Problem Solving

Guest Post From Alex Vorobieff - Transform Your Company

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In our hectic world it is more important than ever to bring our work and personal lives into focus. Alex Vorobieff’s new book Transform Your Company - Escape Frustration, Align Your Business, and Get Your Life Back is an effective tool to Discover, Learn, and Eliminate in order to make change whether you are a business owner or part of a team.

The Other Form of Compensation – Does Your Company Offer it or Extract a Tax?

By Alex Vorobieff

Why do people want to work for your company? Do you have a clearly defined answer? Why are the best going to give to your company their all and majority of their waking hours? Monetary compensation only goes so far especially with the younger generation. More and more people want to work for companies with a purpose and culture that aligns with their values while performing work that is fulfilling. In addition to monetary compensation, they are seeking emotional compensation.

Unfortunately, companies without a thought-out emotional compensation plan are more likely to extract an emotional tax. When a company is frustrating to work in, people feel it especially A-players and they grow resentful. People leave companies when they are frustrated when they realize marginal dollars don’t compensate for the emotional taxes. When you hire A-players, does their life-cycle with the company follow a similar pattern? Do they join the company engaged but grow distant and surly over time? They likely grow tired of paying emotional taxes.

Alright, Vorobieff, I get it, our company needs to remove the emotional taxes and replace it with emotional compensation. What are the forms of emotional compensation?

It starts with acknowledgment. People want to be acknowledged for their effort and contribution. “But they are paid to do their job.” Acknowledgment doesn’t cost anything. When you acknowledge the good when you point out poor performance they know you see the positive and the negative and it is more likely better received. Many people spend more energy on trying to receive acknowledgment than on achieving material objectives and if your compensation plan focuses solely on money? Your wasting money.

Other parts of emotional compensation include being proactive. Consistently work to identify what processes are working and which are not. If they are paying a frustration tax, working with them to eliminate it is a RAISE. Companies that pay emotional compensation do not force their employees to find competitive offers from other companies to leverage changes in their current positions.

Emotional compensation is a neglected topic. The good news is the IRS has ignored it as well since they can’t easily tax it, yet 😉

But where do you start? Assess whether your company is paying emotional compensation or extracting an emotional tax. The most common form of an emotional tax is frustration working in a dysfunctional business. Lifting a burden is a raise and the first step to unleashing your HumanPower.

About Alex Vorobieff

Founder and CEO of The Vorobieff Company, Alex Vorobieff is a business turnaround specialist, working to implement Business Alignment Tools for their specific needs. Alex has served as clean-up CFO and president of companies in telecommunications, aviation, aerospace, and real estate development, leading successful turnarounds in as little as three months. He shares his how-tos and techniques through Confident ROi magazine and his latest book, Transform Your Company: Escape Frustration, Align Your Business, and Get Your Life Back.

Differentiation Increases Complexity By Sunnie Giles

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I'm honored to share a guest post from Sunnie Giles author of the new book The New Science of Radical Innovation - The Six Competencies Leaders Need to Win in a Complex World. Her insights and big-picture thinking focusing on the complexity around us is fascinating. 

According to complex systems theory, differentiation increases positive (internal) complexity. By allowing more variation, each differentiated agent in a system can make different connections with other agents and systems, which adds more variety and strength to the quality of connection. This additional connection increases the probability of natural selection and evolution because the organism’s variations (i.e., mutations) facilitate better adaptation to the environment. Complexity increases when differentiated parts are connected. This increased internal complexity, in turn, enables an organism to respond even more effectively to unexpected challenges from the environment and increases its chances of survival.

My church choir provides a simple example of how differentiation increases complexity. When we learn a new song, the soprano, alto, tenor, and bass voices practice their parts by themselves. When each part is sung in unison, the resulting music doesn’t sound very rich or complex. When the four parts are finally combined, they produce a rich tapestry of beautiful, complex music.

Let’s take another example. Fruit flies and humans share 60 percent of their DNA—a surprisingly high number. One would be right to question how the remaining 40 percent could account for the much higher complexity of humans. The key is in the number of interactions in many-to-many networks among the genes. Humans have about twenty-five thousand unique genes; fruit flies, about fourteen thousand. The number of protein interactions among the genes in humans is about 650,000—ten times as many as that of fruit flies. Each additional differentiated gene produces exponential growth in the number of genetic interactions. The network effect, which we discussed in chapter 2, resulting from the interaction among genes explains how a small difference in the number of genes can create an enormous difference in the complexity level between humans and fruit flies. The same pattern of exponential growth we see in the relationship between the number of genes and the gene interactions.

The highest level of internal complexity can be achieved by developing optimal differentiation, connecting the differentiated parts, and replicating that connection on multiple levels. If you have just undifferentiated parts, there is nothing to integrate, which results in suboptimal complexity. Once the foundation of safety is in place, Quantum Leaders facilitate differentiation in each of their team members, as well as the whole team as a unit, maximizing each member’s unique talents, skills, and perspectives.

Differentiation is so important to the optimal functioning of the human race that a differentiation mechanism is inherently built into the human development phase—it’s called pruning, and it takes place in the teenage brain. At birth, neuronal synapses in a child’s brain are more numerous than in an adult’s. Synapses multiply rapidly during childhood, soaking up knowledge like a sponge. This is why it’s much easier for children to learn foreign languages, musical instruments, and sports. As a child matures into a teenager, the brain prunes away underutilized synapses, so the synapses used most often can work more efficiently. The long body of the retained neurons get myelinated in a myelin sheath, which accelerates the conduction speed of the ions between neurons a hundredfold. This increased speed is made possible through the process of saltatory conduction, in which ions jump between nodes instead of steadily traveling along the axonal length of the neuron. In addition, myelination accelerates the resting period between neuronal firings—the refractory period—thirtyfold. The combination of these functions makes pruned synapses three thousand times more efficient than unpruned ones.

The pruning process produces unique patterns of neuronal synapses manifested into unique strengths and talents. This evolutionary mechanism highlights the importance of differentiating individuation before integrating with another differentiated person (e.g., a spouse or a team). Once parts are fully differentiated, connecting differentiated parts and replicating these connections to the next level (in this case, raising the next generation of children or leaders) increases internal complexity. All complex systems strive to increase internal complexity by nature because higher complexity means better chances of natural selection.

About Dr. Sunnie Giles:

Dr. Sunnie Giles is a new generation expert who catalyzes organizations to produce radical innovation by harnessing volatility, uncertainty, complexity, and ambiguity (VUCA).

Her research reveals that applying concepts from neuroscience, complex systems approach, and quantum mechanics can produce radical innovation consistently. Her expertise is based on years as an executive with Accenture, IBM and Samsung. Her profound, science-backed insight is encapsulated in her leadership development program, Quantum Leadership.

An advisor to the Stanford University Graduate School of Business, she also is a sought-after speaker and expert source, having been quoted in Harvard Business Review, Entrepreneur, Fast Company, Forbes, and Inc.

Dr. Giles’ latest book, The New Science of Radical Innovation, provides a clear process for radical innovation that produces 10x improvements and has been endorsed prominent industry leaders such as Jonathan Rosenberg, Daniel Pink, Marshall Goldsmith and Sean Covey.

 

Tackling Workplace Conflict: Research and Best Practices to Stop the Drama by Nate Regier

Nate Regier is the author of the new book Conflict Without Casualties. Nate's work sheds some new light on the conflict in the workplace and the costs that arise when we don't address it. If you have ever avoided conflict or don't understand how to deal with it pick up Nate's book today. Here is a guest post from Nate to help you start taking on conflict at work this week.

 

Tackling Workplace Conflict: Research And Best Practices To Stop The Drama

By Nate Regier

On average, employees around the world spend about 2.1 hours per week, or over one day per month, dealing with workplace conflict in some way. In the US, that number is higher (2.8 hrs/week) equating to approximately $359 billion in paid hours. Non-profit sectors experience the most workplace conflict, with nearly 48% of employees reporting conflict at work.

What is the actual prevalence of conflict in the workplace, what causes it, and what opportunities are there for positive changes? To answer this, I’ve studied the most comprehensive workplace conflict research I could find, a 2008 study commissioned by CCP Inc., one of Europe’s leading business psychology firms, and Fellipelli, one of South America’s leading business psychology firms. The study included survey data from 5000 employees at all levels of their companies in nine countries around Europe and the Americas and remains some of the most comprehensive and useful research available. Here’s a summary.  

Costs of workplace conflict

Conflict often escalates into personal attacks, insults, or absence from work.

  • 2.1 hours per week spent dealing with conflict (Belgium was the lowest at 1.3 hrs/wk. Germany and Ireland, the highest at 3.3 hrs/wk).
  • 90% of respondents experienced a conflict that escalated, most often into personal attacks and insults, sickness or absence from work, and cross-departmental problems.
  • Feeling demotivated, angry, frustrated, nervous, and stressed are the most common psychosocial consequences.
  • Negative conflict with customers is risky since it is less costly to keep an existing customer than to replace one who has left dissatisfied.  

Causes of workplace conflict

Personality clashes are the number one cause of workplace conflict.

  • Personality clashes and warring egos top the list at 48% overall, but much higher in Ireland (66%), the US (62%), and the UK (59%).
  • Stress, too much work without enough support, and poor leadership are also significant (around 30%).

Who is responsible to deal with it?

  • Everyone! 62% of respondents believed conflict is everyone’s responsibility.
  • Surprisingly, only 15% felt that HR should be the ones to deal with workplace conflict.  

What should leaders do to improve how conflict is handled?

  • Identify and address underlying tensions before things go wrong (54%).
  • More informal one-to-one conversations with direct reports (42%).
  • Act as mediators (40%).

Research reported in Harvard Business Review revealed that 69% of managers are uncomfortable communicating with employees.

  • Provide more clarity and guidance over healthy behavior (40%).

* Twelve key leadership behaviors were highlighted by respondents in this study. Our PCM and LOD training and certification programs target all 12 areas.  

What have companies tried and how did it work?

  • Less than half of the employees surveyed (44%) have received any formal conflict training. Belgium and France have the lowest level of workplace conflict training (28% and 27% respectively).
  • 27% of those receiving formal training said it helped them feel more comfortable and confident in handling a conflict situation. Confidence is one of the biggest predictors of success (which is why our trainers use NEOS to measure changes in self-efficacy for their conflict communication training programs).
  • The most frequent positive outcomes of training were better understanding of others, improved work relationships, and finding a better solution to a problem.
  • 39% said training provided no help at all. We concur with the researchers that many conflict-communication training programs do not target the right issues and skills, especially personality differences and communication skills.
  • Conflict can generate positive outcomes. Three quarters (76%) of respondents had seen conflict lead to something positive.

In a nutshell

  • Conflict is costly.
  • Personality and ego clashes are the top cause.
  • Everyone is responsible.
  • Coaching and mentoring through daily conversations is the key to improvement.
  • Conflict can be positive and requires targeted training at all levels of an organization.  

Best Practices

Companies will make the most gains around workplace conflict by following these guidelines;

  1. Implement formal training targeted on understanding and communicating with different personalities.
  2. Focus not just on individual competencies, but skills to coach, facilitate, and mentor others during difficult conversations.
  3. Adopt a pro-active approach that recognizes conflict is inevitable, and is a source of energy for positive outcomes.

 Train these Core Competencies

Search for training programs that assess, develop, and measure these competencies:

  1. Self-awareness and recognition of positive and negative conflict in self and others.
  2. Awareness of personality, communication, and motivational differences in self and others.
  3. Ability to assess and respond to individual differences in and out of conflict.
  4. Ability to lead self and others out of drama and into positive conflict conversations.

About Dr. Nate Regier
Dr. Nate Regier is the co-founding owner and chief executive officer of Next Element, a global advisory firm specializing in building cultures of compassionate accountability. A former practicing psychologist, Regier is an expert in social-emotional intelligence and leadership, positive conflict, mind-body-spirit health, neuropsychology, group dynamics, interpersonal and leadership communication, executive assessment and coaching, organizational development, team building and change management. An international adviser, he is a certified Leading Out of Drama master trainer, Process Communication Model® certifying master trainer and co-developer of Next Element’s Leading Out of Drama® training and coaching. Nate has published two books: Beyond Drama and his latest work, Conflict without Casualties.

 

Does "Going Green" Need to Cost You Green? By Nat Greene

 

I have an unwavering passion for growth in the garden and of people. Following is a guest post from Nat Greene that really speaks to me and the impact that we can all have on the world every day. Nat is the author of the new book Stop Guessing - The 9 Behaviors of Great Problem Solvers. His book reflects on how we should be solving problems and he offers 9 behaviors to push our skills to the next level. Nat's book is available on Amazon.com

I’ve seen environmental sustainability gradually added to almost every business's short list of bottom-line success metrics over the past decades, right up alongside safety, employee happiness, and profit. It’s a priority for many businesses to improve their environmental impact, but they often find themselves at a tough decision point: how much money should they invest in improving their environmental impact? How much will they demand of their shareholders, and how much should they put their bottom line at risk for the good of their community?

Environmental sustainability doesn’t have to be a trade-off between the earth and the business’s financial health. Most people believe in this fundamental trade-off because they don’t believe they can effectively improve their environmental performance using their current assets and business processes. So many businesses will upgrade to new infrastructure that runs more efficiently or uses fewer resources. They may switch their electricity to a more expensive alternative. Or they may switch their raw materials to a more expensive recycled or environmentally-friendly alternative. Even if these pay off in the long-term, they require significant up-front capital investment.

The reason many businesses only believe in shelling out money to improve their environmental performance is that they believe their business processes are nearly optimized. They believe their assets can only work with the amount of fuel or electricity going into them, that the waste they produce is inevitable, or simply that they can’t make more of their product without adding new systems to the mix. But, on the contrary, the performance of every business process has incredible potential to be improved. There are critical performance problems holding every process back from its best performance. Great businesses, instead of horking over money, solve these problems--leading to both greater profitability and better environmental performance in the same stroke.

If businesses develop the skills in their employees to identify and solve these problems, they’ll turn sustainability from a scary word into an addiction.

War Stories

Reducing wasted raw material:

At a business that makes rubber belts, they had a scrap problem. Their belt-cutting process intentionally created a significant amount of scrap in order to make sure the belts were the right width. They had accepted this as a part of the business until the plant’s leadership piled a week’s worth of scrap in the middle of the plant to visually demonstrate how much they were throwing away.

When the business set about to solving the problem, they understood that they were cutting the belts because the process that made them was unreliable, and the width of the belt varied. They dug into how the machine controlled belt width, and were able to reduce variation almost entirely, allowing them to make the belts thinner and cut 90% less scrap.

Transportation optimization:

A consumer products company shipped materials from its plants to warehouses all over the country in order to deliver it to customers. They found that their deliveries were late over 60% of the time, but struggled to solve the problem--they manufactured each product in a day and could not safely and legally drive the trucks any faster.

They approached the problem by modeling their shipping network and schedule, and challenging every shipping route. They found that they were transporting many products from facilities much farther away than was necessary, and were sometimes even shipping twice to make up for shortages in other warehouses. They rebuilt their shipping schedule to reduce the total distance each product traveled, bringing their on-time deliveries to over 95% and reducing fuel burned per product by over 20%.

Reducing CO2 output:

A chemical upgrader has iconic yellow flares, that are used to alleviate pressure in the plant as variations occur. The business had accepted these flares as part of life, but when they analyzed how much money they were losing by flaring this gas rather than selling it, they found an urgency to solve the problem.

They dug into understanding what controlled pressure variations, and found they could greatly reduce variation by eliminating clogging in some of the smaller pipes. They searched for and found the source of the clogging, leading to smoother operation. This saved them millions per year in flaring, and eliminated enough excess CO2 production to offset the carbon footprints of everyone in the facility for their whole lifetimes.

Avoiding a new facility:

A consumer products business was planning on building a large new facility to take on additional volume. When they realized how much opportunity was in their current facility to produce more, they realized they could increase the production of their current assets and avoid the new facility altogether.

In the span of three months, they solved a number of large, valuable problems in the business that let them take on the new volume almost a year earlier than previously estimated, and eliminated the cost and footprint of a new facility.

Every business process can run more effectively by solving problems. No matter the business, the environmental impact per product can be reduced by increasing the performance of the process. Even in processes that have little marginal environmental impact can improve the impact per product by solving problems to produce more with the same overhead.

Improving Problem-Solving In Your Business

Businesses can improve their problem solving results by investing in developing their talent to become better problem solvers, and unleashing them on valuable problems in the business. Most problem solving efforts in business are held back by a habit of using brainstorming, guess-and-check, or more structured ways of “producing ideas” to solve problems. Such approaches waste time, often cost money, and frequently don’t work.

To solve these problems, teams need a new approach to stop guessing and improve their skills. To replace the guessing habit, teach your team a new set of behaviors that far more effectively solves problems. Help them practice by unleashing them on easier problems in the business, and progress them to harder problems as their skills and confidence grow.

Want to test which behaviors are your team’s greatest strengths? Use this quick quiz.

Nathaniel Greene is the co-founder and current CEO of Stroud International, and author of Stop Guessing: The 9 Behaviors of Great Problem-Solvers. Nat has a Masters of Engineering from Oxford University and studied design, manufacturing and management at Cambridge University, in addition to executive education coursework in Harvard Business School's Owner/President Management program.