Leadership Fundamentals

While looking around the web and thinking about leadership topics, I came upon this article about employee loyalty and thought it well-written and thoughtful, so I wanted to share it with you all. So I’ve copied it here and, of course, credited the writer. It reminded me of how years ago, when my husband and I had our own typesetting company, one of our employees referred to it as a “sweet shop”. When we asked him what he meant, he told us it was the fact that “when you come into work, you feel like you’re home.” That feeling promotes a sense of loyalty that is as strong as steel. So that is why this article interested me. Without further rambling on my part, here it is.

Back in 2008, my firm was asked by The Lane Construction Corporation to conduct a survey of their employees on the topic of loyalty. The results of the survey, and the additional unanswered questions that were raised by them, have been the subject of much of my thinking time ever since. While I have formulated many theories on how Lane’s culture of loyalty developed, the one conclusion that can be drawn is that the culture is unique and worthy of being documented.

Background

Prior to conducting the survey, loyalty had been extensively discussed and debated by Lane’s management, primarily during planning sessions. Management felt that the company’s culture was strong and formed the foundation for aggressive growth. The company had pursued growth through internal channels, as well as acquisitions, without a deterioration of quality or an undue strain on their infrastructure. The growth had led to improved financial performance, and it was only natural that management wanted to continue on that path. They felt that the company’s culture was strong and able to support further expansion, but they wanted to be sure. In addition, they simply wanted to confirm that all employees felt about Lane the same way they did. Therefore, they decided to undertake a double-blind survey of all employees that would assess the strength of their culture and the loyalty of their employees. At the time of the survey, Lane had approximately 1,200 employees.

The survey was conducted online in a manner that completely preserved the confidentiality of the participants. All programs and databases were deployed on our servers, under a sub-domain web address that was secured. Participants were given unique user names and passwords, to ensure that there was no unauthorized access to the website. However, once access to the website was granted, there was no attempt to attribute answers to survey questions to specific individuals. No session data were maintained, and no cookies were set. In essence, all reasonable steps were taken to ensure that participants could submit their responses to survey questions in a totally anonymous fashion. The goal was to ensure that participants answered survey questions openly and honestly, without any fear of possible reprisal.

Survey Results

To some of us, the survey results were nothing short of astounding. A full 75% of all participants responded that they were totally loyal to Lane, and would not even consider offers from other companies under any circumstances, even if those offers were for better opportunities or higher compensation. Many of us feel a sense of loyalty to the company for which we work, but most of us would be excited for an offer of a better job or higher compensation. Not at Lane. Three quarters of Lane employees said they would not leave under any circumstances. The remaining 25% of employees said they considered themselves totally loyal to Lane, but would consider offers for better opportunities or higher compensation. In our experience, the views of this remaining 25% are more reflective of almost all employees at other companies.

The survey touched on several other topics related to loyalty, but it was the main results of the survey that caused us to pause and consider the implications for Lane. Immediately, we began asking ourselves obvious questions, such as:

* How did this type of culture develop at Lane?
* Does Lane’s culture provide them with a competitive advantage?
* Can the culture be sustained?

In the remainder of this document, we will try to explore each of these questions in a little more depth.

How Did Lane’s Culture Develop?

No one at Lane seems to be able to answer this question, but employees seem to know that the culture is real, and that it has been there for a long time. The culture seems to be a natural assumed part of their everyday working life at Lane. The Lane Construction Corporation was founded in 1890, and it would not be surprising to us if it were learned that the company’s culture stemmed from those early days.

One symbol of the culture is Lane’s published Mission, Vision, and Values Statement. Care for People is clearly spelled out in the Values Statement. We believe that these types of corporate documents are important to defining and developing a culture. However, even more importantly, Lane seems to have lived up to their stated values over many years. When asked to provide examples of instances when Lane demonstrated their values to them, employees cited numerous times when the company continued to pay them during periods when construction projects were halted for various reasons. They also cited numerous situations when the company came to their aid during periods of personal tragedy. Therefore, it is our conclusion, that one element that has contributed to the development of Lane’s culture is a clearly stated set of values regarding people. In addition, the company seems to have adhered strongly to those stated values, even though other decisions may have been easier and less expensive. In other words, the company has “walked the talk”.

Legacy is certainly another element that has played a role in the development of Lane’s culture. A high percentage of employees have been with Lane for many years, and in some cases, through generations of families. A case in point is David Benton. David is currently Executive Vice President of Lane’s Southern Division, and he was the sponsor of the survey of employees that we conducted. David has been with Lane for over 30 years. His father was with Lane for over 40 years. His brother is currently with Lane, has been there for over 40 years. His father-in-law was with Lane for over 40 years. His brother-in-law is currently with Lane, and has been there over 20 years. David’s legacy at Lane may be somewhat extreme when viewed against the average employee at Lane. However, there are numerous examples where multiple members of the same family worked at Lane for at least some period of time. Therefore, it seems reasonable to conclude that many employees view Lane as something more than just a place to work. The company is linked to the family history of many employees, and that has certainly contributed to the development of the Lane culture.

Does Lane’s Culture Provide a Competitive Advantage?

There is no doubt that Lane’s culture is a strategic asset. Most companies with which I am familiar would deeply covet such a culture. It is also easy to conclude that Lane’s culture provides the company with operational strengths on a day-to-day basis that are just not present in other companies. However, for a strategic asset to become a competitive advantage, it must be able to be leveraged in the marketplace. It also must be visible and evident to customers, suppliers, and competitors. When viewed in this context, the answer to this key question is not so clear.

Lane currently acquires almost all of its business through government sponsored bids. In the bidding process, as long as all bidders can demonstrate the technical ability to do the job, the lowest bid wins. Having employees that are more experienced in the company’s methods than those of competitors does not necessarily translate directly to lower costs. A highly experienced workforce would probably translate better to a company strategy of higher quality, rather than one of low cost producer. However, Lane’s experienced workforce does lower costs of a project in an indirect way. The higher level of knowledge and experience on a project reduces the amount of rework that must be done, the processes are cleaner, and fewer mistakes are made. Nevertheless, these attributes do not necessarily lead to a low cost bid on a project, and any government entity that is choosing a vendor for a project would be hard pressed to select one that is not the lowest bidder.

It is our conclusion that while Lane’s culture certainly provides the company with operational strengths and flexibility, it does not provide a strategic competitive advantage in the markets where Lane currently competes. This would likely change if Lane decides at some point to enter markets where quality of work is paramount to winning jobs.

Can Lane’s Culture be Sustained?

Another obvious question that comes to mind when being exposed to such a unique culture as Lane’s, is how long can this last? There is no way of predicting, but it seems to have lasted a long time at this point. One way that strong cultures get changed and diluted is through mergers and acquisitions. Yet, Lane has made many acquisitions over the years, and has folded them into the company and their culture very effectively. The Lane culture appears to exist everywhere in the company, regardless of how employees came to be part of Lane.

In fact, Lane’s culture was probably a strength when integrating acquisitions. Seeing and meeting large groups of loyal, dedicated Lane employees would have to ease the anxieties of employees whose companies were being acquired.

Lane has grown significantly over the past several years, through internal growth as well as acquisitions. During that growth, the company has done a masterful job of maintaining the strength of their culture. However, the question at hand is can it continue? There is no doubt that the company wants to continue to grow, and more acquisitions seem likely. Logic would say that further growth over time, especially through acquisitions, will lead to dilution of culture, regardless of how strong that culture might be. Our guess is that Lane’s culture will evolve over time, as is only natural, but most of the major attributes of the culture will be carried forward. The culture is so strong at Lane that it is impossible to believe it will totally disappear within the foreseeable future.

* * * * * *

The culture of loyalty is extremely strong at Lane. In our view, it is one of a kind. It took decades to develop, but was certainly guided by the company establishing values that it thought were right, and then living up to those values. While the culture provides a wealth of operating advantages to the company on a day-to-day basis, it does not necessarily create a competitive advantage in the market in which Lane currently does business. However, the culture is strong enough to be a competitive advantage should Lane decide to enter different types of markets. We believe the culture is so strong at Lane that we would not bet against it surviving over the long term. It has already survived through numerous growing pains, business pressures, and economic cycles. In our opinion, the culture and the company will go hand-in-hand for many more decades into the future.

McGee Partners LLC is a professional services firm located in Avon, Connecticut. The firm offers professional services in the areas of business management, financial management, and business improvements. More information about McGee Partners can be found on their website at http://mcgeepartners.net William M. (Bill) McGee is a Managing Partner with the firm and led the survey on loyalty for Lane.

Article Source: http://EzineArticles.com/?expert=William_McGee

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Americana Diner exterior

Sunday, April 18, 2010, I had Brunch with 6 other great ladies I used to work with. We laughed, we shared stories and told each other what’s going on in our lives [all but 2 people at the table had been laid off from our company]. It was great to catch up with them, to find out how resourceful they are, to hear their plans for the future. It is obvious that all of us had singled out other things that interested us and took us off in other directions from our former corporate life. They were some of the most talented and interesting associates I’ve known in my life. One of them is looking to take over a business as a floral arranger. Another is enjoying the time off to spend time with her new grandchild. One is doing freelance work. I, of course, decided to pursue writing/blogging on the internet.

It was unfortunate that the diner we picked — the Americana Diner in East Windsor, NJ — was incredibly noisy on a late Sunday morning, making it difficult to hear everyone. However, although the coffee was bitter and stale, the food was absolutely great and the surroundings pleasant. A few of us ordered a B.T.O. Omelet — that’s Basil, Tomato, and onions. It was light and fluffy and abundant. One of us ordered Crispy Crunch French Toast, which is rolled in Rice Crispies before frying. The maple syrup smelled heavenly.

The time just flew by, as we reminisced over past get-togethers, funny occurrences from work, and plans for future luncheons. These connections are so important – for mental health as well as an exchange of ideas, and just to find out what’s going on outside yourself. At least 3 of us in the group have been together for lunch half a dozen times in the past year. We all plan to meet again just after Memorial Day.

I would advise everyone to keep up the ties to former associates for a number of reasons.

• Your own mental health and sense of belonging to a group
• A spectrum of ideas about where to go from where you are to a new beginning. Don’t give up! Consider this an opportunity to change your life for the better.
• An insight into how others are dealing with the same type of situation you are in.

Americana Diner Seating

To my delight, when I arrived home, I found that about.com has published an article about my blog, with facts I had given them about my blog beginnings. To a blogger, it’s a win-win situation when a large and well-known website puts your link on their pages. And so, I guess I would have to say that Sunday was a great day for me all around.

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From Merriam-Webster’s online dictionary:
1 capitalized : a friend of Odysseus entrusted with the education of Odysseus’ son Telemachus
2 a : a trusted counselor or guide b : tutor, coach

Mary the Mentor and the Horn and Hardart Automat.

Everyone should be lucky enough to have a mentor at work. Someone who shows you the “ropes”, introduces you to associates, tells you the best places to eat and the ones to avoid. In short, someone you can always rely on to give you the truth and to give you a hand.

I remember my first mentor so vividly. Her name was Mary.  She was at least 2 decades older than me, not unusual for me, because during my whole life/career, I realized that those I could learn the most from were the ones who had already made the uphill struggles, my older associates. Here I am, after 46 years of working life, and I still remember Mary. Why the long-lasting memory? Mary had no axe to grind, no office political agenda. She had a strong sense of order and wanted things to go well, including friendships. I wasn’t working there long — only a few months — when Mary urged me to apply for another position in the company — one that I had to be bonded for.

I had started as a file clerk – my first office job. Mary worked in another department — the room reserved for those trusted and respected employees who  would handle cash, checks, and other valuables on a daily basis. It was a non-profit organization which sold rosary beads, small statues, and other religious items. I did get bonded and was hired to work in the room where thousands of envelopes arrived every day — donations and purchases, and sometimes bequeathals.

Mary taught me how to dress like a professional on a small salary, by buying in consignment shops such as 2nd Hand Rose. She introduced me to the Horn and Hardart cafeteria, where I could get a good lunch for very little money, and in very pleasant surroundings. She was a lifeline for me, giving me a connection to my workplace that never would have been as strong without her. May you all be as lucky as I was to have such a mentor. All my life, I attempted to emulate her and to pass it on to others.

Writing this made me wonder if there were pictures around of that historic automat and sure enough, there are. I’ve got to get this book. As an Amazon Affiliate, I suggest the following nostalgic history of Horn and Hardart:

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We often think that a good salary is reward enough for the efforts of an employee or for the entire team. They’re getting paid well for their efforts, so what more could they want?

They might want to feel that someone at work recognizes their achievements and really cares about them as a person. They might relish the idea that sharing in rewards as a team makes their work life more interesting, more fulfilling and yes, even more fun.

There are many ways to achieve the camaraderie which comes from sharing good experiences with your team — either as individuals or as a group. Here are some that succeed in building good feelings in your employees because they experience a sense of appreciation that goes deeper than just a raise – because sometimes raises aren’t enough.

• Taking the team out to lunch
• A team outing – perhaps a movie, an amusement park, a picnic – any fun thing you can all enjoy together
• A gift card to a local restaurant
• An email within the organization to compliment the efforts contributing to a successful project
• Time off – could be only a half day, could be more
• Tickets to a sports even or a play or concert

Try and be consistent about this. Don’t reward one person’s efforts and neglect others’. You don’t have to reward everything ever achieved, just determine an approach and stick with it. If you offer it whenever a project’s goals and schedules are met or exceeded, then that should be your guideline. It won’t always be possible. Sometimes the workload just can’t handle it. If that’s so, explain why it’s not possible. The key is to be able to consistently share achievements with each other.

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Great teams don’t just happen. It takes work on the part of the Leader/Manager, as well as the individual members of the team. We can make it easier for it to happen by not creating an environment which allows office politics to interfere with cooperation, and pits one employee against another. Each member of the team will have different strengths and approaches, and that is not a bad thing. You don’t want your team to think exactly alike. Cookie-cutter team members make for a boring and less creative environment anyway.

Skills Sharing
The different natural strengths of employees are not a negative thing. In an open, sharing environment, team members will be eager to share their own skills and happy to enjoy the reward of appreciation from their other team members. In a back-biting, one-upsmanship environment, this is fairly impossible due to a lack of trust.

When people are afraid to show their weaknesses, they’re in a constant state of anxiety about being “found out”. Employees who are anxious just don’t perform as well. They spend too much time measuring themselves against other members of the team and coming up short. They may think, why did it take me more time than (choose a team member) to complete my part of the project? What kind of light does that put me in? In fact, there could be any number of valid reasons why any particular member of a team might take longer to complete their own individual assignment. Perhaps certain information was not immediately accessible, or their part of the assignment was dependent on someone else’s input.

R-e-s-p-e-c-t
It’s more than a song. If you can generate an environment of mutual respect between team members, and give them your own respect, you’ve already taken a giant step. You see, it’s not really much different from a family. Each individual is respected for their uniqueness.

If you’ve started out by hiring the best team members you can find, members that respect each other’s ideas and experience, and then you have prepared an environment where growth can take place, you’ve done a good job.

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On the right side of this blog page, you will see a link to Who Trusts You, which I encourage you to use. You choose the people to whom you want to send the rating requests, and they receive an email request to rate you and a link to the rate sheet. You will be notified by email to tell you where you can see the results. You will not see who did the ratings, but you will get some excellent input on how much you are trusted. If you haven’t done it yet, give it a whirl.

Good Luck,

Barbara

Here are my results:

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