What is Captive Medical Insurance?

By Andrew Kuykendall, CSFS, Alternative Risk Specialist

Chris had a problem. Even with 125 employees in 6 states the company was at the mercy of “medical trend” each year when renewing their medical insurance. They were receiving no actionable data at all to help them find a way to control costs, or budget for an anticipated increase. In fact, over the previous 5 years the increase had averaged just short of 10% annually, with a “low” of 4% one year, and a “high” of 19% the following year. There was never any warning, or justification, other than medical trend. Sure, one time they received an additional report at the back of the packet that mentioned that one employee had roughly $58,000 in care. This is a large number, but with annual premiums exceeding $1.4 million it did not feel catastrophic. There had to be a better way, but what is the better way?

What does self-funded actually mean?

Most employers have some ideas around what being self-funded for medical insurance entails. The company bears the responsibility for the costs of the medical claims. And yet, we are bombarded by media reports of surgeries, or prescriptions, or cancers that routinely exceed a million dollars a year in costs. Can your company absorb multiple million-dollar hits? And the conversation is changing: TPA, DM/UM/UR, PBM, Spec, Agg, and IBNR are just a few examples of what is, to many employers, a new vocabulary. It can get very confusing very quickly. For many employers with between 75 and 700 employees the idea of self-funding their medical plans is an idea that is reviewed, but often discarded as being too risky, too complicated, or that the group is just too small.

Getting back to Chris for a minute, in mid-2012 the company took the plunge, and enrolled in a Self-Funded Medical Captive (captive) program for their employees. This meant that the employer was responsible for claims costs, but the captive helped to spread the risk amongst a much larger population. Instead of buying insurance for 125, they were part of a pool of over 5,000 employees. The larger population meant that the claims costs were much more predictable. Based upon previous, fully insured renewal data, they were able to receive a quote that showed the opportunity to save money in their budget if the group ran as expected. That meant that if they had an “average” claims year, they could save approximately 8% versus their fully insured renewal. If they had a totally catastrophic year, they would pay more than current. However, because of the captive structure and the various types of stop loss insurance, policies that limit the financial exposure of the individual or the aggregate group, the maximum the company would pay would have been 14% higher than their renewal. A very key point in the discussion was the ability to receive their claims data. After much deliberation, they joined the captive.

In that first year the group ran a little bit better than expected and had saved about 11% versus accepting the fully insured renewal. More importantly, with the data they received a few plan tweaks were made that had little cost impact, but great quality of life improvements for the employees. For example, they increased the number of allowable visits to chiropractors and acupuncturists. At the same time, they created a system that dramatically incentivized using urgent care by charging more for an ER visit that should have been handled at either urgent care or the doctor’s office. By lowering the urgent care copay, they saw a fivefold increase in visits to urgent care and a near 60% decrease in “unnecessary” ER visits. Since the average ER visit cost the plan approximately $2,400 per hour, this had a tremendous financial impact. Over the past five years they have continued to modify the plan designs, to emphasize wellness and activity, while being able to keep co-pays and deductibles the same. In fact, they have seen an increase over the past five renewals of less than 2.5% in total since 2012.

How do we protect our company from volatility?

So, can the mere act of being self-funded help lower costs and generate control for mid-size employers? Surprisingly, the answer is yes. If all other things are equal, being self-funded will reduce costs due to premium taxes and insurance company profit being dramatically reduced. This alone accounts for about a 3-6% savings. However, not all things are always equal. The larger the purchasing pool for reinsurance the lower the premiums. These layers of protection help provide a maximum risk level that the group can adjust based upon their needs. As an example, we have seen specific deductibles of as low as $25,000 per member to as high as $1,500,000 per member. There is an opportunity to design the program in almost any way you desire. The key to any successful program is finding the risk tolerance of the organization and working within those parameters.
If this is so simple and better than anything in the fully insured market then how come so few employers are doing this? Why is this the exception, rather than the rule? Self-funding does come with the opportunity to save money over a fully insured option, but it also has the chance of being more expensive if the claims funding is set to low. This is where having good underwriters and actuaries are vitally important to setting up a plan to be successful from the start. In addition to the stop loss underwriters, we also recommend using an outside actuarial firm to help produce claims funding targets and set up budgets to avoid surprises. All of this preparation is valuable in helping employers feel that they have budgeted effectively for the plan year. That being said, it is not a guaranteed cost like the current fully insured plans. Quite often the volatility of claims funding is too great a hurdle for a company to fully commit to a self-funded platform.

Once an employer has determined their risk tolerance, and made a commitment to go self-funded, the question is finding the correct platform for their needs. A captive program is a very effective way to mitigate the risk for mid-size employers. A captive program works by asking the employer to accept all of the risk for a portion of the expected claims, then they will share risk with other member companies in the captive for larger, less predictable claims, and then ultimately purchases stop loss for catastrophic claims. By leveraging the buying power of the captive, group premiums are lower and claims costs are more predictable. In the event that there is money left in the captive program at the end of the plan year, those funds are returned as a dividend to member companies. Renewals are comprised of two portions, fixed costs (administration, stop loss premiums, etc.) and claims funding. Often, fixed costs are 12-18% of total plan expenditures. This makes it very easy to budget for renewals. The claims costs are managed by choice of network, plan design tweaks, and employee communications for example. If you are able to help employees use urgent care, rather than the ER, or focus on using generic drugs when appropriate, it is not uncommon to see an overall reduction in plan spending of 3-7% depending upon the changes.

How do we determine if this is right for us?

Self-funding is not universal, but with platforms like Self-Funded Medical Captives more employers are able to review their options and see what makes sense for them and their employees. By understanding the program mechanics, the internal risk tolerance, and working with experienced consultants it can be an answer to understanding why costs are increasing. In fact, it can help slow, and even stop, the endless increases faced by fully insured employers. The captive model of accepting risk for the expected claims, sharing risk for large claims, and insuring catastrophic claims has helped groups below 1,000 covered employees participate in the same benefits and efficiencies that every member of the Fortune 500 enjoys. With a good consultant to help guide the way, an affordable plan is within reach. The platforms available to mid-size employers today make reviewing self-funding a standard part of your renewal process. For Chris, it has led to millions of dollars in savings versus fully insured renewals. Take a look, you might find a plan that makes sense for you and your employees.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2020

Andrew Kuykendall, CSFS, Alternative Risk Specialist, specializes in Alternative Risk programs including self-insured, participating, medical captive and minimum-premium solutions. He helps clients understand their programs through advanced data analytics. His role spans partner relationships, identifying the newest opportunities to help our clients control their costs immediately, and bending the cost curve in the future. He also keeps our staff educated on the theory, and practice, of alternative funding.

With 22 years of industry experience, Andrew has written and renewed nearly every funding mechanism in the marketplace, and has experience with individual policies up to 35,000 life Taft-Hartley funds. Prior to joining Woodruff-Sawyer, Andrew held key alternative risk and consulting roles at Neovia (now Woodruff-Sawyer), Bolton and Company, Andreini and Company, Benefit Solutions Company, Calco, Gallagher and Near North. He also formerly served as COO for an insurance agency in Irvine.

Andrew’s professional affiliations include serving as: board member of the British American Business Council (BABC) in Orange County from 2009-2012; founding member of the BABC Young Executives in 2010; and part of the broker advisory council for multiple TPAs and medical management service organizations. Andrew has been a speaker for the Health Care Administrators Association (HCAA) Webinar Series (2016), and developed a “Self-Funded Basics” education certificate series. He wrote one of the first Archer MSA plans in California in 1997. Andrew holds the Certified Self-Funded Specialist (CSFS) designation from HCAA. For more information, please feel free to contact Andrew at 949.233.6101 or akuykendall@wsandco.com.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

 

Why Exit Interviews Make Sense

By Dana Borowka, MA

Recently a strange occurrence got me thinking. On a personal note, I love to sail. After being members of a boat club for over ten years, my wife Ellen and I decided to move to another club. When we informed the club we were leaving they were highly efficient in deactivating our gate codes and privileges. No surprise there.

But it was what they did not do that surprised us. No one asked us why we were leaving. In talking to members at the new club as to why they didn’t join our old club we discovered there was a common complaint and it had nothing to do with boats: they did not like the food at the club.

This organization is needlessly losing customers over something that could be fixed. If only they had a process of conducting exit interviews.

For many a business, the exit interview has fallen out of favor. But in April 2016 the Harvard Business Review published an article singing the praises of exit interviews titled “Making Exit Interviews Count” by Everett Spain of the U.S. Military Academy at West Point and Boris Groysberg of the Harvard Business School.

The authors made their case in the article’s opening abstract:

An international financial services company hired a midlevel manager to oversee a department of 17 employees. A year later only eight remained: Four had resigned and five had transferred. To understand what led to the exodus, an executive looked at the exit interviews of the four employees who had resigned and discovered that they had all told the same story: The manager lacked critical leadership skills, such as showing appreciation, engendering commitment, and communicating vision and strategy. More important, the interviews suggested a deeper, systemic problem: The organization was promoting managers on the basis of technical rather than managerial skill. The executive committee adjusted the company’s promotion process accordingly.

“In today’s knowledge economy, skilled employees are the asset that drives organizational success,” state Spain and Groysberg. “Thus companies must learn from them—why they stay, why they leave, and how the organization needs to change. A thoughtful exit-interview process can create a constant flow of feedback on all three fronts.”

Why Some Experts Are Cool to Exit Interviews

“I am not a fan of exit interviews,” says Beth Smith, president of A-list Interviews and the author of Why Can’t I Hire Good People: Lessons on How to Hire Better. “I think it is a matter of too little too late.”

A horrible hiring mistake led Smith to create a company and write a book to help improve hiring results. Here is her take on the drawbacks of exit interviews:

Exit interviews are specifically designed for the employer. They do not help the exiting employee at all, because the exiting employee usually needs a reference from the company they are leaving. Telling the truth about the company doesn’t help the employee get that reference, and in certain circumstances, the information gleaned from the interview could be used against them. In addition, if there is negative feedback given, it is sometimes dismissed by the interviewer. “Well, that employee is just mad, so their feedback isn’t accurate.” My belief is that if an employee is leaving the company, they have attempted to tell someone in the company why. Whether it is a review, a conversation or a complaint, most employees don’t just up and leave without some sort of a notification.

Smith’s work is about interviewing right when hiring (something I agree with and advocate should be supported with proper in-depth workstyle and personality testing). Understandably, her coolness toward exit interviews echoes the view of many in business.

Smith’s belief is that if an employee is leaving the company, they have already attempted to tell someone in the company why. Who wasn’t listening to the employee when they were there?

Taking a Fresh Look at Exit Interviews

True, exit interviews have their shortcomings; however, in my opinion, it is a miscalculation to not conduct exit interviews because of the inherent faults. The research of Spain and Groysberg detailed in the Harvard Business Review supports this:

Though we are unaware of research showing that exit interviews reduce turnover, we do know that engaged and appreciated employees are more likely to contribute and less likely to leave. If done well, an exit interview—whether it be a face-to-face conversation, a questionnaire, a survey, or some combination of those methods—can catalyze leaders’ listening skills, reveal what does or doesn’t work inside the organization, highlight hidden challenges and opportunities, and generate essential competitive intelligence.

Other HR experts advocate a return to exit interviews—if they are done right.

“If an organization is a revolving door and it doesn’t care why, then exit interviews are a waste of their time and money,” says Claudia Williams, former associate general counsel, Global HR & Litigation, for The Hershey Company. “Most organizations, though, want to know why people are leaving and going to their competitors or elsewhere, especially when the attraction and retention of great people is a top, if not the top, concern for CEOs in the U.S. and globally.”

Williams, founder of a consulting company called The Human Zone and the author of the upcoming book Frientorship, argues an exit interview gives the employer a chance to get raw, candid feedback on what it does well and what it needs to improve – what’s keeping employees there and what’s causing them to leave.

“Time and again I’ve seen leaders surprised by the results of an exit interview, which means they don’t have their fingers on the real pulse of the organization,” says Williams. “An employer might be able to stop a great employee from leaving if it knows the real reasons behind the employee’s decision.”

The Value of Exit Interviews

“I valued and conducted exit interviews often in the army, individually and through the Army’s initiatives enterprise wide,” says Brigadier General Jeffrey Foley, U.S. Army (retired). “In the army, I often conducted exit interviews when people were transferring out to other army organizations when their tour of duty was up.”

“I valued and encouraged the conducting of exit interviews in the army, individually and through the initiatives sponsored by the army enterprise wide,” says Brigadier General Jeffrey Foley, U.S. Army (retired). “In the army, we often conducted exit interviews when people were simply transferring out to other army organizations when their tour of duty was up.”

Foley, who now runs a leadership consulting practice named Loral Mountain Solutions and is the coauthor of the book Rules and Tools for Leaders, offers his views on the four major benefits of exit interviews:

1. You may learn the real truths about your organization. You will likely learn what you may know or should know about typical challenges like money, opportunities for growth, shortfall of benefits, etc. You may also learn more profound truths like distrust of supervisor, harassment, illegal or unethical conduct that people were reluctant to report for whatever reason.
2. You set a great example for the entire organization that the leadership cares. The word will get out that the losing organization leaders cared enough to at least ask. If there is a standard practice of exit interviews and things changed in the organization for the better as a result of what was learned, there can be great benefit to the organization.
3. You may learn insights into your competition. Great information can be learned about what the competition is doing or offering that might affect your organization.
4. You can learn how to help those departing be successful. For the good people departing, it offers an opportunity for the losing organization’s leadership to help the person be successful in the next chapter of their lives. This support can be provided by letters of recommendation, references, or something unique based on an extraordinary event that caused the departure, such as serious sickness or tragedy that occurred that may have been previously unknown.

Williams offers a final warning:

“But proceed with caution,” she says. “Employers have to be ready and willing to act upon the information they receive, both to harness their strengths and to fix what’s broken (which sometimes means a workplace investigation into allegations of individual or corporate misconduct). Otherwise, the exit interview is a bunch of meaningless words.”

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2020

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your organization”. They do this through the use of in-depth work style assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management. Dana has over 25 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He is the co-author of the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”.  To order the books, please visit www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching, skills testing and offer a variety of workshops – team building, interpersonal communication and stress management.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

 

 

Creating a Culture Strategy — On Purpose — For Today and Tomorrow

By Suzanne Mayo Frindt & Dwight Frindt – Excerpt from Cracking the Business Code

Is your company culture and your leadership practices designed for success in today’s world?

By Brian Hefele

By Brian Hefele

In the face of unrelenting change and increased complexity of issues facing us in business today, our past based practices and structures may not be sufficient to succeed in this new paradigm. Let’s take a look at how company cultures and leadership must shift to respond powerfully to the circumstances we are currently experiencing.

People don’t really fear change itself; they can become afraid that they won’t be successful in the new paradigm. It is the job of leadership to create conditions, a culture, where people can learn, grow, and adapt to be successful in today’s world.

Change and Change Again

Our world is rapidly shaping in many amazing ways:

♦ As the video, Shift Happens has pointed out to the millions of YouTube viewers who have seen it on the Internet, “We are currently preparing students for jobs that don’t exist, who will be using technology we haven’t yet discovered, to solve problems we don’t even yet know about yet” (Shift Happens video, created by Karl Fisch and modified by Scott McLeod).
♦ The quantity of information, its availability, and speed of delivery are increasing at an exponential rate as costs are approaching zero.
♦ The number of people accessing and using this information, and the many ways it is disseminated, has exploded since the advent of personal computers and the Internet — which in turn exponentially speeds up the rate at which new technologies are developed.
♦ Women are stepping into leadership roles at all levels, in diverse venues and in unprecedented numbers all over the world.
♦ Awareness that our global environment cannot continue to withstand a collective human consumption race is spreading quickly.
♦ Our children are being born into and growing up in a world that is so different than the one we grew up in, that it requires a new way of being for them to lead successful lives.
♦ More people over 65 are alive today than have ever lived to that age, so that group will be looking for whole new models for leading healthy, successful lives.

The list of changes that we have already experienced is inexhaustible. And as soon as you read this article, there will be even more changes that have occurred. Accelerated change has become the new normal. At the same time, we hear many clients say “as soon as it slows down or gets back to normal.” Those who think there will be a return to the “good ole days” are in for a great shock.

Our cultures, leadership, and structures have to shift from top down to valuing learning and expanding capacities to problem solve in the face of uncertainty, mining all available wisdom and creativity.

Culture…What’s That?

By rekre89 (Flickr)

By rekre89 (Flickr)

Excellent companies have Financial Strategies, Operational Strategies, Marketing and Sales Strategies, and commensurate Resource Allocation Strategies (including People, Time, Money, Equipment/Assets, etc.). How many companies actually have a Cultural Strategy? Yet all companies have a culture, implicitly if not explicitly. They have been developed on a historical basis and impact productivity, success, and health for generations. And, they can be experienced differently depending on one’s position within the organization.

Our first conversations with executives about Culture and Culture Strategies begin with a definition — a shared definition. Since so much of what comprises a culture is often accidental and somewhat invisible, some people have a hard time accepting that there is one, or that it can be defined or even changed.

Once we work through a few of the definitions below, most CEOs and executives agree they do have a definite culture. Then comes the question of whether it is the most productive culture given their purpose, values, and the changes we are experiencing every day.

A company culture can be defined as:

♦ A cognitive framework consisting of attitudes, values, behavioral norms, and expectations. (Greenberg and Baron, 1997)
♦ The collective thoughts, habits, attitudes, feelings, and patterns of behavior. (Clemente and Greenspan, 1999)
♦ The pattern of arrangement, material, or behavior, which has been adopted by a society (corporation, group, or team) as the accepted way of solving problems. (Ahmed et al., 1999)
♦ Includes the organizational values, mission, norms, working language, systems, beliefs, and habits. It is also the pattern of such collective behaviors that are taught to new organizational members as a way of perceiving and even thinking and feeling. (Wikipedia)
♦ A set of shared mental assumptions that guide interpretation and action in organizations by defining appropriate behavior for certain situations. (Ravasi and Shultz 2006)

From this collection of definitions of culture, it becomes clear that a group or an organization’s culture is foundational to the success or failure of all other strategies, and yet little, if any attention, is consciously placed on the care and feeding of a productive culture. It is the invisible glue that binds together ever more diverse workforces, including people from many cultures and generations. Since it is invisible, most executives are not conscious of culture or of the implications of their decisions on the development of, or the degradation of, culture. Organizations in a high growth or acquisition mode are at a high risk of failure due to culture clashes. It is very unusual for us to see organizations that understand the criticality of this dimension of an acquisition, or adding lots of employees in a short period of time. Without a clear and intentional culture strategy, along with the allocation of resources to be sure that it is communicated and very well understood and incorporated into every day business interactions, the culture is drastically impacted by whatever the acquisition brought with them, or what the large numbers of employees bring with them. The sad reality is that productive organizational cultures often suffer a demise due to an unconscious neglect by leadership.

What people often complain about is usually a description of the unproductive aspects of the culture, at least from their perspective. We have heard from executives: lack of accountability, defensiveness, competitiveness at the expense of the company, or customer outcomes. In an organizational 360 tool that we use, we have heard from the workforce: micro management, lack of trust, no clear direction, compensation, and reward systems that emphasize individual results rather than company success. This was all within the same company!

Many organizations that we have encountered through our leadership development firm, 2130 Partners, have had what we call “accidental” cultures. Perhaps it was generated initially by a founder entrepreneur, mirrors other cultures in the same industry, or was created by a particular hiring practice or compensation structure. Nonetheless, most cultures develop by accident.

Cultures can be designed on purpose, and existing productive cultures can be maintained and enhanced intentionally.

Leadership — Replacing Commands with Vision

In this evolving new reality, successful leadership will have a very different nature than traditional approaches.

By Aadi Sing

By Aadi Sing

It was quite different to be a leader in simpler economic times and when the world moved at a slower pace with less connectivity. There were successful models and practices in place as well as more easily identifiable and attainable goals. Patterns of entitlement offered at least the illusion of security, and there was more time and predictability in producing results. However, now — when previous business models and assumptions have been turned on their heads, when people’s livelihoods are changing and disappearing regularly, and when successful businesses are being transformed for the new realities — the leadership required is radically agile, proactive, and creative.

Leaders who will be effective in this time of incredible opportunity are those that lead as if they are in a dance with reality — that is, they look to create exciting new paradigms, processes, and even companies based on creating the next game while being responsible for the current and unfolding global economy. They are not simply waiting until the economy gets back to normal or using past experiences to map out current pathways. Being in a dance demands conversations appropriate to dancing. Think about it — when you get out on the dance floor, do you tell your partner, “I need these four steps from you in the next minute, followed by a repetitive pattern until I tell you otherwise”? If you have done that, perhaps you have found that it leaves you with very few dance partners. How then do you engage with others in this new reality?

We call the management model we use to replace the old “command-and-control” paradigm, Vision-Focused Leadership, which is an approach grounded in shared vision and built through collaboration.

Vision: A mental image produced by the imagination

Vision-Focused Leadership as a mental model shows how thinking, listening, speaking, and actions — most importantly those that you employ to lead others — are focused and informed by a shared vision. Focusing on your shared vision allows you to make choices; orient your creativity, energy, and resources; and correlate your thoughts and actions and the actions of people working with you on your shared intention. In the absence of shared vision, it is easy to become victims of or be distracted by circumstances, worries, and fears, and to react based on instant, automatic, unconscious, and unexamined thoughts, beliefs, and judgments stored in your mind. Without necessarily realizing it, the past winds up driving your bus.

When we talk about leadership here, our intention is to stress that leader- ship can be evoked anywhere in an organization — that is, every person can exhibit leadership qualities, no matter what his or her job description may be.

If you and your team members have done a good job developing and sharing the vision, then creating powerful actions will flow much more naturally. People will be able to individually source their ideas, actions, and interactions from the shared vision. If you replace commands with shared vision and broaden the source and responsibility for creativity to the entire team, you will maximize creativity, ownership, collaboration, and velocity in fulfilling the shared vision.

We use the term “Yonder Star” to include shared vision, goals, objectives, and strategies to obtain it. It can be applied at any level from a strategic corporate vision to your vision for the outcomes you intend to produce in a single conversation or meeting. The Yonder Star is the ideal, out in front of you and up above the path you are currently traveling, that provides a common focus and inspires your actions. Rather than hanging onto sacred past-based activities and processes (i.e., “what did we do and how did we do it last year?”), priorities, plans, and milestones are designed from a focus on the Yonder Star. From this mind-set, actions are prioritized by their value in fulfilling the Yonder Star. All members of the team are inspired to explore their own integration of the goal with their passion to contribute and the specific role their work will play in its fulfillment.

From shared dedication to the overall outcome, a pervasive attitude of “I’ve got your back” naturally develops within each member of the team. Dissent, one-upmanship, and agendas fueled by self-interest tend to fade to the background.

Collaboration Requires

Connection, Alignment, and Focus

Yonder Star clipartThis graphic is our shorthand illustration of this notion. Here we show a group of people who are interacting from a solid foundation of mutual trust, respect, and safety to reach their mutual Yonder Star. In this case, a collection of aligned Yonder Stars, shown in a stack of different sizes, depicts the many intermediate goals that lie between your current situation and fulfillment of your Yonder Star. To sort out which actions will be most productive on your route to your Yonder Star, look back from your fulfilled Yonder Star and ask, “What’s missing in our current reality that, if we work on it, will accelerate fulfilling our Yonder Star?” From your list, determine the decisions and actions that will be most leveraged in closing the gap. By leveraged, we mean the actions that produce the greatest impact while requiring the fewest resources and taking the least amount of time to accomplish. Get started, monitor results, recalibrate with new position updates, and continue on your path or make adjustments as necessary to stay on course.

Collaboration — New Ways of Working Together

As we go forward, those who lead will be the ones taking advantage of the creativity and productivity gains available by focusing on the human, collaborative dimension, while laggards will suffer in the face of unrelenting change.

The extremely affordable, and nearly instant, access to vast amounts of information and ways of interacting with whole communities that are becoming available, combined with a productive attitude toward change and the new realities it brings, creates huge opportunities for you and your leadership. However, leading effectively will require a new mind-set to unleash potential and creativity and to capitalize on opportunities.

The challenges lie in strengthening your ability to choose the direction, form the goals, and then communicate and enroll others so that you build groups and organizations that can collectively navigate shifting realities. This means improving your ability to communicate, work together collaboratively, and lead others to do so as well. If you learn how to identify and utilize the navigational guides to traversing this uncharted territory, you will experience higher productivity, more rapid innovation, and greater organizational agility. Additionally, responsiveness to the needs of customers and other stakeholders in the organization and more rewarding relationships will become something you can rely upon.

Building Collaborative Capital — It Begins with Me

To effectively change our outer reality requires being willing to shift our inner reality.

Today, talented, educated people who know how and are motivated to work interactively with each other are the key to success for more and more businesses. This new collaborative approach means many more minds are put to work on the opportunities and challenges facing us whether in business, in our organizations, or even in our families.

When we were born, we came equipped with the most powerful computers on earth (although Shift Happens cites projections that the quantitative computing power of a supercomputer will pass that of the human brain by the year 2013). These innate computers serve us well in producing new ideas and dynamic solutions — as we can see in all that has happened just in the past twenty years of technological growth. The core thought processes that guide our reactions and interactions were mostly loaded into your brain and ours when we were children and have been chugging along ever since, functioning as an unconscious and unexamined operating system.

Don’t change the world, change worlds…starting with your own.
Adapted from St. Francis of Assisi, Catholic patron saint of animals and the environment

Being able to think in new ways requires challenging the very basis of your own thinking — your self-concept, worldview, and automatic ways of interacting with others.

What Is a Productive Culture Anyway?

By Anne Davis (773 Flickr)

By Anne Davis (773 Flickr)

We don’t use terminology such as “good” or “bad” cultures, which is a binary and simplistic assessment. We consider the organization’s purpose, or vision and mission to determine if the existing culture supports the achievement of that purpose while calling forth the best from the people within the organization. Does it call forth high performance and productivity on a sustainable basis? Does it reward Self-Generated Accountability and Productive Dialogue? Does it foment gossip, jealousy, politics, CYA, or individual success over company success?

What is productive in a culture is what people are proud of about their company or their work. When shared values are demonstrated and memorialized in great stories, people tell about “the time when…”

What If You Created a Learning Culture?

A Learning Culture is one where the individuals and teams consciously invest in growing and developing themselves. In a Learning Culture, executives are conscious and purposeful about the impact of decisions and strategies on the fabric of cultural development. There is a purposeful focus on reducing friction and waste in communications and developing productive working relationships. People know there is an expectation for growing and learning. Hiring decisions are made with an interest in an individual’s ability to learn, adapt, grow, and shift outdated mental models, as much as their past-based, functional experience. An atmosphere of curiosity, forward thinking and ‘how can we learn from this’ thinking permeates. It becomes the foundation or platform on which everything else is built.

What Are The Payoffs of a Learning Culture?

For an organization, this type of culture provides much more innovation, creativity, flexibility, agility, and expedited problem solving capabilities. It also affects retention and even hiring decisions of individuals in the firm.

For individuals, it provides opportunities for learning and growth; enhancing marketability and value to this or other organizations. It also provides forums to be challenged, to add value, and to contribute at a high level. Some CEOs have actually expressed concern that growing their people will make them more vulnerable to their best people leaving. However, if looked at from the individual’s perspective, why would they leave unless they have fully used up the growth opportunities where they are right now? Why would someone leave a position where their value and contribution are recognized, supported, and rewarded?

How Can We Develop a Learning Culture?

There are many books and articles about learning organizations including work by Senge and Argyris that explain in depth about the what and how of learning organizations. Our 2130 methodology (and terminology adaptation in some instances) ties to the 5 aspects of a learning organization that are generally accepted by leadership “gurus” as follows:

1. Systems Thinking: Understanding how things influence each other as a whole. Our view is that executives and organizational leadership are accountable to the entire organization and all stakeholders for this larger view. This includes strategy development, planning, implementation, review, and adjustment. This is a level above what most executives contribute on a day-to-day basis from their functional expertise (Finance, Operations, Sales, Marketing, HR, etc.). In addition to a responsibility for systems thinking on an individual executive basis, it is also critical that the entire executive team itself operate as a productive, learning system. Most organizations develop a Vision statement, Mission, and Values that constitute the overall framework, (we call it the ‘Yonder Star’), and then on a regular basis develop strategies, initiative, goals, and actions in the dimensions of finance, operations, marketing, sales, resource allocation, and to a lesser degree, culture. Our methodology, “Vision-Focused Leadership” is designed to support systems thinking. We work with top executives — the CEO, President, or entrepreneur — in a trusted advisor or executive coaching assignment to create a learning culture. We also work with the team of top executives to support the development of and focus on all the strategies required to be successful. Our Operating Principles create a platform for a productive, learning culture with the executive leadership team and then the entire organization.

By Gerd Altmann

By Gerd Altmann

2. Shared Vision/Values: “A vehicle for building shared meaning” from Peter Senge’s Fifth Discipline. Unfortunately, this often looks more like the version from Dilbert: “A long meaningless statement that proves management’s inability to focus.” Over the last 20+ years we have worked with organizations to develop Vision, Mission, and Values using our “Vision-Focused Leadership” methodology. Leadership gurus have been espousing for at least two decades the value of a shared vision to focus and align resources. Absent a shared vision, individual agendas rule the day and gaining personal power becomes a major executive focus. Shared Vision/Values encourage a learning culture by emphasizing the gaps toward our Shared Vision/Values, what is missing and what is next, versus what is wrong from the past.

3. Productive Mental Framework: We talk about busting mental barriers, increasing mental agility, and increasing capacities to deal with the unrelenting pace of change and increased complexity of issues facing leadership today. It requires skills at reframing for ourselves and others, and developing focus in chaos and high emotional states. Past-based arrogance and rigidity undermine productive cultures. It is critical to become aware of our blind spots and biases to be able to think clearly in the present to make the best decisions in a complex business environment. We use our Operating Principles and Essential Notions, developed and validated over the past 20 years to help build a learning culture platform and equip leaders and man- agers with the mental and collaborative skills needed in today’s world.

4. Personal Mastery: This is the commitment of every person in the organization to improve, develop, and challenge themselves to be more than they are today, and to proactively challenge themselves inside a framework of contribution and collaboration. Individuals who insist on status quo and structural barriers to communication usually self-select out of a Learning Culture. In our book, Accelerate: High Leverage Leadership for Today’s World, we say that when individuals develop themselves they have increased their collaborative capacities. We will get older automatically, however to grow as we age requires a conscious choice. In our work, we describe conscious choice as the Leadership Choice Point. Every moment of every day presents an opportunity for choice. Will I relate to the world around me, the circumstances of my life as the defining parameters, or will I choose to use the circumstances as an opportunity to grow toward the Yonder Star?

5. Team Mastery: In addition to individual learning and development, organizations must realize that groups of people, (of any size of two or more), creates yet another “entity” with its own dynamics and productivity levels. Two or more people, who may be very developed individually, when put together in a group or team may not be as productive together as the sum of their individual productivity. The question becomes: will we synergize our efforts where 1+1=3 or more, or will we diminish productivity potential with friction and waste to make 1+1=1.5 or less? There are numerous examples of sports teams that have all “star” players, yet a team of “average” players can beat them because of the way the average players have developed their team effectiveness. The sum of what the players produce together is much greater than adding up individual skills — and so it is for organizational groups and teams. There are group skills and developmental opportunities that build on, yet are distinct from individual capacities. When groups develop these capacities we call that increasing their collaborative capital.

So What Will You Do Now?

1. Take stock of your culture. What are the stories being told about your organization by employees, clients, and vendors? What stories would you like to be told? What attributes of this powerful, invisible platform are important to you? Where are the gaps? What will you commit to taking on, challenging the status quo, and BEING as an example of the cultural aspect you are committed to developing? (We use an online organizational assessment to gather objective and confidential data to understand the present condition in an organization).

By Skeeze (Pixabay)

By Skeeze (Pixabay)

2. What cultural “artifacts” do you have in place? (We call the collection of these items, all on one page, your Strategic Focus.)
a) Compelling Vision, Mission, and Shared Values (We also use our Operating Principles as a key piece of culture definition because they are design principles for productive conversations.)
b) Business strategy that fulfills the Vision and Mission
c) Bold Goals that clearly take ground toward the strategy and mission, and are consistent with your vision and values

3. Is your Leadership and management team aligned behind #2 above?

4. Has your Strategic Focus been clearly communicated? Does your team know how to communicate it to their folks?

5. Are your departmental and individual goals lined up with the Mission, Vision, and Strategy?

If you are missing any of the above, fill in the missing pieces immediately! If your Vision or Mission statements are a paragraph long or no one remembers them anymore, throw them out! Vision and Mission statements have a positive influence on culture only when they really “live” inside the hearts and minds of people in the organization. It is not a job for the marketing department or your PR firm to “word smith.” It is the role of leadership to capture and communicate and nurture the Vision and Mission and Values. Each executive and management team member must be willing to have their leadership and management practices be guided by these major cultural influencers you create. When the actions or practices of people in management positions are contrary to what have been espoused as values and the mission then there is a huge disconnect for individuals in the organization, resulting in cynicism and resignation.

If you need help, consider hiring a professional facilitator to work with you and your leadership team to help define the existing reality, clearly define each aspect of your Strategic Focus and identify the gaps. Accomplish this first, before working with the balance of your organization, to develop thinking and behaviors consistent with a learning culture and self-generated accountability.

Above all, keep growing and learning and Accelerate your Leadership.

If Leadership is not consciously strategizing, designing, and developing culture, what is left to form it? Culture exists and is alive in the stories employees, (and vendors and customers), tell about what it is like to work there, how people get treated, how to get ahead, whom to hold your tongue around, whom to please, whether merit or seniority count to a greater extent, what happens if you are ill, what are the opportunities for development, promotion, raises, learning. What stories are being told about your company? What stories would you like to be hearing? How does leadership affect those stories? What are the payoffs? These are the questions to ask to get conscious about the affect of your culture.

by Devanath (pixabay)

by Devanath (pixabay)

References:

Accelerate: High Leverage Leadership for Today’s World by Suzanne and Dwight Frindt – to order go to www.2130partners.com.

“Developing a Corporate Culture as a Competitive Advantage” by Golnaz Sadri and Brian Lees .

Peter Michael Senge is an American scientist and director of the Center for Organizational Learning at the MIT Sloan School of Management. He is known as author of the book The Fifth Discipline: The Art and Practice of the Learning Organization (originally 1990, new edition 2006).

Chris Argyris is an American business theorist, Professor Emeritus at Harvard Business School, and a thought leader at Monitor Group. He is commonly known for seminal work in the area of “Learning Organizations.”

Suzanne Frindt is a co-founder and principal of 2130 Partners, an executive leadership development and education firm that launched in 1990. She is also a recognized speaker on the topics of Vision-Focused Leadership™ and Productive Interactions™, speaking to organizations around the world. She is also a Group Chair for Vistage International, Inc. an organization of CEOs and key executives dedicated to increasing the effectiveness and enhancing the lives of more than 12,000 members. Each month she facilitates groups in Orange County, California, and Seattle, Washington, while also regularly contributing entrepreneurial creativity and management experience to several companies through service on their advisory boards.

Dwight Frindt is also a co-founder and principal of 2130 Partners. Since 1994, Dwight has been a Group Chair for Vistage International facilitating groups of CEOs and senior executives. He has received many performance awards for his work at Vistage and in 2009 Dwight became a Best Practice Chair and began mentoring the Chairs in the South Orange County area. Since then he has added two additional Best Practice Chair regions; the Puget Sound and the Greater Pacific Northwest. In 2011 Dwight received the Best Practice Chair of the Year Award – Western Division. Combining his work with 2130 Partners and Vistage, Dwight has facilitated more than 1,000 days of workshops and meetings, and has logged well over 13,000 hours of executive leadership coaching. In addition to working in the for-profit world, Dwight and Suzanne are very committed to working with non-profits and have been investors and activists with The Hunger Project for many years. To reach them, please visit www.2130partners.com.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2016 This information contained in this article is not meant to be a substitute for professional counseling.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, 3130 Wilshire Blvd., Suite 550, Santa Monica, CA 90403, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development, team building, interpersonal & communication training, career guidance & transition, conflict management, 360s, workshops, and executive & employee coaching. Other areas of expertise: Executive on boarding for success, leadership training for the 21st century, exploring global options for expanding your business, sales and customer service training and operational productivity improvement. To order the books, “Cracking the Personality Code” and “Cracking the Business Code” please go to www.lighthouseconsulting.com.

We recently launched a new service called Sino-Am Leadership to help executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

Leadership: How to Listen To Your Inner Compass

By Paul David Walker

Cause and Effect Moves With or Without You

The flow of cause and effect move events, stimulate ideas, and drive consumer wants and needs because everything is connected. This flow has a powerful momentum, and moves like the multi-dimensional currents in a powerful river. This force moves forward with, or without, our conscious compassinvolvement. We are all connected to it even if we are not aware of our connection. The more we are consciously in sync with what I call “The Life Force,” the faster, more targeted and powerful are our actions. Like an athlete “In The Zone,” we accelerate our performance with grace and ease.

Imagine how difficult life would be if you are not aware of these flows. Many of us are not. It would be like hiking through a wilderness fog without a compass. Even if you knew you needed to go North, you could not tell which way it is. Likewise, we need an “Inner Compass” to navigate within the flows of cause and effect that influence every moment of our lives, a way to understand where we are, and where the flow of history is going. But what is, and what is the practical use of, our inner compass? A story best illustrates.

What Is Your Inner Compass?

When I was working as a leadership consultant to Don Ross, Chairman and CEO of New York Life, during the summer of 1987, many people were coming to me questioning the Chairman’s actions. He had asked the investment department to slowly move all investments out of the stock market into conservative investments. This frustrated his investment team because the stock market was at an all time high and their competitors were using “High Yield Bonds” and stocks to create gains much greater than New York Life’s. They wanted to play in the game, and Don Ross was telling them to step back.

Many came to me, as Don’s coach, to suggest I persuade him of the foolishness of his actions. I explained that I was his leadership coach and had little knowledge of the financial markets, but encouraged them to speak directly to Don. However, no matter how people pleaded, he would not change course. Several key players resigned and went to more “progressive” companies.

In October of 1987, while I was on site at New York Life, the market crashed. It was the biggest crash since the Great Depression. But New York Life had moved most of its investments out of the stock market and had not invested in any “High Yield Bonds,” known later as “Junk Bonds.” Don Ross was now considered a genius. The financial gain was enormous.

A week or so later, I asked Don how he knew to pull all of the company’s investments out of the stock market three months before the October 1987 crash. He said, “I just knew it couldn’t last.” Everyone in his world thought he was wrong, yet he had the wisdom and courage to do what he felt was right.

Knowing the Difference

When I pressed him to tell me more, he went on to explain that, as Chairman and CEO, he was continuously bombarded with “experts” trying to convince him of completely different lady on compassstrategic directions. Each had incredible credentials and a good story, yet each recommended different directions. The only tool he had to make the final decision was his instinct, or intuition. He said, “Whenever I have gone against my intuition, I have regretted it.”

Don Ross explained to me, “The key to wisdom is to know the difference between your wild hopes and fears and common sense, intuition or true wisdom.” They often seem the same, but they are not. There is a distinct difference in the feeling. One comes from the Ego and insecurity, and the other comes from Wisdom. Great leaders learn the difference and, given this knowledge, develop the courage to act quickly. Don had found ways to live in the present like an athlete “In The Zone,” but with an easier more sustainable feeling I call “Integrative Presence,” or at least he was able to find that state of mind when he needed insight. When I met with him over the years, he was often in the state of Integrative Presence. He was warm, yet seemed to be able to see through people. Insightful, yet he moved with grace and ease.

Courage To Act

All the great leaders I have worked with know how to achieve the state of Integrative Presence, even though they may not understand the nature of this state of mind. They have experienced being connected to something that supercharges their own knowledge. They speak reverently about this connection in private, but rarely talk about it to the press. It just seems too outside the norm for stockholders and the public. But knowing and connecting to wisdom through Integrative Presence is essential for leaders in business today. Markets move quickly, often with little warning, and the wise leader can feel the moving currents. At each moment, like a surfer, the conscious leaders are so present they take advantage of trends as they emerge.

Know How It Feels

When I have asked people to describe how they feel when they experience being “In The Zone” or Integrative Presence, they say things like: confident, at peace, exhilarated, wavy road peoplepowerful, graceful, and present. Some report a slow motion effect as time slows. Kareem Abdul-Jabbar told how the five seconds he had to win the NBA championship with one shot seemed like five minutes. He felt relaxed, as if he had all the time in the world, yet he appeared to move like lightning to the rest of the world–the very definition of Integrative Presence. His creativity, within these few precious seconds, was nothing less than pure genius. He was integrating the skills he had learned over the years, his desire to make the shot, and the flow of the moment.

It Is A Natural State of Mind

As I have experienced and studied athletes in the zone or integrative presence. I have found that this state of mind, though not often reached, is a natural way of living. It seems we have lost touch with true presence overtime. Ironically, the art of getting into this state of mind is letting go of what we think we know. As you let go, this state of mind just takes over. You don’t need to train yourself to experience Integrative Presence, you merely need to “let go.” This state takes over your consciousness and supercharges your performance because it is in our nature to live this way.

Sports create highly charged environments. They are designed to bring out the best in people. But can this state be achieved outside this arena? Certainly, if these states of mind that seem to create super human results can be created in one area of life, they should be able to be created in others. While the environment is particularly right for this kind of performance in sports, it is not beyond or separate from this “real world” we all operate within.

The Present Is The Only Portal To The Future?

You might ask, “If you are in the present, “How do you create the future?” Here is my answer. Imagine the world is a dance floor and the rhythm and flow of the band is “The Life Force,” which infuses everything. The multidimensional flow of the band seems irresistible to some, yet others stand against the wall not knowing how to jump in, and many are not even aware of the dance. They have heard people talk about it, but can’t seem to hear or feel the flow of the music. Those who feel it deeply dance like gods and goddesses in the middle of the floor creating a vortex of energy and motion that draws new dancers into their circle.

The band, which represents “The Life Force,” naturally lures people onto the floor to dance in a rhythm and harmony that seems to come from outside them. Of those out on the floor, many dance out of rhythm most of the time, but have moments of grace. Others have a routine that they have worked out over the years which works for them, but only captures a small part of the rhythm. Some have a routine and experiment momentarily with new movements, but mostly go back to what they know. Those who feel the music deeply dance adding rhythms and counter rhythms and seem to be an extension of “The Life Force” that passes through the band.

Without knowing, many start to follow the waves of energy coming from the leaders and the overall quality of the dance improves. At some point in time, magic occurs. The beauty and energy of the lead dancers is so compelling that the band itself is drawn into the dance creating new rhythms and flows as the Life Force, the band, and the dancers join and create new realities.

Start With The Present Moment

“The Life Force” creates Life and Life influences “The Life Force,” just as the band creates the rhythm and flow and changes, because the lead dancers’ energy becomes dancingpart of the rhythm and flow. The only way to create the future is to engage, like the dancers, with the rhythm and flow of the present; and by doing so you become a co-creator. It is not about wishing and hoping as the popular book “The Secret” would suggest. The various rhythms and flows of business markets are subsets of the rhythm and flow of “The Life Force,” which animates everything. Both can be influenced in the manner just described. Great leaders have discovered and mastered this secret.

There Is No Substitute For Practice

The flow of market wants and needs is like the complex themes, harmonies, and rhythms in music. Your team must spend lots of time dancing with those rhythms to know how to influence the flow of the dance. Your team, products and services must dance first with the rhythm and flow of the present, then lead. There is no substitute for this kind of presence in your target market, and like dancing to a good band, or being in “The Zone” in sports, it is a blast! The energies of the market will feed you and your creativity will lead the flow of the market.

Your inner compass lets you know the difference between your thoughts about the flow of cause and effect, and the actual flow. We have to practice to know the difference between the feelings that come from our thoughts and ego and our natural wisdom. Knowing how to access our natural wisdom is the inner compass. Having this compass helps us walk with the wind of “The Life Force” at our backs and in our hearts.

Your Inner Compass & Hiringgear people

According to Dana Borowka, CEO of Lighthouse Consulting Services, LLC (www.lighthouseconsulting.com) and author of new book, Cracking the Business Code, creating a foundation for strong leadership requires the right people. Hiring the right people is key to future growth. If you would like additional information on hiring, please click here to see an article on this subject.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2014 

Paul David Walker is a Senior LCS Consultant and one of the few CEO coaches who has worked with numerous Fortune 500 CEOs and their key staff members for over 25 years along with many mid-cap organizations. Some of the organizations that Paul has worked with include Star Kist Foods, Von’s Grocery Stores, New York Life, Anne Klein, Rockwell International countless manufacturing, global utilities, service and consulting organizations. Paul is the founder of Genius Stone Partners, and works with domestic and international companies to improve their bottom line today and planning for the future. Paul is the author of the best selling book, Unleashing Genius and his new book, Invent Your Future – 7 Imperatives for a 21st Century. You can reach Paul at Paul@lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, 3130 Wilshire Blvd., Suite 550, Santa Monica, CA 90403, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development, team building, interpersonal & communication training, career guidance & transition, conflict management, 360s, workshops, and executive & employee coaching. Other areas of expertise: Executive on boarding for success, leadership training for the 21st century, exploring global options for expanding your business, sales and customer service training and operational productivity improvement.

To order the books, Cracking the Personality Code and Cracking the Business Code, please go to www.lighthouseconsulting.com.

Opportunities Could Be Standing Right In Front of You

By Dana Borowka, MA

[dropcaps type=”circle” color=”” background=””]I[/dropcaps]f this topic keeps you up at night, we have some ideas for you to consider and implement so your sailboatorganization will not only make it through the current state of business but will thrive well into the future! You’ll know by reading this article if your ship is heading towards the rocks, towards the open sea or on a clear course to your destination.

Think for a moment about the various components of a boat that are needed in order to keep it afloat and heading in the intended direction. Observe how they compare to your organization.

Components of a Vessel

Hull – Need to have a structure that can endure and thrive in the elements.
Fuel – The energy needed to move the vessel forward and towards its destination.
Crew – The crew will either make sure the ship reaches its destination in a timely manner or cause it to go off course or cause an incident that could result in loss of resources.

The Changing Environment

Water is the most unstable surface on our planet. No matter how much planning a business does a rogue wave can come along and cause havoc. This might be changes in the market, unhappy clients, distribution channels, technology, financial, etc. Preparation can only go so far yet if your organization has one key ingredient you’ll be able to survive and thrive beyond your wildest dreams.

Key Ingredient to Thrive

The answer always comes back to having the right crew on board. It all begins with the selection process, mentoring and staff development. If this is done correctly or you have the right people with potential for growth, you’ll not only make it through to 2013… you’ll also be ready to ride the wave of 2014 and beyond! Let’s take a look at how this works.

By having the right crew on board, you’ll have:

  1. Contributors – That will help the ship reach its course through innovation, ingenuity, timely fulfillment of tasks, follow through, etc.
  2. Happy customers – They’ll keep coming back due to the outstanding service and quality of the product.
  3. Happy employees – They’ll go the extra mile for the organization and its customers. This also leads to positive word of mouth that can attract top talent.
  4. Open Minded Culture – Problem solving is the key to anticipate needs, deal with weather changes, being open to adapting to the environment.
  5. Profitability – You’ll meet your organization’s goal and objective where everyone is rewarded for doing a great job and your organization will be able to continue to provide services and products with the opportunity to visit other destinations in the future.

ocean waveAn organization can build a sturdy ship but without the right people behind the scenes it won’t leave port. All this starts with the captain of the ship and with its officers. If they select the correct crew up front, they know the job will get done correctly, in a timely manner and the work can be trusted. Can you trust that your crew will do their job not only correctly and in timely manner? Do they also contribute ideas for further improvement so you can get the maximum value from each individual?

If the answer is “I’m not sure” then your answer may be reflective of the future survival of your vessel. Every organization must have all hands on deck with crew members that are excited and grateful to be aboard and have the ability to perform the best they can.

A Whale of a Tale for Teamwork

A manager once had an outstanding team but always told everyone what to do. This person didn’t listen, didn’t ask questions, demanded a higher level of volume without asking if the organization could handle it and created a closed environment. Over time things started to slip through the cracks, customers were not getting the attention they needed, sales slipped, people started to leave and the organization began to develop a bad reputation where recruitment became a problem. Upper management stepped in and started to ask the team members for their feedback. It turned out that the manager was not a good fit for that position and was transitioned into another department. When the new manager was selected, it was based not only on experience but also the ability to work with others. They learned that it is vital to understand a person’s work style and how they interact with others in order to have a high performing team. If just one person isn’t “playing well in the sandbox” the effects can ruin a brand and effect sales and future growth of an organization.

A Checklist for Success

  1. When selecting the crew – have a clear understanding of the ideal crew member and have a system and process to assure you have selected the correct crew members. This can be done through interviewing and asking questions for specific examples and compare those answers to what an ideal crew member would do. Gather as much data as possible from reference and background checks as well as provide an in-depth work style and personality assessment with Lighthouse Consulting Services. The information should be used to validate the interview responses, background and reference checks.
  2. Ask each current crew member for feedback on where they see the team and themselves could be more efficient in the market place within the next 30-60-90 days. This means that everyone on your ship needs to have their eyes and ears open to seeing where it might be possible to improve and enhance processes, structure, services, customer service, etc.
  3. Captains and officers need to listen to everyone and create a truly open environment. Come up with three things that you can do that will make that happen.
  4. Define what the ideal crew member would possess in skills, work style and personality and make it measurable.
  5. Assist the current crew to fulfill that role. Make sure you have an in-depth work style and personality assessment of your crew members so you’ll have the insight to help man on lighthouse with boatseveryone thrive and to get the best performance from every member of the team. You’ll want to know how someone problem-solves, deals with stress, makes decisions, processes information, creates and follows up on leads, etc. This will help to ensure that you have the right person in the correct position so they can perform to the best of their ability. Contact us at reception@lighthouseconsulting.com to get started.

If you have the right team in place, your organization will be able to deal with the many challenges that will come along during the voyage. The key is to hire right the first time and to assist those on board to be the best that they can be. This will lead to happy customers, happy employees, innovation for the future, efficiency for delivery of the product or service and of course, a profitable bottom line.

You can gather additional ideas for working with your current and future crew members by reading Cracking The Personality Code. To order this book, go to: www.lighthouseconsulting.com.

Permission is needed from Lighthouse Consulting Services, LLC to reproduce any portion provided in this article. © 2014

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your organization”. They do this through the use of in-depth work style assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. They also have a full service consulting division that provides domestic and international interpersonal coaching, executive onboarding, leadership training, global options for expanding your business, sales and customer service training, operational productivity improvement, 360s and employee surveys as well as a variety of workshops. Dana has over 25 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He provides workshops on hiring, managing for the future, and techniques to improve interpersonal communications that have a proven ROI. He is the co-author of the books, “Cracking the Personality Code” and “Cracking the Business Code”. To order the books, please visit www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, 3130 Wilshire Blvd., Suite 550, Santa Monica, CA 90403, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development, team building, interpersonal & communication training, career guidance & transition, conflict management, 360s, workshops, and executive & employee coaching. Other areas of expertise: Executive on boarding for success, leadership training for the 21st century, exploring global options for expanding your business, sales and customer service training and operational productivity improvement.