Tandy On Real Estate

Category

Leadership

Communication is key

As I discussed in my last post on trust, the 2017 Edelman Trust Barometer revealed that only 37% of those surveyed have confidence in CEOs – the lowest in the history of the survey. They noted that the most important change CEOs and companies in general need to make is to do a much more effective job of communicating to their employees. In Edelman’s words: “Companies talk to their employees last, and that is a mistake, that’s crazy.”

People fear the unknown. If they do not know what is happening, they will not only worry about it, but they will also talk about it and make the problems that may not even be there seem bigger than they are. The “rumor mill” is alive and well in any company, it’s just a matter of what type of rumors are being spread.  If there is a vacuum of information or if the company fails to earn the trust of it’s employees with honest, complete and timely communication, then employees will naturally “fill in the blanks”. Forbes.com states that about “70% of all organization communication comes from the grapevine.” Further, according to Forbes, when there is a lack of honest communication, when the situation is ambiguous or uncertain, where there is a culture of silos, or where a company tries to manipulate the grapevine, then the rumor mill is even more active.

One of my favorite companies is Southwest Airlines.  Many times I’ve ridden the airport shuttle with a Southwest employee and simply asked them what it’s like to work for Southwest. I’ve never failed to get a smile and positive comment or even a fun story about working at Southwest. They no doubt have a “rumor mill”, but it is often filled with positive stories and fun comments about the company. Employees just always seem to be happy to be at work and focused on doing the best job possible. I suspect Southwest works hard at providing timely and honest communications to their employees as part of growing a positive company culture.

Here are some simple tips for effective communication:

1)     Establish how you are going to communicate. Employees want to know what they can expect from you and they want you to be consistent. Establish a consistent pattern of communication. Consistently respond to questions and concerns when they occur.

2)     Tell the truth. First and foremost – tell the truth. “Telling the truth” means that CEOs and managers must pay close attention to how their communications will be interpreted and avoid intentionally “spinning” the communication by word choices designed to misdirect. Employees are intelligent adults and can immediately sense when they are being lied to or when critical and relevant facts are purposefully being omitted. So, be the kind of person that employee’s want to work for by just telling the truth.

3)     Share your vision. By telling the truth employees will begin to trust and believe you. When people believe you, they will begin to believe in your vision. And, when they believe in your vision, it becomes a shared vision that they can contribute to and be part of. When a company has a shared vision and shared goals they can build something amazing. As a leader, you can then let your employees help lead the company in directions you never dreamed. This is very powerful. Our job as managers and leaders is as much about getting out of the way of the great people we hire so they can grow and flourish as it is about directly leading the company. Both are important and both depend on effective communication.

4)     Be transparent. Understand that sometimes you may not be able to tell the whole story, but be open and upfront. A good example of this is, “I cannot give you all of the details, as some things are confidential, but this is what I know today…As I have more information that will impact you, I will let you know as soon as I can.”

5)     Don’t lie by omission. Oftentimes managers paint themselves into a corner that they cannot get out of, and end up lying by omission. There may be times when you cannot share everything. Be upfront about this. Be open in your communication, but do not communicate confidential information. As you can share more information, do so, and do so in a timely manner.

6)     Be clear and easy to understand. Communicate (often) about the company and its direction in clear terms that everyone can understand. Choose your words carefully. Don’t use meaningless corporate BS language. Just talk like a real person. Show that you care about the company and its employees by clear and honest communication.

7)     Make the message mean something to employees. When you communicate, be real, and get down to what employees really care about. Why is what you are saying and doing important to them? How will this affect them? And, is there anything they can do to help or anything they should expect to see? By telling employees what they can expect, then showing consistent action toward a known goal, you are giving employees something they can depend on. This not only builds credibility with employees, but also their trust in you, the direction the company is going, and their trust in the company itself.

To receive more leadership updates like this from Tandy on Real Estate direct to your inbox, please subscribe.

SOURCES:
http://www.edelman.com/
https://www.forbes.com/sites/carolkinseygoman/2013/11/30/what-leaders-dont-know-about-the-rumor-mill/2/#2aceabc91c9c
https://www.psychologytoday.com/blog/high-octane-women/201304/the-3-cs-effective-communication

Building trust

Each year since 2012, Edelman, surveys a large sample (33,000 for this year’s report) worldwide regarding trust. The trends revealed are grim. This year’s survey showed employee’s trust in CEOs’ has plummeted with a 12-percentage point drop from the year before.

Only 37% of those surveyed have confidence in CEOs – the lowest in the history of the survey.

And, what is the most important change companies needs to make?
“Treat employees well” ranked the highest for how businesses can build trust.  “Companies talk to their employees last, and that is a mistake, that’s crazy.” Edelman said.

The survey also identified what creates the most fear for employees:

  • 53% agree that the pace of change in business and industry is too fast.
  • Employees worry about losing their jobs due to lack of training or skills (60%) and automation (54%).

These are fears that can be addressed with honest communication and effective programs that directly address employee’s fears. CEO’s and managers just need to listen to their employees, follow-up with real solutions and clearly communicate along the way.

Studies link lack of engagement to poor management skills
Other surveys show similar trends. Twelve years of polling by Gallup show that barely 30% of the employees are engaged at work. That means 70% of employees don’t know or care what is going on with their company. The cause of such low involvement? Top executives and managers don’t know or appreciate who does the hard work or who tries to improve the company. According to multiple Gallup surveys, managers are disconnected from employees or are just plain unqualified to be a manager.

Gallup’s research found that “2 in 10 people have some characteristics of functioning managerial talent and can perform at a high level if their company coaches and supports them.” But, most companies don’t train, coach or support managers. Bad managers are not replaced, and promising managers are not nurtured. Gallup research shows that in large companies, CEOs cannot know everything that goes on with bad managers, great employees or problems at the ground level.  But, good CEOs can establish strategic decisions that are a win-win for both customers and employees. They can lead by example by promoting on merit and choosing qualified top managers who will in turn do the same.

How can CEOs and managers create a more trusting relationship with employees?
This is one of those questions that does not need a Gallup poll or worldwide survey (although those also exist).

CEOs and managers need to:

1)     Tell the truth and don’t lie by omission.

2)     Earn trust by telling the truth over a sustained amount of time. People do not and should not automatically trust. Trust has to be earned.

3)     Listen. Take Notes. Follow up with real solutions. Report on progress. Real listening is not a box to be checked. It’s a daily habit to be practiced.

4)     Communicate (often) about the company and its direction in clear terms that everyone can understand, be proud of and… trust.

5)     Choose your words carefully. Don’t use meaningless corporate BS language. Don’t use sports and weather analogies. Just talk like a real person who cares about the company and its employees.

6)     Actually CARE about employees. Lead by example by paying attention to your direct reports and those you interact with and those on your team. If employees see their CEO and their managers learning about the employees they interact with and genuinely caring about them, then those employees will naturally begin to do the same with those they interact with on a daily basis. That whole “paying it forward” thing.

Creating a caring company where people trust each other and work as a cohesive team is not about a “vision statement”, a “program” or a “slogan”. Trust or the lack thereof is defined by what employees do on an hourly, daily and weekly basis. Getting employees to like, trust and support each other takes hard work, a conscious effort, talent and wisdom on the part of CEOs and managers to gradually buildup trust and confidence within the company.

To receive more leadership updates like this from Tandy on Real Estate direct to your inbox, please subscribe.

SOURCES:
http://www.edelman.com/

http://www.gallup.com/opinion/chairman/182237/workplace-no-progress-years.aspx?g_source=trusting+ceos&g_medium=search&g_campaign=tiles

http://www.gallup.com/opinion/gallup/186503/drives-employees-engagement-manager-ceo.aspx?g_source=ceo+trust&g_medium=search&g_campaign=tiles

Leading by example

I recently had a wonderful experience of seeing executives lead by example.  The new company I joined, Mother Lode Holding Company, believes in their employees stating that it is important to care for each other, have the support needed and to forge lasting relationships built on trust. Those are all great words, but we have all witnessed companies where vision statements are empty words that leaders don’t follow. Happily, I saw these executives truly leading by example and the living by the company’s founding principles. Continue reading

Employees are everything

Since leaving Stewart Title in April, I’ve had time to reflect on the type of company, specifically the type of title company, I want to work for and dedicate my time to.  I’ve managed title or technology companies since 1982 and over that time have come to some conclusions about what makes a company successful over the long term… and what not to do.  Continue reading

Starting a new chapter

After managing title, escrow and technology companies since 1982, most of which were publicly traded, I decided to build the kind of company that I have dreamed about. A company that believes in its employees, empowers them to be successful, and entrenches itself in the communities that it serves. I chose Mother Lode Holding Company as the parent for my dream company. Continue reading

© 2017 Tandy On Real Estate — Powered by WordPress

Theme by Anders NorenUp ↑