you get the bus moving in the right direction, the wrong people will get off. Which brings us to the ques­tion, “What do the wrong people look like?”

    Individual characteristics to avoid

    This is simple and important: don’t hire bad apples. If you already have them, get rid of them as quickly as pos­sible. One toxic person can do more damage to an executive team than all your star performers can over­come. A few incompetent or lazy team members can ruin the team. In an article describing the bad apple syndrome, researchers Will Felps, Terrence Mitchell, and Eliza Byington observed, “The bad is stronger than the good.” In one study, they found that just one abrasive or lazy person on the team could bring down the overall perfor­mance by 30% to 40%.

    Stanford professors Jeffrey Pfeffer and Charles O’Reilly report that leaders who tolerate their high-performing but toxic superstars underestimate the damage they do. For example, they note that one company reluctantly fired their best salesman because he was a jerk with a negative effect on coworkers. Sub­sequently, none of the other salespeople sold as much as he had as an individual, but the total sales of store increased by more than 25%. The lesson here is that a bad apple can suppress the efforts of others, and that by re­moving that individual, the other team members begin to thrive.

    Allowing abrasive or ineffective people to remain in place sends the message that you are too timid to con­front the issue, that you are out of touch, or that you don’t care.

    Some, if not most, of the causes of poor performance can be related directly to problems with the I-Competen­cies described earlier. Although all types of ineffective people have a detrimental effect on team performance, a particular category of bad apple deserves special atten­tion. Certain pathological people can do more than just damage internal morale and performance. These people are most likely to get into ethical difficulties. If they’re at an executive level, they can do real damage to the or­ganization, up to and including de­stroying it. The rest of this discussion will focus on them.

    There are measures to diagnose some of the patholo­gies   likely to be associated with wrongdoing, but they’re not very useful with an executive population. The profes­sional roadmap for clinical pathology definition is the Diagnostic and Statistical Manual of Mental Disorders (DSM), published by the American Psychiatric Association. It’s unlikely, however, to see obvious signs of the pathologies described in this work in a normal population, especially a high-functioning group such as managers and executives. While we might see hints of certain patholo­gies, if they were blatant enough to meet the diagnostic criteria, any person displaying them would be selected out of the process long before arriving as a candidate. In addition, the measures to diagnose these pathologies are typically quite apparent to a nor­mal job applicant. How­ever, although they can be sub-clinical, the expression of milder forms of these pathologies can be related to or­ganizational malfunctions in general, and ethical problems in particular.

    Assumptions about world: underlying mechanisms of pathology

    When people see the world as a hostile place, and assume others will hurt them if they can, their responses to most life situations are very different from those of normal people. Normal people define reasonable behavior by the cultural norms and standards they have internalized from parental, school, and societal influences. Normal people have a hard time understanding why some people behave poorly – not only being overtly violent, but also acting in more subtle aggressive ways, some of which are readily observable in organizations.

    People who see life through the distorted lens of ag­gression think their pathological actions are reasonable responses to a hostile world. Where normal people see others in a positive light, pathologically aggressive people see them either as weak players to be used or des­pised, or as strong competitors who pose a threat. They see life as a struggle between dominance and vic­tim­ization, and believe that aggression is better than co­operation, because cooperation indicates weakness. When given a choice, they prefer force, competition, and displays of power to avoid having others take advantage of them.

    Aggressive people are always vigilant for hostile in­tent and see it where none exists. They misinterpret positive overtures from coworkers as hostile attempts to find and exploit their weaknesses or steal their work. This sets up a vicious cycle – their behavior turns others away from them, and causes defensive reactions: reinforcing their worldview.

    They have a keen sense of injustice and are motivated by a desire to get even for perceived wrongs. They seek retribution. When given well-meant and innocent critique, they respond both with anger at the “injustice”, and with feelings of inadequacy, a powerful combination that drives negative, hostile behavior. At its worst, this can trigger workplace violence. However, the effects of this aggressive response bias can be seen in theft, sabotage, cheating, malicious gossip, and other negative acts. Aggressive personalities always try to get even, and can always justify their behavior. They are not likely to be swayed by moral arguments.

    The pathologically aggressive person operates with very different assumptions. His reasoning is designed to justify and rationalize behavior that harms others. These people are unconcerned with traditional ideas of ethical and moral behavior.

    Aggressive personalities can do great damage to a company, especially if they have the veneer of social polish, above average intelligence, and impressive educational credentials. In positions of executive leader­ship, they can take the company down. However, if we can understand their assumptions, which are beneath their level of awareness, we can avoid bringing these potentially destructive people into our organizations. This is difficult, but there is promising research that could eventually provide some help here. Psychologists Larry James and Mike McIntyre have developed an instrument which appears to be a test of reasoning, but which is in fact a measure of aggressive versus normal assumptions. This measure is not correlated with general intelligence, so pairing it with cognitive tests should be a powerful method to screen for potential pathology. Brighter people with a more normal (that is, less aggres­sive) worldview are always better hires.

    This mechanism is at the heart of many ethical problems. The aggressive worldview can be changed over time if the individual truly understands how harmful it is to him and is truly motivated to change, but this is not an easy task. Moreover, it’s beyond the mission scope of most organizations. If you’re running a business, you need to keep pathologically aggressive people out of the hiring pipeline.

    The aggressive worldview is implicated in the factors of the Dark Triad of pathology: Machiavellianism, psychopathy and narcissism. These are separate but overlapping disorders, all of which generally predict bad behavior. As an upper level graduate student explained, when I was just learning about such stuff, the main thing you need to know about these people is that “They don’t care about you!” All three types are characterized by self-centeredness and manipulation. A key factor to remem­ber here is that these disorders are long-term, stable, and resistant to change. They have a strong and consistent influence on the person’s behavior over time, and in a wide range of circumstances. Clinical efforts to change such people have not been effective, and in some cases have made things worse. In short, you don’t want them in your organization.

    The Dark Triad

    Machiavellianism

    Nicolo Machiavelli, a Florentine poet, musician, play­wright, and keen observer of political power, is best remembered for The Prince, a biting but accurate treatise on the practical application of power in politics. Although some of his advice is harsh, such as his dictum: “If you must fight, don’t wound your enemies … kill them, their families and friends, so they can’t come back to do you harm later”; his messages still carry a certain resonance of uncomfortable accuracy.

    Machiavellianism, as a negative term, became one focus of research in social psychology in the seventies. It was defined as the proclivity to manipulate and exploit using power, intimidation, charm, or other such methods to win personal or organizational advantage. Psycholo­gists Richard Christie and Florence Geis de­veloped a scale to measure a person’s level of Machiavel­lianism. People with high scores on this measure are seen as calculating, detached, manipulative, deceptive, and self-centered. They employ all means available to them to get their way; but some of these characteristics are also correlated with rising to power in organizations and, as Machiavelli observed, maintaining power. Those who achieve low scores on the Machiavellianism measure de­veloped by Christie and Geis are usually more empathic, sym­pathetic, open, and agreeable.

    Unfortunately, this measure of potential pathology isn’t very useful in helping select people in business organizations, because it is rather transparent. That is, a reasonably bright candidate can easily figure out the right answer. It doesn’t take much to understand that the socially acceptable response to such items as “Most people are basically good and kind,” or “There’s no ex­cuse for lying” is agreement. So, we have to rely on more indirect means.

    For instance, high Machiavellianism tendencies are related to low scores on the standard personality factors of agreeableness and conscientiousness (stay tuned for more on this).

    Narcissism

    In mythology, Narcissus was a handsome young man who eventually fell in love with his own reflection in a pool of water. Freud saw narcissism as the quality of being self-absorbed to the point of pathology. Narcissistic person­alities are characterized by an inflated self-concept and self-centeredness in general. They lack empathy for others and typically assume that they are entitled. Their view of themselves is grandiose. They are sometimes flamboyant and have an undeserved and unrealistic sense of superiority.

    It’s easy to see how people with these characteristics can be destructive to an organizational culture. In their less pathological form, some narcissistic characteristics can help people rise quickly in an organization; but in the long term, their self-centered, superficial, and manip­ulative characteristics do turn people against them.

    Psychopathy

    Psychopathy and sociopathy are related terms, some­times now referred to as antisocial personality disorder. As with other such disorders, they are deep-seated and quite resistant to change. Psychopathy is characterized by lack of concern for others, disregard for social norms, low tolerance for frustration, and a keen ability to rational­ize problems by finding blame elsewhere. Psycho­paths do not experience guilt, and consequently don’t learn much from punishment. They are thrill seeking and impulsive. The worst cases of psychopathy rarely make it to the executive suite, because their anti­social behaviors usually serve to remove them from the path for succession and progression in most organizations. However, as with Machiavellianism, milder and more attenuated expressions of their deeper nature can sometimes give them a competitive ad­vantage. A charming psychopath can do a great deal of damage in an organization, especially if  he or she is brighter than average.

    Other individual factors related to organizational dysfunction

    Locus of Control

    Locus of control, a concept first defined and researched by psychologist Julian Rotter, refers to the belief that we control our lives by our own actions (internals) or that we’re mostly at the whim of outside forces (externals). Note that this has nothing to do with the normal person­ality traits of introversion or extraversion that will be discussed a little later.

    Internally-controlled people are more satisfied with their jobs, have a more favorable attitude towards their managers, and feel better about salary increases and career advancement. They see themselves as more in charge of their own destiny and as responsible for their own actions. They are less likely to succumb to negative peer pressure. When motivated by positive factors, they have a strong moral compass.

    Externally-controlled people are likely to believe more in luck and happenstance than in their own ability to make things happen. They feel that their own efforts do not significantly affect outcomes. They are more likely to see themselves as victims and, because of this, more likely to justify “getting even” thinking, which leads to bad behavior.

    We can measure this factor, but as with Machiavellianism, the test for it is easy to manipulate. Rotter’s original IE scale, if applied to a work environ­ment, would have candidates indicate whether they agree or disagree with such statements as “Promotions come to those who do a good job.” Most people would rightly assume that if you want the job, you should agree with these types of statements. If using such a test as a selection tool, you’re selecting for higher intelligence, but perhaps not much else. For selection purposes, the methods to estimate this characteristic must be more subtle than tests that have been used for research on it. Moreover, because most people in executive ranks score in the internal control direction anyway, it would not be particularly useful.

    Cognitive Moral Development (CMD)

    A helpful framework through which to view moral and ethical decision-making is offered by psychologist James Rest. His model describes four basic components of moral decision-making: identifying it as a moral issue; making a moral judgment about it; focusing on how to deal with it; and taking the appropriate action. This model makes use of the developmental stage framework for moral reasoning suggested  by psychologist Lawrence Kohlberg. He outlined six stages, from Stage One (recog­nition only of oneself, the perspective of the infant) to Stage Six (recognition and adherence to uni­versal ethical principles) as the basis for ethical behavior. People who have reached the higher stages of CMD make better ethical decisions.

    The traditional way to measure this factor is to pre­sent a scenario with a dilemma of competing values, such as determining the rightness or wrongness of stealing something from someone who owns it, to help someone whose life depends on getting it. This is cum­bersome in a selection situation, and of questionable value, because it is more of a surface competency. That is, people can learn to think differently about complex issues when given the proper training and perspective. Therefore, ethical decision-making is better addressed in training than used as a selection factor, unless there are blatantly obvious signs of problems. If you’re selecting for intelligence, you also indirectly help to increase the overall cognitive moral development of the organization, because brighter people are able to understand the subtleties of ethical issues more readily than those who aren’t as gifted, as long as they have the proper instruction. Remember, select for the foundation competency (the Intellectual Competency, in this case) and train for the surface competency (CMD).

    Key Concepts

    Just a few bad apples will spoil any team. Left unchecked, they can wreck a good corporate culture. Get rid of lazy, incompetent, or toxic people. Better yet, don’t hire them in the first place. Just as there are consistent characteris­tics of good people, there are also consistent characteristics of people who can harm an organization. These include the “dark triad” of pathology – Machiavellianism, psychopathy and narcissism. These factors are related to a general inclination towards ag­gression. People who have a sense of personal control over their environment and people who can understand some of the subtleties of ethical decisions make better employees.