Spilling the beans: Refresh relationships, connect better and transform your company performance

Friday, 4 July 2014 00:28 -     - {{hitsCtrl.values.hits}}

Conversations matter. Flip through any of the 20,000+ leadership books currently available on Amazon and you’d be hard-pressed to find one that doesn’t extol the virtues of good communication. Recent research puts a business twist to the tale; studies performed over the early 2000s show that companies with more effective communication strategies enjoy a 57% higher shareholder return compared to those whose techniques were less than ideal. In addition, separate research shows that such firms (regardless of whether they are public or private) registered a 30% increase in valuation over the first years of this century. Put simply: good leadership, and hence good business performance, rests on effective communication. Yet, do leaders give communication its due business importance? Consider the case of a junior at a small services company. Samuel, as I’ll call him, was left high and dry when his team of 3 was dissolved following an internal leadership change. Although this shuffle was planned in advance by the management, it was fraught with confusion: there was no formal communication with regard to team members being re-assigned; instead of mentoring, his direct report switched roles without as much as a word; worse, neither HR nor the incoming team lead made any effort to ensure a smooth transition. Samuel’s dilemma is certainly not an isolated event; Cognisco, a testing agency, estimates that companies in the US and UK alone lose $37 billion a year due to mishandling of such employee communication. As you can see, what is at stake here is not the slick marketing campaigns aimed at investors or customers but the level of engagement with a fellow employee. Not surprisingly, forging strong personal connections forms the crux of an effective employee communication strategy. Earl Wilson, an acclaimed journalist, once remarked that science may never come up with a better office communication system than the coffee break. Wilson may certainly have been onto something; the basic rules of honesty, dialogue and genuine interest that revolve around a casual one-on-one coffee chat are the missing ingredients in most workplaces today. Here’s what to watch out for: Empty words ring hollow: be honest and upfront Research by Gallup suggests that close relationships with a manager or supervisor define how “engaged” Americans are at work (i.e. how passionate they are and how deeply they connect with their workplace). In fact, further studies show that such “engaged” Americans said that they would continue with their current work-place even if they won a $10 million lottery. Positive and trusting relationships thus have a long-term business impact and, as with any other relationship, honesty is vital for success. Unfortunately, the reality is that only 13% of employees across the world are “engaged” at work; most managers tend to avoid dealing with sensitive subjects rather than address them head on, be it performance feedback or communicating difficult news. As Samuel’s example shows, an upfront and open mind-set would have worked wonders for the situation at hand. Instead of creating disillusionment and bitterness, an honest conversation with Samuel early on could have mentally prepared the transitioning team members and identified internal opportunities for Samuel whilst ensuring that a capable employee was honourably retained. One word of caution though: honesty, or the lack of it, is incredibly easy to spot. False pretences would only lead to frustration and a bad reputation since such news generally tends to spread. It takes two to tango: take ownership of the subordinate’s career Although meant in a different context, Newton’s principle of action and reaction rings true in an office setting as well: you cannot expect subordinates to be committed to your success if you are not committed to theirs. Just as workplaces expect employees to be proactive and to take on responsibility beyond the job description, managers must go over and above a work contract through mentoring and a continuous commitment to personal development. Good leaders put their subordinates first and it is this connection that retains them. A survey conducted by Gallup to study the relationship dynamics in a workplace clearly shows that an element of managerial selflessness had a profound impact; a vast majority of those who were “engaged” in a workplace noted that their manager “set them up for success” and that there was “someone at work who encourages my development”. Dialogue is a two-way street: listen actively Unless managers create an atmosphere where subordinates can speak openly and where their concerns are taken seriously, there would always be skeletons in the closet. For the relationship to be balanced, managers should strive to find out what drives their team members, their aspirations and career goals. Too many in positions of leadership tend to impose their views on their team and attend meetings with a predetermined agenda and a professorial mind-set. Paying attention to what is being said and responding accordingly can yield handsome dividends. In a survey performed by Gallup, 32% of “engaged” American workers claimed that they had one of the strongest personal relationships with their managers. Had these managers not invested time in the relationship through active interaction, it is hard to imagine a similar result.

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