From my limited experience in the business world I've encountered two very basic types of business leaders. The first type is the "nuts and bolts" leader. Cut and dry, these leaders operate according to the bottom line and make decisions based on sound processes and procedures rooted in facts and figures. They are data conscious and staunchly support what the numbers tell them. If R.O.I. could personify itself, they would be the quintessential walking-talking bar graph. The second type of business leader is the soft skills extraordinaire. If you have an elbow, they'll rub it. They can talk the talk. When it comes to building relationships they can walk the walk. Have a worker with a case of "The Monday's"? Send a soft skill leader to save the day. If your employee handbook on morale could personify itself, the soft skill leader would be it. Occasionally you find the hybrid of both, but those are statistical outliers and deserve their own blog so for the time being I want to focus on the "nuts and bolts" vs. the "soft skills".
So which is "better"? Simple question. Difficult answer. Our "nuts and bolts" folks can tell you when a business model will win or lose. Certainly important! You don't want to accept a risk or investment when the numbers tell you it’s not worth it. They tell you how much you can afford. How much you can buy. How much you can sell. They will decide whether or not everyone gets year-end bonuses, which, if not in favor of the employees might leave them chanting "nuts and bolts, nuts and bolts.... WE.....GOT.....SCREWWWED!" Now for the "softies", they won't let the data tell them whether or not a business model will win or lose. On the contrary, they will tell the data whether or not the business model will win or lose. They will convince the numbers into righting themselves and lead the company to victory. If employees don't receive the year-end bonus they were hoping for the "softie" will take their constituents to a nearby pub to laugh away their frustration. So again I ask, which one is "better"? We can go on and on about this topic but I won't do that because it's like arguing about politics or religion. In the end no one really wins the discussion and people usually walk away angry at the opposition. But I will choose one pivotal topic and explain my stance on how, I believe, the soft skill leaders are indispensible and take a slight advantage in the management technique discussion, and how their leadership is essential to a prosperous business.
Human Capital Management. What is that? It's the notion that people are an organizations greatest asset and that significant investments should be made to cultivate the full potential of each employee. On-going training should be conducted, employees should be sent to off-site seminars and conferences, subsidies for continued education, work-life balance, etc. There are dozens of techniques employed by companies and HR staffs to facilitate employee development. The notion is that a better employee contributes to a better company. This is no different than the old saying that "a chain is only as strong as its weakest link". However I think that most Human Capital Management techniques, although effective, are not complete. I agree completely that companies should spare no expense when contributing to an employees development and ensuring their happiness. But I also believe that most companies do not invest in the relationships between their constituents.
Many managers choose to keep "professional distance" with employees. Befriend them, but not too much. Get to know your employee, but don't be to close. Like them.... but don't like them. Huh!?!? On the surface it makes sense because business is business. We are taught that we go to work to work, not to make friends and win a popularity contest. To a certain extent this is effective. I think we can all think of a case in which employees got tooooooo close and something not HR friendly resulted. But what happens when there are not close bonds yet there are many talented individuals?
Let's consider a hypothetical. Imagine a prosperous company. Company ABC, Inc. has experienced year-over-year growth for the last 4 years and grown in size and profits by 120% over that same time-frame. Suddenly ABC, Inc. has more cubicles to fill and more parking spots to allocate. As the next fiscal year nears ABC, Inc. encounters a loss in profits and over the next several months the losses escalate. ABC, Inc. now has to make cuts to stay afloat. Benefits are cut in half, company lunches disappear, pay cuts are asked of the employees, and year-end bonuses are a distant memory. The employees, after spending several years or months there going through training, off-site seminars, subsidized education and the like are now highly talented and resume heavy but no longer inspired by the Human Capital perks they once experienced. The company is floundering and the employees are no longer incentivized. So what do the employees do? They protect themselves in the form of resignations, procrastination and plummeting performance, and search for a new job. Because after all they were hired as an individual, trained as an individual, incentivized as an individual, and kept at a distance by the staff and the leaders who want to maintain that "business is business." But business is not business.
BUSINESS IS RELATIONSHIPS
Human Capital Management MUST cultivate the relationships between employees just as much as it promotes individual growth. Chemistry 101 states that the stronger a bond between molecules, the greater the force to break those bonds. Business is no different. Strong bonds must be nurtured to fashion an unbreakable relationship between the smaller elements of a whole. Sustainability is the end-game of every business. If setbacks occur and cutbacks must be made, then they can be endured by the company if the employees see the value in enduring them. Take away the perks if necessary but make sure employees find accountability in the bonds that they have forged with their bosses, colleagues and associates.
ENTER SOFT SKILL LEADERS.
In the end the "nut and bolt" leader, no matter how hard they try, cannot quantify the value of a relationship. One can run financial forecasts all day but never find such a measure. They can run the numbers and tell us that we are in the red and where losses may be recouped, but the numbers can't convince workers to mobilize and respond when times get tough. Sustainability is at stake for every company. So I say bring in a "softie" when times get tough. Both types of leaders are needed for a company to succeed, but only the soft skill leader can forge the relationships that must endure when it appears that the company may not because when the perks are gone the relationships are the only value added proposition for employees to consider. So, build strong bonds.
I knew I got a C+ in thermodynamic chemistry for a reason :)
No comments:
Post a Comment