Byron's Babbles

Growth Vs. A Fixed Mindset

MoodElevator-Floors-LarrySennThe following is a guest post by Dr. Larry Senn:

The Mood Elevator is an illustration of the human condition; it is our moment-to-moment experience of life. We all ride the Mood Elevator every day, take a moment and identify what floor you are on right now.

Of course, the goal is to stay at the top of the Mood Elevator more often and there are some techniques that can help you do that. Most of those tricks involve a switch in thinking and changing your perspective.

One of those perspective shifts is focusing on having a growth mindset versus having a fixed mindset. This was researched by Carol Dweck and written about extensively in her book called Mindset. In her writing she explains that if someone has a fixed mindset they believe that their intelligence and talents are fixed traits and they won’t get any better. Compare that to someone with a growth mindset who believes that they can always improve through hard work and dedication. They believe they can always be learning something new and where they are right now doesn’t need to be where they are forever.

This growth mindset can help tremendously in getting you out of the basement of the Mood Elevator. Let’s take a look at the bottom floors and see how you might apply this:

Impatient/frustrated: Let’s say you’re stuck in traffic or waiting for your turn at the DMV. Most people will sit there frustrated at the time wasted waiting, but if you take on a growth mindset you could be catching up on reading that article or listening to that podcast that you claim you never have time for.

Irritated/bothered: When you’re working from home or doing chores around the house and your child keeps bugging you to listen to a story they want to tell you or to go play with them outside- instead of going to irritation or bother, take 5 minutes and listen to them or play with them, you never know what you might learn about them (or yourself) in that short time.

Worried/anxious: Imagine your boss just asked you to take on a new project you’ve never done before and you’re worried you’ll mess it up. Instead think about all that you’ll learn by doing this and how you can translate that to your next project and you might even be able to add a new skill to your resume.

Defensive/insecure: Many of us tend to shut down or get defensive when we’re offered constructive criticism. Instead, take a deep breath, set your ego aside, and look at it through the growth mindset lens. Focus on what you can learn from it and how you can improve.

Judgmental/blaming: Your spouse is driving and is taking (in your eyes) the “wrong way” to the restaurant you’re having dinner. Instead of immediately telling them how wrong they are, don’t give unsolicited advice and just relax. You might learn a new and faster way to your favorite restaurant.

Self-righteous: When you’re talking with a friend and they say something wrong about a current event happening (at least in your head it’s wrong). Instead of pointing that out to them, you might ask why they see it that way. Part of growing it hearing new perspectives on things, and again you’ll probably learn something new.

Stressed/burned out: Stressed with an upcoming deadline at work? Chances are this isn’t the first deadline you’ve been stressed about. Think back to a time this happened before and remember how you grew from it and what you learned.

Angry/hostile: Is someone you know being rude or mean towards you? Instead of getting angry back at them, try asking them how they’re doing. You might learn something they’re going through and you’ll grow more as an empathetic person.

Depressed: If you’re going through something that is tough and seems unfair, ask yourself “why is this happening for me?” instead of “why is this happening to me?” You probably have a great growth opportunity or a blessing in disguise coming out of this tough situation. Focus on how you can grow from it instead of sitting in the discomfort.

51zlHThxx6L._SX320_BO1,204,203,200_Changing floors on our Mood Elevator is a matter of simply changing the way we think or having a change in perspective. It is simple, but by no means easy. It will take time to start automatically thinking like this but with enough time it will come!

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About Dr. Larry Senn
Dr. Larry Senn pioneered the field of corporate culture and founded in 1978, Senn Delaney, the culture shaping unit of Heidrick & Struggles. A sought-after speaker, Senn has authored or co-authored several books, including two best-sellers. His newest is The Mood Elevator (August 2017), the follow up to his 2012 book, Up the Mood Elevator. You can learn more about Larry and his work at his website, www.themoodelevator.com.

Baling The Side Ditches

My family and I are on vacation this week in the Black Hills of South Dakota. As you can imagine I have been reading up on the Lolitas, Sitting Bull, Crazy Horse, General Custer, the US involvement with Native Americans, and of course, Mount Rushmore. Despite all this learning, there was another lesson staring us in the face as we travelled completely across (literally) the awesome state of South Dakota: almost every mile of Interstate 90 of side ditch (what we call the roadsides in Indiana) were either baled, being baled, or being mowed for hay. 

We were amazed by the quantity of grass hay being baled on these roadsides. For one stretch, my son Heath, counted 150 big 6’X6′ round bales on the north side (west bound) lanes of the interstate and got tired of counting. Heath really got me thinking when he said, “Dad, this is genius, why don’t we do this?” He went on to say, “Look at all the good hay they are getting and the state does not have to pay to mow roadsides.” I was pretty proud of his thinking – particularly cutting government costs!

Then I got to thinking that we need to find the roadsides to mow in all our organizations. What might be going to waste somewhere that our own business, organization, or school could be using? I am sure if we spent a little time brainstorming we could come up with some pretty amazing stuff. 

In my own case of leading a school, I talk a lot about existing infrastructure. In other words, what are others doing that the school could partner with and not have to use State dollars to provide? I think about this a lot around social services. To me it does not make sense for schools to spend a lot of money on services that are being provided in every county; and done very well, I might add. I continue to say we need to develop a “constellation of services” so we are not all trying to do the same thing.

Really, we need to be thinking like a farm kid. As a young boy I would go to the local elevators and other farms and clean up their grain screenings (broken corn kernels and chaff that is screened as corn goes up the elevator). Left in piles it would just get wet and gross as it rained in the fall. These screenings were dusty to pick up and no one really liked the job. For me, it was an opportunity. I could spend the fall feeding out some pigs on all the grain screenings I collected. In fact, it got to where people would call and tell me the pile was getting big. Also, I was always very busy collecting the screenings when the weather report was calling for rain. 

So, just as the farmers in South Dakota, and I’m sure other states, apply for permits to bale roadsides, we need to consider what our opportunities for baking side ditches are. I’m sure they are out there if we just take the time to look. 

Alternative Truths

This past week I had the opportunity to do an awesome activity with members of The Value Web at their annual gathering. We were all given the task of picking an article that we had individually read in recent months that was impactful to us. We were then instructed to send the link to the article to our facilitators the Friday before the event. Then, yesterday all the articles had been printed out and pinned to boards. Then we went on a hunting expedition to find an article (not our own) that we found intriguing and interesting. We were instructed to get into groups of six. We were then given the Read, Read, and Read Some More protocol to carry out. I have posted the protocols here: 

Of course, the article I sent in was by Peter Block and entitled, “You Are The Guest.” Click here for the link to that article. The article I picked for the activity was “Why bullshit is no laughing matter” by Gordon Pennycook. Click here to read that article.

Interestingly, in our group of six the discussion using the Talk About It protocol revolved around the idea of “bullshitting.” You can see a graphic recording of our discussion, here: 

Graphic Recording By Jessica Browdy


We had a great discussion. Here are some points that really resonated with me: 

  • Conversations leading to trust are more valuable than scientific knowledge leading to jargon
  • Letting serendipity occur and create space is more valuable than engineered space
  • Be intentional to create space for serendipity to occur
  • We must build our emotional capacity to balance science and our beliefs to create space for trust
  • We live in the age of information, which means we live in the age of misinformation
  • It’s easy to bullshit – impress rather than inform
  • For the bullshitter, it doesn’t really matter if she is right or wrong. What matters is that you are paying attention
  • Many will rate sentences with buzz words as more profound than sentences with clear meaning

We also discussed how opportunities arise that we don’t consider, some objectives fall short and some exceed our wildest expectations. We spent time talking and thinking about how many times we have achieved success and realized that it is a combination of a great strategy, solid execution and serendipity. Serendipity is defined as “An aptitude for making desirable discoveries by accident.” Pretty straight forward and I’m sure we can all think of many instances in our lives that came about in this very way.

Then we discussed the need to incorporate into your strategy a process to create and take advantage of serendipitous moments. Sounds like planning for accidents, right? We clearly cannot plan for all of the unexpected opportunities that may come our way, but what we need to do is analyze the unplanned opportunities that come out way and search for a pattern of some sort. We need to figure out the commonalities and devise a strategy that increases the chances of the random becoming less random, possibly even somewhat predictable – serendipity.
If we acknowledge that chance and circumstances beyond our control often do play a part in our success and allow ourselves to open our eyes to more opportunities whether we planned for them or not, we will create more serendipitous space.

Imaginal Leader Cells

Graphic Recording By Kelvy Bird


Yesterday I had the distinct honor of spending the day learning with The Value Web. One of the discussions involved the work of Imaginal Labs and the work of Carolyn Buck Luce and Rob Evans. When first seeing the word “imaginal” my thoughts were drawn to “imagining” or having an “imagination.” I quickly learned, however, “imaginal” is a biology term. The imaginal cells and the Blue Morpho Didius Butterfly 🦋 were the inspiration for Imaginal Labs. 

I am way over-symplifying here but basically imaginal discs (cells) are what allow the caterpillar to metamorphosis into something completely different – the butterfly. Once a caterpillar has disintegrated all of its tissues except for the imaginal discs, those discs use the protein-rich soup all around them to fuel the rapid cell division required to form the wings, antennae, legs, eyes, genitals and all the other features of an adult butterfly or moth. The imaginal disc might begin with only 50 cells and increase to more than 50,000 cells by the end of metamorphosis.

So, when thinking in terms of “imaginal” it is about creating new ideas and concepts of things that do not yet exist. As leaders we must do this at times. We must also be able to use our “imaginal leader cells” to iterate or metamorphosis the innovations and creations of our organizations. I like the way the Imaginal Labs puts it: 

“We believe that courageous leaders are the Imaginal cells within their organizations to help them transform to meet the challenges of our times.” ~ Imaginal Labs

Are you an Imaginal Leader?

Kaleidoscopic Adventure

Yesterday, we had our annual Focused Leader Academy (FLA) Summit where Cohort #2 graduated. Our Focused Leader Academy (FLA) at Hoosier Academies Network of Schools provides leadership skills the ability that are flexible and relevant no matter the situation and time. We want to inspire with valuable and effective methods for assisting our teacher leaders in discovering what they need to become focused and disciplined leaders. Over one hundred were in attendance because Cohort #1 and our newly selected Cohort #3 were there too. Additionally, we have each FLA member’s significant other in attendance as well. I dubbed the theme of the day to be: “Kaleidoscopic Adventure
.” We have used toys as through-lines all year and I thought it only too appropriate to use a kaleidoscope for the finale. Of course I gave everyone their very own kaleidoscope. We started with an activity of looking through the kaleidoscope and the thinking about what words they would use to compare the view through the kaleidoscope to their personal leadership journey. Ann Semon set up a text poll for us. Here are the results: 

Our adventure has been like that of a Kaleidoscope – colorful glass pieces or prisms in the end of a Kaleidoscope, the core characters don’t change, but can be moved around to fit the needs and personal development of team members in order to deliver great experience.
Additionally, we can use the same Kaleidoscopic through-line to describe the complexity of a school – enchantment, mercy, grace, trust, generosity, ease, truth, alliance, learning, and passion.
Our schools are like giant kaleidoscopes:

  • Schools are always moving, ever changing, and made up of simple parts that have highly complex results. 
  • They are beautiful because of the “dynamic complexity” that takes place every minute.
  • Even with the same common elements – hallways, desks, students, schedules – no two are exactly alike and they are beautiful because of their uniqueness.
  • When you look at them from the outside, they are relatively simple. When you view them on the inside, they are amazingly complicated.
  • Kaleidoscopes are fun and meant to be shared! 

Then sometimes I think we need an inside-out kaleidoscope—a de-fragmenter— this might be useful for looking at a fractured order through a lens of unity. 

For me personally, yesterday represented a spin of the Kaleidoscope. A new Cohort of beautiful pieces come into FLA, and the view gets even more complex and beautiful. Yesterday I tweeted that I was blessed to be able to form great relationships with our teachers. I mean that, and it is very important to me.

School leaders need personalized care. Remember, I believe everyone is a leader. Therefore, everyone in the school needs personalized care. When I personalize the care, I come away knowing my leaders better, sensing their concerns about the school, education, and about their own lives. I believe in the fundamental strategy of personally training individual leaders, particularly teacher leaders, to be the key for a strong, healthy school with effective leading of learning and family engagement. Many times we rationalize that the teacher leaders are too busy with their jobs and families to spend time with us. But the truth is, we are allowing ourselves to be swamped with the immediate and losing our priorities.

Adaptive Cultures

file-1 2I began a new journey of learning today and let me just say it was awesome. Today I became part of the Learning Innovations Laboratory (LILA) at the Harvard Graduate School of Education. I have been watching and admiring the work of this group that is a consortium of leading researchers and practitioners in the field of organizational learning and change. To be asked to be part of such a distinguished group in very exciting. I certainly admire the mission of this project of: Bringing together the leaders of organizational learning to develop a greater understanding of the field’s current challenges. Today I attended my first session which was the 2017 LILA Summit. This event, which was held at the American Academy of Arts and Sciences, was the culmination of the work done this year around the topic of Adaptive Cultures. Next year’s topic that we will be studying was announced today and is: Emergence In Organizations: Shaping The Future As It Unfolds.

file-2 3

Gert Jan Hofstede

I want to reflect here on a discussion we had as a small group at the end of the day today that was on the question: How do we get from cultural practices to cultural values? This question was posed by Gert Jan Hofstede. Gert is a Dutch population biologist and social scientist in information management and social simulation, interested in the interplay of the contrasting forces of cultural evolution, societal change, and cultural stability. Bottom-line, he is a genius and I was excited to be learning from him today.

 

I must admit, however, when I first heard his question I thought he had it backward. Don’t we need to get our cultural values straight first, then get the practices in place? But, as the discussion ensued I realized I was wrong. In most organizations and social structures there are already cultural practices in place. So, there must be a matching, shift, or discover of values in order to get practices in line with values. We used a small group sharing best practice of each telling a story from our own experience. I told the story of my own school network and how a new culture needed to be developed where basically a free for all of everyone doing their own thing with no real direction had existed.

Furthermore, I told how we used teacher leaders in concert with stakeholders to develop a guiding set of core values. I even mentioned how I believe the statement “students first” in many ways hurts education. I cannot count the times I have heard someone answer “students first” to the question of how to do something or how to develop a process. Let’s be clear here, “students first” is a core value, not a task or tactic. Just saying “students first” without a process does nothing. In fact, it probably does more harm. Now, please understand I do believe in the core value of “students first,” but we must have the cultural practices in place to do just that. That’s why I now have grown to like Gert’s original question of how to get from cultural practice to cultural values.

In this example, we really started over by developing the cultural values and then building the processes to be in line with the cultural values. A point made by Gert that really resonated with me was that we have to watch make our cultural values banners that we fly to answer everything, like my “students first” example with know real cultural practices to support the cultural values.

Another key point that came out of this discussion was that in an organization cultural practices are more important than values. As a believer in having core values and making decisions based on these values I had to get my mind wrapped around this. In the end, however, the group was right because without practices the values are just words spoken or written on a page. We need to look at cultural values as the drivers. These should drive our actions. Our values will also show our perceptions.

We then discussed others in the group’s stories. Some were more societal than organizational. Then the question of: Why do we bother? came up. It is tough because as Gert pointed out, “You can only surf on the waves of where society is going.” We discussed reframing the cultural values by looking at what the backdrop is. We also discussed this as a tactic when dealing with adaptive cultures. We discussed that there is a big difference between the cultural value of “saving the planet” and “preserving the natural landscape.” Sometimes we can, and do, have the same values, but are looking at them through different lenses.

We must recognize the fractal nature of culture – there are cultures within cultures within cultures within cultures. Additionally, creating a culture where we can interact a lot with a lot of different people is important. If we interact a lot, we influence each other. We have leverage with those we frequently interact with and they have leverage over us. The person(s) with the most diver set of connections will always make better decisions. Who talks to whom and who interacts with whom matters. For adaptive cultures we, as leaders, have to be around the edges nudging. We must also be humble and realize we do not know everything.

To summarize our small group discussion we did a cool activity and developed a tweet representative of our learning. Here is our tweet: “Values derived should drive cultural practices and then inform leadership.” #LILAculture17 What is driving your organization’s culture and informing you as a leader?

Tell Me Why I Am Wrong!

Screen Shot 2017-05-27 at 7.35.32 AMIn his great book, A More Beautiful Question: The Power of Inquiry to Spark Breakthrough Ideas, Warren Berger discussed the idea that dissonance can be more valuable to leaders and organizations than resonance. We always think about jumping straight to buy-in or consensus, but the idea of having team members push back has tremendous value. I have always believed we should question the views of those with whom we disagree. We need to do this however with yet an open, curious mind. Berger suggested we ask things like: Why might they see the issue this way? Why do I see it differently? What assumptions are we each operating under?AMBQ-Hardcover-Paperback_edited-1-768x634

I have always had two trade-mark questions that I like to ask when making decisions or trying to design new ways of doing things. These two questions are:

  1. Tell/convince me: Why am I wrong?
  2. Can you please talk me out of this?

These two questions have really served me well over the years. It is amazing how many great ideas I have gotten to improve the project or question I am grappling with at the time of asking these questions. The beautiful thing about these questions is that sometimes I am wrong, but many times I get just the right ideas to make something great or keep me from being wrong.

An example of this is a decision I just made official yesterday. As you know we have a program I started two years ago called the Focused Leader Academy (FLA). At its founding we decided to have 15-18 participants selected each year by an application and interview process. This would give us approximately 10% of our teaching staff going through this intensive leadership training each year. We just completed our second cohort and are ready to start Cohort #3. Well, we had 34 applicants, which is the most ever. Long story short, because of the many different complexities of our school, I had the wild and crazy thought of, “Why not accept all 34 candidates and have that many more great leaders developed in our school?” As you can imagine, there are many implications to making a decision like this. Not the least of which are: financial, keeping the experience special, logistics, group dynamics, and managing a group this size.

So, I literally started making phone calls to some of my most trusted people and former participants of the group and asked three things:

  1. What if we accepted 34 participants into Cohort #3 of FLA?
  2. Why would it be wrong to accept all 34 into Cohort #3 of FLA?
  3. Please talk me out of accepting all 34 into Cohort #3 of FLA?

I might add that I also randomly selected some of the applicants and asked the same three questions. I thought is was important to hear the feedback from those that would be most affected by my decision.

Here’s the deal: yesterday I sent congratulatory notes to all 34 and made Cohort #3 of FLA the largest of our history. Why? Because no-one convinced me it was the wrong idea. Most importantly, however, I got all kinds of great ideas on how to make it great with 34 participants. And… even more importantly, I got great advice on how not to let the experience flop with 34 participants. And… from my financial team we already have it figured out how to make it work from a financial standpoint.

I found it interesting that I had one group that was somewhat against at first and one individual that was adamantly against, but after long conversations with both they both came to the conclusion, and I quote, “You don’t have a choice; taking all 34 is the right decision.” Keep in mind these were just conversations sharing versions of ideas. It is about me hearing negative feedback and ideas, not me trying to convince. When entering uncharted waters, I (we all) need my assumptions challenged.

Here is one of my favorite excerpts from Berger’s awesome book that reinforces this idea of dissonance:

“In sharing early versions of an idea with the world at large, one is likely to receive negative feedback—which some people interpret as evidence of a failure. But that’s not necessarily true, says Harvard’s Paul Bottino, who points out that when it comes to feedback, “dissonance can actually be more valuable than resonance.” As people push back on your idea, it can be a good indication that you’re entering uncharted, potentially important territory—because you’re more likely to get negative feedback (“That could never work!”) on ideas that challenge common assumptions. “Dissonance is the most misunderstood kind of feedback,” Bottino says. “We really should welcome it and learn to make the most of it.” ~ Warren Berger in A More Beautiful Question

I love Merriam-Webster’s definition of dissonance: “lack of agreement – the dissonance between the truth and what people want to believe.” When I ask team members to tell me why I am wrong, I really want to know. I usually want to really believe something will work or be a great idea, but I need to know the truth about roadblocks and potential pit-falls.

Finally, I do not want you to leave this post thinking I am suggesting throwing out the important of resonance. Nothing could be farther from the truth.  Resonance is the positive emotional affect of leadership. Those who are led by resonate leaders are in harmony with the leader’s emotions. Great leaders are effective because they create resonance.  Resonance comes from the Latin word resonare, to resound. Effective leaders are attuned to other people’s feelings and move them in a positive emotional direction. They speak authentically about their own values, direction and priorities and resonate with the emotions of surrounding people. Under the guidance of an effective leader, people feel a mutual comfort level. Resonance comes naturally to people with a high degree of emotional intelligence (self-awareness, self-management, social awareness and relationship management) but involves also intellectual aspects.

Remember, we owe it to ourselves and our organizations, as resonant leaders, to model and allow for dissonance when incorporating Berger’s framework of asking:

  • Why?
  • What if?
  • How?

Asking beautiful questions will enable us to lead beautiful organizations!

Great Leadership: Offering Up Something Better Than The Status Quo

file 3As a school leader it is my most important role to find the right solutions that are best for students. People will then buy into solutions that are developed collaboratively. I believe the staff will buy in if we offer up something that is better than the status quo.

In order to move the staff, a community of continual learning where everyone is a leader must be developed. The following are guidelines that need to be followed for effective adult learning and motivation to take place:

  • Learning needs to be frequent and sustained over time
  • There must be connected and coherent learning sessions
  • Opportunities for teachers and staff to practice and reflect on new learning must be afforded
  • Opportunities must be available to tap into expertise or prior knowledge
  • Clear and reasonable objectives must be provided
  • Adults need challenging tasks
  • Respect of the risks involved in new learning need to be recognized; in other words, it is o.k. to fail.
  • Choice and flexibility is important to adults
  • Collaboration
  • Regular coaching and feedback are provided
  • Focus everything on academic content
  • Letting staff problem solve will motivate them to learnfile 5

I believe two things will really help here:

  1. The notion of empathy  – of really listening to your staff and understanding their views and what they need.
  2. The idea that innovation lives as much within the way you define problems as the way you generate solutions

Additionally, I believe in an intent-based leadership style where everyone is considered a leader. With this style of leadership, authority is shifted to where the information/data is generated. In other words, teachers would be empowered to act on both data and new thinking. But… for this empowerment to work there must be the professional development necessary to make sure that teachers have the skills necessary to utilize this empowerment.

These skills are two-fold:

  1. Technical Competency
  2. Organizational Clarity

We must feed our leaders by:

  1. Committing to leadership development
  2. Making it a priority to give professional growth time to developing leaders

Finally, it is crucial to treat all teachers as leaders!

This all really will produce a happier, healthier, and more engaged staff.

What Do You Bring To The Table?

file1A couple of Saturday’s ago for our Focused Leader Academy (FLA) we used the mental model of food again. Participants decided to prepare breakfast and tell their story. This was pretty special and really meant a lot. I was struck by the fact that these teachers who had been ISTEP (Indiana’s students achievement test) all week and were probably exhausted would want to do this, But, as always, they amazed me one more time.

What a spread! It was the most amazing breakfast buffet I had ever seen with: two kinds of bacon, cinnamon rolls, blueberry muffins, yogurt, biscuit and gravy casserole, bagels, cheesy potatoes, and lots lots more. I have put a picture of the buffet here for you to see, We have a practice of writing on the table butcher paper and on the breakfast buffet table someone had written the statement, “What do you bring to the table?” This of course then became the theme for the discussion. file 5

So what does it mean to bring something to the table? I believe it means to ​provide something that will be a ​benefit. Just like the fact that I believe everyone is a leader, I also believe everyone brings something to the table. Essentially, your list of what you bring to the table should reflect your best qualities, and that is what you should be offering to an organization, school, or business. Is what you are offering equal to what you are expecting? Do you consider what you have to offer those you lead, or merely what your team is offering YOU?

Leadership is about taking care of those you lead. Leadership is serving others. It is involving others in setting and achieving their own goals or the group goals. Leadership includes learning from mistakes and growing from them. Leadership is about having a positive impact on anyone we cross paths with. Leadership is contagious. If we can do these things, we are offering quite the leadership buffet to our organizations.

It was so great that Saturday to have Mike Fleisch, Sita Magnuson, and Kelvy Bird all present to graphic record the discussion presented by the FLA members about their food. It is the first time they had ever worked at an event all together. These are amazingly talented individuals, thought leaders, community leaders, and facilitation conveners. I have embedded a photo of the graphic here:file2Just like the awesome selection and choices that a breakfast brings us, the more different people become leaders, the more problems we will solve. The more skills, interest, and expertise that will be brought to the table. We need leaders to think about and organize around many issues beyond those of our organizations and schools like: youth development, economic growth, substance abuse, crime, the environment, health care — the list goes on and on. Each issue will require a troop of skilled leaders to handle them. We need leaders who are women, young people (we were all young once), people of color, low -income people, immigrants, people with disabilities and many others that have been told that they should follow others, not lead. We need leadership from all walks of life in order for ours to be a truly democratic society. Remember, we are all leaders!

You have to make a decision to lead and view yourself as a leader. No one else can contribute what you can. You have a point of view that no one else has. You have a set of skills that is unique. Your corner of the world will be different if you decide to act on its behalf.

How has your organization benefited from having you in leadership roles? What do you bring to the table? Are you showing value in your current role?

Share the Financials – the $100 Tool

culture_works_fbad_1This is a guest post from Kris Boesch originally published on www.choosepeople.com/blog

Share the Financials – the $100 Tool

Be open with your team about the flow of money. Sharing tells employees they’re important. Commitment grows and confusion declines.

Every year in an all-company meeting I would share our financials with the team using the $100 Tool (described below). It was amazing to see the light bulbs go on. Their entire awareness and attitude would shift. They would come up to me for weeks after this meeting with ideas on how to make and save the company money. They now realized why it was so important to take care of the trucks (cost of truck repairs) and to charge customers for boxes (high margin product) and not to forget moving blankets at the customer’s home ($13/each – easily four hours worth of profit.)

Some organizations are worried about sharing their financials, either because they’re struggling or very successful. Sharing financials when you’re in trouble is the only way engage your employees’ support. It helps them understand the urgency in your voice. Your employees aren’t stupid. They know if something’s off. Sharing the financials puts fears to rest because rather than grappling with the unknown, they can see what you see and participate in generating money making and saving solutions.

If you’re on the flip side and very successful and fear employees will want a bigger piece of the pie, communicate your growth plan and the need for cash to fund investments in equipment, technology, personnel or assets. Rather than envisioning all the extra money going into your pocket, they see it as a shared savings account. If you’re not looking to grow, make sure your people are well compensated and appreciated. This may also be a good time to share the risks and rewards of owning a business.

Use the $100 Tool to share your financials in a tangible, accurate, concrete way.

  1. Get one hundred one dollar bills.
  2. On a flip chart or white board break down by percentage your high-level income streams:$43 – local moves, $37 – national moves, $12 – storage, $5 – boxes, $3 – insurance. On another page or board break down by percentage your high-level expenses (fuel, truck repairs, truck maintenance, furniture repairs, regulatory fees, marketing and networking, utilities, insurance, rent, payroll – including workers compensation, payroll taxes, and benefits.
  3. Speak about how your organization makes money. Share which verticals, products and services are the most and least profitable. Explain why you choose to keep those that are less profitable — (loss leader, bread and butter, competitive edge.
  4. Then speak about expenses. As you detail each expense, hand out the dollar bills to individual employees. Saying for example:
    You are my landlord you receive $4 for rent.
    You are my accountant you receive $2.
    You are my utilities you receive $5.
  5. Speak to employee payroll, payroll taxes, work comp and benefits last. Employees are always wowed by the comparatively large piece of the pie that is directly theirs.
  6. Then show them, with the dollars left in your hand, how much profit is left.  Explain this profit is taxed, leaving a net profit and how that money has to be used to pay off debt as well as to reinvest in the company to spur growth. Explain how it is this money – the money that’s left over – that funds raises, better benefits, new uniforms, additional staff, or new equipment.
  7. Help them understand which numbers they can impact and which ones they can’t. You want them to leave knowing how they individually can help the organization make and save money.
  8. Depending on your team, it can also be valuable to explain the difference between profit and cash available. You may want to share the role of revenue to profit. Clarify that without profit, revenue is wheel spinning. Small increases in revenue beyond goal can cause exponential increases in profit due to the relatively static nature of overhead costs.

Owners tend to wonder how to represent their compensation when sharing financials. In the process I recommend above, simply roll your compensation into payroll. By being open with your team, you can begin to create a culture of honesty.

*****

Kris Boesch is the CEO and founder of Choose People, a company that transforms company cultures, increases employee happiness and boosts the bottom line. Her new book, Culture Works, and accompanying workbook are available now on her website and will be available on Amazon around May 15.