Human Capital Management 20/20

Solid Foundations - thoughts on how leadership styles emerge

After a very hectic and fun 2009, I'm finally finding some time to get back to my blog, and the associated research involved in writing.  This is something I'm quite passionate about.  In cleaning up this blog I found five half-baked blog posts on everything from Principle Centered Leadership to an exploration of my leadership style and how a style emerges.  There is the whole "born versus learned" argument about where leadership styles emerge from.  On any given day I can be persuaded to join either side of that fence (which is rare).  But frankly, it probably is a bit of both.  One has to have an innate ability or drive to lead.   Regardless of that argument, however, is the core of what creates one's leadership style....a solid foundation.  So for me, here is what that means.

Successful leadership is about gaining a deep understanding of yourself, your drivers, and the ability to know yourself better than anyone else.  It is about continual learning, in a range of contexts and situations.  This includes reading about leadership styles, contexts, patterns.  It is about drawing on your past and reflecting on your experiences, both as a leader and as a follower.  What motivated you to follow or lead?  It is about hands-on leadership experiences.  It is about leading successfully and unsuccessfully - then transforming both into good learning lessons for yourself (and if you're truly humble - for others too).   It's about watching others lead and learning from their successes and challenges as well.

A big part of leadership is listening, asking questions first, and trying to gain a true understanding of where others are coming from.  Then having the ability to shift gears if it makes sense.  Iron-fisted leadership may work well when you're leading only yourself - but when leading others, it's rarely a dynamic for success.  

Self realization that you don't have all of the answers.  That hiring really smart people to work with you is a great way to get even more accomplished.  Hire them, set the course and let them get there the best way they know how (get out of their way).  Be confident in  your leadership and let your folks run with it.  A side note: I find that leaders who can't do this well micromanage or pass significant judgment when they haven't set a clear course for their team - thus lacking in confidence.  If you are unsure of a course, share what you do know then let your team help set the course.  Perhaps their path will create exciting new opportunities?

 

I have a four year old daughter who is learning all about these concepts in pre-school.  Her teacher tells me often that she is a leader in her class.  I recently asked what she means by this and she said, "Your daughter senses her classmates and helps guide them in a way that they appreciate."  This is what I strive for in my daily leadership activities.  I'm not always successful, but in a consistent and Zen-like way, I am always striving to establish this solid foundation for leadership.

HCM Metrics - what is really important?

I have been spending a lot of time lately researching and thinking about what human capital metrics are really important for organizations.  There is no shortage of opinions (and books) on this matter, and many of these opinions are completely situational.  The answer to this question has several variables that impact the decision about your organization's metrics.  On one hand this question totally depends on the type of organization you have (large company, small business, government agency, association/non-profit, etc.).  Another factor would be the organization's philosophy about its people.  Yet a third would be the importance that your people have to your product(s)/service(s).  Being a human capital specialist, I think people are incredibly important, and most executives will tell you the same thing.  "Our people are our first priority", etc. etc. etc.  But what I find interesting is not what a leader "says" about its people, but the actions and activities the organization's leadership "takes" in regards to its people  AND what the everyday workers say about the organization's commitment to its people.

Some of these obvious action items are included in HR policies and procedures.  But just because the policies are in place doesn't mean they are implemented equitably.  It also doesn't imply that the culture truly supports them. There are issues that play a much more significant role to your organization's HCM strategy, yet all of them point to getting real about your people.  Here are just a few metrics to consider.  Each organization needs to pick the ones that make the most sense based on their organization's context.

1. Organizational Culture. The perceived versus stated culture of an organization.  If people on the ground could be completely free to speak their minds, how would they describe the organization's culture?  How does your leadership "describe" the culture?  What are the gaps? How are you measuring this? 
2. Right People, Right Job.  Do individuals love their work and know they are valued for their contributions and efforts?  Can you easily identify teams that are less productive than others?  Does your organization easily know about each employee's strengths so they can be leveraged across the organization?  (This isn't just job satisfaction) [We use the Kolbe Wisdom for this.]
3. Turnover rates. Capture both voluntary and involuntary turnover and the context around those numbers.  Why are people leaving your organization?  Are you conducting effective exit interviews with unbiased third party individuals?  And an even better question, why are your people staying with your company?
4. Succession Planning. How many people are eligible to retire from your organization this year and what is the game plan to succeed them?  How do those retiring individuals truly impact the knowledge capital of your organization?  How are you measuring that, if at all?  (and you can btw)
5. Cost to hire one employee.  Are the trend costs going down?  With the brilliance of social media, they should.  If your hiring costs are going up, there should be a really good reason why, especially in this market.
   
6. Cost of losing one employee.  What is the cost to the organization for one employee leaving?  What is the impact to productivity for the teams they may be on?  What knowledge goes out the door with them?  What does it cost the organization?
7. Professional development investment costs.  How much are you investing in each individual's professional development?  Does your organization have solid professional development plans (PDP) in place for every individual?  Are performance-based bonuses impacted by successfully executing a PDP?  What is your organization getting out of that investment?
8. Employee Evaluation Process.  How often do your employees receive meaningful feedback on their performance?  Is this feedback comprehensive, objective, measurable? 

Each of these 8 metrics are important for every organization.  But not all organizations seem to understand that capturing this information, discussing it, and taking action to adjust issues as necessary, are a critical part to retaining the best and brightest employees.  HCM is not only a science but an art.  It is all about keeping the ongoing pulse of the organization, trending that, and making adjustments as necessary.

If you don't take a really good look at these numbers, once the economy picks back up, you may find your best talent finds a place that truly values their contribution.