Don’t Just Do Something: Sit There! by Urs Koenig, PhD, MBA of Redpoint Coaching

by Urs Koenig, PhD,  MBA , Redpoint Coaching

One of the default responses many of my clients, colleagues, friends and indeed family members give when asked how they are doing is “Very busy!” “Super busy”, “Totally slammed”.  More often than not I suspect it is a boast packaged as a complaint. And I often catch myself giving the implied congratulations response: “Well, better than the opposite.”

I love what Tim Kreider, NYT blogger, has to say about our addiction to busyness:

“Almost everyone I know is busy. They feel anxious and guilty when they aren’t either working or doing something to promote their work. They’re busy because of their own ambition or drive or anxiety, because they’re addicted to busyness and dread what they might have to face in its absence. Busyness serves as a kind of existential reassurance, a hedge against emptiness; obviously your life cannot possibly be silly or trivial or meaningless if you are so busy, completely booked, in demand every hour of the day.”

When I read the above it reminded me of what I sometimes tell my clients: Everyone is busy but not everyone achieves results. It sounds counterintuitive but just ‘sitting there’ is often a necessary prerequisite to achieving great results. There is a reason why we need to have off-site retreats to think strategically: we need to get away from the busyness to think about the important questions.

Again Tim Kreider: “Idleness is not just a vacation, an indulgence or a vice; it is as indispensable to the brain as vitamin D is to the body (…)The space and quiet that idleness provides is a necessary condition for standing back from life and seeing it whole, for making unexpected connections it is (…), paradoxically, necessary to getting any work done.”

It is, in my mind, no coincidence that many of the greatest thinkers like Albert Einstein, Thomas Edison, C.G. Jung and the Dalai Lama spent ( in the case of the Dalai Lama are still spending) many hours alone in quiet meditation…just sitting there.

I am someone who used to keep himself notoriously busy and overcommitted (and no, I am not cured but I am making good progress J!). I have on countless occasions experienced the adrenaline rush of being constantly busy and in demand. It is addictive, no doubt!

What is helping me to combat the addictive need to be busy but rather to focus on what is really important? Here are four things

1. Awareness about what unfulfilled need I fulfill with my busyness.

I have to admit that at times my busyness helps me to not face what I should be facing. It’s often easier to plow rather mindlessly through the to do list rather than stepping back and asking the big, hard questions.

Busyness also provides comfort. The emptiness we face when we ‘just sit there’ can be a scary place. It’s just me facing me and….nothing…pretty scary uh?

Building awareness around what need you are fulfilling by being constantly busy will help you take steps to let go.

2.Regular (2-5x/week) meditation practice

Over the course of the last three years I have started to mediate regularly. There are dozens of studies demonstrating the physical, emotional and mental benefits of a regular meditative practice. And I can attest from my own experience: it is one of the purest ways of ‘just sitting there’.

3. Monthly retreat with self (pen and a note book only)

I take regular time by myself over a coffee or yes, a drink, in a comfortable place, armed only with an old fashioned pen and note book but by design without any wireless connections that would distract me from asking the big question: Am I spending my time and energy with the people and projects that are most important to me?  If no, what changes will I make?

4. Most of us keep To Do lists. However, instead of focusing on what “to do”, my “Stop Doing” List encourages me to think of activities I should not do anymore, things that I am doing out of habit, a (false) sense of obligation, and that are not really moving me to where I want to be.

Re-visit my stop doing list  for some pointers on how to accomplish this.

How Better Leaders Make for a Better World, By Urs Koenig PhD, MBA

Here is a bold claim for you:

I strongly believe that the world would be a better place if each leader would go through Redpoint’s stakeholder based coaching process (originally designed by Marshall Goldsmith).

Let me explain: Imagine every politician from Obama down, every corporate CEO from Messrs. Balmer and Branson down, every small business owner, community leader, doctor and teacher asking their direct reports, peers, clients, patients and students these two simple questions:

  1. What am I doing well?
  2. What do I need to improve?

And then picking one, and only one thing, to get better at, sharing this goal with these same people, asking for regular feedback (say every month) on their progress. After reflecting on this feedback ,the leaders then work towards changing their behavior. Then, after six and 12 months, asking each of the same people to anonymously assess their progress.

Sounds simple enough doesn’t it?  Why aren’t more people doing this? In fact, why isn’t everyone doing this? Here are the top two reasons we find (and no, it’s not really the lack of money or time, it almost never is!):

  1. Leaders think they are already excellent and don’t believe they need to get better. They are notoriously overconfident and sometime even arrogant.
  2. Leaders are afraid to openly admit that they want and need to improve and are leery of the feedback they might get. They are afraid of the truth.

And that in my humble opinion is part of the reason why so many organizations and companies are in such a sorry state.

I believe that if we had only leaders who have (1) the humility to admit that they are not perfect and want and need to improve,  (2) had the guts and healthy self esteem to do so publicly to their teams and (3) the follow through to ask for regular feedback months after months, we would have better governments, better businesses and better organizations. In short: a better world. Hence: Better Leaders, Better World!

Now I am the first one to admit that what I am proposing here is not realistic. And yes, we would have some capacity issues at Redpoint :). In the meantime however, we are chipping away at making the world a better place one leadership coaching client at a time.

Here is what some of our current clients are working on:

  • Delegate more effectively
  • Treat others with respect
  • Become a better coach and mentor
  • Hold others accountable
  • Utilize emotions effectively/not use anger as a management tool
  • Listen to different points of view with an open mind before giving my opinion
  • Address conflict in a constructive and timely manner

And here is what I personally am working on this year:

  • Improve my ability to prioritize and to say ‘No’

What is it you want and need to improve this year to make you a stronger leader and ultimately make the world a better place? Better yet, what would your co-workers say is the one improvement you should make that would have the greatest impact on your organization’s health?

Give me a call (206.372.8626) or shoot me an email at urs@redpointcoaching.com and let’s chat!

How To Make Better Decisions: Avoid The Hidden Traps! by Urs Koenig, Redpoint Succession and Leadership Coaching

Making decisions is the most important job of business owners and executives. It is also the toughest and the riskiest. Bad decisions can ruin your business or career.

So where do bad decisions come from?

In many cases they can be traced back to a flawed decision-making process – the alternatives were not clearly defined or the right information was not collected. However, more often than not, the fault lies not in the decision-making process but rather in our mind. The way the human brain works can sabotage decision-making.

Over the course of this and the next edition of ChangeAbility, I will examine four, well-documented psychological traps and tell you what you can do about them in order to make better decisions. These four traps are:

  • The Anchoring Trap
  • The Status Quo Trap
  • The Sunk Cost Trap
  • The Confirming Evidence Trap

The Anchoring Trap

How would you answer these two questions?

  • Is the population of Turkey greater than 35 million?
  • What is your best estimate of Turkey’s population?

If you are like most people, the figure of 35 million cited in the first question influenced your answer to the second question. Studies show that if you use, for example, “100 million” in the first question, the answer to the second question increases by many millions.

This simple test illustrates the common mental phenomena of anchoring: When considering a decision, the mind gives disproportional weight to the first information it receives. Initial impressions, estimates, or data anchor subsequent thoughts and judgments.

Because anchors can establish the terms on which a decision will be made, they are often used by savvy negotiators. The first offer in any negotiation will serve as an anchor. Therefore, it is important to really understand your position before any negotiation in order to avoid being anchored by the other party’s initial offer.

 What Can You Do About the Anchoring Trap?

No one can avoid the influence of anchors. They are too wide spread. However, by being aware of the dangers of anchors and using the following techniques, you can reduce their impact:

Think about the problem on your own before consulting others to avoid becoming anchored by their ideas. When consulting others, seek information and opinions from a wide variety of people.

Be careful to avoid anchoring advisors, consultants and others from whom you solicit counsel. Tell them as little as possible about your own ideas or tentative decisions. If you reveal too much, you might simply anchor their thinking.

Think through your position before any negotiation begins in order to avoid being anchored by the other party’s initial proposal. At the same time, use anchors to your own advantage. If you are a seller, for example, suggest a high but defendable price as a first offer.

The Status Quo Trap

When faced with a decision, we all display a strong bias towards the status quo. The source of the status-quo trap lies deep within our psyches, in our desire to protect our egos from damage. Breaking from the status quo means taking action. When we take action, we take responsibility; thus we open ourselves to criticism and regret.

Many experiments have shown the magnetic attraction of the status quo. In one, a group of people were randomly given one of two gifts of the same value: half received a mug, the other a Swiss chocolate bar. They were told they could easily exchange the gift they had received for the other. While you might expect that about half would have wanted to make the exchange, only one in ten actually did. The status quo exerted its power even though it had been arbitrarily established only minutes before.

In business, where the sins of doing something tend to be punished much more severely than the sins of doing nothing, the status quo holds a particularly strong attraction. In merger situations, for example, the acquiring company often fails to take swift action to impose a new, more appropriate management structure early on. “Let’s not rock the boat; let’s wait until things stabilize,” goes the reasoning. However, as time goes on, the existing structure becomes more entrenched and changing the structure becomes harder, not easier. The acquiring company has fallen into the Status-Quo Trap.

What Can You Do About the Status Quo Trap?

Remember that in any given decision, maintaining the status quo may indeed be the best choice, but you do not want to choose it just because it is comfortable. Once you are aware of the status quo trap, you can use the following techniques to mitigate its influence:

  • Ask yourself whether you would choose the status-quo alternative if, in fact, it weren’t the status quo.
  • Always remind yourself of your objectives and examine how they are served by the status quo. You might find that elements of the status quo are detrimental and prevent you from achieving your goals.
  • If you have several alternatives that are superior to the status-quo, don’t default to the status-quo simply because you’re having a hard time picking the best alternative. Force yourself to choose.

Your Take-Away:

When facing major decisions in your business or life, be sure to use the above techniques to avoid falling into the Anchoring Trap and the Status-Quo Trap. In the next ChangeAbility, I will discuss the Sunk Cost Trap and the Confirming Evidence Trap.

This article is based on: “Hammond, Ralph & Raiffa: The Hidden Traps in Decision Making,” Harvard Business Review, January 2006.

Hiring A Executive Coach? 3 Questions to Ask Yourself (and Your Prospective Coach) First

By Urs Koenig, PhD, MBA, Principal, Redpoint Succession and Leadership Coaching

If you (1) are a coach, (2) have worked with a coach or (3) are hiring a coach (for yourself or others) ask yourself these three questions (discussed in more detail below):

  1. What does success look like and who gets to decide?
  2. What are you paying for (or, if you are the coach, what are you getting paid for)?
  3. What is the process?

(Note, I believe that a lot of what I discuss here also applies to hiring and working with other consultants, not just coaches)

Let’s talk about what most coaching looks like today and what we believe it should look like. Consider the below two scenarios and ask yourself:

  • Which scenario is closer to my experience of coaching?
  • Which scenario is preferable and why?

Scenario I: A senior manager just finished his eight month $35k coaching engagement with a well known executive coach. Although the manager’s boss and the Vice President of Human Resources had a good idea what the manager was working on (he needed to be more assertive and build stronger relationship across departments) they did not participate in the actual coaching process. The coaching was a somewhat mysterious process as it happened behind closed doors. Even some of the coaching client’s close working colleagues did not know that he was working with a leadership coach. Over the duration of the engagement, there were two progress meetings during which the client and the coach reported their progress to his boss and the HR VP. At the end of the engagement, the coach submitted a report in which he outlined how the client progressed during the engagement. He presented primarily self-reported anecdotal evidence. The report included a (positive) self assessment by the client. The coach believed he had earned his $35k fee because he spent a lot of time with the client and strongly felt that the client got better.

Scenario II: A senior manager just finished his eight month $35k coaching engagement with a well known executive coach. The client involved her stakeholders (peers, direct reports, and bosses) from the very start in the coaching process. The client developed her coaching goals (she needed to be more assertive and build stronger relationship across departments) in collaboration her stakeholders and regularly solicited feedback on her progress from them. Halfway through and at the end of the engagement stakeholders rated the client on her progress against her coaching goals in an anonymous online survey online survey. The results of the first online survey were less than stellar and forced the client and her coach to make some changes. The second and final online stakeholder survey showed a significant improvement of the client’s targeted leadership behaviors. The coach collected his $35k fee because (and only because) he facilitated a process by which helped the client get better, as assessed by the client’s 3rd party stakeholders.

Again, ask yourself:

  • Which scenario is closer to my experience of coaching?
  • Which scenario is preferable and why?

A lot of coaching in small business and corporate America is significantly closer to Scenario I than to Scenario II (I know because I have practiced it myself…). For those of you even vaguely familiar with our leadership coaching approach, it will come as no surprise that Lauren and I are strong proponents for moving coaching towards Scenario II.

Let me explain.

I have been coaching for more than 10 years and looking back over this period I am amazed how much the field of coaching and my practice has changed.

I started my coaching as a career coach, quickly transitioned into small business/entrepreneurial coaching and finally ended up finding my calling in leadership (executive) coaching.

I have worked with many wonderful clients (100+ of them) and I believe I have done a lot of good work and, on occasion, some great work. However, I often had the nagging feeling of uneasiness around the measurable impact of my coaching. Yes, the clients felt happy and gave me positive feedback. I did feel they were (for the most part) making good process and got things done they would not have done without our work together. Nevertheless: my outcome driven personality was not satisfied. Questions would linger: How did I really know if I made a difference? Who should be the judge? Did the results achieved justify my fee?

At about the same time I was pondering these questions, Lauren and I were certified in a methodology called Stakeholder Centered Coaching pioneered by executive coaching legend Marshall Goldsmith. In essence, the coach first identifies the client’s key stakeholders (peers, direct reports, and bosses.) Stakeholders are critical to the process as they are people best in a position to: 1) identify the client’s existing leadership shortcomings, 2) give specific and immediate suggestions for ways to improve and 3) assess progress towards desired change. The stakeholders, in essence, are turned into collaborative partners in the coaching process. (Scenario II describes a Stakeholder Centered Coaching engagement, which is the approach Lauren and I now use in our engagements.)

The result? A quantifiable assessment that is hard to “game” by either the coach or the client. (Another side benefit to the Stakeholder Centered approach is that it tends to greatly improve the quality of conversations across the organization, but that’s the subject of another article!)

Coaching represents a big investment in time, money and effort for the client and your organization. Make sure you get a fair return on your investment by asking the questions below before you hire a coach. Does their process look more like Scenario I or II? Does it provide good answers to each of the questions below?

1. What does success look like and who gets to decide?

    • How does the coach define success for the coaching engagement? What about the client? The boss? HR? How is failure defined?
    • How will progress be measured, along the way, and at the end? Is it quantifiable?
    • Who reports progress/results? Is it self-reported (client, coach) or by third parties (e.g. anonymous surveys, stakeholders)

2. What are you paying for (or, if you are the coach, what are you getting paid for)?

    • Are you paying for process/activities (e.g. billable hours spent) or measurable results?
    • Are you having to pay the coaching (consulting) fee no matter what the outcome of the engagement or is the coach’s fee at least partly dependant on the success of the engagement?

3. What is the process?

    • Is the coach able to clearly articulate the process (note: coaching is not (anymore) simply a series of conversations)?
    • Does the coaching only happen in private, behind closed doors, or is the process attempting at building leverage across the organization (e.g. by including various stakeholders)?
    • Is the coaching engagement clearly scoped? Does everyone agree what is being worked on and what is not being worked on? How do you prevent scope creep?
For a detail description of our coaching process, visit our website at Redpoint Coaching.

Effective Managers Say the Same Thing Twice (or More) by Urs Koenig, MBA, PhD, Principal, Redpoint Succession and Leadership Coaching

by Urs Koenig, MBA, PhD, Principal, Redpoint Succession and Leadership Coaching

“If you want something done you need to say it 150 times, seven different ways.”

I must have said this so many times (maybe 150 times) that some of my clients have quoted me back.

I am proud to announce that empirical research (quoted in the 2011 May issue of the Harvard Business Review) is now backing my statement:

”A team lead by Professor Tsedal Neeley (from Harvard) and Professor Paul Leonardi (from Northwestern University) shadowed 13 managers in six companies for more than 250 hours, recording every communication the managers sent and received. The research discovered that one of every seven communication by the mangers was completely redundant with a previous communication using a different technology. They also saw that the managers who were deliberately redundant moved their projects forward faster and more smoothly.”

When the researchers asked the managers if they were surprised about their redundant communication the reaction was this: “Seriously, you think this is interesting? This is how it works. Of course I follow up with yet another message.”

Two key take-aways from this research for you:

  • If you want something done, plan deliberately to communicate the same message several times using different techniques such as instant communication (face to face meetings, calls, Instant messaging) or delayed communication (emails, voice mails).
  • The most powerful way to move the needle on a project or a task is to start with an instant communication (preferable a face-to-face meeting, second best a call) and then follow up with a delayed message (such as an email). The instant communication ensures motivation and buy-in. But the follow up via email is to remind people of their commitments so that it does not fall off the radar screen.
  • Do not use email first (delayed message) and then follow up with a face to face (instant).
For more leadership tips and resources, visit www.redpointcoaching.com.

Leadership 101: Get These Basics Right!

by Urs Koenig, Phd, MBA, Redpoint Succession and Leadership Coaching

Lauren and I absolutely love supporting our clients in getting better. If we could have it our way, our clients would work on their leadership skills all day, every day. Thing is, they have some other things to get done…

Within those resource constraints the question for us is always: which leadership skills, if applied correctly, will make the biggest difference for our clients? Which 20% of behavioral changes will get our clients 80% of the results?

Here are the three basic leadership skills we believe will get you a long way towards the famous 80% of the 80/20 rule:

  1. Valuing being respected more than liked
  2. Transition from ‘Doing’ to ‘Leading’
  3. Owning and managing your own development

Valuing being respected more than being liked

One of my early bosses once told me: “Look Urs, my goal is for you to respect and like me. However, if I can only have one, I take the former.” Because I probably sometimes care more about what other people think about me than I should, this comment has really stuck with me.

To varying levels, we all have the need to be liked. Some of us need less external gratification, others need more. It’s important to understand your ‘default mode’:

  • Are you someone who tends to sacrifice business results in order to preserve a relationship?,  or
  • Do you tend to value business outcomes over the relationship?

Where do you sit on this continuum?

In our experience most leaders fall into the first category: they are leaders who have a strong need to be liked. This becomes a problem when you are fulfilling your need to be liked by comprising sound business decisions. In doing so, you might get a short term ‘like boost’ but in our experience, the same people whom you were trying to please might actually lose respect for you in the long run.

As a true leader:

  • You make the best decision for the organization;
  • You sit down with your people, look them in the eye and explain the business reason for making the hard decision; and
  • You show compassion for those negatively affected by your decision by listening, (really listening!) to their concerns and acknowledging them (including the accompanying feelings).

Transition from ‘Doing’ to ‘Leading’

For many bosses, but especially for founders, it is very comforting to be involved in the ‘doing’ of the day to day of the business. Some leaders I have worked with may be ok to let go of running the operations side of the business but find it very challenging to transition the deep and rich customer relationships they have built over the years.

No matter if it is operations or customer relationships: If you want to grow your business and scale it, you need to transition from doing to leading.

What do I mean by leading?

  • Setting goals for (and with) your people;
  • Getting out of their way so they can do the work they need to do; and
  • Holding them accountable for their results.

Setting goals for (and with) your people

Much has been written about good goal setting. Here is just one piece of advice in order to gain staff buy-in for goals:

  • Have your staff give input on your overall goals for the organization. Don’t just develop them by yourself in your corner office, then present them to staff and expect them to be jazzed about it. Really involve your staff in the development of company goals. Having said that, also be clear that you really want their input but that you will have the final say on what the final goals will be.
  • Once your organizational goals are defined ask your staff: What do you or your team need to achieve in order to get us there? Have them develop their own goals. Make yourself available to provide input and coaching. Having your staff develop their own goals will go miles towards buy-in.
  • Finalize all goals and publish them across the organization. Have everyone know what everyone else is working on. There is no better accountability tool! (Include progress towards the main goals in your staff meetings to help accountability, speed progress, and identify and solve obstacles.)

Get out of the way

Offer your insights, coaching, and resources along the way but don’t give into your urge to jump back in and get your hands dirty. Remember, micromanagement does not scale!

Don’t be afraid to defer to your team member when you get approached by a customer who wants you to personally take care of them. You need to develop your own wording but something along these lines might be a start: “Thanks Jeff for reaching out to me and thank you for doing business with us. Let me put you in touch with my team member, Sherry. She is very knowledgably in the area of xyz and will be a great resource for you.”

It is even better if you have previously brought your key team members along with you to meetings with clients, mentored their client development and relationship skills, and allowed them to develop their own relationships with clients along the way.

Use your co-workers or a coach as an accountability tool to avoid slipping back into old ‘Doing’ habits.

Holding them accountable for their results

One of the most powerful ways to start an accountability discussion is to have your staff self-assess their performance vis-à-vis the goals. If you have hired the right person she will be doing a lot of the work for you. Be sure to celebrate and acknowledge wins (“Lauren, this is a job really well done because of x, y z”) and don’t hesitate to be equally direct where you need to see improvements: “Urs, you know I really value your hard work and this simply is not good enough. In particular I need you to improve x, y, z”). Moving from Doing to Leading can be a very difficult transition to make. You need to redefine your role in the organization and change how you define your success.  A good day is no longer about how much YOU did but about what your TEAM achieved. 

Owning and managing your own leadership development

Hint: no one else will own and manage your leadership development if you won’t, so here is where micro management can work well for you.J

To kick the process off, here are some questions to ask yourself:

  • When was the last time you invited the people you work for and with to give you their honest feedback on how you are doing as a leader? What is holding you back from doing it in 2011? What are you afraid to hear?

How clear are you about the leadership skills needed to take your organization to the next level? Do you have them? If not, do you have the potential to acquire them? If yes, how will you go about it? (see below)

  • How much formal and informal work on your leadership skills have you done in 2010? What are you planning to do in 2011? (This may include: formal training, consciously taking on new stretch assignments on the job, coaching, mentoring, and participating in a peer group).

Reflect on your answers to the above questions and then answer the following simple question:

What one thing are you willing to commit to in 2011 to become a more effective leader to help you get the basics right? 

We would love to read your response to this question. Send us a 10 pager or a one liner to: changeability@redpointcoaching.com. Your entry will go into the drawing for one Leadership style assessment valued at $100 and 5 Starbucks coffee cards. We will also publish all entries (anonymously, of course) over the course of the next few ChangeAbility ezines.

Develop Trust and Devote Quality Time: Two Ingrediants of Great Leadership

I’ve recently conducted several 360 degree surveys for my Redpoint clients. A 360 degree survey provides feedback to a business owner in the form of an anonymous performance assessment by all the people (subordinates, colleagues, managers, clients, suppliers) who surround that person (hence “360 degree”).

In the case of my clients, the owners and CEOs typically want to receive feedback on their leadership skills from their staff. During the process, we define the criteria they want to use for the assessment, and then I draft a questionnaire, survey the staff, and compile and present the results.

Now, if you think this is an intimidating exercise, you are not alone! Because of the anonymous nature of the exercise, staff members are often brutally honest and are not reluctant to reveal their views. In each case, my clients have taken on the challenge bravely, knowing that this candid assessment is a critical first step towards their own improvement.

Back comes great feedback about their performances as “the boss.” They are perceived as exceptional at interacting with clients, great at getting business results and strong communicators. The two critical areas of improvement I continually observe are:

  • Lack of quality time spent with staff; and
  • Lack of trust

Critical area #1: You need to spend more quality time with your staff

Lots of owners of growing companies experience this: heavy workloads prevent you from spending time with the very people you rely on to get the job done, and who look to you for direction, mentorship and reward. Your busy schedule therefore leads to ‘seagull’ management: you stop in quickly and drop a ton of information, directions and sometimes criticism on your staff before you quickly take off again.

It came back loud and clear from my clients’ feedback: you need to take the time to talk to people substantively, ask them how things are really going, and really listen to their answers. It is not necessarily the quantity, but quality of time and interaction that counts.

Staff members who have been heard and feel that their feedback and suggestions have been taken on board are always more engaged workers. And engaged workers are almost always better performers.

Ask yourself: Over the last week, how many people in my business have I asked how things are going? How many people have I thanked for a job well done? Remember: praise in public, criticize in private. And, of course: when you are wrong (and you are and will be :-), apologize.

Critical area #2: Lack of trust: “We sometimes feel you do not trust us. It always has to go your way”

I am sure this sounds at least somewhat familiar to most business owners. After all, this is your baby, you have grown it and you know best what it needs. Trusting someone else to take over and perform tasks you have owned for so long is incredibly difficult.

In fact, the reason why people start businesses in the first place is that they believe they can perform a particular task better than anyone else (or at least better than their current or past employer). This strong belief in one’s abilities is one of the great strengths of the entrepreneur. Yet we know this strength can also become your biggest liability: the reality is that if you want to build a company, you have to trust people to help run it for you.

Trust sounds like a challenging concept to actively develop, but Carl Robinson, a Seattle based psychologist and executive coach, offers some helpful insights in his discussion of trust that appeared in an article in the Journal of Managerial Psychology (2004):

Motive-Based Trust is what most people think about when they think of trust. It is based on the belief that another’s values, goals and beliefs are closely aligned with yours.

Competency-Based Trust is based on your belief that your employees have the capabilities to get the job done.

So how then can we learn to develop these forms of trust?

How To Develop Competency-Based Trust

  • Assess Your Hiring: Do you have the right people in place to get the job done? Do they either have the necessary capabilities or are they willing and able to learn them? If yes, read on. If no, you need to consider making some staff replacements.
  • Take time to observe your people in action. Give them goals and let them come up with their own methodologies. Resist the huge temptation to jump in with solutions and advice-giving. If, after a while, you do not like what you see, go back to assessing your hiring practices or start providing more training.
  • Look for outside support. Hire a coach or consultant and/or establish a board you can lean on to help assess candidates. For more info on the benefits and how-to’s of establishing a board see: http://www.redpointcoaching.com/resources/documents/Oct03.pdf .

How to Develop Motive-Based Trust

While developing competency-based trust is relatively straightforward, motive-based trust tends to develop only once competency-based trust is established; motive-based trust is, therefore, harder to assess. Because this is a more intangible area, lots of entrepreneurs rely on their instincts. Remember, though, that you have great tools to align motives:

Remunerate staff based on their performance (e.g. a commission pay structure for your sales staff or a profit sharing pay scheme).

  • Provide key staff members with equity in your business. Carl Robinson argues that in an imperfect world where trusting relationships sometimes have to develop quickly, distributing equity is a great way to establish tentative trust.

My experience with 360 degree surveys has shown me that spending quality time with your staff and developing competency- and motive-based trust makes all the difference between mediocre and great business owners.

Contact me if you would like more information on conducting a 360 degree in your organization.