The father of modern science, Sir Isaac Newton, told us that an object put in motion tends to stay in motion. Vistage speaker and nationally known expert on influence Dean Minuto says we can enhance the probability of getting a “Yes” from a customer or anyone whose assent we need by using the same principle in terms of how we structure our “ask” of them. Keeping an “ask” in motion is easy to do, if we “chunk it down” or break it up into smaller parts in order to control the perceived risk of your request. If you have fifty seven seconds, watch Dean’s video tip on how to “Chunk the Ask.”
Who to manage first?
CEOs are urged to lead by example. There are several ways to do this; perhaps the most important is for CEOs to manage themselves. This article from Forbes offers a checklist to assess if you’re managing yourself well (and offers the example of Dallas Cowboys leadership as an example).
Evaluate yourself in this important area with this short article “Smart Leaders Manage Themselves Before Managing Others.” How well are you doing?
The Unremarkables
We’ve heard a lot in recent years about the growing inequality in the world. Reasonable people can differ on the extent of the problem but it’s always good to explore the question when it’s backed up by some data.
In a recent “No Malice, No Mercy” blog, Dr. Scott Galloway- entrepreneur and now professor at NYU - profiles one of the drivers of inequality, namely the increasingly daunting challenge of standing out. Check out his latest provocative posting: “Unremarkables.”
5 tips for reinforcing culture
In the latest Vistage CEO Confidence Index survey, which captured insights from 1,518 CEOs and business leaders, only 1 in 6 respondents said they were satisfied with the strength of their organizational culture.
This statistic suggests that the vast majority of small and midsize firm CEOs will at some point need to reinforce their company culture. The question is, how?
Conventional wisdom suggests new hires can be a catalyst for a cultural turnaround. But a more proven method is actually investing in existing talent.
Here are five talent management practices that can transform your culture:
New hire on-boarding presents an opportunity to share your culture with new employees. Some CEOs will personally share their culture with each new hire. Others prefer a more bottom-up approach. Either way, this is the time to set clear expectations, and make sure every employee feels a part of the culture from day one.
Reward and recognition programs celebrate the performance and behaviors of the culture. Why reward both performance and behaviors? Experienced HR professionals will tell you — if you only reward numbers (e.g., sales goals), the employee takeaway will be that “how much” matters more than “how.”
Employee development programs and investments demonstrate commitment to improving and expanding each person’s skills and capabilities. Programs for job advancement and personal wellness further demonstrate a company’s long-term loyalty to each employee. When people feel valued and appreciated, they are more likely to contribute to the culture and invest back in the company.
Employee benefits highlight the importance placed on the health, wellness and security of employees and their families. Like compensation, they offer a measurable point of comparison between companies and cultures. When done right, employee benefit programs improve employee retention, performance and engagement.
Performance management aligns the organization’s financial goals with employee behavior. When goals are clearly set and communicated, decisions can be made with clarity that is fueled by the culture and connected to the team and individual. Additionally, when culture, business and talent are working in unison, it creates a virtuous cycle that results in a long-term competitive advantage for the company.
Creating a conscious culture
Building a strong company culture remains a top priority — and an elusive goal — for CEOs of small and midsize businesses.
In the latest Vistage CEO Confidence Index survey, which captured insights from 1,518 CEOs and leaders of small and midsize businesses, more than 60% of respondents said they “strongly agree” that culture is a top organizational priority and critical to their company’s performance. At the same time, only 11% of respondents were satisfied with the strength of their company culture.
What explains this gap? In short, it comes down to how leaders approach culture. It’s not enough to want a strong culture. Leaders have to consciously create it.
To begin building a conscious culture for your company, ask yourself these four questions:
1. Is culture on my to-do list?
As CEO, culture needs to be a personal priority — not something you delegate. Every day, you should be actively developing and promoting the culture you want for your business. While cultural development starts at the top, over time, your full leadership team needs to embrace and reinforce your vision so all employees begin to accept and practice it.
2. Are we connecting culture to metrics?
Culture needs to be measured, not just managed. While there are no hard metrics for measuring culture, your company’s performance around time-to-hire and employee turnover can serve as a good proxy. Since culture is an engagement driver, engagement studies or pulse surveys can also be effective measurement tools.
3. Am I leading by example?
Employees watch the behaviors and actions of leaders. Ask yourself: Do my actions reflect our cultural values? How do I show up to work every day? Am I walking the talk? If you don’t live your culture, your employees won’t, either. Expect what you accept.
4. Are we communicating our mission, vision and purpose?
Culture will mutate on its own if it’s not continuously and consistently reinforced by leaders, managers and coworkers throughout the organization. As CEO, you need to consistently communicate your company’s mission, vision and purpose — not only through email campaigns or posters around the office, but through your everyday actions and attitude.
For more insights on culture, download the Vistage report, Creating a Conscious Culture: Key considerations for refining or reimagining culture for small and midsize businesses.
Is your business ready for the next slowdown?
CEOs are feeling pessimistic about the future of the U.S. economy, thanks to softening customer demand, erratic trade policies and unpredictable tariffs — all of which are making it difficult to make decisions and plan for the future.
In fact, in a survey conducted in June by the research team at Vistage, only 13% of CEOs expected economic conditions to improve, compared with 32% the year prior. That’s according to the Vistage CEO Confidence Index survey, which measures the economic optimism of CEOs each quarter.
The Q2 Index, created from data from over 1,400 leaders of small and midsize businesses, found that CEO confidence was at its lowest point since Q2 2016, leading up to the presidential election.
The survey also found that:
35% of CEOs anticipate an economic downturn in the year ahead
Fewer firms (64%) expect increased revenues and profit growth
Fewer firms (56%) are planning to hire or invest
“We’re toward the back end of the cycle,” says Connor Lokar, an economist from ITR Economics. “We are seeing waning confidence on both the consumer and business side of things. And when those two converge, it typically indicates a downward trajectory for the growth of the economy.”
The outlook may seem grim. However, the news isn’t all negative. There are no massive layoffs happening, and housing prices have not collapsed. Also, employment is high and inflation is low. We are not on the brink of a financial meltdown.
That said, the economy is slowing, and CEOs should take measures to weather the coming recession. From our latest report, here are 5 ways to protect your business in today’s uncertain economy.
1. Manage your cash flow.
It’s time to give your balance sheet a hard look. For example, could your loan agreements create liquidity problems if your lines of credit are withdrawn or recalled? Growth is predicted to slow over the next four quarters, and cash flow considerations will be key.
2. Take advantage of sliding interest rates.
Falling interest rates are silver lining in the cycle. Interest rate traders expect the Fed to cut rates by 25 basis points once or twice this year. And the 10-year treasury rate is starting to slide due to mild inflation, global economic uncertainty and an appetite for U.S. treasuries.
“This offers some debt-restructuring opportunities for companies,” says Lokar.
3. Prepare your employees for change.
Coming off the tremendous growth of 2017 and 2018, many employees may not fully appreciate the challenges to come.
“Everyone’s mugs are topped off with Kool-Aid,” Lokar says. “Everyone’s buying into their own hype. They’re used to hitting stretch goals and getting bonuses and healthy raises.”
Communicate to employees that external economic forces could bring some negative pressure. If employees are unprepared, the expected downturn could be a rude awakening.
4. Snag top talent while you can.
Some turnover is likely in a soft economy, and you should take advantage of the hiring opportunities in this environment.
“If you can afford to pick up the extra payroll expenses, grab those individuals in preparation for the next growth cycle,” Lokar says. “This is a nice opportunity in today’s labor market.”
5. Empower your people.
Don’t try to steer your ship alone; share your map with everyone on the team.
“Communicate information downward and outward so that everyone understands that the waters are going to get a little rougher over the next year,” Lokar says.
This post was originally published on Inc.com on Sept. 24.
Work-Life balance is key to long-term success
We’ve rounded up some articles and videos that address how to get the most out of both work and life.
“How Work-Life Balance can Keep Your Employees Happy and Your Business Healthy” from Inc. Magazine
“Work and Life Balance: Good for People, Good for Business” from the Huffington Post
“Why I took a vacation and Didn’t Look Back” from WorldatWork
“How to Make Work-Life Balance Work” VIDEO from TED Talk
WorklifeBalance.com offers tips, classes and a free monthly newsletter dedicated to creating Work-Life Balance for individuals and organizations.