Author: Willard Kille

Often times, when companies are forced to squeeze their financial belt, developing employees and creating future leaders gets pushed aside. However, building a sustainable company requires having a leadership growth and succession plan in place at all times.

In a recent study conducted by OI Partners, data indicated that 54% of the companies surveyed do not have enough leadership successors in place and 14% of the companies are not sure if they have enough leadership successors in place. These findings confirm that many organizations are not prepared for the future, which means their organizations are not as sustainable as current management may believe. Closing the knowledge and talent gap needs to be a management strategy during good or “interesting” times in business.

The benefit of investing and growing employees for the future provides staggering long-term results for the entire organization. Some of the outcomes of employee development that management should never lose sight of include:

• Maintaining or growing competiveness in the market
• Sustaining or increasing overall employee and organizational performance
• Building capabilities required to win when business circumstances change
• Sustaining the organization’s culture
• Shortening the time needed for an employee to make an important role transition
• Building strong leaders breeds sustainability
• Creating strategic alignment between the strategy, the employees, and the internal processes
• Innovation
• Creating loyal employees which in turn helps create a loyal customer base

The last point listed is particularly important. Revenue and profitability, albeit critical, are predictors of past decisions. Creating and growing a loyal customer base is a predictor of future success and sustainability. A key to creating and growing a loyal customer base is creating loyal employees. An employee’s loyalty to the organization is enhanced by working with each individual to create a personal development plan. Tim Shoonover, Chairman of OI Partners, said in a recent article “To sustain growth in your company, there must be a path to leadership. If an employee doesn’t have a leadership development plan in place and isn’t able to see his/her career progression he/she is less likely to be engaged or to expend discretionary effort.”

Right now organizations have an advantage, as employees are not as quick to pursue new career opportunities. But as economic conditions improve, disengaged employees will begin comparing and perhaps looking for new career opportunities. Therefore, creating and committing to an employee leadership and development plan is not only critical to organizational success it also plays a significant role in keeping employee turnover to a minimum.

Employees who see a commitment to their growth and development are employees who give the organization 110%. That extra 10% is where innovative ideas come from that could propel your organization to new heights. What is creating an employee development process worth to your company?

Here are some questions that may be useful as you review your company’s employee development strategy:

1. If you had to fill a key leadership position in your company tomorrow, is there someone ready and able to fill the position? Are you confident he/she has the right skills, knowledge, and attitude? (or are you guessing?)
2. Does your organization have a published employee development plan?
3. Do you or your team of managers have a documented development plan for each employee they manage?

If any of your answers to the questions listed above cause you concern or you just do not know the answer, then perhaps it is time to make employee development a priority.

The sustainability and success of your organization depend, on it!

Rezults Group, Inc is committed to Leadership Development … we have unique tools, processes and systems in place to assist organizations and entrepreneurs to develop such areas in their businesses.  Comments or questions are welcomed at [email protected].

I’ve mentioned before, my definition of the purpose of business is to, “identify, acquire and maintain customers.”  That said, let’s be pro-active in our quest.  Somewhere in our Vision, Mission, Sales, Marketing, and Branding Statements, let’s “open our minds,” to these concepts:

#1.    PURPOSE If you’re into personal branding with the goal of making money, stop now. You will attract the wrong kind of people into your life. Instead, start with the goal of making meaning. What better way to align all your actions with your long-term goals. What kind of meaning will you make? Let me suggest two ideas for inspiration: 1) right a wrong, or 2) prevent the end of something good. Instead of striving to become “the best in the World,” strive to become “the best FOR the World.”

#2.    MANTRA In three words or less, what are you all about? Some people believe that mission statements are useless.(not me … but some do!) They say – make a mantra instead. FedEx stands for “peace of mind.” What do you stand for, in the simplest terms?

#3.    POLARIZE Pundits often advise against being a “jack of all trades,” or a generalist that isn’t very good at something specific. Instead, being great for some people rather than trying to please everyone. Do not be afraid to make people react strongly for or against you. As a former business partner used to remind me, you’re not doing something right unless you’re ticking someone off. That doesn’t mean be a jerk. That means just don’t try to appeal to all people, or you’ll end up a mile wide and an inch deep – mediocre to everyone.

#4.    FRIENDS We’re all on this journey together. It’s silly to think we are alone in our careers or in our life. Find people who balance you. Then make time for them. If you’re busy, make plans in advance so you don’t have to schedule around them. You’re only one person, so surround yourself with people whose skills round you off.

#5.    STAND STRONG Not everyone is going to like you. Not everyone will always agree with you. That’s a fact of life. So don’t let criticism or doubters bring you down. As you live out your mantra, it’s your responsibility to be strong in the face of “no,” and “you can’t do that.” Ignore people who say you won’t succeed or use negative words as motivation. Prove people wrong.

Find your strengths … play to them … and I promise you, you’ll “get your fair share.” Rezults Group, Inc here in Salt Lake City, Utah works closely with entrepreneurs and business owners assisting then to “get their fair share.”

My “two edged sword” cuts both ways!

By definition, “transition” into a new career/job/position/business, etc., has two sides … the candidate and the owner/principle/executive of the new entity, unless you’re an entrepreneur and starting your own company, and even there you’ll be involved with others.

A “case study” may be the best way to introduce all the “issues” involved in “transition.”  Mr. Jones, the owner of an established engineering firm and its Founder have been working with a highly regarded “business broker” to sell his firm and retire after 33 years of high quality “engineering.”  Suddenly, in what seemed like and abrupt “change of heart” Mr. Jones announced that he was going to “merge” with another engineering firm – instead of retire.  He contacted one of my friends who is also certified to administer and de-brief the Innermetrix Business Diagnostic Profiles (with powerful Personal Development Insights)  namely the Attribute, DISC and Values Indexes.

Mr. Jones felt something was missing in the analysis being provided by the business broker, but couldn’t put his finger on it?  The combined entity would have over 23 people … 11 from his company and 12 from the new firm.  Both companies compete within the same field of practice and hold each other in high esteem.  Mr. Jones employees are significantly older with the average age being 47; the new firm’s average age is in their late 30’s.

Here’s what my friend shared with Mr. Jones. In our circles we’ve been told by those on the “inside” of the M&A industry [Mergers & Acquisitions] that statistically 80% of M&A’s fail to generate new revenue.  Of this 80% – 50% actually experience a reduction in revenue. [Consider this: what if you visited with a renowned surgeon and he told you most of the time this procedure won’t work and in a big percentage of cases you’ll actually be worse off – do you pay the big bucks and “go for it”?]  Business brokers are “masters” at evaluating the tangibles – spread sheets, profit & loss statements, balance sheets, assets, cash flows, etc – they do exhaustive “due-diligence.”  The intangibles are another story.  Typically, the principles of the two concerns sit down and interview the key candidates for strategic positions, review educational pedigrees, past performance, discuss future plans and dreams, talk with them for an hour or two, perhaps hold a series of such interviews with other executives and come away with, “I’ve got a good feel about so and so, I like him or her, I think they’ll do fine.”  [Not to be too sarcastic, licking our index finger and extending it into the air to determine which way the wind blows – might be as effective]  We know for a certainty, that past performance is not a reliable statistical indicator of future performance.  The largest “elephant in the room,” is the intangible “Human factors” involved with these M&A’s.  As good as the “due-diligence” is in getting a “quantitative” look at the “tangibles” the “intangibles” are not so good [I’m trying to be positive here- but in reality the “intangible vetting process is typically poor]

Mr. Jones I can provide you and your executive team with a “quantifiable” battery of diagnostic profiles that will give you “insight” into the people – your people and their people.  Would this be of interest to you?  Information that is provided by them and in many cases information they aren’t aware of themselves about themselves!

Mr. Jones these Diagnostic profiles have been taken by 100’s of thousands of people across all disciplines for many … many years and we’re told by the candidates themselves that the info is “spot on.”

Here’s the proposal in a nut shell:  Mr. Jones I can help you understand who these people are, how they think, what their values are, how they make decisions … and I can give you an understanding of what that will be like by stating, that otherwise you’d need to typically have 6-12 months of direct interaction with them to see how they really are in those areas of concern and I can give you 90% of that information [real insight into who they are] in a couple of hours!  It’s like a having a 6 month glimpse into the future in a few hours.

If you don’t find “value” in this information you don’t have to pay me, I’ll charge only my costs for the diagnostic instruments.

Here’s a quick recap of what you’ll get:

• Mr. Jones gets AI/DI/VI insights to quantify his companies “culture”
• Mr. Jones gets this same insight on the other companies people
• All parties now have insights to improve working together as a Team

The process in now in play, data is being gathered; Mr. Jones agreed to hire my friend. Mr. Jones will be able to state, “this is what I know,” as opposed to, “this is what I think,” regarding the people they’re about to “merge with” as well have a clearer view of himself and his people.

I’ll follow up with the progress of this case study in future posts, in the mean time, should you have any questions on this topic or others we’ve posted please contact me by email or perusing my web site www.rezultsgroup.com