The Secret to Owning a Successful Business:

LEADERSHIP

The Secret to Owning a Successful Business: LEADERSHIP

SUSTAINABLE GROWTH

Sustainable Growth, the cornerstone of any successful restaurant or business, rests on the shoulders of three profound elements: Leadership, Culture, and Strategy.

In this article, we’ll focus on Leadership.

LEADERSHIP

What is Leadership?

Countless volumes of books, articles, podcasts, blogs, and conferences do their best to help leaders every day to get better at this thing we call Leadership. I always like to go simple and start with a definition from one of my best friends, Merriam. Webster, of course.

The dictionary defines Leadership (noun): as a person who guides or directs a group; Leadership (verb): to guide on a way especially by going in advance or to direct on a course or in a direction.

NOT EVERYONE IS A LEADER

Contrary to some contemporary thought, not everyone is a leader. Leadership is about more than influence. While there certainly is a special essence of influencing those who are being led, there is also a clear depiction by the definition of guiding and directing while also going in advance of those who are led.

Admittedly, in every organization, there are far more people that should assume Leadership that don’t and to paraphrase something Pat Lencioni shared in a recent conference I attended, there are probably a lot of people leading that should not.

WHAT DOES LEADERSHIP MEAN TO YOUR ORGANIZATION?

Now that we understand the essence of Leadership and leading, what does that mean to your organization?

Can we look at any organization with the same lenses?  Yes…and no.

Sustainable Growth rests squarely on the shoulders of Leadership, and the balance of that Leadership is dependent upon the context of your business, and your organizational dynamics.

LEADER DEVELOPMENT AND DIVERSITY

When analyzing influence in your restaurant or business, you should begin with two concepts:   leader development and leader diversity.

LEADER DEVELOPMENT

Sustainable Growth best occurs when there is more than one leader. There must be depth as well as a breadth of Leadership.

If you are reading this as a restaurateur or even a small business leader, ask may yourself, “Am I the only leader on my team?” The only excuse for answering that with a “yes” is if you are the ONLY person in your organization (even then, a Sustainable Growth MindsetTM ensures you don’t stay that way for long)!

Over time, hiring and investing in middle-level leaders and helping them take the initiative to improve their leadership skills will pay considerable dividends: for them, for you, and most tangibly, your organization.

LEADER DIVERSITY

Think about what type of leaders you have in your organization. Certain leader types may be more effective than others in your space.

Some leaders love details! Details energize and make them tick. Surely you know somebody like this?

There are still some that are exceptional at helping everyone see the BIG picture, visionary and inspiring as they articulate the 30,000-foot view as few others can.

Additionally, there are those of us energized when surrounded by people–the team we work with, a robust audience, or countless customers and clients.

Lastly, there are those empowered by the closing of a door, finding themselves alone in peaceful solitude with their ideas.

Which of these is good?  Is one worse than another? Can there be a “good” or “bad”?

DETERMINE YOUR LEADERSHIP TYPE?

Are you a Maverick or Pioneer? An Operator or Reconciler?

What about those on your team?

In the fast-paced restaurant industry, where the customer’s desire is instant gratification, Leadership is critical, details matter, and self-awareness is the beginning of a leader’s growth journey. Your team’s future growth depends on it!

Take our short, quick persona quizzes (click here) or have your whole organization figure out where they are on the spectrum. It will help you and your team see yourselves in a different way, and improve, regardless of where you are.

3 QUICK-ACTION STEPS TO SUSTAINABLE GROWTH

Here are three actionable tasks that may serve you well in your endeavor to bring out the best in your business through Leadership:

  1. Assess yourself and your team’s personas. Send SLA’s Leader-persona quiz (FREE!). This exercise alone will increase self-awareness and learning.
  1. Bring the team together—in whole or in parts—and share personas. What do you see? Any surprises? Any trends or fresh observations?
  1. Lastly, ask yourself, “Are we balanced?” Do you have gaps? Blind spots? If so, generate some options that will improve your team’s balance.

LET’S GET OUT THERE AND DO IT!

Which D-Day Leader are You?

Which D-Day Leader are You?

June 6, 2019, is the 75th anniversary of D-Day, the intrepid invasion at Normandy, France. Less than a year later, Hitler was dead and Nazi Germany defeated.

Many factors led to the success at D-Day. Strategic Leadership was a key difference. 

The Allied military leadership team outclassed the Nazis, completely fooling them as to the location of the main invasion, taking advantage of their byzantine decision-making process, and preventing large-scale counterattacks on the landings.

The 4 main allied commanders in the Normandy campaign: Eisenhower, Montgomery, Bradley and Patton were great leaders, yet each was hard-wired differently. They complemented each other — turning diversity into strength.

Find out which D-Day leader most closely resembles the way you are hard-wired as a leader. 

Five secrets to doubling your workforce

(without more people or gizmos)

Five Secrets to Double your Workforce

Only about one-third of employees in the United States are engaged at work

Julie, we will call her, was so frustrated. She was in charge of a nonprofit that supported an important cause. She had talented people and enough budget to execute their programs. Despite all this, they just couldn’t seem to get anything done.

According to Gallup, only about one-third of employees in the United States are engaged at work. The other two-thirds are physically present but mentally absent.

Julie’s challenge was a bit different. Her employees were engaged but only about one-third of the time … and, of course, at different times. The other two-thirds seemed to be consumed in backbiting, frustration, and unproductive churn.

These 5 low-cost, high-impact efforts are changing all that.

  1. Take the time to explain WHY. Julie would get frustrated when her employees asked her to explain certain policies and decisions. She believed she was being second-guessed. After reflection, she recognized that most of her answers could be summed up with “because I said so.” She discovered that her reaction to the questions was part of the reason for the backbiting and friction.

According to Forbes, explaining WHY has a tendency to improve employee confidence, productivity, as well as the employee’s ability to problem solve and innovate.

A Change in mindset

Julie began using a different approach. She changed her mindset and began to interpret WHY questions as indicators that her employees cared. She took the opportunity to validate their concerns and explain her rationale. When she found that she could not offer a compelling answer, she worked together with the team to come up with a better policy.

  1. Take Responsibility. Julie prided herself on high standards. She set tough goals and challenged her team to meet them. When questioned by the board of directors about a shortfall, Julie often began the explanation with “the person responsible for X is working very hard, but …” She thought she was backing her team. They believed she was throwing them under the bus and blaming them. They never took risks or tried new approaches. Like others, her employees concluded that following the status quo was the safest way to avoid getting blamed and, perhaps, fired.

When Julie realized that her approach had these inadvertent negative effects, she changed her language to “That’s my responsibility. We’ll get to work on it.” She also made sure to distinguish between accountability and blame. She held her employees accountable for things under their control, like developing sound plans to achieve goals and then executing those efforts to standard. But she also made clear that no one was to blame for outcomes that were beyond their control. This reduced the finger-pointing that was wasting time and damaging morale.

  1. Hire for Culture. Every organization seeks the best possible talent and Julie was no different. She carefully outlined the skills for each position, diligently combed through candidate resumes for the right background and experiences, and conducted interviews to choose among the finalists. Normal practices.

Julie’s nonprofit had an average employee retention of 24 months. Every two years, most of her twenty-person team changed. Of those who left within two years, most were due to a culture mismatch — numbers consistent with national trends. With an average salary of $70,000 and an estimated turnover cost at 75% of annual salary, Julie was burning over $1 million in the revolving door.

Determine the ideal culture for your team

Julie used our tool to determine the ideal culture for her team. She discovered that a Collaborative team best addresses the nonprofit’s mission and challenges — one focused on teamwork and innovation. She had been hiring highly-qualified people who were individually competitive, which was undermining coordination. She was also hiring process-oriented people who wanted the comfort of executing routines rather than explore new ideas. Both were creating workplace friction and frustration.

Hiring for culture only works if you have clearly defined the values and expectations of your desired culture. Now, she can begin hiring the right people. Cutting turnover in half will save her nonprofit $500,000.

  1. Put people in roles that match their leader persona. Part of Julie’s turnover challenge was burnout — a common problem for nonprofits. Good people worked very hard, grew exhausted, and burned out. Their last six months on the job were marginally productive. Julie’s team was physically diverse, but most tended to think the same way.

Our leader-persona assessment led to some interesting observations. First, her team was imbalanced toward detail-orientation. This partly explained the innovation problems — she did not have Mavericks or Pioneers who were hard-wired to challenge the status quo. Her Operators and Reconcilers worked very hard to come up with new ideas, and some ideas were very good. But the work exhausted them, contributing to the high turnover for these positions.

Second, she had Jim, her only Maverick, working as the chief of staff, which meant he was trying to play the Reconciler role of building and managing consensus among the team. Jim was a super policy advocate, but he was terrible in this new role. Julie, an Operator, found herself constantly refereeing disputes among the team – something Jim was supposed to handle. She was tired of it. Jim was growing frustrated, too, and she did not want to lose him.

Julie put Jim back in the advocacy role. She is seeking more Mavericks or Pioneers to support her need for innovation and is hiring a Reconciler for the Chief of Staff position.

5. Involve your team in creating the annual business plan. Like most nonprofits, Julie had a 5-year strategic plan. She outsourced the work to a team of consultants. They listened carefully to Julie and the board about the challenges the nonprofit was facing and the main capabilities and initiatives to advance their cause. The consulting team produced a very well-organized strategic plan that was supposed to result in $2 million growth.

The problem was that no one other than the consultants really understood the theory of success, so everyone just kept doing what they had been doing. This was not going to yield better results. Her team was like the other 90 percent who failed to execute their strategies successfully.

Create a new strategy

Julie worked with us to create a simple new strategy to address the changes in the environment. She explained the updated approach to her team and how each of their efforts contributed. Using SLA’s implementation plan model, she had her teams develop their annual tasks and requirements. They were, in effect, aligning their own work plans for the year to the strategy. Dedicating three one-half days to this effort was painful.

But the payoff was immediate. There were no more unresourced, pie-in-the-sky ideas, disconnects between activities and desired outcomes, or competing silos. By outlining the needed resources and setting their own deadlines, the teams gained ownership and accountability for the execution.

Julie reckons that change alone boosted employee engagement from about one-third to about two-thirds.

These five new habits are helping Julie double employee engagement, effectively doubling her workforce’s productivity at very little cost.

Julie is an amalgamation of clients who have experienced these challenges and outcomes.

 

What is your organization’s ideal workplace culture?

Ideal Workplace Culture

Organizations thrive when their official values and workplace culture are in sync. Major problems occur when those values are mis-aligned, leading to employee turnover and disengagement. These problems drain your revenues — it’s like having a big hole in the bottom of your bucket. 

89% of employees who leave within 18 months do so for culture reasons. Replacing them may cost between 50% and 200% of that position’s annual salary. Workplace incivility costs an estimated $14,000 per affected employee. Getting the culture right helps your team grow sustainably.

Workplaces develop one of 4 dominant cultures: Innovative, Collaborative, Authoritative, and Cooperative. Find out which workplace culture is best for your company and the values that support it. 

Hiring the right talent that fits your culture will improve employee retention and engagement.

Three Ways to Reduce Employee Turnover

Reduce Employee Turnover

Reduce employee turnover

“Employee turnover is killing us,” Johnny told me. “We had a nearly 100 percent turnover last year. We can’t create any momentum. Projects get stalled. Our leaders get consumed in the hiring process rather than serving our clients. Our clients get upset. We cannot survive like this.”

The Problem

Employee turnover is a silent revenue-killer. Employees tend to leave organizations due to unhappiness rather than seeking better pay and benefits. Hiring and training a new manager could be as high as 50% – 200% of the position’s annual salary.

What Gives?

Employers tend to hire for talent rather than for culture. A myriad of technological tools rarely help. As a result, employers often hire people who are not a good fit for their culture. This practice can create a toxic work environment that drives away your talent. 46% of employees reportedly leave within 18 months, 89% of those due to culture.

Solutions

1) Define your ideal workplace culture (our tool can help – click HERE).

2) Align your values and workplace culture

3) Screen for qualified people that fit your workplace culture. It is much easier to train jobs skills than to change a person’s workplace habits.

Heading over a cliff

“Johnny” was a senior leader in an organization that was heading over a cliff. Employee turnover was a symptom of larger issues: a chaotic work environment, shifting priorities, and no strategy. “Winging it” had enabled the organization to seize emerging opportunities and gain some early clients. But that mode of operating had become a habit — the company was chasing cash. They were in peril.

The BIG 3

They needed help getting the 3 BIG things right: Leadership, Culture, and Strategy. This included creating a proper strategy and implementation plan, instituting some procedural discipline, and getting the culture right. The last one would be the most challenging.

The company had tried to address the problem by organizing “culture days.” They spent time doing interactive exercises to get to know one another better. They had so-called “radical candor” sessions. They argued over and selected their values. They felt good for a few days. Things seemed to get better.

Reality

Then reality struck. Within a week the same old problems and practices were back. Employees grew more disillusioned. Several quit.

“We’ve got to stop the bleeding,” Johnny told me. Even the best strategy would not overcome the culture problems the company was facing.

“How well do your values align with your workplace practices, Johnny?”

“Don’t you mean: how well do our workplace practices align with our values?”

“Is there a difference in the two statements?” I asked.

“The answer on alignment is ‘Not well.’ The way I phrased it suggests we should align our workplace practices with our values. That’s what everyone teaches. You phrased it differently — your values should align with your workplace practices. Isn’t that backwards?”

Employee turnover plunged

Their values list was heartwarming — focused on cooperation and happiness. The founder actually ran the company on creativity and agility — even if that meant a chaotic work environment. No amount of culture days would change the founder’s DNA.

Johnny understood that he needed to hire employees who could thrive given the organization’s realities. To add candor and avoid cynicism, he recognized that the company would need their values to reflect what they expected in practice.

Johnny began to hire for culture. The company had what we call an Innovative culture. They valued creativity and results over process and co-working relationships. In the hiring process, Johnny deliberately sought qualified people who could thrive in their workplace. Employee turnover plunged.

Hire for culture – deliberately

Gregg Williams, the interim Head Coach of the Cleveland Browns in the latter half of 2018, hires deliberately for culture. He emphasizes a cooperative culture: teamwork and execution over individual stats and player creativity. He starts players who show they have bought into the culture. The Browns won 5 games in the second half of the season — more than they had in the previous 3 seasons combined.

Aligning values and culture improves employee engagement and reduces turnover. Use our tool below to discover your ideal culture archetype — Cooperative, Collaborative, Authoritative or Innovative. Once you have established your ideal culture, align your values accordingly.

The bottom line

Hire qualified people who fit your company’s culture and you will reduce the costs associated with turnover and disengagement.

Uniformity Versus Diversity

Uniformity versus diversity

Uniformity Versus Diversity

What is stronger: uniformity or diversity? Pundits upset about the lack of ruthlessness in Game of Thrones’ latest episode are missing a better point about leadership.

[Spoiler alert] Episode 2 led watchers to gird themselves for the death of beloved characters. After all, who could forget season 1 in which Robert Baratheon and Ned Stark met their unexpected demise? Who would it be this time — Danaerys, Jon Snow, Tyrion, Varys, Sansa, Arya? All of them survived, winning the epic battle against the Night King.

The end of the Night King sets up a more interesting struggle between Team Targaryen and Queen Cersei. This struggle pits uniformity against diversity.

Good fiction prompts us to question conventional wisdom. The upcoming struggle gives us an opportunity to explore the limits of uniformity and diversity.

There is no “I” in Targaryen

Team Targaryen represents diversity — there is no “I” in Targaryen. Daenerys has encouraged debate among her counselors, permitted them to challenge her thinking, and empowered some questionable leaders who have unexpectedly risen to the occasion.

The coalition fought as one against the Night King, but that epic threat masked an emerging leadership struggle as the North refuses to bow to Daenerys and will only follow Jon Snow. The latter’s revelation as the last surviving male Targaryen complicates questions of power and authority.

The Symbol of Uniformity

Cersei, meanwhile, is the symbol of uniformity. It’s her way or the highway. Even her brother and lover, Jamie, left for Team Targaryen when Cersei’s demands became too much to stomach. She is systematically shedding all naysayers and anyone not fully prepared to obey.
After seeing the seven kingdoms tear each other apart, Cersei sees strength in uniformity. She believes they can act faster and strike more decisively than the Targaryen coalition and hold together in the face of adversity.

Team Targaryen

I’ll be watching to see how Team Targaryen’s leader team adjusts in the face of diverging interests. Jon Snow’s ability as a Reconciler in keeping the coalition together and gaining consensus on a shared vision and strategy will be essential for success. Can Daenerys set aside fears of being displaced and empower Jon to play that role? Team Targaryen will also need the ideas of Tyrion (Maverick) and the systematic thinking a Varys (Operator) to create blind spots for Cersei and exploit them.

Team Cersei

I’ll also be watching to see how Cersei (Maverick) attempts to create and exploit fissures within Team Targaryen. Her best strategy is to get her opponents to paralyze themselves. Cersei is brilliant, but can she anticipate and neutralize her opponent’s creativity while acting decisively faster than they can? Will she listen to wise counsel that challenges her thinking?

More broadly, well-crafted fiction can help us explore the conditions that can turn diversity into unity and prevent uniformity from blindness and insensitivity.

What to learn

Want to learn more about balanced leader teams and ways to turn diversity into a strength? Take our “Which Team Targaryen Leader Are You” quiz. Find out which Game of Thrones leader leads like you and how to bring out the best in yourself and others.

Which Team Targaryen Game of Thrones Leader are you?

Which Game of Thrones Leader are You?

Winter is coming. The Game of Thrones final season is upon us. Did you know that Daenerys Targaryen, Tyrion Lannister, Jon Snow, and Lord Varys represent the four main leader-personas? 

This gives Daenerys a balanced leader team and a big advantage in the coming war. 

Take our assessment to find out which leader in the Targaryen team you most closely resemble.

P.S. Be on the lookout for our Team Cersei assessment and our analysis of the coming war.

The Four People your Team Needs to Succeed

The Four People Your team Needs to Succeed

To grow sustainably, every team needs four critical people.

With them, your team has the right balance to execute, solve problems, innovate, and maintain harmony. Without this balance, an organization is vulnerable. These four people are the Operator, the Maverick, the Pioneer, and the Reconciler.

We derived these four archetypes by overlaying two critical characteristics: introversion versus extroversion and detail versus vision-orientation. These characteristics provide distinctive inclinations that reveal the roles in which people are likely to thrive.

Forge Balanced Teams
Forge balanced Teams

Operators are mission-focused.

They nail the details and hold people accountable. They help you execute to a high standard.

Mavericks like to question the status quo and solve chronic, wicked problems.

They help you avoid complacency and keep your focus on the issues that matter.

Pioneers love to rally people behind new ideas and innovations.

They will help you recognize emerging threats and seize opportunities.

Reconcilers are natural team-builders.

They know how to manage processes and to gain and maintain consensus. They keep egos in check and harmony on your team.

History provides some great examples.

George Washington, an Operator, built a balanced team as head of the Continental Army and later as our America’s first President [Hamilton (the Maverick); Jefferson (the Pioneer); and Knox (the Reconciler)].

Building America
Building America

Abraham Lincoln, a Reconciler, had a “Team of Rivals” [Stanton (the Operator); Chase (the Maverick); and Seward (the Pioneer)].

Winning the Civil War
Winning the Civil War

During World War Two, Supreme Allied Commander General Dwight Eisenhower, a Reconciler, carefully cultivated and maintained his balanced team [Bradley (the Operator); Montgomery (the Maverick); Patton (the Pioneer)] that, together with the Soviets, defeated Nazi Germany.

Winning World War II
Winning World War II

What happens if your team does not have all four?

Google is a good example. In the 1990s, founders Larry Page (Maverick) and Sergei Brin (Pioneer) excited many investors with their breakthrough ideas. They, however, could not make the business work. At the insistence of the investors, they brought onboard Eric Schmidt (Reconciler), and Jon Rosenberg (Operator) as CEO and Senior VP. Google became one of the most successful companies in history.

Google's Balanced Team
Google’s Balanced Team

Key Tips:

1.  Hire intentionally – make sure you have all four represented and empowered
2.  Assign people to roles that enable them to thrive. Most vision people can do details, and vice versa, but doing so drains their energy faster.
3.  Check to see if you have a balanced team (take our quiz below). If not and you cannot bring someone in to fill the role, then consider hiring a consultant or adviser. You can also ask someone on your team to play the role, but you will need to find ways to address that their energy may drain faster.

Which American President Are You?

Which American President are You?

These American Presidents lead with authenticity. When you know your leader archetype, you are empowered to become the best version of yourself. When you learn the archetypes of others, you can coach them to be the best version of themselves. Which American President are you?

What’s your Servant-Leader Archetype?

Which great leader are you?

Servant leaders come in one of four broad leader-archetypes: Pioneers, Reconcilers, Operators, and Mavericks (PROM). 

Your servant-leader archetype is outward-facing, describing how you best contribute to the world, whether that is your company, cause, vocation, or community. 

 Once you know your servant-leader archetype, you can be very intentional about serving as the best version of yourself. Once you know the WHOs of your team, you can help them serve as the best versions of themselves. Your energy, team performance, and internal communication will improve significantly … immediately.

Take our assessment to find your PROM Servant-Leader Archetype. Share it with your team and compare results. Do you have key leaders among all 4 types?