Posts Tagged ‘communication skills for managers’

The Value Of You

Thursday, July 1st, 2010

The Value of You
We all like to see results. Whether it is in the work we do, our bank account, or other personal activities, results make us feel good.  The life of Warren Buffett is a great story about leadership that gets results.  He spent decades mastering the financial industry and understanding how to get results.  Regardless of how you feel about his approach, philosophy, or business style you cannot argue with the effectiveness and success he and his organization has had.  In 2008 Warren Buffets net worth was estimated at $62 billion dollars.  Those results were achieve by a lot of focus on the bottom line.

So how does Warren Buffett’s success apply to you?  In November 2009, Warren Buffett and Bill Gates participated in a Town Hall meeting at Columbia University.  During this event the following question was posed by a student:

Student Question: “Mr. Buffett, Mr. Gates, thank you for being here today.  My name is Justin, I’m a second-year MBA, as I get ready to graduate, I was wondering, what’s the one thing that your MBA didn’t prepare you for when you got out into the real world?”

Warren Buffett Response: “Well, I was — it prepared me very well, not the whole degree, but specific professors prepared me very well for what I wanted to go into.  I knew I was interested in investing, like I say, from the time I was six or seven years of age.  So I was lucky that I found what turned me on early on.  And I had these two marvelous professors here at Columbia that just being around — I had read all the stuff they had written.  So it wasn’t I was acquiring lots of incremental knowledge but I was getting inspired.  They were terrific for me.  They treated me like a son.  They would take me out to dinner.  Ben Graham did the same thing for me.  So it gave me confidence in myself.  It just propelled me into a field I already love with a terrific tailwind from these professors that believed in me. [APPLAUSE]  But let me add one point because — to the MBA situation.  Right now, I would pay $100,000 for 10% of the future earnings of any of you.  So anybody that wants to see me after this is over — [LAUGHTER] [APPLAUSE]  If that’s true, you are a million-dollar asset right now, right, if 10% of you is worth 100,000?  You could improve — many of you, and I certainly could have when I got out, just in terms of learning communication skills.  You know, it’s not something that is taught.  I actually went to a Dale Carnegie course later on in terms of public speaking.  But if you improve your value 50% by having better communication skills, that’s another $500,000 in terms of capital value.  See me after the class and I’ll pay you 150-thousand.”

Monetary Value of Learning and CommunicationArrows Pointing In - You xsmall
This matters because it illustrates the importance of learning and effective communication.   As individuals, it is important to develop ourselves.  Whether you get an industry trade degree, look at going through a mini MBA program, or complete a Masters Degree at Columbia University, ongoing development of yourself is important to you, your future success, and ultimately your net worth.  Investment in learning will pay huge dividends.  If good communication skills are worth an additional $50,000 to Warren Buffet, it’s worth far more to you individually.

Heavily Invested
Ask yourself this question.  What would an investor ask you at the annual shareholders of YOU meeting?   At a high level, you might hear questions such as:
- Do you understand what it takes for you (and your organization) to win today?
- Do you understand where and how we can increase profit margins?
- Are you cutting operational expense to increase profit margins?
- How can you create distance or differentiation from the competition?
- Is the organization focusing on what matters?

If you can answer those questions, you are doing great.  If not, look to refocus your efforts.  Educate or develop yourself to the point where you can answer them.  You are heavily invested in yourself so what do you want your future earnings look like?  Are you a million-dollar person?   It’s hard to argue against hard results.

5 Ways To Give Praise: Small Efforts With A Huge Return

Wednesday, April 1st, 2009

Not too long ago, a global insurance company surveyed thousands of its employees through an Employee Satisfaction Questionnaire, seeking feedback to improve what the senior executives identified as a “morale problem.” The results of the survey were enlightening, particularly the response to Question #6: What can your manager do to make this a better place to work? More than 89% of the employees answered, “Recognize me for a job well done.”

Praise, Patience, Management coachingOne of the most basic findings in psychology is that rewarding a specific behavior increases the likelihood of the behavior being repeated. Praise serves as an important reward and motivation for good work.

Praise strengthens the relationships a manager has with his or her direct reports. People want to know their manager cares about them enough to pay attention to what they are doing. They also want to know their contributions are genuinely appreciated.

Employees who frequently receive appropriate praise for positive contributions are often more receptive to corrective feedback. The best managers know that balancing appropriate praise and corrective feedback are critical to helping employees stay on track. When managers show they have their employees’ best interests at heart, employees are naturally more open to hearing how they can improve.

Dr. Gerald Graham, the RP Clinton Distinguished Professor of Management at Wichita State University, surveyed 1,500 employees from a wide variety of organizations and industries and reported the following participant responses:

  • 58% seldom if ever received praise from their manager
  • 76% seldom if ever received written thanks from their manager
  • 78% seldom if ever got a promotion based on performance
  • 81% seldom if ever received public praise
  • 92% seldom if ever participated in a meeting designed to build morale

This same study invited participants to rank, in order, 65 potential motivators – the top five are those listed above!

Most leaders agree that praise is important, that it leads to better morale, higher productivity, and builds a stronger relationship with employees. So if praise is so powerful, why don’t managers praise more often?

  • Despite good intentions, many managers have so much to accomplish that praise falls to the bottom of their to-do list
  • Managers focus on eliminating barriers to needed results and, therefore, focus solely on employees’ failure to meet standards
  • The tone of the management team is set from above – many managers report they never receive praise from their manager
  • They have not developed the habit of letting people know how much they are appreciated

Guidelines for Delivering Effective Praise

The following guidelines can help managers become more effective in offering genuine, appropriate praise:

1.  Be genuinely appreciative. Every person on your team is doing part of your job for you. While it is important to recognize the true home runs of performance, don’t forget those who plug along solidly every day are committed to doing a good job.

2.  Deliver praise from your heart. Your appreciation of their efforts must be evident in your facial expression, your tone of voice, and how you phrase your praise. You want your employees to know that the job they perform well is important to you, to your team, to your department, your organization.

3.  Deliver praise as soon as possible. Don’t wait until the quarterly (or annual!) formal performance management discussion to mention something an employee did months ago. By continually observing performance, you can offer timely expressions of acknowledgement and appreciation. Genuine praise helps people feel good about themselves and even more committed to doing a good job.

4.  Make praise specific by describing the exact behavior or skill along with your expression of appreciation. “Nice work, Jim” is much less motivating than describing specific examples of what was done. Specific praise assures employees that you are truly paying close attention to what they do and how they do it.

5.  Praise people publicly. Acknowledging people in public accomplishes two important things. The employees feel even better as they are recognized in front of their peers. In addition, public praise is one way of reminding other employees of what you want from them.

Praise is an effective tool to increase employee engagement and promote a positive work environment. It can take only seconds to deliver, yet the impact of consistent genuine, appropriate praise can be immediate and long-term.