With companies merge, employees leave one company for another, and new members of the workforce land their first jobs, many individuals are trying to form new teams.  Regardless of the situation, most organizations encourage open and candid discussions between staff members among employees throughout the organization.  These differences in perspective can elevate teams to a higher level of performance.  Differences in opinion and/or outright conflict is natural, and it can be very productive. The key is how to use conflict to our benefit so we can reach these higher levels of performance.

So how does one operate on a conflicted team?  We still need to be able to create a win-win solution for the team and the organization.   How do we use conflict to our advantage?

1. Acknowledge Conflict
Acknowledging conflict can be uncomfortable, yet once the conflict is recognized and discussed the team will feel a sense of relief.   People tend to be more effective when they can agree to work together and find mutually satisfactory solutions to common problems.

2. Gain Common Ground
Is there common ground between the parties involved in the conflict?  Put the conflict in perspective based on the team’s goals.  If everyone is committed to a common purpose, they should be willing to address any issue that may affect the team’s final outcome.

3. Understand Each Point of View
Gaining an understanding of difference perspectives does not necessarily mean gaining agreement on all sides.  Here we must take the time both to understand and be understood as we gain information from all sides.

4. Attack the Issue(s), Not Each Other
Bickering or fighting with someone on the team is an unwanted stress, yet the issue needs to be addressed in order for the team to maximize its potential.  The goal is to reach a solution that allows everyone to achieve individual/team goals without violating anyone’s values.

5. Develop an Action Plan
a. The team will outline specific steps that each person on the team will take in order to reach the team’s goal.  Each person will be accountable for his/her role in the action plan, and the plan will be written on paper so that each person is aware of his/her responsibilities to the team.

As team members utilizes this five-step process to address issues and conflicts, they will see more win-win situations and the team will increase their levels of productivity.

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A few years ago I had an interesting experience while working with the store management teams for a chain of supermarkets.  I was implementing a process focused on improving bottom line results consisting of six sessions taught over five months.  Among other things the department managers were required to develop measurements such as profit per day, sale per customer per day, and other things that increase performance visibility. These measurements are designed to give department managers a perspective of their department that they can’t see with traditional measurements. Thus many managers become quite entrepreneurial and creative in how they approach their job.

One of the department managers in this class was a Deli Manager who had been the department manager for over ten years. Because of her experience, reputation, and previous success, she was very confident in her way of managing and seemed reluctant to try the new measurements and techniques the workshop required.

However, after a couple of months began to glance at her scorecards, perhaps mostly out of curiosity. With her curiosity peaked, she began to see things about the daily performance of her department that she had never seen before. For example, she learned for the first time that although her department was profitable for the entire week, she actually lost money on Wednesdays. The shocking reality of being unprofitable on Wednesdays did not set well with this very proud and experienced Deli Manager.

So each day as she posted her scorecards in her department she began to analyze them a little closer. Gradually, the scorecards began to talk to her and said things that she didn’t know. For example, on Wednesday not only were her sales 17 percent lower than any other day of the week, but also her average transaction size was 81 cents lower, and fewer customers shopped her department as well. These problems, combined with slightly higher labor costs on that day, were causing the unprofitable situation.

Part of this process implementation challenges participants to experiment with ways to improve their department’s daily performance. The methods to make things better included all of the traditional tactics such as suggestive selling, signing, and in the case of a deli department, food demos and sampling. Also people were encouraged to look for new and innovative ways to make things better.

Months later, the Deli Manager arrived at session six several minutes before her fellow managers for the specific purpose of asking me a question. She said, “After I got all of my scorecards up and running I learned that I had a serious profit problem on Wednesdays. So I began to experiment with food demos. I tried demos in every part of the store, at every time of the day, with active and passive demos, and with different people doing them. Then I experimented with demos on the other days of the week, too.” She said, “I’ve tried every combination I could think of. The people in my store thought I was nuts, but I had to solve the problem.”

She took a breath and continued, “And during all of this experiment I’ve kept track of everything that happened to the numbers on my scorecards. I watched everything, everyday.”

Seeing her excitement, I asked, “So what did you learn?”

With a smirk on her face she said, “I found the best place in the store to do a deli demo that drives the most profit. And I found the worst place in the store to do a deli demo to increase profit. Do you know where they are?”

Now frankly, I had no idea what she had learned. To that point all I knew about demos is what I had learned working in stores and the experiences shared in workshops by several thousand participants. But not wanting to confess my total ignorance, I said, “With that look on your face, I’ll bet you are going to tell me the answers to your questions.”

Before I recount her answer, which I frankly did not know before she related it to me, where do you think the best place for a deli demo is? And where is the worst place? Historically we have done deli demos in the deli department and meat demos in the meat department. Also historically, retailers have done passive demos where the product is put out for people to sample without any assistance, or active demos with a person assisting the sampling.

I must concede that what may be best for one store may not be best for another store, but nonetheless, what this wise deli manager learned took me by surprise and opened my eyes to her ingenuity and creativity. This is what she told me, “When I did a deli demo in the deli department, the only customers I could reach were the ones already in the deli department. If I was lucky I could draw a few people into the department who were passing by. But mostly I only got my existing customers. So,” she continued, “I started doing demos everywhere, even in the parking lot. And on one day I did a demo for people leaving the store, just to see what would happen to my scorecards; now that’s crazy, isn’t it?”

I agreed that doing a demo for people leaving the store was, indeed, a bit strange, but it did show her determination to take experimentation to the extreme. Then, she continued, “And after three months of keeping all the records, I now know where the best place and the worst place for a deli demo. Where do you think they are?”

With no way out but to look stupid, I confessed, “I haven’t any idea. Where are they?”

She explained, “Each time I moved the demo to a different place in the store, good things happened. And each time I got lazy and did a demo in the same place it was done last time, things stayed about the same. The thing I had to do was interrupt the customer traffic patterns in the store to gain new customers. The trick is to not only sell more to each customer, but to also get new customers. And the new customers I need are already in the store, but they aren’t shopping my department for some reason. So by moving the demo to a different place in the store each time, I attracted new customers to my department. That’s how I solved my profit problem on Wednesdays!”

“So where is the worst place for a deli demo, on the way out of the store?” I asked.

“No,” she replied, “the worst place in my store for a deli demo is in the deli department, because it’s too consistent and doesn’t attract new customers. It doesn’t work for me.”

I call this lesson the Principle of the Deli Manager because it illustrates several important things. First, a manager must know what is really going on, not just what you think is going on, or what you would like to happen; second, don’t be afraid to experiment and try new, and sometimes crazy, things; third, results on a scorecard will talk, if you will listen; fourth, if you keep doing the same things you’ve always done, you can only get the same results you’ve always gotten; and fifth, it was humility, determination and creativity that enabled the deli manager to solve her Wednesday profit problem. Without those traits she would still be unprofitable on Wednesdays, and wouldn’t even know it!

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Trees are remarkable things.  They perform a variety of functions and keep our environment in balance.  One of the oldest living things on earth is a giant sequoia that stands nearly 30 stories high, is almost 40 feet wide, and is believed by scientists to be well over 2,200 years old.  Bonsai trees, on the other hand, are often tiny in comparison to a sequoia, yet provide remarkable joy and beauty.  We think of trees as a permanent part of the landscape.  Trees perform various functions: shade, food, medicine, building materials, and reproduce other trees.  Some trees are hardy and are able to withstand a variety of harsh conditions.  The Royal Palm endures big storms like few other trees and different from other types of palm trees. When wind speed increases, the fronds will break off from the tree. By the time the winds from a storm are strong enough to topple a tree, all that is left is the sturdy trunk, which most often endures winds of upwards of 150 mph. Trees are widely used by humans because of their strength and durability. The Baobab tree in Africa is used for canoes, water tanks, and in some cases people live in their huge trunks.  Without trees, our planet would not be the same.

So what is the connection between trees, leadership, and organizations? Just like trees are play a key role in the survival of humans over the centuries, great leadership is fundamental to the prosperity of a modern organization.  An organization without leaders isn’t an organization at all.  These people perform a variety of vital functions like developing talent, transferring knowledge, giving direction, and coaching and sharing feedback.  Similarly to trees, leaders are diverse in their strengths, weaknesses, style, and characteristics, but the fact remains that leaders are necessary.

One of the most important skills performed by leaders in any organization is coaching.

Coaching has four key components, just like the tree and its sustainable root system, sturdy trunk, a healthy branch system, and canopy of leaves, flowers, and fruit.  Coaching operates in much the same way the tree does and we affectionately call this system the “Coaching Tree.”  First, there is the root system that consists of the most fundamental and essential types of coaching.  This is your day to day feedback, observations, and “on the spot” natural coaching.  Like the roots feed water and nutrients to the tree every day, a leader has to be willing to supply coaching on a continuous basis to the organization or team members regarding day to day events.  Next is the trunk.  Coaching at the trunk level symbolizes coaching that should occur on a less frequent basis, perhaps every month or two.  This gives leaders the opportunity to coach on topics like behaviors, expectations, and the code of conduct.  As you move up the tree, you reach the branches.  Branches equate to coaching around topics like skills, knowledge, and competency.  This type of coaching should typically occur on a quarterly or trimester basis.  Finally we reach the canopy level of coaching where the leaves, flowers, and fruit grow. This symbolizes the kind of coaching that focuses on results, contribution, and value to the organization.  This is also strategy coaching that has a longer term perspective.  It could focus on strategic initiatives, career plans, innovation or anything that has a longer time horizon.  The frequency for coaching employees and mentoring may occur on an annual or semi-annual basis.

When a leader brings the coaching roots, trunk, branches, and canopy together they create a powerful feedback system that covers employees’ needs and the organization’s requirements for a healthy enterprise.  Coaching that is skillfully administered and is robust becomes embedded and helps produce a “high output team.”

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A co-worker told me about the success of her grandson had trying out for and making the High School Soccer Team. One of the youngest on the team, she told me how excited he was being a part of the team, making the cut out of 78 other people for the few spots available. He was looking forward to the opportunity of playing with new teammates. “We even have our first game next week!” He had told his Grandmother.

This team was brand new! The players had only been chosen a few hours prior. You might ask, how can a newly formed, young team with different personalities, new and old players being merged together with varying degrees of strength, etc. be ready to play, with the intention of winning in under a week? How does a team, newly formed or established become synergistic with one another?

To make any team succeed you need to be aligned with one another. The team needs four necessary traits in order to become synergistic and succeed: A clear team purpose, solid communication, empowerment so the team can lead themselves, and finally make sure there is a commitment to the goal.

Be clear: Goals need to be clearly defined for each person to understand how and in what role he/she will need to create and fulfill a team’s success. Understanding the team’s goals and purpose and knowing how you will achieve them is empowering.

Communicate: Communication is vital in team members so they know where the ball is and where it is going. Just as crucial for the organizational team, all need on-going communication in order to stay productive, overcome obstacles, and check progress towards targets.

Empowerment: CMOE describes empowerment as the extent to which someone provides the encouragement, tools, and authority to others enabling them to use their power, talents and skills effectively. Empowering your team to help them lead themselves creates trust and innovative behavior, in turn, a synergistic team and coaching.

Commitment: Finally, being a member of a team requires personal commitment and dedication to the overall success of a team. Once we harness the power of synergy within a team we can accomplish anything.

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Working in teams and across functions can often be complex and challenging.  If you’re like most teams, you have certain processes that you are supposed to follow (guidelines, operating rules, specific forms to be utilized, etc.)  When attending to these, how often do you encounter a process that is broken, doesn’t work, or seems to be pointless?  Maybe your organization has processes that work most of the time?  The bigger question is what do you do when you encounter troubled processes?  How often do you attempt to fix broken processes? Do you ever try to diagnose what could make a process more effective?

To be part of a high performing team, it is important to constantly evaluate processes to determine if they are working, effective, and worthwhile.  Effective processes help us to be efficient, reliable for our customers (internal and external), and minimizes the likelihood of a problem occurring.

In 2003, a US Air Force Thunderbirds F-16 crashed at an air show in Idaho.  The pilot ejected from his aircraft and aside from the crashed fighter jet, there was no other damage.  As unfortunate as this story is, I think it is an excellent example of taking the opportunity to improve processes.  Take a look at the video from both inside and outside the cock pit.

After investigating the crash, it was determined that the pilot had incorrectly calculated his altitude as if he were at Nellis Air Force Base (where the Thunderbirds are stationed).  The investigation board looking into the crash determined that “other factors” such as the pilots need to calculate MSL (Mean Sea Level) altitude to the AGL (Above Ground Level) altitude contributed to the errors resulting in the crash.

As a result of the pilots error and “other factors,” the Air Force determined that the processes around the calculation of altitude and “Split S” exercise needed to be fixed.  And fix they did.  Thunderbird pilots must now call out the MSL altitude at air shows.  When they execute the Split S maneuver, they must climb an additional 1,000 feet to prevent and minimize the danger of altitude miscalculation from occurring again.

While the pilot only suffered minor injuries and a $20 million aircraft was lost, an improvement in a process was gained.  While we may never know the future value or full impact in improving processes, it helps take a high performing team to the next level.   Call it Continuous Process Improvement.

Suggested Tip:

Next time a process, action, or project in your team doesn’t go quite as planned, don’t be complacent.  You don’t have to be the team leader seeking to improve team development.  Step up as a team member and ask the following questions:

1. What went wrong?
2. Why did it go wrong?
3. Is it a problem or one time goof?
4. How can we prevent this from happening again?

Maybe there is nothing needs to be done after your analysis, but at least you’ve asked the questions to be sure.

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Budgets are tight and time is limited.  For those that want to strengthen their resume or for companies who have the talent, yet need individuals to brush upon their business skills, there is now a way to do this through a quick-hit, cost effective business education program.  This is called the “Mini-MBA”.  This is an excellent course for an organization that recognizes by developing their people, they will improve their performance.  A Mini-MBA course can help one better grasp the business fundamentals of finance, accounting, economics, marketing and strategy.  This type of course will help one learn to better think in business terms and speak in business terms.

In Ram Charan’s book – “What the CEO Wants You To Know”, he states “the best CEO’s take the complexity and mystery out of business and they make sure that everyone in the company, not just their executive colleagues, understands the fundamentals noted above.  The company and the CEO are more successful when everyone knows how the business works. People feel more connected to their work and have greater satisfaction from their job.”

During this time of year as organizations are finalizing 2010 business plans and budgets, wouldn’t it be to your organizations benefit if everyone was on the same page when it comes to business acumen?  This means that everyone from the various departments, i.e. Marketing, sales, finance, IT, HR, strategy planning, etc. have the skill sets to better communicate because they fully understand business fundamentals?

Attached is a link for a Business Week article and video featuring David Buckner speaking about the Mini-MBA program offered by CMOE.

http://www.businessweek.com/bschools/content/aug2009/bs20090817_409187.htm

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Recently I wrote a blog of a co-workers grandson who was able to make the team in tryouts for a premier soccer league. Unfortunately as he was looking forward to his first game, her grandson was given a blow. He is suffering from stress fractures in his back, requiring him to take it easy for the next 3 months…translation? No soccer. No time in the game. No team.

A blow for anyone, this was particularly crushing to this young man. He was poised to make his mark as a key member of the newly formed team. Now what would he have to offer?  As we talked about his situation, we began to see this not as a detrimental blow, but an opportunity in the making.

Peter Drucker of HBR said, “Every enterprise is composed of people with different skills and knowledge doing many different kinds of work…Each member has to think through what he or she aims to accomplish-and make sure that associates know and understand that aim.” What this young man needed to see was that he was still a very important part of the team. His goals had not changed; he just was looking at it now from a different aiming point. He has the power to influence his team as a leader can, even without being able to touch the ball.

Three things a team member can do to help influence his/her team; See a change, position the change and help the team embrace the change and get the Team Work going.

See change: In this case it was not hard to see what had changed. With the injury, this team member’s role within the team was changed. He was no longer able to run the field but could lead from the sidelines. What can be hard for anyone is to view change not as a challenge but an opportunity.

Position the change: Team players need to position themselves to make opportunities out of changes in a player’s role on the team. Many times the opportunity to aid the team is in a greater leadership role as in this young man’s situation. This opportunity could not have been given him without a change (the injury) taking place.

Help other’s embrace the change: A blow to any team is the losing of its member to injury or other circumstance. For a team to succeed, its members need to embrace change and move forward with the same goal in mind. Once the change (however it presents itself) is embraced by others, it allows the team to become focused on the goal despite outside forces. In this young man’s case, change happened again as he was able to still play on the field later in the season as the injury healed.

In observation, not only did the injury change this young man’s outlook on his part within the team, but also his outlook on change itself. He was able not only to be led himself, but also lead others.  After all, we all know. ..Change happens. All we can do is be better prepared mentally for it.

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Question:

What’s a Bull and Bear Market?  What’s the difference between the two?  – Mario, Mexico City

Answer:

The Terms Bull Markets and Bear Markets are simply slang common to business acumen.

A Bull Market is a positive or optimistic view of the market.  This is where the value of securities are rising or expected to rise and is opposite of a bear market.  A Bear Market usually consists of a prolonged period of time where prices decline in the financial market place.  A fall of 20% or more is a good sign your in a bear market.

Quick Tip:  To help you visualize, think of a slow Bear ambling down and hill and a Bull bucking you up into the air (yee haa).

Bull Market = Optimistic/Up

Bear Market = Pessimistic/Down

Generally speaking, we want the market to go up.  However, as taught in CMOE’s mini-mba program, money can be made in a bear market when prices are falling

Visualize!

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Probably one of the most talked about cultural phenomena happening in the technical world is the growing and insatiable need for instant fixes.  We have instant messaging, instant information off the internet, and instant news flashes.  We watch crimes solved in less than an hour on television and relationships grow from dislike to love in an hour and half at the nearest theater.  We purchase instant meals at fast food restaurants and from the nearest supermarket’s frozen and dry box sections.  Commercials tell us we absolutely need that new car, new house, or new dishwasher – not tomorrow but today.  Don’t worry, you have instant credit.

What’s the outcome?  Credit card debt is at an all time high.  Lending institutions needing immediate government help in covering sub-prime loans.  Societies demand instant fixes to the political, economic, environment issues, and health care.  Well, it ain’t gonna happen.

The real issue isn’t so much wanting instant fixes, but assuming that it is “normal.”  It took years to get the economy where it is and will take years to get back on track.  Our immediate question shouldn’t be when but which track?

For many diverse nations, a unified consensus in society cannot be achieved quickly.  In fact, it may take years of difficulty and negotiation.  However, organizations don’t have years.  They need team accord and alignment quickly or they go out of business.  Yet, even alignment can’t happen overnight.  It takes time to define the where they want to be.

Aristotle is credited for stating something such as, “The way to achieve success is first to have a definite, clear, practical ideal–a goal, an objective.  Second, have the necessary means to achieve your ends–wisdom, money, materials, and methods.  Third, “adjust all your means to that end.”

In other words, if you want to success you better know where you are going.  You may not have months to evaluate an organizational goal but take time to get it clear, write it down, and asses it as thoroughly as you can.  When you are clear about your goal, you will know what you need, how to get it, and how to convey it.  When people in the organization understand the goal, it will be easier for the participants to become invested in the goal and will naturally adjust their means to achieve the goal.

Too often, instant fixes are not thought out.  They leave people confused about the intentions of the fix.  If people of an organization are unclear about their ultimate goal, they flounder, looking for purpose.  Without direction they create goals that are not in alignment, ultimately creating chaos.

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Five Years Later

After five years separation, several former employees of a bankrupt company, which I was one of, decided to have a mini reunion.  The main purpose of getting together was to find out how our coworkers survived their major life changes.  We wanted to know if the others were happy in their new jobs or did they even have one?  Unfortunately, some of us had had more than a couple positions in the five years following the company’s closure.  We had worked together, more or less, for 20 years and we found that building relationships like we had was proving to be difficult to attain in our new positions.

What surprised me was the company’s failure was never discussed at this gathering.  In fact, no one seemed to remember the difficulties we experienced, such as crews meeting production costs, budgets, or wage issues or even what drove the company to bankruptcy.  What we remembered was the camaraderie and funny happenings.  We talked about how coworkers were often more like family than their real relatives.

Like most families, we had our share of strange, fanatical, and outlandish people.  I remember one year we had them all at once.  Yet, in the center of the turmoil was a core group of individuals everyone else depended upon.  It was guaranteed that these people would show up every day, ready to do their best, and answer any question that crossed their path.

What Makes an Organization Special

I guess what made the organization special in our memories was the fact that we were in it together.  Whether the times were good, bad, hard, or easy, we stuck together, trying to do the best as possible for our clients.  Oh yes, we had our idiosyncrasies that drove other team members crazy.  Occasionally, one of us would complain as if we hated our jobs, throw a tantrum, or cause an uproar.  But, we truly cared about each other and the business so we would over look the infringements.  In the end, we were the ones who mourned the death of the company.

The Leadership Team

Looking back on it now, I realize that this feeling was due to our leadership team.  They certainly weren’t the greatest or most objective of leaders.  They didn’t always listen or communicate their wants and needs clearly.  In fact, one supervisor often said about his team, “People are just no damn good.”  Not that he really believed it; I think he just liked to say it.  Their example set the tone for the organization.  Leaders didn’t dictate but were team members, who worked hard to make a successful business.  By the way, this leadership team wasn’t the cause of the bankruptcy, that’s another story.  Gross negligence comes to mind.

The Lesson

The lesson here is leadership isn’t about perfection but about intention.  It’s doing your best, continually trying to communicate with others, struggling to give your people the tools they need, and doing the right things (as much as possible).  What holds loyalty from core team members is the loyalty given by the team leaders.  Our leaders truly cared about their subordinates and the success both for each individual and the company.  Yes, we were disappointed when some leaders let us down.  However, collectively, the team stood for us and against outside forces intent on our failure.  As such we stood with them to fight those forces as well.  Sounds like a family, doesn’t it?

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