It’s funny how things work out, what we see when we open our eyes and raise our curiosity.
In particular, two events this week that in one moment filled me with dread, then filled me with hope and possibility.
Firstly, on Wednesday a colleague sent me an article from The Economist about the quality of managers in the UK. The article reflected on the following:
The low productivity of British workers has several possible culprits. Inefficient family-run companies are sometimes blamed, as are poor workforce skills. But whereas these problems are well documented, another factor is glossed over: the mediocre performance of British bosses. John van Reenen, director of the Centre for Economic Performance at the London School of Economics, argues that the standard of British management is “significantly below” that in leading countries. His team carried out 14,000 interviews with employees around the world and found that British workers rated their supervisors lower than those in countries such as America, Germany and Japan. “We are not in the premier league,” he says.
Management as a skill has rarely been taken seriously in Britain, where the cult of the gifted amateur prevails. Ann Francke, the head of the Chartered Management Institute (CMI), says that four out of five bosses are “accidental managers”: they are good at their jobs but are then promoted into managing a team or a department, without further training. Unsurprisingly, “they flounder”, she says. Mr van Reenen reckons that about half the productivity gap between Britain and America could be attributed to poor management.
Inefficient family run companies? Funny that, because on the very next day I found myself in need of the services of a family run company. My wife’s lovely Michael Kors watch had used up all of it’s battery charge and a replacement power cell was needed. The most obvious place to get this done is my local Timpsons.
You may know of Timpsons. You may even be a customer of theirs – everything from key cutting, engraving, shoe repair to wrist watch maintenance. But do you know John Timpson’s approach to management?
In a recent article in The Independent, Mr Timpson explained his philosophy.
His way of avoiding top-heavy management is to do away with their jobs. “When I introduced my ‘upside school of management,’ which is putting the customer at the top of the matrix and management at the bottom – and giving staff the freedom to run their own shops – our middle managers didn’t like it at all. Many left.”
As he admitted, Timpson is a funny business. It does all the odd jobs that no one else wants to do, whether its key-cutting or, now, watch and mobile phone repairs. “This wouldn’t have worked if we hadn’t understood the importance of picking the right people and giving them the freedom to look after customers and to decide how to run their shops and to set their own rules. That is the core of our success.”
So what was my experience? As someone who is often frustrated by lack of customer service, I find the whole Timpson experience leaves me with a smile on my face.
I took the opportunity today to ask the 2 guys serving, what is life really like as an employee?
Their answer was simple “Great!”
Why, I asked. “Because we are left alone to get on with it. This is our store. We get guidance, sure, but we make the decisions because we are with the customers every day”.
And how does that make you feel? “Trusted!” was the immediate response.
But does this upside down school of management work commercially?
Well, Timpson recently reported sales up 12 per cent to £189m and profits 38 per cent higher at £18.7m. Furthermore, over the past three years the company has grown rapidly – from 800 stores to 1,400.
Yet again, more evidence that shows having engaged staff not only results in a better, happier work place, it also brings commercial value.
By: Mark Manley from Gaia Leadership
If you would like to learn more about how to build engagement within your organisation, please contact me
mark.manley@gaialeadership.com
I write these articles as part of my own learning. Thank you for reading it.
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Gig Economy
You could drive yourself steadily insane compiling a list of all the trends that were supposed to fundamentally reshape business. Once upon a time we were all “flexi” workers, then “mobile learners”. Both terms seem antiquated now, the corporate equivalent of a Segway – perfectly sensible in principle but somehow faintly ridiculous in reality.
What makes the “gig economy” – the legion of individuals taking on piecemeal work, enabled by online talent platforms – feel different is that it’s being driven not by hip early adopters in co-working spaces (though there are plenty of them involved too) but by genuine need, both in the “real” economy and, crucially, in boardrooms.
If you were staffing a major new project from scratch today, it would seem an act of faint lunacy to bring in a raft of full-time employees with cumbersome overheads (and personal taxes) when you could go online and find experienced, verifiable individuals you could pay by the hour and dispose of when required. Similarly, if you were a coder, IT contractor or other technical specialist, why would you harness yourself to one organisation when you could enjoy both variety and a more lucrative income hopping from gig to gig (along with the attendant tax advantages of being self-employed)?
So many businesses are waking up to this recalibration that 450,000 people with full-time jobs now have second jobs, many of them via TaskRabbit, Elance or their multitude of competitors. PwC has tried to cut out the middleman by setting up its own talent “market” of registered suppliers its offices can bid on. There are individuals in greater London making a handsome living assembling flat pack furniture on a piecemeal basis for an hourly rate – an occupation that would have been almost logistically impossible just a couple of years ago.
You can understand the appeal of living by the gig, beyond the financial benefits. The conventional career has been an awkward fit for many people over the years, and few jobs are capable of maximising all our skills and intelligences. Besides, most work is boring, which is why those lucky enough ever to have had a job for life employed the conversational repertoire of the prison system (“putting in hard graft”, “serving your time”) to describe it.
Gigs, by contrast, are exciting and ever-changing, even though they ask some deep questions of the psychological contract (why would I exercise discretionary effort for a business that only employs me for a matter of days? Can I trust someone who could work for my biggest rival tomorrow?). But they aren’t an untrammelled good, either. For every actuarial scientist earning a small fortune for a short-term job, there’s a hotel chambermaid who is now being paid by the room rather than the day. The huge rise in self-employment in the UK has as much to do with businesses shifting such workers – we should include the small army of couriers and delivery drivers in this calculation – off their books as it does people discovering new freedoms. Palpably, none of them are enjoying the benefits of the gig economy, not least because they cannot practically control where and how they work. They are left, instead, to feed on scraps.
Uber, the erroneously attributed poster child of the gig economy, faces a legal challenge over whether its drivers are technically employees. It maintains they are self-employed. This is a vital point for the courts to consider – cycle couriers and plumbers are engaged in similar cases – but in Uber’s case we should also note that it controls the supply of drivers into the market, and their pricing. This is assuredly not the “freedom” gig economy enthusiasts speak of.
Governments will have to decide the legal and ethical boundaries of such behaviours, not least because if gigs take off, their tax revenues will rapidly vanish. Already, there is serious talk of the need for a third kind of classification, between “employee” and “self-employed” which recognises the shared responsibilities (both financial and relating to holidays, sick pay and other benefits) between giggers and those they work for.
Pioneers like Wingham Rowan, who runs the Beyond Jobs consultancy, are trying to imagine a market that will ensure the gig economy brings mutual benefits and conveniences without being open to abuse. Businesses who want to enjoy the flexibility such arrangements provide should not absent themselves from such discussions – but neither should they fear this will turn out to be just another fad.
By: Robert Jeffery, Editor of People Management magazine
Our office is closing! We can do better than just despairing
In March 2015 we received the bombshell from our U.S executives that our office in Oxford was to close as part of a long-term global consolidation of sites with some staff being offered relocation and the others made redundant. The products needed to continue, but how could we avoid the remaining time just being miserable?
Staff were asked to complete their current work and assist with knowledge transfer to the remaining development offices in the USA and India. The previous few years had seen good progress with agile and lean software development, customer satisfaction had steadily risen and staff turnover had been extremely low. So the closure announcement was a body blow. The chance of the announcement being taken badly was all too real with the risk of the situation disintegrating into a depressing mess.
The Oxford management team had the difficult task of trying to make the best of the situation and get the best outcomes for both staff and the company. One year on, the results so far have been remarkably positive. We can therefore make some recommendations for anyone else in this situation, some of which are also worth considering for companies during normal operations.
Actions taken
- Long notice period – We managed to agree 18 months’ notice of the final closure. This was necessary to complete current work and have an effective handover so that the complex medical imaging software products could continue. However, it was a very long time to hope that people would stay so other measures were needed.
- Generous redundancy packages. These were agreed at a level which impressed staff. With their tax-free nature, this gave people confidence that even if they didn’t find another job immediately, they would not have any financial worries for a few months.
- Relocation support – Real commitment was shown to staff to find them other places within Siemens. This included generous relocation packages, funded exploratory visits for staff and families, advice from locals and flexible move dates. This was not cheap, but the cost was much less than hiring and training somebody new.
- Voluntary end dates – Rather than imposing end dates, staff were asked to openly express whether they wanted to stay 6, 12 or 18 months. It’s very hard to predict how people will react so it was better to try to align individual’s needs with business needs. Almost 100% of people got they end date they wanted, most opted for the longer duration and the company had adequate cover.
- Keeping a training budget – Staff were given encouragement to still do training and qualifications. The company would still get some benefit from the training in the short-term, it would help staff with finding a new position, but mostly it helped reassure staff that they could stay and still develop themselves.
- A larger entertainment budget – It was important for people to socialise and support each other so there was an increase in company-funded drinks, lunches and a bigger-than- normal Christmas party.
- Help with job-hunting – Staff were allowed to take some time for interviews and encouraged to have an open discussion on opportunities with support given to try to accommodate people’s wishes where possible. External consultants were available to advise on interview techniques, CV-writing and job hunting.
- Effective use of employee representatives – Rather than just fulfilling a legal requirement, a real effort was made to engage with the elected employee representatives, create a detailed FAQ for staff and share all information on the intranet.
- Continued staff recognition. The office was required to operate properly for an extended period so it was only fair that staff should be treated normally and retain the opportunity to still achieve an above-target bonus and the opportunity for promotion.
- Management care – The managers have been very open, honest and helpful to the staff and shown genuine care and empathy for people and their circumstances. This probably made the biggest difference and enabled so many of the positive results. A site closure can be viewed by staff as a big breach of trust, so asking staff to believe promises about arrangements during the remaining period is a challenge and requires lots of reinforcement, consistency and ensuring that was is said is done.
Results
- Staff morale – This went through the inevitable rollercoaster of shock, anger, worry then acceptance. People were annoyed or upset at the decision, but overall viewed the offers as fair and professional. Staff who had been through a redundancy before thought that the way this was handled was much better. Although losing colleagues is unavoidably sad, people have been positive about making the best of the situation.
- Staff stayed until their agreed date – The long notice period and generous packages meant that most people were fairly relaxed about finding a new position and happy to leave serious job hunting until a few months before their agreed end date. Whilst, it’s an imposed change for everyone, in some cases, staff have appreciated having the “luxury” of having an extended period with a financial cushion during which to calmly think about what alternative job they would really like to do in future. Staff have been open about their hunting and have discussed mutually agreeable end-dates before accepting offers.
- Results still achieved. Work on products continued at a good level. Inevitably people weren’t going the extra mile in quite the same way as they used to but were professional and productive. Staff have been helpful in ramping up new recruits in India and continue to take pride in their products. There have been no surprise, early, resignations or disciplinary issues.
- A surprising number relocated. 25% of people relocated to the USA which was a lot higher than anyone originally expected since people liked being in Oxford.
- Additional social events – The activity in the office “community” if anything picked up since the news with whisky tasting, a pool tournament, team nights out, a group cycle ride around town etc.
- Peer-to- peer training – Staff have shown a great desire to support each other and proactively run open seminars for others in the office to share their knowledge with others (e.g. Sharepoint, Data Science, Android Programming, Arduino programming, Linux etc)
- More cakes – We’ve always provided cakes on a Friday but the number of spontaneous cakes being brought into the office on other days has gone up.
Overall it has been a much more positive experience it could have been. The office morale is still good and the staff have received outstanding praise for their continued professionalism and dedication.
The results has been good for the company as there is a smooth handover taking place while ensuring that people are taken care of. The actions above have not been cheap for the company in the short-term, but are ultimately delivering better long-term value than the alternative of instant site closure followed by disorder and a long period of rebuilding a new team from scratch.
Suggestions relevant for companies not closing
Whilst some of the topics are only relevant to a site closure, some things could be beneficial anytime.
- Management openness is always a good thing. It’s easy to forget the importance of explaining plans and listening to feedback. Make sure there’s time for group meetings, 1 to 1 sessions and occasional surveys.
- Peer-to- peer training is always very cost-effective so time and support should be given for this. Staff have a lot of varied knowledge and it’s motivating for both the trainer and attendees.
- Creative entertainment. It can be an easy area to cut, but pays back a lot. If people have a good social relationship with colleagues, they are much more committed to them and hence also the company. The entertainment does not necessarily have to be lavish e.g. a pool table and tournament, an indoor mini-golf area made out of office accessories and text books, a pancake- tossing event on Shrove Tuesday etc. Something a bit different every few months keeps things fresh. Cakes, are always good.
- Look for the best outcome for both staff and the company given the circumstances. Arrangements with staff have to be fair to get the best results in the long-term.
By: Stephen Wells, Siemens Molecular Imaging, Oxford
Great Leaders Ask Great Questions
For the last few years, I’ve been working with and studying some of the best teams in the world; Red Arrows teams, SAS and US Navy SEAL units, Racing yacht crews, a Formula One pit crew, etc. I set out to study teamwork. In particular, I wanted to know how these teams have become world class. In the course of my studies, I identified six common characteristics, which differentiated these incredible teams.
Interestingly, I didn’t set out to study world class leadership. However, when I found world class teams, I also found world class leadership (I know, I probably should have expected that!). So, as well as studying teamwork, I also began to look at the characteristics that differentiated world class leadership. One of the most powerful insights that I discovered is this…
Great Leaders Ask Great Questions.
In fact, the great leaders that I encountered often didn’t provide any answers! Instead, they realise that the group has the potential to generate a better answer than they could on their own. It’s a principle that James Surowiecki outlines in his book, Wisdom of Crowds. When I shared this idea at an educational conference last year, a Head Teacher responded by saying, “That’s rubbish. Are your trying to tell me that Einstein should ask his class for the answer, and that the class will have a better answer than Einstein?”. “No”, I said, “Einstein is part of the class. So by engaging the class you get Einstein plus the class, not instead”.
Knowing that great leaders ask questions is one thing. Knowing what constitutes a ‘Great Question’, is another. So, what makes a question ‘Great’?
Here are some of my thoughts and reflections…
To me, ‘Great Questions’ are simply the right question, asked at the right time. To ask great questions, we need to understand the problem we’re trying to solve and where we are in the process. Do we need to ask a strategic question, or a tactical question, or one that’s related to implementing and executing a plan?
Strategic Question – Why?
Tactical Questions – What? …. How?
Action & Implementation Questions – Where? …. Who? …. When?
Very simply, it makes sense to understand why we are doing something (and whether we should be doing it), before deciding what we’re doing or how we will do it? Equally, it makes sense to know what we’re going to do, before deciding who will do it, when and where.
To me, ‘Great Questions’ are also well defined and simple. Sometimes it takes time and thought to frame a question well. The world class leaders that I saw at work often ask simple questions, which engage their team to collectively solve a problem. Some of the most powerful questions I’ve heard simply begin with the words, “How could we…?”.
To find out more, read Stronger Together; How Great Teams Work and hear from world class leaders sharing their wisdom on Be World Class TV.
By: Simon Hartley, Founder of Be World Class.