Friday, June 9, 2017

Paul's Update Special 6/9




With an overload of conversation around the changing nature of work, it can be helpful to distill and understand how these changes will impact the work of HR in their work of attracting, engaging and retaining employees. Here are five ways your company culture is changing as a result of the transformation facing the world of work:

1. Going Global

As organizations seek to attract and engage employees across the world, leaders must understand a growing number of cultural perspectives, employment regulations, and best practices. 

2. Multigenerational Workforce

For the first time in the history of the modern workforce, five generations are working side-by-side toward shared goals. This shift in generational makeup of the workforce is changing expectations on HR as Generation X and Millennial employees are demanding more flexibility and meaningful work.

3. Flexibility

Along with increased demand for flexible schedules, employee expectations are also fluctuating. Work to understand the needs of your employees to continue to attract and engage top talent and to meet the needs of a changing workforce as we step boldly into the future.

4. Virtual Employees

Forrester Research estimates 43 percent of the workforce works remotely at least some of the time. There is some evidence to show that remote workers are happier, feel more valued, and feel more productive. 

5. Explosion of Technology

There’s no question technology is changing the world of work. As technology impacts every part of the way we work, automating some functions of work and supporting employee productivity, the importance of face-to-face and meaningful written communication remains a critical part of team building.  

Maritz offers a booklet to more deeply cover these points...“HR Leader’s Guide to the Future of Work.” 



Most new managers quickly see things they’d like to change. New leaders are advised to take some time to listen and appreciate what is, rather than make their own mark at the risk of appearing self-centered or authoritarian. But what should you do when the need for change is profound and urgent? How can you minimize resistance while honoring your fundamental duty?

There’s a difference between addressing bad behavior and changing bad norms. The first requires confronting the inappropriate meanderings of one or two individuals. The second is about resetting the norms of an entire group. Here are some suggestions for new managers who see the need for quick and fundamental change.

Is it me or is it them? First, get feedback from trusted sources to ensure your concerns are a matter of principle not of taste. 

Establish air cover. The big problem with bad norms is you don’t know how high and wide the acceptance runs. If, for example, your peer managers in this new location give tacit approval to personal indulgences during work hours, it’s much harder to establish new norms. It’ll be even harder if those above you have enabled the behavior. If that is the case, then you’ll need to have a conversation with peer managers and your boss before addressing your work group. Your goal in these conversations is to establish common cause — or at least active consent — with them. Don’t push faster than they’re willing to go. Let the data do the talking, and let them come to conclusions with you about what to do.

Make it public. Next, start a public dialogue in your group about the concerns. Bad norms are sustained by silence; no one discusses misbehavior when everyone is guilty. Then let the feedback marinade briefly. Don’t let it sit too long, or you’ll allow time for opposition to organize. Make reference to your alignment with those above and beside you, but only sparingly. If you overdo it, you look weak. If you under do it, you look vulnerable.

Focus on the future. So long as the issues don’t cross legal or HR lines, let the group know bygones are bygones. The past is irrelevant; the future is all that matters. But put them on notice that change must be immediate.

Watch for transgressions and prosecute calmly but decisively.

Don’t neglect accomplices. Confront those who were aware of the infraction but said nothing. You need to communicate not only your desire for new behavior but also your expectation that others will join you in encouraging the agreed-upon values. 

Stick to these principles and you’ll be able to lead through the change. Stick to your guns. It’s why you were selected to lead in the first place.




Organizations are spending hundreds of millions of dollars on employee engagement programs, yet their scores on engagement surveys remain abysmally low. How is that possible? 

When organizations make real gains, it’s because they’re thinking longer-term. They’re redesigning employee experience, creating a place where people want, not just need, to work each day. But what does that mean, and what does it look like?

After analyzing more than 250 diverse organizations, drawing on the Fortune 100 and various “best workplaces” lists, I found that over half the companies were rated poorly by their employees in at least one area, and 20% got very low scores across the board. Just 6% were investing heavily in all three important areas. Those three important areas are: cultural, technological, physical. 

When I interviewed business leaders at the top-scoring organizations, they told me their investments in the three employee experience environments had led not only to happier employees but also to larger talent pipelines and greater profitability and productivity.

Looking at the data, it’s clear that there is a significant return to organizations that focus on employee experience over the long term, not just engagement in the here and now.
Your organization might want to take a different approach altogether. The important thing is to shift your attention away from those fickle engagement numbers and focus on how people experience your organization day by day. This means moving away from putting people into outdated workplaces, and redesigning workplaces and practices around your employees.

Friday, June 2, 2017

Paul's Update 6/2



This week Mark Zuckerberg spoke to the latest class of Harvard graduates, offering advice about the future and inspiration to grow on. Among his ideas was the notion that universal basic income (UBI), a standard base “salary” for each member of society that can help meet our basic needs regardless of the work we do, is worth exploring.

While the successfulness of such initiatives can be analyzed several different ways, Zuckerberg emphasized to graduates the need for metrics that go deeper than standard economic measures — metrics that can help foster innovation.

“We should have a society that measures progress not just by economic metrics like GDP, but by how many of us have a role we find meaningful,” Zuckerberg told the Harvard graduates and their guests. “We should explore ideas like universal basic income to make sure everyone has a cushion to try new ideas.”

UBI pilot programs will hopefully show strengths and benefits of different strategies, and data from Alaska can suggest how such programs can survive the test of time. As pilot programs succeed — and early results seem to indicate that they will — expect more experts to endorse UBI.



Here are six commencement speeches with the takeaway you can use to become as inspired as a new graduate.

Will Ferrell admitted to students at the University of Southern California that he wasn’t confident when he was going after his dream of being an actor. “I would think to myself, ‘Oh well, I can always be a substitute schoolteacher,'” he said. “I was afraid.”

Ferrell later realized that fear is a natural part of growth. “You’re never not afraid. I’m still afraid. I was afraid to write this speech,” he joked.

Instead of being controlled by fears, do it anyway. “My fear of failure never approached in magnitude my fear of what if. What if I never tried at all?” he said.

“Never give up your dreams” is common advice for graduates, but Adam Grant, Wharton School management professor and coauthor of Option B: Facing Adversity, Building Resilience, and Finding Joy, told students at Utah State University that sometimes quitting is a virtue.

“Grit doesn’t mean ‘keep doing the thing that’s failing,'” he said. “It means, ‘Define your dreams broadly enough that you can find new ways to pursue them when your first and second plans fail.'”

It’s easy to get attached to big ideas and labels, like “Republican,” “Democrat,” “feminist,” or “engineer,” Stephanie Ruhle, anchor of MSNBC Live, told graduating students from Lehigh University. “We use these labels to find our tribes, get comfortable, and stick with them, and it is suffocating,” she said.

That’s because today’s world often promotes sameness. “We live surrounded by people who sound like us, vote like us, spend like us,” Ruhle said. “We get only the news we want to. And then scream into the social media echo chamber that is designed to serve us up information we already like.”

Instead, be willing to open your mind. “Just because something doesn’t confirm your existing beliefs does not mean it’s a hoax,” Ruhle said. “The smartest and most successful people I know are the people who are constantly evolving, always learning. It does not end with school. Seek out different perspectives. Maybe even change your mind.”

It’s natural to compare yourself to others, but it’s also dangerous, actress Octavia Spencer told the graduating class at Kent State University.

“Ignore the silly ’30-under-30′ list that the internet throws at you before you’ve even had your morning cup of coffee,” she said. “Those will be the bane of your existence post-graduation, trust me. Trust me. Comparing yourself to other’s success only slows you down from finding your own.”

As graduates head off to entry-level jobs, they’re likely to be the low person on the totem pole, but how you treat others as you rise in your career is important, said Dame Helen Mirren. The actress told the graduating class of Tulane University that one of her favorite life lessons was learned from another actress as they shared a ride in a car.

“She got her cigarettes out and before she lit up, she offered the driver one,” she said. “So simple, but, you know, thoughtful. To her, he wasn’t a ‘driver person,’ but a ‘person person’ who might want a smoke.”

Every single person, whether they have dominion over your life or not, deserves equal respect and generosity, Mirren said.

Howard Schultz said, “You can and you will make your mark on our country and our shared humanity. Dream big, and then dream bigger, a more innovative dream, a more inclusive dream.”



Today’s scarcest resource is your human capital, as measured by the time, talent and energy of your workforce. Time, whether measured by hours in a day or days in a career, is finite. Difference-making talent is also scarce. The average company considers only about 15% of its employees to be difference makers. Finding, developing, and retaining this talent is hard — so much so that the business press refers to a “war” for talent. Energy, too, is difficult to come by. Though intangible, it can be measured by the number of inspired employees in your workforce. Based on our research, inspired employees are three times more productive than dissatisfied employees, but they are rare. For most organizations, only one out of eight employees is inspired.

How can we manage human capital better?

Measure it. As the adage goes, you can’t manage what you can’t measure. A veritable alphabet soup (ROA, RONA, ROIC, ROCE, IRR, MVA, APV, and the like) exists to measure our financial capital. To measure human capital, you can deploy metrics such as our productive power index, which looks at the cost of organizational drag and the benefits of effective talent and energy management on your overall productive power. 

Invest human capital just like you invest financial capital. For financial capital, the business world has developed concepts such as the opportunity cost of capital, which is reflected in a company’s weighted average cost of capital. We measure the lifetime value of investments, and we establish hurdle rates before deploying a single dollar of capital. We run Monte Carlo simulations to evaluate various returns under uncertainty. For human capital, we need to start thinking about the opportunity cost of a lost hour. One way to do this is to measure the cost of meetings. My colleagues at Bain discovered that a weekly executive committee meeting at one company consumed 300,000 hours a year in support time from departments across the company. 

Monitor it. Teams of financial planning and analysis professionals measure actual and expected results for financial capital. Investment management committees evaluate new investments. Capital expenditure plans are subjected to detailed board reviews. We all must submit capital approval requests to release funds. Similarly, for human capital we should do periodic reviews of how much controllable organizational drag we have in our organization and what actions we are taking to compress it.

Recognize and reward good management of time, talent, and energy. Historically, successful investment of financial capital can make someone’s career. Variable compensation is often tied to some measure of economic value added. Even though most companies no longer offer lifetime employment, they should still find a way to create a lifetime of assignments for their difference-making talent and work hard every day to re-recruit them by creating a working environment that is inspiring and results oriented. 

Leaders should be measured and rewarded on their inspiration quotient. They should also be measured and rewarded for building a talent balance sheet: how many high-potential individuals they have recruited, developed, and retained, and what is the trade balance of talent — that is, the net imports of high-potential talent into their group minus exports. A company’s actual values, reads Netflix’s famous HR playbook, “are shown by who gets rewarded, promoted, or let go.”

Time is finite. Talent is scarce and worth fighting for. Energy can be created and destroyed. The sooner we act on these beliefs, the sooner we will get the return on human capital that we deserve.

Friday, May 26, 2017

Paul's Update Special 5/26



The latest round of quick automation and exponential change is being dubbed the Fourth Industrial Revolution. According to Tuff, though, that’s a misnomer—it sounds like something that’s happening to us, when really it’s something we need to shape and react to. The problem is that the pace of change is so rapid, businesses can’t react like they have in the past; they need new models for innovation and growth. 

The Golden Ratio of Innovation, established by his team just five years ago, already seems outdated, Tuff says. The rule states that to stay competitive, companies should allocate 70 percent of their resources to innovating within their core business, 20 percent to the space adjacent to their core business, and just 10 percent to the transformational space, which means discovering brand new customer needs.

A 2012 study of companies in the industrial, technology, and consumer goods sectors showed that companies that allocated their resources according to this ratio outperformed their competitors.

But sticking to this model now yields surprising returns. In fact, it yields something close to inverse returns, with 10 percent coming from core business investments and up to 70 percent from the transformational space.  What companies need to do, today more than ever, is invest even greater resources in non-core areas, working across a wide spectrum of innovation.

But what does that mean, and how can companies adapt?

Tuff recommends starting by dividing your business into known or knowable opportunities, which can be planned for and tackled, and unknown opportunities, which must be discovered or developed.

New outcomes and improved efficiency aren’t possible without people changing their behavior. Choosing your technology first won’t get you very far if no one wants to use that technology. The trick is to identify behavioral shifts that will create value, then use data to track those shifts. The insights you gain from that process should then be a guidepost to decide what technologies you want to use.

We can look to three large manufacturing companies to see how they looked at behaviors they wanted to target first and then found the right tech for the job.

1. Drive different outcomes in your own operations

At Nissan, a rapidly aging workforce compelled management to ask, “How do we stop our employees from doing the repetitive tasks that are harder for them as they age and may even harm them?” The answer was to stop them from having to do difficult physical maneuvers without taking them out of the production process entirely. The company came up with ‘cobots,’ or collaborative robots, which work in tandem with people by taking over some of the physical tasks. The company saw higher output levels and improved efficiency in both time and cost.

2. Change outcomes for your immediate downstream customers

Caterpillar just completed the acquisition of Yard Club, a market-making app that connects people who own construction machines with potential renters. Caterpillar wants people to be able to rent their machines instead of having to buy them, letting the company derive value from selling tools, attachments, and parts in addition to large machines. To drive usage of their machines, they need to create an efficient market for those machines. 

3. Change outcomes in the end market

UTC Aerospace Systems understood that they could drive better use of their systems in airline customers if they could get users to work more efficiently, increase on-time performance, and get more information into the hands of pilots and crew. They created an app called OpsInsight that gives pilots access to live data, allowing them to adjust aircraft operations in real time. The app’s creation was driven by a desired behavior in the end market; giving customers tools to improve their own outcomes will improve company outcomes too—double win.

It’s all about adaptation

It’s a complex time to be a manufacturer—the landscape is changing so fast it’s hard to keep up, and traditional business models and systems aren’t yielding the same results they used to.

In closing, Tuff acknowledged that while it’s not certain Charles Darwin actually said this, the words certainly do apply to doing business in the 21st century: “It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change.”



Avoiding or delaying a difficult conversation can hurt your relationships and create other negative outcomes. It may not feel natural at first, especially if you dread discord, but you can learn to dive into these tough talks by reframing your thoughts.

Begin from a place of curiosity and respect, and stop worrying about being liked.  Conflict avoiders are often worried about their likability. While it’s natural to want to be liked, that’s not always the most important thing. Lean into the conversation with an open attitude and a genuine desire to learn.

Focus on what you’re hearing, not what you’re saying. People who shy away from conflict often spend a huge amount of time mentally rewording their thoughts. Although it might feel like useful preparation, ruminating over what to say can hijack your mind for the entire workday and sometimes even late into the night. And tough conversations rarely go as planned anyway. So take the pressure off yourself. 

Listening is most important in any case. Your genuine attention and neutrality encourage people to elaborate. For every statement the other person makes, mirror back what they’ve said, to validate that you understand them correctly.

Be direct. Address uncomfortable situations head-on by getting right to the point. Have a frank, respectful discussion where both parties speak frankly about the details of an issue. 

Don’t put it off. How often is your response to conflict something like, “I don’t want to talk about it” or “It’s not that big a deal” or “It’s not worth arguing about”? If you’re always promising yourself that you’ll “bring it up next time it happens,” well, now’s the time.

Expect a positive outcome. You’ll struggle to follow this advice if you continue to go into a conflict telling yourself, “This is going to be a disaster.” Instead, tell yourself, “This will result in an improved relationship.”

Don’t ignore the tough situations you are aware of today. When the opportunity presents itself to provide unsolicited negative feedback to a difficult colleague or give a less-than-positive performance evaluation, summon the courage to address the conflict head-on.



At Kaiser Permanente, we are working to improve the cost of time to the paient. But to do so, we have had to upend traditional paradigms and make saving our patients’ time a part of our standard quality measures.

Because of Kaiser Permanente’s integrated model of care, which combines care and coverage, we were able to study a broad cross-section of our hip replacement patients’ experiences. Amazingly, we concluded that up to half of our patients could safely go home the same day as their surgeries — but only if the entire care team worked according to a set of coordinated procedures, many of which would have to take place outside the hospital.

Every workflow is created for, and with, patients in mind. After all, what is the hospital-acquired infection rate for a zero-day hospital stay? Surely a lot closer to zero than for a multiday stay. What are the visiting hours at home? Generous. How about the quality of the food? We hope it’s better than at the hospital. The satisfaction scores patients give their experience in their own homes? Outstanding. And how much quality time do we give back to patients, so they can recover in the comfort of their own homes, surrounded by family, far from the constant din of the hospital? More than three days.

In Southern California, where we practice, Kaiser Permanente physicians perform about 8,000 elective hip surgeries and 15,000 elective knee surgeries each year. Recently, 11% of our hip and knee patients have recovered at home with no hospital stay. By the end of this year, we hope to grow that number to 25%. By the end of 2018 it will be 50%. And in the metric that matters so much to so many of our patients — saving time — most of the time in a zero-day stay is spent treating the patient.

The approach might sound appealing, but what about the results? Our data shows that the readmission rate for our patients who go home immediately after surgery is about 2% — exactly what it is for patients who recover in the hospital.

Summer Reading