Is "Loyalty" Obsolete?
I’m probably
committing corporate heresy by asking this question. Most organisations expect loyalty from their
staff. Fewer understand that it’s a
two-way street.
“Loyalty” can be defined as “a strong feeling of support or
allegiance” (Oxford Dictionaries) or “giving or showing firm and constant
support or allegiance to a person or institution” (Merriam-Webster). Synonyms are: “faithfulness”, “fidelity”,
“devotion”, “dependability”, “reliability”, ”constancy” and “commitment”. Nowhere, interestingly, does it say that it
has to be a two-way process, although from very early times people pledged
their loyalty to a king or lord in
exchange for something (e.g. protection).
Post-World War II in the West until the 80s, there seemed to
be an unwritten “social contract” that you studied hard to get the best school
and university grades possible to get the best job possible and worked there
until retirement (this still exists in some countries). Provided you worked hard and weren’t totally
incompetent, the organisation took care of you.
Performance management was in its infancy. Bonuses were unknown in many places (certainly
in my father’s organisation).
“Loyalty” was high.
Fast forward to when the “social contract” came under pressure
with the recession of the 1980s, when the first mass redundancies occurred. I remember worrying as a teenager that my
father’s job might be at risk as people we knew lost positions at organisations
for which they had worked literally all their lives - and not necessarily
because they were below average performers.
In those days “Outplacement Services” (as they are now euphemistically
known) hardly existed. Morale (and with
it, loyalty) plummeted as people began to wonder if they were next to be fired. People like me experienced that “loyalty”
seemed to be one-way…
Abraham Maslow developed a “Hierarchy” of five basic human
needs in the 1940s:
- Physiological (food, water, shelter, warmth)
- Safety (from harm)
- Belonging/Love (to other groups, from others and oneself)
- Esteem/respect (from others)
- Self-actualisation (developing as far as one could)
(These have since been extended to eight needs with the
addition of “cognitive”, “aesthetic” and “transcendence” needs).
The redundancies of the 80s removed the first four and, in
consequence, the ability to proceed to the fifth for many. Those who brought bad news were often the
first to be accused of poor performance or of lacking motivation by
ill-informed management. Small wonder
that the loyalty that people may have felt for their employer underwent radical
changes. Employees began to put themselves first, the organisation second.
Performance Management (itself often poorly managed) was
“in”. Short-term business goals, not the
long-term interests of customers, employers, shareholders and the community at
large, became the new idols. Business
Schools and gurus preached the gospel of career change and managing one’s own
career.
Absent the (admittedly less than healthy at times) “cradle
to grave” employment scenario, the contract between employer and employee morphed
into one of convenience. I remember discussing
this in the early part of the millennium with the HR department of an
international bank, which couldn’t understand why people were less “loyal”. That organisation is now being pilloried in
the press for questionable conduct. One
of its most senior (and, looking back on it, perhaps misinformed) managers told
me that the only thing that motivated people was money. A sad attitude, as well as one that betrayed
a cynical ignorance of what does motivate
people.
The problem is, if people don’t feel that you’re loyal to
them, expect them to feel no loyalty to you. How soon they leave depends on whether the
employment market at the time is an “Employer’s market” or an “Employee’s
market”.
Another problem for employers is that people are better
educated, more mobile and have more information available than in the
past. The new generation, especially, don’t
feel that they need to stay in one place.
They have different expectations to those of employers in terms of how
an organisation should behave. Thanks to
technology, the opportunities for “solo-preneurship” are growing and people
(particularly in the West) no longer need to rely on large organisations.
Business Schools (where the “high flyers” go) teach students
to expect and even to engineer multiple career changes. At best, the “contract” between a large
employer and employee is now more likely to be a “contract of convenience”
where either can (and does) terminate of their own will if /when the need or a
better opportunity arises. People will
be “loyal” if they have no choice, but this is temporary.
In conclusion, I don’t feel that “loyalty” is obsolete, but rather
that it has been “relegated” to a lower place behind job satisfaction, calibre
of management, colleagues, compensation, career progression and other benefits.
Employers can't expect it to be all one-way.
I have spent more than half my life
delivering change in different world markets from the most developed to
“emerging” economies. With more than 20 years in the world financial services
industry running different service, operations and lending businesses, I
started my own Performance Management Consultancy to offer solutions for improving
performance, productivity and risk management.
I work with individuals, small businesses, charities, quoted companies
and academic institutions across the world. An international speaker, trainer,
author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of
services. For strategic questions that
you should be asking yourself, follow me at @wkm610.Labels: Career, Leadership, Strategy, Teamwork
Congratulations! You've Just Been Attacked...
I’ve just seen the
first case of a new business in an under-supplied market experience its
first real attack from a competitor who, until now, has enjoyed a near monopoly
position.
The owner was unhappy that someone should (as they put it)
stoop “this low”. My view was different.
I told them to see it as a good thing!
Why? If you’re in
this position, it actually means that you’re:
- Doing something right.
- Generating interest - people are “talking about you”.
- Making an impact on the market.
- Worrying the current incumbents (who may have “had it too
good for too long”).
This is life in the business world (it’s called “competition”). Competition is good for consumers as it results in better:
- Pricing
- Products/services
- Information
So what do you do now?
Clearly, an established competitor is scared and could and/or will adopt
all sorts of tactics (including “dirty tricks”) to reduce or eliminate the threat that you pose.
My advice is to:
Assess The Real Reason Behind The Attack:
Generally, it’s because you're now a serious competitive
threat. If you weren’t important enough,
they wouldn’t bother. So, you now have
them on the defensive… Good. That means they may spend more time on you as
a threat, rather than on running their business.
Assess The Competition:
What are their strengths and weaknesses? What’s their reputation in the market (you may find that the market knows them better than you think!)? What are they doing well that you aren’t? What financial resources do they have to sustain a competition war" before running out of time, funds or customer goodwill?
Assess Yourself:
How do you stack up against the competition? What are you doing well that they aren’t? Where can you differentiate yourself from
them at little/no cost?
Assess Courses of Action:
Can you develop a business model that they can’t copy, or that will force them to make major changes? Could you improve to match what they do well? You may be able to complain to the local Chamber of Commerce, Industry Regulator or Advertising Standards Regulator, depending on the situation. Legal action is a last resort and is expensive.
Assess The Future:
What might they do next?
What are your options to counter?
Depending on what they do, the best strategy may be to ignore it and let
your reputation, product/service speak for itself. If you're providing something that customers really
want, they’ll "vote with their feet” (or wallet) and come to you.
Keep It
“Professional”:
Healthy competition is one thing; unethical behaviour is
another. Some competitors don’t
understand the difference. Show that you
do. In the long run, the market will see
the difference. Customers aren’t stupid.
Keep Records:
Keep a file of any comments, postings or actions your competition
makes/takes. After a while, you’ll see a
pattern and be able to predict how they’ll behave. It may also help if/when you complain to Chambers of Commerce or other regulators mentioned above.
In conclusion, expect competitors to react to what you do,
just as you do with them. Competition is
a good thing for everyone and is part of life. Just make sure that you know where to draw the line between healthy competitive practice and unethical behaviour.
I have spent more than half my life
delivering change in different world markets from the most developed to
“emerging” economies. With more than 20 years in the world financial services
industry running different service, operations and lending businesses, I
started my own Performance Management Consultancy to offer solutions for
improving performance, productivity and risk management. I work with individuals, small businesses,
charities, quoted companies and academic institutions across the world. An
international speaker, trainer, author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of
services. For strategic questions that
you should be asking yourself, follow me at @wkm610.Labels: Career, Productivity, Selling, Strategy
Making The Most of Meetings
We all have them; the
more senior we get, the more meetings we have.
At times, life seems to be nothing but a series of “back-to-back”
meetings.
Meetings are unavoidable, particularly if you work with
others. There are very few jobs that
require no contact outside your own domain.
Why do we dread them so much of the time? Answer: because they often aren’t properly planned,
organised and managed. I’ve read
hundreds of articles on “Running a Good Meeting” (or some such variation) and
been at meetings that were well run and meetings that were… Why is it that people still can’t seem to organise or run one properly?
For me, the most important elements in any meeting are:
- Purpose
- Planning
- Place
- People
- Performance
Purpose:
Not everything requires a face-to-face meeting. What kind
of meeting is it? Update? Sales? First
time meeting with a client? Charity
committee? Is it to keep people informed
(“briefings”/“updates”)? To discuss and resolve an issue (decision-making)? Think why
you're holding the meeting. This
influences planning and place.
Planning:
This is where the chair invites items for the agenda. Give the date, start time, end time and place of the meeting. Ask for agenda items and supporting documents
to be sent 10 calendar days in
advance so they can be reviewed, clarified and put into the final agenda. By all means, state the “purpose” if you
think it’ll help.
Circulate agendas and supporting documents seven days in advance to give time to
prepare. I don’t agree with reports
being agenda items and supporting documents only being given out at
meetings. If you don’t turn out your
report in advance, you slow down the process by not giving others the chance to
consider your content and allow a focused and informed discussion. It may also delay decision-making.
State that the meeting will start promptly at the time stated (make sure it does). Make everyone with an agenda item responsible
for introducing it personally at the
meeting. If they’re not there, it
doesn't get discussed (defer it to the next meeting).
Insist on apologies for absence in person (it makes people think twice). It’s too easy to send a last-minute email or
text. If you have the time to write an
email/text, you have time for a quick call.
We know urgent problems arise at the last minute.
“Any Other Business” items go on the agenda for the next
meeting. Otherwise your meeting will
drag on and on…
Place:
Depending on the purpose, you can hold meetings via
conference calls, around a table in a coffee shop, or in your living or dining
area.
Choose a place sufficiently (but not too) comfortable. There’s plenty of debate about providing
refreshments (some say this discourages focus).
It’s up to you. Some cultures may
require it… If the meeting’s late in the
evening or at midday, a light snack is OK.
The place should suit the meeting’s purpose. If, for example, it’s
for a presentation, ensure the place has the right equipment. Do you need a conference table, or will
chairs in a circle do?
The place should be a distraction-free zone (with poor
mobile reception so that attendees aren't encouraged to check their emails,
texts, etc during the meeting!). You’re
within your rights to ask at the start of the meeting for mobiles to be turned
off. If an urgent problem arises,
colleagues can call a landline at the meeting venue.
People:
Have only the people you need. It’s tempting to invite others to be
“polite”, but you're not doing anyone any favours. They can read the minutes.
Ask people to present their agenda item (briefly) before
opening it for debate. If they’ve
thought things through and sent supporting documents in advance, you’ll have a
focused discussion.
Make sure that people don’t feel they have to say something. I
don’t subscribe to the theory that those who stay silent have nothing to
contribute. They’re more likely to be listening to others and forming opinions,
which they will voice in their own time.
Performance:
Meetings must be managed.
This is the job of the chairperson.
There’s a delicate balance to keeping things “on track” and allowing
everyone to feel that they’ve had their say.
This is the point where clear meeting guidelines or rules
can be established. It may sound
childish, but if it helps meetings stay on track and on time, people won’t
object. It’s OK to say, “you’ll have 5
minutes to speak, then I’ll open this up for questions.” Stop them after 5 minutes…
Keep the language simple (this means language - don't suffer BS gladly) and make sure everyone agrees what has been decided, what action is needed and by whom.
Remember:
For every hour attendees are there, that’s an hour away from
their job, family, etc. If you have
eight people at a one-hour meeting, that’s the equivalent of one man-day away
from the office. That’s a cost to the
business. Make sure it’s well spent.
I have spent more than half my life
delivering change in different world markets from the most developed to
“emerging” economies. With more than 20 years in the world financial services
industry running different service, operations and lending businesses, I started
my own Performance Management Consultancy to offer solutions for improving
performance, productivity and risk management.
I work with individuals, small businesses, charities, quoted companies
and academic institutions across the world. An international speaker, trainer,
author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of
services. For strategic questions that
you should be asking yourself, follow me at @wkm610.Labels: Leadership, Productivity, Teamwork
