Four of Our Resources on Employee Training Programs, Plus One from WorkAwesome

Thursday, September 2, 2010 by Mark Harbeke

What’s the first thing to get cut when companies are economizing?  It’s always training.  In the last three years, training budgets have fallen by nearly a quarter.  It’s stupid.  ...  Because when you’re battling for customers and trying to do more with less, your most valuable asset is your staff.  And they can do more and better if you train them more.

These are the wise words of "serial CEO" Margaret Heffernan on BNET this week.  If you found our blog searching for employee engagement or employee development strategies, I'm sure you're already on the same page as Heffernan (and us).

But having the willpower and carving out a budget for training is one thing – implementing tactics that work (eg, have yielded results for other businesses your size or in your sector) is another.

Fortunately, I'm happy to share the five resources below to get your started, or help you improve upon your current efforts to keep employees engaged...and ever more productive:

  1. 21 articles on our website covering "training program" in leading workplace research we've synthesized, and successful small businesses we've profiled.
  2. Our blog post: 20 Effective Employee Learning Initiatives for Small Businesses
  3. Our blog post: People Practices ROI of the 2010 Top Small Company Workplaces
  4. Our blog post: How a Small IT Firm Creates Knowledge Leaders, and the Company ROI
  5. And new from WorkAwesome: 11 Tips from Training People at Work

If you are already systematic about employee training, what have been your successes and lessons learned?  Please share in the comments for the benefit of your fellow readers.

If You Have a Captive Customer Base, Smart Hiring and Employee Engagement Are Absolutely Vital

Tuesday, August 31, 2010 by Mark Harbeke

The interior of Newark International AirportLast week I enjoyed a week off with my family in Canada, specifically Nova Scotia and Prince Edward Island.  But before I had even left the states, I was reminded of an important lesson when it comes to hiring for fit as well as employee engagement and workplace team building.

My wife and I flew from LAX to Newark Liberty International Airport before connecting on a flight from there to Halifax.  Between our arrival and second departure gate was a small, '50s-style diner.  Not having much time and knowing there'd be at least a snack on our second-leg flight, we sat down there to split a plate of fries.  We wanted to keep ourselves hydrated, so we each opted for free glasses of water instead of sodas (you'll see why this is important in a second).

When we arrived the place was maybe a third full – not too busy for the one waiter to serve us, as I can say with authority from my high school days as a waiter.  Yet it was immediately apparent that he preferred to favor tables with more people who were ordering more items.  That's understandable because, in theory, that's where the bigger tips were.

What he shouldn't have assumed, though, is that we would leave a proportionally smaller tip.  It so happened that we had bills and no change so, proportionally, had he done an even passable job, he would have gotten a very nice tip for his time involved.  But he initially ignored us, literally rolled his eyes when we asked for a plate of fries and two waters, didn't check on us once he delivered our order, and, worst of all when it comes to waiting etiquette, took our check and tip before we had left!

On our way out, when my wife shared that his tip could have been a lot higher if he had treated us better, the waiter said lazily, "Well, you only ordered fries."  Since when does amount spent dictate the service level received!?  (This is an equation that doesn't factor into the business models of our Top Small Company Workplaces, BTW.)

If you run a company, especially in the hospitality industry, you might be thinking that this experience reflects more on the individual employee and doesn't impact the business as much.  Not necessarily; on our return visit to the same airport en route from Halifax to Los Angeles, we noticed the same waiter in the same restaurant – steering clear of both and getting our food on elsewhere in the terminal.  A different customer-employee experience could have meant repeat business for that diner.

The takeaway?  When you have a more or less stable, captive audience such as in an airport or mall, people practices including hiring for fit and using employee development strategies to deliver excellent service can make a huge difference on your bottom line.

Related: In this webinar recording on our website, two of our award-winning small business CEOs share proven tips for creating a fantastic customer service culture.

Photo credit: Maurice Prather

University of Iowa Prof: Don't Underestimate Leadership's Role in Business Success or Failure

Monday, August 30, 2010 by Mark Harbeke

Given this blog's focus on how employee retention tips and other people practices lead to a more productive workplace culture – and how leadership strategies such as succession planning reduce dependency of the business on key people if they leave or are otherwise taken out of the equation – a reader might conclude that decisions made in the C-suite matter less now than they once did.

This conclusion would be wrong, however, argues Tyler Leverty, assistant professor of finance in the University of Iowa's Tippie College of Business.  According to this Newswise article, which references Leverty's paper "Dupes or Incompetents: An Examination of Management’s Impact on Firm Distress," some CEOs significantly improve a firm’s performance, while others hurt it.

Writes Newswise,

[Leverty] found ... good CEOs can remove their firms from regulatory scrutiny 8 to 16 percent faster than a poor manager.  And in insurance companies that are going out of business, a more talented CEO can get a better return on the firm’s assets by up to 10 cents on the dollar.

The takeaway is that events and other learning opportunities that deliver a good ROI for leaders are worth the investment – even in tough times.  This is why Winning Workplaces is excited to partner with Inc. Magazine to host the Creating Competitive Cultures (C3) Conference in Denver on October 27-29, 2010.  As Inc. says on their C3 website, CEOs and other attendees can expect to learn "the newest leadership strategies for developing the best possible company culture, one that results in a loyal, motivated, inspired, and focused team."

Click here to learn more about this event.  You'll want to register by tomorrow, August 31, to get the early bird rate, a $300 savings.

Small Business CEO Makes Compelling Case for Hiring the Right People

Monday, August 30, 2010 by Mark Harbeke

Since I wrote this "line in the sand" post back in March arguing that you should abandon a strategy of hiring for skills in favor of hiring instead for attitude and fit (for a more harmonious and productive workplace culture), I've written several more citing outside sources – as opposed to our own employee engagement research – that help make this case.

But perhaps Brett Owens, CEO of software startup Chrometa, makes the most compelling case for getting the "right people on the bus" in the first place; his post on the Small Business CEO blog pits this as a choice for leaders as opposed to using effective employee leadership development strategies to get the most from the people already on your team.

Creating a hypothetical example from his own experience, Owens says the "coached up" productivity gains of current staff members might make them, at most, 50% more productive than a baseline performer.  Yet, a new hire who's a better workplace fit might be three times – 300% – more productive than the baseline employee.  Thus, he concludes that getting the best from your current staff is

important - but when we do the math, we small business owners know it’s not nearly as important as getting the very best people in the first place.

Related: Leaders, do you have any bad workplace experiences that have resulted from not hiring the right people?  Share them, and your solutions to this issue for the benefit of your fellow readers, here.

Mott's Strike Has Larger Workforce and Economic Repercussions

Monday, August 23, 2010 by Mark Harbeke

Could the current worker strike of the Mott's plant in Williamson, New York – as expertly covered last week by The New York Times – be to the workforce and the economy what the Google-Verizon deal is to advocates of Net Neutrality?  (That is, a sign of bad things to come?)

Check out this excerpt of the NYT article on the Mott's strike, which began almost three months ago:

The strike has become so important because of the prominence of the brands and because of its unusual nature: a highly profitable company is taking the rare and bold step of demanding large-scale concessions.

...

The workers ... are incensed that the company is demanding givebacks when it posted record profits last year and increased its dividend by 67 percent in May.

This represents what I'm seeing as a trend: companies – typically, large public corporations – holding onto profits after already making moderate to significant workforce cuts, as opposed to following their pattern in past economic recoveries and reinvesting the returns back into the business in the form of employee development strategies (including benefits).

However, if this plays out on a larger scale (other large companies taking a cue from Mott's if they're successful, regardless of whether there's union involvement), it could potentially lead to a deflationary outcome if workers' wages slowly spiral downward.  If that happens, companies could join workers in a lose-lose situation, because that would mean even less disposable income from most Americans to spend on their products and services.

Winning Workplaces takes the position that for the long-term good of companies and individuals, midsize and larger companies (especially) should change their workforce investment strategy from one of further cuts to one of sustained, smart investment.  Using employee engagement best practices, they can benefit quickly and over the long haul from the increased productivity, lower turnover, etc., that come from treating workers fairly, and not unnecessarily harshly, when it comes to what to do with their profits after bouncing back from the worst of this recession.

Related: Read this post which argues, based on business school research, that a consequence of deep workforce cuts is long-term industry lag.

Simple Performance Management Practices that Drive Up Employee Engagement

Friday, August 20, 2010 by Mark Harbeke

Halogen Software's Sean ConradThe following is a guest post by Sean Conrad.  Sean is a Senior Product Analyst at Halogen Software, one of the leading providers of performance appraisal software.

Most of us are familiar with Gallup's employee engagement research and the twelve statements they use to measure it.

When I look at the list, it strikes me that there are some basic employee performance management practices that, if done well, address most of these needs.  They include:

  • Giving employees meaningful feedback on a regular basis.
  • Being clear about goals and helping employees see how their work matters to the organization.
  • Recognizing and rewarding employees fairly.
  • Giving employees opportunities for growth and development.

Given their importance and impact, we'd do well as managers to give them our time and attention.

Give Employees Meaningful Feedback on an Ongoing Basis

Research consistently tells that employees want meaningful, ongoing feedback.  But many of us struggle to make it part of our work culture.  Here are some things that can help:

Increase the frequency of your performance appraisals
Instead of just doing annual performance appraisals, conduct quarterly mini reviews.  This helps to give managers and employees a regularly committed interval for dialogue and feedback.
 
Gather feedback from others
Feedback from multiple sources is broader and more objective, and helps the manager and employee get a more accurate view of their performance.  You can keep it simple, and just request feedback from another employee or manager who works with the employee, or conduct more formal 360 degree assessments.

Keep ongoing notes on performance
Keeping and sharing notes on performance year-round helps to better document performance, opens up the dialogue between a manager and an employee, and makes writing performance appraisal faster and easier.  Highlights, challenges and disconnects that might not otherwise be discovered until the annual performance appraisal meeting can be shared and explored in a timely way.
 
Define Clear Goals and Link Them to Organizational Goals

Employees need to clearly know what is expected of them, and understand how their work contributes to the organization's mission and success.

SMART goals are broadly recognized as the most effective way to write clear goals.  Specific, measurable, achievable, realistic and time-bound goals let employees know what is expected of them, how success will be measured, and when they must complete work.

But we should also give employees a context for their work by linking their goals to higher-level organizational goals, so they understand how they're contributing to organizational goals.

Recognize and Reward Your Employees Fairly and Consistently

Recognition and rewards should be frequent and come in many forms.  Since we're all motivated by different things, it's important to know what your employees value, so you can reward them effectively.  But all programs should be tied to employee performance. And your employees should know the metrics used as measurement.

Provide Opportunities for Growth and Development

Employees need to feel as though they have a future with an organization, and a career path that helps them further develop their knowledge, skills and abilities.  Make sure you provide things like formal training, challenging work assignments, mentoring programs, etc.

Related: For more guidance on creating an effective performance management system as part of a winning set of team building and employee development strategies, check out our Ask An Expert column on measuring key competencies.

Our Weekly People Practices Email Reduces Your Time Managing Employees - Helping Your Bottom Line

Thursday, August 19, 2010 by Mark Harbeke

Tasty Catering CEO Tom Walter. Click to learn about his company.On August 4 I told you about our new feature for email subscribers, a weekly people practices email geared toward improving your company's bottom line.  Tom Walter, CEO of our 2010 Top Small Company Workplace Tasty Catering, commented on that post saying it's a great idea.

This week he shared specifics with me on exactly why he thinks business leaders should sign up for this free email (emphasis mine):

The Weekly Bottom Line-Improving People Practice email should benefit all business leaders.  The world has become commoditized.  The true marketplace differentiator is human capital.  I enjoy learning the Best Practices other companies use with their most valuable asset - their people.

An engaged workforce is typically harmonious, productive and profitable.  These Best Practices eliminate the need to manage.  We have replaced management with effective leaders armed with Best Practices, and the difference has been remarkable.

While Winning Workplaces surely plays only a small part in Tasty Catering's success, you can't argue that they're not doing a lot of things right in their staff engagement that comprises their highly productive workplace culture: As we shared in the company's award profile, in a very tough year broadly and certainly in their industry (2009), their employee leadership development and other strategies helped them earn above-average revenues.

Register now to start getting our weekly, bottom line-improving people practices email FREE in your inbox.

More Advice on Growing Great First-Time Managers from the President of PrintingForLess.com

Friday, August 13, 2010 by Mark Harbeke

Andrew Field, President of PrintingForLess.com. Click to learn about PFL.What an amazing community of small business leaders Winning Workplaces is fortunate to know!  After I wrote this post last week providing resources to help leaders set their new managers up for success – in which I shared a facet of our honoree Andrew Field's approach to this – the President of PrintingForLess.com emailed me with expanded tactics intended to help you with your own employee leadership development of this pivotal group of workers.

According to Field, here are some things that PFL implemented to grow great first-time managers in a relatively short time:

The critical first step in cultivating new managers is to identify candidates before they are needed in their new positions, and to begin giving them the preparation they need well in advance.  It is critical to have an explicit "leadership pipeline" and to hold yourself and your management team accountable for the development of your future leaders.

At PFL, this looks like having a standing agenda item at our broad monthly management team meeting that involves each person who has direct reports identifying their top and bottom performers, along with what they are doing to grow/reward/engage their top people, and what they are doing to "coach up" their low performers.

The second tool for success that we equip our new managers with is a template for regular (weekly or biweekly) one-on-one conversations with each of their direct reports.  The critical elements are personal connections, specific project updates, and discussion about professional growth plans.

Many entrepreneurs say that they don't need regular, scheduled one-on-ones because they have so much impromptu contact with their teams.  Nice try.

Spur-of-the-moment discussions are important, but they are not a substitute for regular one-on-ones, which encompass deep discussions focused mostly around the employee's work and development plans, rather than just current action items.

Our third support system for new leaders is that we provide them with development paths that include opportunities to expand their experience levels within the company.  In addition to education and mentorship (both of which are structured), we give future and current leaders the opportunity to test themselves in leadership roles, ranging from running a small project to leading a large group of people.  We move them around to different areas of the company in order to broaden their knowledge base, as well as giving them a chance to build robust networks within the organization.  Critical to the success of this OJT ("On the Job Training") is that we structure discussions about learnings and challenges.  We have found that peer-to-peer discussions are every bit as productive as boss-to-employee interactions.

At the end of the day, PFL has grown our best people by identifying potential leaders, modeling good leadership habits, and showering them with resources aimed at nurturing their growth.

Related: Andrew Field clearly knows his stuff when it comes to team building in the workplace – and seeing a payoff of employee engagement.  Learn even more about his employee development strategies on our website.

How Clear Expectations Help 8 Small Businesses Maintain Their Success

Monday, August 9, 2010 by Mark Harbeke

On her blog last week, Harvard Business School's Rosabeth Moss Kanter identified setting clear expectations about everything as one of four things groups want that leaders can't provide.  She writes,

No matter how much leaders try to define expectations, lay out the nature of likely events, or describe the steps that the group will be going through, it's not enough.

My question is, while it may not be enough to fully satisfy groups of employees for ideal workforce effectiveness – is it enough to move the business forward in a meaningful way (even if that means not sliding backward in a recession)?

The workplace team building and employee engagement experiences of 8 small businesses that applied for our Top Small Company Workplaces award this year – including 2 winners – show that building clear employee expectations from leaders into the strategy contributes to organizational success.  Consider that the companies I'll tell you a bit more about below:

  • Have been in business an average of 13 years,
  • Grew revenue more than $5 million on average from 2008 to 2009,
  • Went from 50% being profitable in 2008 to 75% being profitable in 2009, and
  • Decreased average turnover by close to 3% from 2008 to 2009.

Specifically, here's who the firms are and how they maintain their success, in part, by being intentional about setting clear expectations:

Awarepoint - Real-time awareness technologies to monitor equipment and people - San Diego, CA
"Awarepoint helps managers get the best out of our staff.  The in-depth performance review helps managers and employees have better conversations, set clear expectations and build useful development plans.  This method also helps our leaders learn to identify poor performance so that it can be dealt with quickly, while developing the solid performers and building the business."

Enhanced Recovery Corporation - Financial Services - Jacksonville, FL
"The Owners, VPs, Directors, Department Heads, and Operations Management Team are all committed to the continued success of all ERC employees.  From Peer to Peer feedback to our Open Door Policy, employees of ERC always have clear expectations and development opportunities.  All departments at ERC are committed to ensuring constant development of employees at all levels within the organization."

FMYI - Software - Portland, OR
"We have done a lot more than what's expected of a small company such as providing medical benefits from day one with only a couple of employees even though it wasn't required by Oregon law.  We also want to be more authentic and fully integrated with our sustainability commitment.  We will sustain employee culture through ongoing sustainability discussions (via Northwest Earth Institute courses), clear expectations written into job descriptions and reviews about our doer/helper culture."

NouvEON - Consulting - Charlotte, NC
"NouvEON's Talent Management and People Care Division has several platforms that allow us to set goals, dialogue throughout the year, establish clear expectations, and perform 360 reviews, as well as measure and track potential.  We map Performance AND Potential and communicate to our employees where we see strengths and gaps.  It is through open communication and candid conversation that we help individuals grow in their jobs."

NY Jets (Winner) - Professional football team - Florham Park, NJ
"When our current management development initiative started, the Jets were in the planning stages of our relocation from Long Island to NJ.  HR was able to add in a special section on managing change that prepared mangers for the huge changes employees faced with our relocation.  The training sessions consisted of 6 modules: The Role of the Manager, Setting Clear Expectations, Feedback Skills, Delegation and Motivation, Handling Performance Issues, and Managing Change. The initiative proved to be highly successful for all managers; the learnings from the trainings are still used by the managers today."

Portico Systems Inc. - Software - Blue Bell, PA
"People succeed when they care share their ideas, build their skills, collaborate with others, and move into the realm of confidence that comes with mastery.  The masters become mentors and guide others with wisdom and a desire to enable others with positive reinforcement.  This is the environment that Portico is cultivating as we grow the organization and the people who are working to succeed.  Employees are provided with clear expectations, direction and feedback from supervisors, and opportunities and monetary and non-monetary ways incentives to succeed."

Red Door Interactive (Winner) - Advertising - San Diego, CA
"Our culture has been one of open dialogue, learning and progression since the company was formed eight years ago.  The family and team oriented environment at Red Door Interactive fosters open communication, leadership, clear expectations and teamwork.  A visit to Red Door Interactive will clearly display the open environment since the office is completely devoid of doors; even the CEO. Internal committees encourage feedback and collaboration to maintain our culture and engagement."

Sierra w/o Wires - Computer systems and related services - Pittsburgh, PA
"Regular and real communication is essential to establishing any corporate culture, community and collaboration.  In our organization this type of communication ranges involving employees in the project planning and estimating, to regular team and one-on-one update meetings, and also establishing clear expectations for each employee on what needs to be done, when."

How clear are the expectations in your organization?  Do your people practices help or hinder this?

The Question for Leaders is Not if Job Retraining Works, It's How to Avoid Needing to Invest In It

Monday, August 2, 2010 by Mark Harbeke

Last month on TIME magazine's Curious Capitalist blog, Barbara Kiviat, citing the New York Times, argued that because

Hundreds of thousands of Americans have enrolled in federally financed training programs in recent years, only to remain out of work ... job retraining is a wash.

This position may make sense from a policymaker or an economist's point of view – and in fact the Curious Capitalist blog carries a tagline saying it's about the economy and markets as much as it is business.

Yet, based on the evidence we see from the applications for our 2010 Top Small Company Workplaces award, small business leaders don't view retraining as a wash.  However, most* do keep tabs on it as a measurement of their failure to attract and retain the best people while aligning those people with the company's needs and deploying effective employee leadership development strategies.

In other words, while they value retraining, they see it as an employee educational investment of last resort.

Consider the responses to our essay question on how people practices contribute to the top line revenue and bottom line profitability from the following three companies:

KeyLogic Systems, Inc., West Virginia:
"At KeyLogic our product IS our people; which we hire through strong recruitment and employee referral programs.  We have a low turnover ratio which has impacted both the top line revenue (allowing for employee to customer continuity) and bottom line profitability by allowing us to focus more on developing our current employee resources through professional training as opposed to the high cost of recruiting, re-training and developing new employees."

Prenova, Georgia:
"Since our managers and executives interact with lower-level employees, they can impart much of their knowledge and information on an as-needed basis, rather than waiting for issues to be discovered (often because of a costly emergency) and spending large amounts of time and labor developing ways to distribute that information. Conversely, employees can quickly and easily access other team members capable of discussing issues, and receive retraining when necessary."

Pro CNC Inc., Washington State:
"Being very thorough in our hiring practices has also led to extremely low turn-over which certainly has an effect on profitability and revenue.  We don't spend a lot of time retraining new hires and can focus on the business of serving our customers."

*I should note that a few firms we've come across – as part of our workplace award as well as our consulting and speaking engagements – don't view retraining as an if-needed effort.  These rare enterprises actively budget for this as part of their staff engagement activities, looking to help those who want to continue working for the company, but in a different area.  They see retraining as a means to hold onto this talent and keep using them to drive results.

Related: Read our review of A Manager's Guide to Coaching, which is aimed at helping organizations decrease their time and money spent on recruiting in addition to retraining.

Honest Tea Wants to Pull a Zappos

Wednesday, July 28, 2010 by Mark Harbeke

Click for more info on Honest TeaLast July, when Amazon.com was on the verge of acquiring Zappos.com, I questioned if the move would lead to the demise of the unique – and uniquely powerful in terms of buzz and sales – productive workplace culture Tony Hsieh built within his retail business.

A year later, I'm happy to note that just the opposite seems to be true.  Hsieh has remained in place as CEO and, more importantly from an employee engagement perspective, he's become even more visible as a "chief culture officer": I was one of many bloggers and reporters to pick up on his New York Times Q&A in January in which he shared the benefits of attracting and retaining offbeat workers.  Last month, Hsieh went even further in sharing his workplace culture beliefs, practices, and successes with the release of his book Delivering Happiness.

Through it all, Zappos continues to wow customers with its incredible service, helping to maintain sales in a tough economy.  What's more, the company serves as a beacon of hope to job seekers and a vital source of tax revenues in hard hit Las Vegas.

Honest Tea, a finalist for our 2010 Top Small Company Workplaces award, appears to be following in Zappos' footsteps.

After seeing this post last week on the Triple Pundit blog, which spells out the dilemma for the 12-year-old, Maryland-based organic tea bottler – staying true to its "no high-fructose corn syrup" label, and thus its customer base, with a Coca-Cola minority stake that's set to become more significant next year – I decided to dig into Honest Tea's application for our award for clues to their next moves.

Here's how they answered our question on their key long-term strategic goals for the organization and the workplace (my emphasis is in bold):

A critical strategic goal is to maintain our mission-driven, entrepreneurial culture as we grow alongside the world's largest beverage company, and to mentor other mission-driven companies.  We will continue our tradition of including all employees on crew drives, a vital way of instilling the Honest Tea culture.  Rapid expansion in 2010 will demand participation from everyone in the company.  Crew drives enable employees from every department to experience selling and marketing our beverages and directly invests them in our business fundamentals.  Another key goal is to maintain and build our position as a leading, innovative organic beverage company.  In 2010 we introduce Honest Kombucha, a unique, sparkling tea beverage based on live, organic cultures.  Even as we grow nationally, we are determined to sustain our role as a leader in the local community.  Honest Tea is a founding sponsor of a local environmental non-profit, Bethesda Green, supporting a healthy economy and sustainable living.  The company's visibility in the community is a source of pride for our employees and a key part of our identity.  Finally, the company's commitment to transparency, the accessibility of our President and TeaEO and the rest of the management team, are important ways in which Honest Tea will continue to be steeped in its entrepreneurial, mission-driven culture.

Like Zappos, Honest Tea is placing a premium on maintaining its human capital strategies and core values that have contributed to its massive success while it negotiates with a much larger company that has a sizable interest in it.

Related: For more on how Honest Tea's employee development strategies led it to become an industry leader, read our award profile on the firm.

10 Ways Our Award-Winning Small Businesses Find and Keep Great Employees

Monday, July 26, 2010 by Mark Harbeke

I enjoyed this post by Susan Fronk on the America's Best Business Practices blog.  In it she argues that the one thing that can most positively impact your small business – over and above measures to grow revenue, cut costs, and deliver excellent customer service – is finding and keeping great employees.

She provides more value later in her article by sharing three ways small businesses can build a more productive workplace culture by attracting and retaining great employees:

  • Do a good job of recruiting and hiring,
  • Create a great working environment, and
  • Build relationships with your employees and foster relationships among employees.

I thought I would expand upon Fronk's informative post by sharing with you some specific ways that Winning Workplaces' 2010 Top Small Company Workplace award winners find and keep great employees:

  1. Hire slow.  It's not uncommon for job candidates to go through as many as 8 interviews before a hiring decision is made.
  2. Hire for cultural fit.  This includes not just when a position is open, but generally when someone looks like a good fit for the organization; a number of firms prefer to keep their feelers out and plug someone in when they come across that person.
  3. Grab top talent from competing firms.  Top talent is top talent, and our winning small companies are unabashed about leveraging a bad economy that has forced competing firms to shed staff to their advantage.
  4. Systematize the orientation/onboarding process.  Many companies do a good job during the middle period of an employee's tenure, but few are exceptional at the beginning, a critical time for new hires.  Our Top Small Company Workplaces really excel here by doing things like mentoring and scheduling meetings with the CEO to ramp up the new employee's understanding of and commitment to the organization.
  5. Managers have frequent contact with their subordinates.  For many small companies, managers only interact one on one with employees, to review performance and also their top concerns/hurdles, every three months.  Our award-winning firms typically do this every two weeks to a month.  This helps better engage employees for greater commitment, and also helps firms react to emerging issues sooner.
  6. Invest in employee leadership development.  The Top Small Company Workplaces share a belief that they are best served when their top talent stays to fill and create roles of increasing responsibility, and they have seen results from their action on it including process improvement, product innovation, and better customer service – not to mention mid- and top-level employees who stay longer, keeping recruiting and training costs down.  As far as their specific leadership development strategies, see this post.
  7. Give employees a voice in the decision making.  Lots of companies have an open door policy, but this no longer cuts it if you want to foster two-way communication that results in greater employee engagement and productivity.  Our award winners give their employees a voice by holding daily huddles and frequent (at least once a month) all-hands meetings.  In addition, many of them open up their books and explain the company finances so people gain a crystal clear understanding of how their role affects the top and bottom line.
  8. Do employee recognition.  I've blogged before about how recognizing your staff can be meaningful and still inexpensive.  Often times a simple, face-to-face thank you or small gift personalized to the employee can make a powerful impact.
  9. Be generous in providing time off.  More employers need to come to the realization that being flexible around employees' personal and family obligations makes for a more committed and productive worker.  Paid time off should be a primary consideration, but if that's not in the budget, being flexible – especially for unanticipated obligations – through measures like cross training will help immensely with retention.
  10. Empower workers down to the lowest levels to make good spot decisions.  This involves a lot of trust from leaders and some additional training, but when it works it makes a dramatic impact on business results.  Just think how much happier you've been when you've called a vendor and you didn't need to be transferred up the phone/responsibility chain to have your issue resolved.  The same sense of satisfaction can mean the difference in whether your customers or clients come back to you and refer you to others.

Is there a measure you think should be in this list?  If so, I welcome your comment on it below.

4 SMB Case Studies Showing How Bottom-Up Employee Engagement Contributes to Sales, Profitability

Thursday, July 15, 2010 by Mark Harbeke

In a post on the Business Insider blog re-posted from his own blog, GRP Partners' Mark Suster argues that leaders should solve problems and drive innovation from the top.  He writes,

I challenge you to consider whether you’re top-down or bottom up.  In analysis there are always circumstances for each approach.  But in leadership and entrepreneurism the top-down approach will be the right solution more often than not.

Now, I get that Suster is not saying that leaders should engage employees from the top down 100% of the time, but he is saying it should happen this way the majority of the time.

However, in our experience conducting employee engagement research of small businesses as part of our annual workplace award program, we see that management and decision making can happen in many different ways to lead companies to success in the metrics that ultimately matter: sales and profitability.  Our President detailed four decision-making approaches that run this gamut in these two posts.

Three of the four approaches she wrote about involve bottom-up decision making in some capacity.  And in fact, in the applications we received for our 2010 Top Small Company Workplaces award, we saw bottom-up engagement factor prominently in the qualitative feedback of some firms that are performing quite well, even in this tough economy. 

Check out four case studies that bear this out below.  All four companies have been profitable in the last three years.

Application Question: How have your organization’s people practices contributed to your top line revenue and bottom line profitability?
Response by Bronto Software
8-year-old software firm from North Carolina
2009 sales: $5.1 million; 132% 3-year sales growth

At Bronto we have a sales team who is instrumental to our success.  Because of our organic funding, growth comes from bottom up.  Employees have directly influenced consistent new client growth along with amazing client retention.

Application Question: How does the organization encourage employees to participate in important business decisions?
Response by Barhorst Insurance Group
17-year-old financial services firm from Texas
2009 sales: $6.9 million; 16% 3-year sales growth

Our organization is built on a foundation of bottom up planning!  Every year we have the branch managers provide a sales and expense plan that is fed into our annual corporate plan.  In 2008 and 2009 we completed or long term 2020 strategy to grow from 50 million in sales to 1 billion in sales.  The strategy team was comprised of 10 mid level associates from each department.  The team received feedback from their peers and developed a strategic road map for the future.  This plan includes monthly and quarterly progress reports to the leadership team.  The strategy team will begin rotating new team members through in 2010.  By using a bottom up method employees take ownership for the company's success and failure.

Response by Intermark Media
11-year-old advertising firm from New York
2009 sales: $92.7 million; 161% 3-year sales growth

At Intermark Media we believe changes in the company should be driven from the bottom up.  The employees who are interacting with our clients everyday have valuable insight into what processes work well and what changes need to be made to better meet the needs of our customers.  We encourage all employees to be a part of our decision making process at Intermark Media.  Weekly team meetings allow employees to voice opinions, discuss new ideas and solve problems.  Team leaders encourage input from each and every team member.  In addition to weekly meetings, leaders communicate daily through their email group to vote on awards, discuss ideas and concerns and get feedback.

Application Question: Over the last year, what kind of impact has the economy had on your business?
Response by Man-Machine Systems Assessment
20-year-old consulting firm from the District of Columbia
2009 sales: $8.6 million; 5% 3-year sales growth

The economy has little effect on our business.  We have continued to grow in spite of the economy and I truly believe this is because of the way we operate our business and the culture we have created.  MSA employees feel safe, and know that the owners will do everything within their power to provide work, support their needs, and care for them and their families.  This kind of loyalty is earned, and not bought.  The MSA family is strong and the support we have for one another from the top down to the bottom up allows for strength and faith as we face challenges, like the economy.

Related: We tackled bottom-up staff engagement activities in greater detail with the help of CEOs from two of our previously honored small firms in this webinar.

Where Are You on the Team Clock?

Wednesday, July 14, 2010 by Mark Harbeke

The following is a guest post on workplace team building and employee engagement by Steve Ritter.  Ritter, the Founder and CEO of Team Clock Institute, is the former Director of HR at Leaders Bank, which was named the #1 Best Place to Work in Illinois in 2006, and was a finalist for Winning Workplaces' Top Small Workplaces award in 2008.

Growing up, most of us are taught how to succeed as individuals.  Unfortunately, individual talent and dedication alone are not nearly enough to ensure a team’s success.  Teams are messy.  Conflict is unavoidable. Team dynamics are fluid.  Despite these challenges, working in teams is fundamental to most endeavors.

Twenty-five years ago, I began the quest of understanding the complexities of teams following a happenstance opportunity with the Chicago White Sox.  At the time, a seemingly strong team was underperforming for reasons beyond the grasp of their leadership.  Unexpectedly, a complex situation ended up having a simple solution.  Since then, identifying the recipe for healthy and effective teams has been my passion giving rise to the founding of the Team Clock Institute, a research and training consultancy specializing in breakthrough teams.  Recently, the Team Clock Institute responded to a unique challenge.

The Issue: Early in 2010, I received a call from a FORTUNE 500 company facing the integration of disparate cultures following the acquisition of a prominent player in the industry.  All of the expectable merger/acquisition politics were underway and the leadership team was seeking a simple model to anchor the transition.  What began as a casual conversation on a commuter train grew into an opportunity to assess the integration effort and provide recommendations to enhance successful business outcomes.

The Response: Accordingly, the Team Clock model was introduced to key players on the leadership team. The Team Clock model mirrors the face of a clock where each hour represents a stage along the path of team development.  In a nutshell, strong teams begin with an investment in common norms and direction.  Based on this foundation, team members test trust as they become more cohesive.  This platform supports their efforts to be innovative and take risks.  This activity inevitably leads to change and a repositioning of people and functions.  Healthy teams find a way to refocus following such growth and cycle begins again. 

The Impact: Over the next six months, the Team Clock Institute assessed a series of key business units to determine opportunities for greater effectiveness.  Results were analyzed revealing the strengths, vulnerabilities, areas of congruence and discord on the team.  Debriefing sessions were facilitated to discuss results and targeted actions were identified that would bring measurable change in team engagement and productivity.

Typical examples of diagnostic vulnerabilities included:

  • Mired in loss: too depleted to re-invest.
  • Inability to manage conflict/differences respectfully.
  • Indulgence in the comfort zone: afraid to take risks and explore new ideas.
  • Adherence to the status quo: unwilling to accept the consequences of change.

From a strengths perspective, the Team Clock Institute identified key anchors to healthy team interactions based on the diagnostic results for each team.  Goals were established in each of the core areas of vulnerability and business metrics were assigned to determine ROI.  The goal areas included:

• Investment infrastructure

- Consensus philosophy/mission/values/vision

• Trust and interactional dynamics

- Effective management of conflict

• Innovation and team effectiveness

- Measureable productivity/efficiency shifts

• Distancing to leverage change for growth

- Functional repositioning and identification of new opportunities/methodologies

The business case for effective teaming is simple.  Healthy teams are more productive and adaptable.  Anticipating the 4th quarter of the calendar year, the organization is poised to re-assess their team effectiveness metrics mapped to their productivity results.  Pending the quantitative impact, the qualitative result is clear: the emotional journey of a healthy team provides opportunities for positive workplace culture that struggling teams rarely experience.  Where is your team on the Team Clock?

Learn more about all of the resources at the Team Clock Institute at www.team-clock.com.

10 Posts on Employee Leadership Development...and Why It Matters

Tuesday, July 13, 2010 by Mark Harbeke

It takes time, commitment by company leadership, and at least some financial investment to make significant inroads to implement employee development strategies to create more leaders at all levels within an organization.

So why should a firm go down this path?  What's the ROI?

An article on Newswise this week based on a new study published in The Leadership Quarterly provides answers to these questions.  According to the employee engagement research of Kaiser Permanente by faculty at three California-based universities,

the more effective both the CEO and head of a department are perceived to be; the more [employees] supported the change in strategy.  ...   Moreover, the data showed that leaders are more likely to be effective in getting employees to achieve organizational objectives ... when the employees are shown that their leaders are united in supporting the strategy.

In other words, as the title of the Newswise article suggests, the number and competency of leaders in an organization contribute directly to the effectiveness of both senior leadership and the strategies they seek to carry out to achieve desired business outcomes.

With this in mind, I wanted to share the most popular posts among readers of our Employee Leadership Development blog – the ones that have helped them most to think about and act on the process of creating more leaders among their workforces.  Check them out:

  1. The Connection of Flexibility and Training to the Bottom Line
  2. 10 Best Practices: Transitioning to Work at Home
  3. Updates: Resource Interactive's Work Environment, Comment to Our Post on Zappos' 'Leaving Bonus'
  4. Employee Engagement: A WorthWHILE Metric
  5. 30 Employee Development Strategies to Boost Productivity
  6. BNET: Strong Workplace Cultures a Boon for MBO Leaders
  7. Five Proven Strategies for Retaining Top Talent
  8. Friday Nugget: Don't Underestimate the Importance of Learning
  9. How a Small IT Firm Creates Knowledge Leaders, and the Company ROI
  10. Job Swapping Extends Beyond Non-Management Employees

How does a focus on developing leaders factor into your overall employee practices?

Photo credit: CAREEREALISM

Save the Date for These Two Upcoming Events

Monday, July 12, 2010 by Mark Harbeke

I wanted to share with you two upcoming events for which Winning Workplaces is a promotional partner.  You will surely gain valuable insights at both of them to help you implement employee engagement and team building activities for a more productive workplace – especially at the latter event, whose programming is all about that.

SJF Summit on the New Green Economy: Early Bird registration ends this week

What: SJF Summit on the New Green Economy
When: September 14-15, 2010
Where: Durham Marriott Convention Center, Durham, NC
Event Website: www.sjfsummit.org

Register now for SJF's second annual Summit on the New Green Economy: Accelerating Growth and Impact.  The SJF Summit will be a dynamic gathering of entrepreneurs, investors, government and community leaders  sharing inspiring successes & practical tools and exploring strategic partnerships to build the green economy with opportunities for all.  The event will feature keynotes from Bruce Usher, former CEO of carbon trading firm EcoSecurities, and David Orr, distinguished professor at Oberlin College describing the innovative Oberlin green economy initiative, as well as many more.  There will also be a Cleantech CEO panel and concurrent sessions on the latest in cleantech investing, emerging capital market innovations, green jobs and green economic development strategies, and carbon markets.

Creating Competitive Cultures: Register by August 31 and save $300

What: Creating Competitive Cultures: New Leadership Strategies for Building Great Companies
When: October 27-29, 2010
Where: Denver Marriott City Center, Denver, CO
Event Website: www.competitivecultures.com

Inc., the magazine for growing companies, has partnered with Winning Workplaces to discover and recognize private companies with exemplary workplaces that motivate, engage, and reward employees. Honorees will appear in the June 2010 issue of Inc., and the achievement of these companies will be commemorated at the 2010 Inc. and Winning Workplaces Conference on Creating Competitive Cultures (C3).  At C3, you'll learn about innovative approaches from award-winning companies and extraordinary entrepreneurs, the inspirational tools and processes they deploy to build teams and workplace environments that have a lasting impact on financial results and personal satisfaction.  Creating Competitive Cultures presents the newest leadership strategies for developing the best possible company culture, one that results in a loyal, motivated, inspired, and focused team.

What workplace improvement events, in person or virtual, have you already attended this year?

Nine Organizational Activities for Wellness Coordinators and Their ROI

Thursday, July 8, 2010 by Mark Harbeke

For a special project we have been doing some additional employee engagement research into one of our 2008 Top Small Workplaces, California-based, leading organic rice farming operation Lundberg Family Farms.

One of the things that stood out to me as part of this effort is how much value, or ROI, the small business gets from its investment in health and wellness initiatives.  Since its business is healthful food, and its employees join its customers in caring about this, it makes sense.  Still, the company goes above and beyond the norm when it comes to wellness – and it can justify its involvement here.

Lundberg employs an on-site Wellness Coordinator who partners with outside agencies to initiate a host of organizational wellness activities including:

  1. Sponsoring various charitable, physically challenging contests and company sports teams.
  2. Encouraging walking during breaks and throughout the work day.
  3. Hiring a trainer to teach all employees proper stretching routines.
  4. Providing vending machines onsite so employees can access healthful food and beverages.
  5. Offering daily distribution of free fruits and vegetables to its employees.
  6. Providing reduced memberships to local fitness centers.
  7. Adopting an Injury & Illness Prevention Plan and providing regular trainings and weekly meetings on safety-related topics.
  8. Administering free flu shots and blood pressure screenings to all employees.
  9. Developing an on-site employee garden to grow vegetables.

The results Lundberg has seen from this truly reflect Winning Workplaces' tagline emphasizing human capital strategies that are "better for people and better for business":

  • In 2010, 95% of the workforce underwent a first-time Health Risk Assessment conducted by an outside insurance company.  Participating employees received a discount in their insurance costs. 
  • As a result of the health and wellness activities, several employees have reduced their blood pressure, cholesterol and glucose levels.  Many more have made significant lifestyle changes by losing weight, exercising regularly, growing their own vegetables at home and eating healthier meals.
  • Both of these employee results keep Lundberg poised for growth through lower turnover/higher average employee tenure, discounted health insurance premiums, and healthier employees who experience less overall stress and are more productive.

Related: Read our Q&A on achieving workplace wellness with stress management therapist Beth Moses.

Image credit: US Scouting Service Project

Reports of Imagination's Death Are Greatly Exaggerated

Wednesday, July 7, 2010 by Mark Harbeke

I'm adapting Mark Twain's famous quote in the title of this post because I feel the need to provide a counterpoint to Mike Shipulski's "obituary" of imagination – in an organizational sense – on the Blogging Innovation website today.  Writing as if imagination were a person, Shipulski says,

In recent years (imagination's) health declined as the two new thinking systems, lean and Six Sigma, tricked companies into severely constraining their thinking, and, eventually, there was no longer a place for her.

I'm someone who thinks that regardless of the adoption of a management approach such as the two he lists above, imagination is still alive and well.  I think its vitals are especially strong (in keeping with the obit analogy) in small businesses, where because of wavering if not falling consumer confidence and spending, reduced spending by many of the larger companies they serve and are served by, and in many cases insufficient support by lending institutions and the government, and other factors, firms and their leaders and managers have had to get incredibly imaginative in recent years.

The following articles on our website show how imagination factors into the payoff of employee engagement best practices in terms of a more productive workplace:

Ask An Expert - Vacation Days: Real vs. Perceived Time Off
"The GreenPages example shows that organizations' leadership are only limited by their imagination in how they approach time off for their workforces."

Success Story - JFK Medical Center
"Many of the programs at JFK, which has been widely recognized for its enlightened workplace approach, are beyond the reach of smaller employers.  However, some programs would be feasible for a small workplace with some leadership imagination and sensitivity."

Perhaps more to the point of the current relevancy of imagination, the term showed up several times in the qualitative feedback of applicants for our 2010 Top Small Company Workplaces award.  In response to our question How do leaders in your organization foster a sense of community and collaboration among employees?, TXS Industrial Design in Texas wrote:

On a personal level, with interaction and interest of management, TXS may sometimes resemble "The Office" with humor and humility, sickness and health, birthdays and weddings, celebration of babies and joyous occasions and an occasional party or FoosBall tourney to spark imagination.  Our family of employees feel secure in their jobs and the longevity of the workplace.

In answer to our question asking for an example of an employee learning initiative, Maryand-based Orbit Logic Incorporated wrote:

We do an annual survey to see how employees feel about their job and the work environment.  One of the best suggestions to come out of that survey was an employee lunch and learn.  We really liked the idea, so we ran with it.  The topics are varied, ranging anywhere from benefits overviews to marketing to software development overview for non-developers.  It is very easy for people's imaginations to run wild with information.

Finally, fulfilling our requirement of describing the workplace culture of their organization and the key people practices that support that culture, California-based Perfect Fitness wrote:

Our company, Team PERFECT, is on a mission to serve everyone who desires a life lived to the fullest extent of their imagination, to serve those who realize that's the point of living anything less, and we haven't truly lived.  You have nothing to lose but your own self-imposed limitations, and you can gain anything you dare to imagine.  We believe that by sharing our understanding, you will become as passionate about your potential as we are, this is how we are teammates to all, teachers to some and students of others.  We know of no greater reward in life than helping others unlock their success and achieve their dreams.

Related: The CEO of one of our 2009 award winners, Chicago-based Radio Flyer, explains in this video on our YouTube channel how the company's workplace values of fun and imagination allow them to better resonate with their customers – parents – and foster greater employee commitment and innovation.

20 Effective Employee Learning Initiatives for Small Businesses

Friday, July 2, 2010 by Mark Harbeke

The business justification for employee engagement focused on their continued, on-the-job learning is easy to understand.  It's a win for employees who increase their skills and become more marketable in their careers; and the company wins because their talent has a greater ability to perform at top levels and to innovate, and it's less of a risk and more of an opportunity to promote from within (saving money on recruiting from outside).

Yet, there are myriad options when it comes to educational employee development strategies.  Where should a small business start?  Maybe a more important question is: Considering each investment in this economy needs to generate several times its amount back in returns, what learning initiatives are most effective for small firms?

Luckily, Winning Workplaces has some real-world answers to these questions to share with you to help you decide how to invest when it comes to this important area of human capital strategies.  Our 2010 Top Small Company Workplaces award application asked applicant companies to give an example of a learning initiative they found to be particularly effective.  Here's how our 20 winners this year responded:

  1. A Yard & A Half Landscaping: We spend the equivalent of 1-2 weeks per year offering paid training days for field employees.  Because of the democratic educational setting, by the end of the day, people were helping each other across work crews, and on two occasions, younger employees stepped in to coach crew leaders on machinery that was still unfamiliar to them.
  2. All4: For our staff that are in the beginning of their careers and are developing their core consulting and technical skills, we have developed a skills matrix which allows them to know exactly what metrics must be met in order to be promoted to the next position. 
  3. Alternative Solutions HomeCare: One interesting program ASH put into place in 2009 was the Dream Manager Program.  Tackling head-on the growing problem of employee disengagement, the program explores the dynamic collaboration that is unleashed when people work together to achieve company objectives and personal dreams.  We had so much positive reaction to this program that we will be continuing it in 2010.
  4. Biomark: A couple of years ago we did a several-day team building training.  The effect is that when we employ an idea or theory from this training in our everyday work environment, everyone knows what we are trying to accomplish and is engaged in the process.  This has paid dividends in workplace happiness, turnover, and job performance.
  5. Chroma Technology Corp: A few years ago Chroma underwent a full company Lean Manufacturing initiative.  Every employee attended a 2-day workshop and seminar about the fundamentals of Lean Manufacturing.  In addition, 25% of the company was directly involved in two different Lean Mapping and Value Stream courses and projects.  This resulted in $1 million material savings in the first year.
  6. Daphne Utilities: We include a large number of our employees in public events involving interaction with our customers.  Here, they work side by side with upper management in events like street festivals and charity fundraisers.  This helps them hear the message being put out from the highest levels, allows top management to get to know each employee a little better, and helps to motivate our workers to take public pride in their work and their company.
  7. Dealer.com: We launched uFuel in 2009, a customized online learning management system that was implemented over a 14-month period.  uFuel contains interactive simulations, measures success and knowledge gaps, and creates training programs for areas of improvement.  This learning initiative has been extremely effective at keeping all employees at the leading edge of online marketing best practices and ensuring consistent service for clients.
  8. Dixon Schwabl: Our employee development includes an initiative launched by our CEO in 1998 to enhance overall employee communications and allow employees to appreciate each other's differences.  Based on Myers Briggs indicators, it helps frame leadership development, coaching, internal training opportunities, and cross-training.
  9. Ginger Bay Salon & Spa: Beginning in 2008 and throughout 2009, we spent significant time with our leadership team opening our books and helping employees understand our financial statements and review our financial performance.  We believe that Open Book Management is likely the main reason that we were able to post results that were not only stronger than our competition, but reflect growth in all areas of our business.
  10. MAYA Design: Teaching – many of our employees teach at local universities and we find that allowing this as a paid benefit helps employees learn more about their jobs, how to manage and work with others, and better communication skills.
  11. NY Jets: In 2008, the Jets embarked on a first of its kind management development initiative entitled "Take It or Lead It".  Both Business and Football managers partcipated in the sessions.  When this program started, the Jets were in the planning stages of our relocation from Long Island to New Jersey.  HR was able to add in a special section on managing change that prepared mangers for the huge changes employees faced with our relocation.
  12. Optimax Systems: The implementation of Job Instruction Training which ensures direction provided from internal trainers is consistent and measurable for effectiveness.  This has allowed us to make sure that people "get it" when instructed on a specific task.
  13. Patagonia: Our Employee Development Program temporarily assigns employees to other positions in circumstances where an employee may be out on an extended leave (e.g., maternity leave, an environmental internship, etc.).  Employees participating in this program attain new job skills, have the opportunity to meet more people in the Patagonia community at a new location, and significantly ease the transition back to work for the employee they've replaced.
  14. PortionPac Chemical Corp: For 22 years we have held a "Front to Back Day".  Management, office and sales staff spend the day working in the factory.  The "Front" staff gains an appreciation for the skills, talent and physical work that go into making PortionPac, while the factory staff are able to showcase their accomplishments and the attention to detail that goes into making each Pac perfect.  The event fosters communication and suggestions that go back and forth as to how our products can be made better and how the "Front" staff can make life easier for the "Back".
  15. Red Door Interactive: We believe that promoting opportunity to change your role at Red Door has prevented talented employees from leaving the company to pursue interests and additional responsibility elsewhere.  Emergent practice areas such as social media and search marketing now comprise over 30% of our total service revenue, and those practice areas are led by people who identified new opportunities and invested in becoming experts by playing to their strengths.
  16. Return Path: Most recently our CEO developed and delivered an "Effective Presentations" course.  Content is broken down into small, easily absorbed chunks and reinforced to create a solid foundation that is common for all new hires.  This builds not only a shared vocabulary in our unique business, it builds a shared context.
  17. Tarlton Corporation: Our most innovative training program is called Increasing Human Effectives (IHE).  The philosophy behind this training is to help our employees grow personally through this process, which will allow growth professionally.  If they believe in themselves, anything is possible!  Happy employees are productive employees.
  18. Tasty Catering: We have 11 advisors/consultants that work with our teams.  Advisors are in the following areas: Banker, Financial, CPA, HR, PR, Marketing, Legal (one for the company and one for the shareholders), IT, Culinary, Dietician and Sales.  The staff benefits by receiving advice from a recognized expert in the field who has larger and smaller clients.
  19. The Sky Factory: To further our understanding and experience of the creative process as it applies to our daily work and to the building of the company, we prepared an all-company course with an art historian.  After viewing hundreds of art images and engaging in extensive dialogue it became evident that the process of building a company can (and should) be the same as that of creating a beautiful and lasting work of art.  This notion became practical when a designer aptly observed the skill of a production worker's multiple LED solders.  The fine quality of his work was especially significant because of a recent multi-million dollar fire caused by sloppy work from a competitor's LED system.
  20. Van Meter Industrial: One effective learning initiative in our organization is our Foundations training program.  New employees attend this day-and-a-half course near their 90-day milestone anniversary with our company.  Feedback from employees has shown this is fun, interactive, and important training that provides a true insight to our culture, gives the basis for understanding what is important to our company, and sets the tone for who we are and what we represent.

Related: Dive even further into learning activities that will benefit your workplace culture, and your bottom line, by reading our Success Story on ShoreBank.

Image credit: Wikimedia Commons

Spinoffs Aren't Just for Big Companies

Monday, June 28, 2010 by Mark Harbeke

Click for more info on MAYA DesignLast week SmartBrief on Leadership called attention to an article on Business-Strategy-Innovation.com which discussed how some big companies scale their innovation by seeding "independent spinoffs to develop high-risk, high-reward projects."

With their huge employee rosters and advantage in terms of working capital and infrastructure, it makes sense that large companies that believe they can see real returns from this focus are making this practice a priority.  But despite often being at a disadvantage in the factors I just mentioned, small businesses are getting in on this as well.

One of the answers that stood out to the last question in Winning Workplaces' 2010 Top Small Company Workplaces award application – What are your key long-term strategic goals for the organization and the workplace? – was this one by winner MAYA Design, a 21-year-old design consultancy and technology research lab based in Pennsylvania:

MAYA grows, and allows employees to grow and stretch, by spinning off complimentary companies.  Employees can present a business plan to the owners and if they think it's viable, and does not compete with MAYA, MAYA provides the infrastructure (HR, finance, clerical and IT support) to help them get started.  This has always been a part of our strategic goals.  We currently have two companies (we call them doppos) incubating, one of which will probably spin off in 2010, the other of which will take a few years to be ready to start.  We are constantly working with the employees to think of ideas for new doppos.  MAYA Design will continue to be around 50 employees, as we believe this is an optimum number for the collaborative work we do, and is well managed.

When well executed, as is the case at MAYA, this practice produces a triple win that comes from a workplace culture foundation of employee engagement:

  • Win for Employees: Spearheading or assisting in the formation of a new venture from an existing company – talk about a resume builder!
  • Win for the Company: This practice inherently minimizes the risk of launching a new venture, while maximizing the returns for the parent company.  If the venture proves successful, employee-leaders of it and their subsequent staff are built-in evanglists for the parent company, which further helps their recruiting and sales efforts.
  • Win for the Greater Community: Startup ventures that are successful are a sorely needed source of employment and tax revenues, which can both help our economy recover faster.

Do you know of any businesses that use a practice similar to MAYA Design's?  If so I encourage you to comment about it below.  I'd especially like to know how it helps with building trust in the workplace.