Elisa Spain – Page 24 – Elisa K. Spain

Rewarding Innovation: Because Great Ideas Just Don’t Imagine Themselves

September 18, 2016September 23, 2016 by Elisa SpainNo Comments

This week’s blog post appears on Executive Street Blog. Please click this link to view it.

An engineer friend of mine works for a large, highly innovative company. You know the type of company I’m talking about: the kind that introduces new products, offers unique services, and establishes effective processes with remarkable consistency. The kind of company whose employees get told over and over again, “You’re so lucky!”

But here’s the secret: luck has nothing to do with it. And here’s why:

Innovative companies, like my friend’s company, take creativity very seriously. Innovation isn’t an end result (for example, a successful product), it’s a plan of action, a series of concrete activities — including false starts — just enough of which lead to successful products.

For example, engineers at my friend’s company must set specific performance targets each quarter. Innovation points are an important element of these targets. Innovation points are earned based on specific actions, including coming up with ideas, testing the concepts, taking the approved concept forward to the patent stage, and developing a marketable product. Coming up with an idea and presenting it to an innovation review team is worth a $200 bonus. If the idea goes forward beyond the initial concept, the employees earn $2,000. Not every idea is a winner, but the program stimulates enough profitable creativity to justify the investment.

This program got me thinking and searching. There are many, many public innovation awards, but I wonder, how common are internal innovation awards? How much innovation would we see if such programs were used more frequently?

Here are my questions for you:

What are you already doing to inspire and reward innovation in your company?
What might you begin doing, starting tomorrow, to inspire and reward innovation in your company?

What Is Our Leadership Role In Service Recovery?

September 11, 2016September 2, 2016 by Elisa SpainNo Comments

I recently had a small remodeling job in my home that, despite excellent intentions on the part of the provider, did not go well. This project failure got me thinking about service recovery and what exactly that means. I have also come to realize that the definition may be different, depending on whether you sit on the customer side or on the provider side. After all, where we stand is always based on where we sit.

Most of us, as leaders, focus our attention on getting things done right the first time. In manufacturing, error rates are measured down to the level of “six sigma”. While excellence in delivery is an appropriate goal for high performing companies, even high performing companies make mistakes. And for me, true excellence is reflected in what happens next. In short, true excellence shows up when service recovery is required.

In my experience, what the customer wants falls into two parts, acknowledgement of the error and assurance that the provider will find a solution to the problem.

What often happens looks more like this…

Instead of acknowledging there was an error, the customer contact person seeks to explain the problem. Sometimes this effort to explain may appear to the customer as avoidance or worst case, blaming the customer.

Instead of seeking to find a solution to the problem, the customer contact person may simply abdicate. Sometimes, in a true effort to please the customer, the rep leaves the problem solving to the customer, and simply says, “tell me what you want and I will do it”.

Our folks who are in front of customers all the time are faced with service recovery situations frequently. Most excellent companies train their people to do it right, and employ good quality control measures to ensure this outcome. These same companies also train their people to “give good customer service” when a problem arises. As a result, when there is a small product or service failure, the contact person can successfully diffuse and handle the situation themselves. In fact, lots has been written about empowering customer facing staff to recover, and many companies employ these techniques. Examples include “try me” items at Whole Foods, to the much quoted “Ritz Carlton way”.

Sometimes though, the failure to perform is significant both in terms of dollars and customer satisfaction. It is in these situations that excellent companies have an escalation process, perhaps even a task force to resolve the situations. For me, this represents true excellence for two reasons. First, the customer feels valued and feels assured that the problem will be solved. And, equally important, the line person has support in resolving the problem.

I leave you with these two questions:

What is your escalation process when a significant failure to deliver happens? Are you or someone from your leadership team notified immediately?
Have you defined “significant” so that your line folks know the situations they can and should handle themselves and the ones that they need to escalate?

Of Course I Embrace Diversity

September 4, 2016August 15, 2016 by Elisa Spain1 Comment

How often do we hear people say that they embrace diversity, and then behave another way? As Ralph Waldo Emerson was fond of saying, “What you do speaks so loudly, I can’t hear what you say”.

My sense is this happens because most of the time embracing diversity is easy. It’s not when folks are different from us that we are challenged, it’s when folks do something different that it becomes difficult.

As leaders, it is our job to create an environment that is accepting of everyone on the team so that the common organizational goals can be met. At the same time, in these polarized times, leaders are increasingly finding team members looking for those “doing differences” rather than looking for what they share simply by virtue of being human.

The questions that come to mind for me are:

how do we both set aside our differences, and at the same time embrace them, so that our organizations benefit from the broader thinking that diversity brings?
how do we know when to confront behavior that seems in conflict with our stated goals, or when to leave it be, because the behavior is simply based on life differences rather true conflict?

Leadership Quote: The Single Biggest Problem…

August 28, 2016August 18, 2016 by Elisa SpainNo Comments

This month’s leadership quote:

“The single biggest problem in communication is the illusion that it has taken place.”

–George Bernard Shaw

We discussed this quote in my Vistage groups this month, and of course each of us had a recent story to tell. What we discovered was for most of us, our failures to communicate occur most often in our personal lives. We found that in our business lives we tend to be more intentional about ensuring that communication has in fact taken place.

The question we then asked was, ‘what can we do to up the success rate of communication?’ Below is a summary of the answers. As you think about your own recent stories, perhaps you will find this list useful:

When you are the listener, pause, focus, look at the person, stop doing other things. In short, be present.
When you are the speaker, check-in, ask if this is a good time for a conversation and notice the listener’s body language. If this isn’t a good time, save it for another time. After you speak, discover by asking questions; if you were heard and understood.

Bottom line, communication will not take place if you are speaking and the other person isn’t listening. Seems obvious and yet, each of us has a recent story to tell about when it did not take place.

Whose Responsibility Is It?

August 21, 2016August 16, 2016 by Elisa SpainNo Comments

I am one of those people with what I call an ‘overdeveloped sense of responsibility’. And, I am working on this. What I have learned over the years is when “we” are responsible, rather than “I” am responsible, we all get to a better outcome. As part of my work as a Vistage Chair, I lead peer group meetings. Sometimes these meetings are outstanding and sometimes not. It’s easy as a leader to fall into the trap of telling myself I did a good job when they go well and blaming myself when they don’t.

And, what I have learned is fantastic days are the ones where everyone is engaged in creating a best day. And the ‘not so good days’ are the ones where something is going awry and no one says anything. Perhaps the silence comes from a place of respect for the leader; after all it is “their meeting”, its up to them to “fix it”. And when there is a series of “it’s up to him or her or them to fix it”, we can easily go from a ‘not so good meeting’, to a ‘not so good day’ or week and ultimately a ‘not so good outcome’ for the business.

All of us have the opportunity to be both leaders and followers in our daily lives. And sometimes we need to step up and take a leadership role in the moment, even when we are not the official leader. The next time you are in one of these moments, here are a few questions to consider as you perform a cost/benefit analysis of the situation:

If something is amiss in a meeting or a moment, and I stay silent, what is the potential cost to me, the group or the company?
If something is amiss and I speak up, what is the potential cost to me, the group or the company?
In a fair and bold cost/benefit analysis, what is the best and boldest choice for me to make?

How To Recharge Yourself And Your Strategic Plan

August 14, 2016August 18, 2016 by Elisa SpainNo Comments

What if we simply accept August as the time to recharge our batteries, then get a jump-start on strategic planning for next year? This week’s blog post appears on Executive Street Blog. Please click this link to view it.

To the Greeks and Romans, the “dog days” occurred in late July, when Sirius appeared to rise just before the sun. They referred to those days as the hottest time of the year, a period that could bring fever or even catastrophe.

Today we think of dog days as the time of the year marked by lethargy and often inactivity. Here’s another spin: What if we were simply to accept August as the time to recharge? And then once our batteries are charged, get a jump-start on strategic planning for next year?

All of us possess an inner reservoir of positive energy. It is this positive energy that enables us to move forward. And the human body, like all other energy-powered machines, needs to be charged regularly.

Most of us think of recharging as taking time off. For some, time off means long walks. For others, it means sitting by the beach. Still others look for adventure. All of these methods give the body an opportunity to recharge.

And what about recharging the mind? Is it possible to recharge both the mind and the body at the same time? And, like everything else, is there a benefit to being intentional?

For me, recharging the mind comes from learning. Sometimes it’s reading about leaders that inspire me, sometimes it’s watching a Ted Talk on a topic totally outside what I know and see daily. Taking this journey outside the norm gives me a new perspective and the ability to ask better questions of my clients as they plan for the coming year.

Find your source of inspiration. Become intentional about recharging during these dog days of August.

In Beyond Business • Tagged Strategic Plan, Strategic Planning

Did I Delegate Or Did I Abdicate?

August 7, 2016August 5, 2016 by Elisa SpainNo Comments

Most of us who have been in leadership roles for awhile understand the importance of delegating. It’s simply a matter of leverage; the more we delegate, the more gets done.

And… sometimes we get confused. We think we are delegating, when in fact, we are abdicating. What’s the difference?

Delegate: entrust (a task or responsibility) to another person

Abdicate: to fail to do what is required by (a duty or responsibility)

For me, one question defines the difference:

At what point in the process will I know if my expectations were met?

If the answer is, at the end, or maybe not until there is a serious problem or a disaster, we have abdicated not delegated.

Hmm… guess that means if my intention is to delegate, I must take the following 5 actions:

Clearly outline my expectations
Check-in to see if my expectations were understood
Agree how both progress and outcome will be monitored and measured
Agree when and how progress will be reported
Agree when and how progress will be evaluated and adjustments made

“Okay”, you say, “I get that, when it comes to team members doing tasks, but certainly you don’t expect me to monitor my leadership team? That would be micromanaging!”

For me, there is a big difference between micromanaging and delegating. When we micromanage, we are checking in, hovering over, second guessing, etc., etc. Delegating, on the other hand, requires none of this. Instead when we delegate, we let the system manage accountability.

The CEO who hires a new sales manager, and then checks in daily on the activities each sales person is doing, is micromanaging. On the other hand, the sales manager who ties compensation to performance and publicly posts activity reports and results for each salesperson, is allowing the system to manage accountability. The sales team and the CEO can know at any given time who is performing, without asking or hovering.

The CEO who hires a President and then “goes fishing” or goes off to work on acquisitions without first creating agreements with the President around the 5 steps above, is abdicating. On the other hand, the CEO who sits down with the president and together they decide how they will divide roles and responsibilities and agree on the management reporting the CEO needs to monitor and evaluate, is delegating. Once again the system, in this case a combination of agreements and reporting, is providing the accountability.

So, next time you are wondering if you are micromanaging, instead of abdicating, pause and ask yourself, what systems do I need to put in place so I can delegate instead?

Leadership Quote: Becoming A Leader…

July 31, 2016August 3, 2016 by Elisa SpainNo Comments

This month’s leadership quote:

“Becoming a leader is synonymous with becoming yourself. It is precisely that simple, and it is also that difficult.”

–Warren Bennis

The challenge of course is gaining this self-awareness.

Identifying our genius
Learning how we show up to others and the impact we have
Learning when to lead from the front of the room and when to lead from the back

Whether we have been in a leadership role for a long time, or the experience is more recent, each day is an opportunity to move toward this simple, yet difficult, goal.

One of the great benefits of Vistage private advisory boards is the opportunity to learn all these things from our peers. We can then take what we learn back into our organizations and become the best version of ourselves.

Healthy CEO, Healthy Business

July 24, 2016July 19, 2016 by Elisa SpainNo Comments

I recently heard a CEO say, “when I am healthy, my business is healthy”. I have been thinking about this CEO’s statement in the context of CEOs I have known or observed over the years. My reflective observation is, he is right; there is a strong correlation between the health of the leader and the health of the business.

In the public company arena, we see the impact on stock prices when the CEO becomes physically ill.

In the private company arena, where most of the CEOs I work with reside, those that focus on their health and fitness are the ones that lead successful companies. I have watched CEOs move from poor mental and/or physical health to good health and back again and observed the company performance move in tandem.

Years ago, I worked with a CEO whose company growth had stalled. He brought me in as an advisor to help him get the company back on a growth track. While certainly there were some operational and structural changes needed, what I discovered was holding the company back was the CEO’s lack of engagement. He had suffered a series of injuries that kept him away from work, followed by a serious issue with his son. Once we put the infrastructure in place that he needed to take the company forward AND he got well and found a way to deal with his son’s issues, the company began to prosper. In fact, it was he that I was quoting in the first sentence of this post.

While a component of health is genetic and beyond our control, and life happens beyond our control, research continues to show that lifestyle and exercise are directly related to emotional and physical health.

So, as we go through our daily lives, what can each of us do to pause, reflect and recognize we have a fiduciary responsibility as leaders to care for our physical and mental well-being?

Vistage CEO Confidence Index For Q2 2016: CEO Optimism In The Economy Declined Across The Board

July 17, 2016July 12, 2016 by Elisa SpainNo Comments

Small business owners reveal that hiring and retaining talent is the most significant business challenge, according to a quarterly survey by Vistage Worldwide.

Vistage, a global organization, which assembles and facilitates private advisory boards for CEOs, conducts a quarterly survey covering a variety of small business topics. More than one-third of the 1,300 respondents cite staffing as the most significant issue they are currently facing, including identifying qualified candidates, hiring, retaining valuable staff members, and training. Additionally, CEOs note that their companies’ biggest barrier to innovation is talent, pointing to a common theme, and the importance of having a talent management & acquisition strategy in place.

Below are some key highlights from the Q2 2016 Vistage CEO Confidence Index (all members surveyed):

83 percent note that their team is made up of multiple generations – college interns through employees nearing retirement. And half of respondents are planning to hire recent college grads.
Due to the influx of millennial workers, nearly two-thirds of companies have adapted their management style in the past five years, and 57 percent of respondents now offer different benefit packages or perks to attract young talent.
Although 82 percent of CEOs conduct performance reviews of their employees, 60 percent of CEOs do not have a system in place for a self-review within their company.
The biggest barrier to innovation for 30 percent of small business CEOs is finding employees with the right talent and skills.
83% of CEOs encourage all their employees to use their vacation days, although about half expect employees to check and respond to email while on vacation.

For more details Vistage Confidence Index.