Middle Management Effectiveness Programme

1. Middle Management Effectiveness Programme Days 4 & 5 Excellence in Execution David White Middle Management Effectiveness Programme

2. Welcome back • We last met in the winter • And now we’re heading into autumn • How have the seasons treated the industry? • The sun has shone on the markets • But the recession is not over yet • A major challenge for management is to predict and navigate the climate Middle Management Effectiveness Programme

3. The Programme Managing Individual Performance Coaching Feedback Leaders vs Managers Action centred leadership Mission & Vision Presentation skills Leading project teams Change Management Delegation Coaching Story-telling Personal Style Assertiveness & Negotiating Day 2 Day 3 Day 1 Day 4/5

4. The Menu Coaching high performance Conclusions Action Planning Review Managing Remote or project teams & suppliers Evening Morning Afternoon Day 1 Managing Change Day 2 Meal & Presentation Delegation & Empowerment

5. Economist Trends • Three trends: globalisation, atomisation, and knowledge management • Each will impact on the structure, functioning and distribution of teams within and across businesses • Multi-cultural and geographically dispersed teams will increase, as work gets broken down into smaller units to be managed by specialist teams linked by technology • Future value of organisations will be more closely linked to the knowledge they can leverage; knowledge which is frequently an amalgam of individual experience, behaviour and understanding Middle Management Effectiveness Programme

6. The rise of virtual teams • We looked at conventional teams last time - but the more common rule is now the virtual team • Co-workers with complementary skills committed to a common purpose and goals with accountability • Geographically and organisationally dispersed • Using various telecommunication and information technologies to accomplish goals • What virtual teams do you manage or are part of? Middle Management Effectiveness Programme

7. Pros/Cons of Virtual Teams • Benefits: • allows organisations to draw from a large pool of qualified participants while minimising cliques and politics • Drawbacks: • loss of social contact, feelings of isolation, lack of trust (especially with new members) Middle Management Effectiveness Programme

8. Success Factors in Virtual Teams • High levels of trust among team members • Effective use of technology • Clear implementation of team concept • Effective individual performance Middle Management Effectiveness Programme

9. Cross location/home workers • Isolation • Lack of management support & guidance • Lack of team support & guidance • Lack of technical support & guidance • Lack of administrative support & guidance • Missing information for job performance • Missing information for opportunities (jobs, development, social etc) • Environment • Blurred boundaries between working and leisure (time, focus, professionalism) • Costs & logistics – space, technology & equipment, consumables • Tax issues • Cross location • Matrix management reporting conflicts • Lack of team cohesion and spirit • Problems with face-to-face communication • Problems of consistency Middle Management Effectiveness Programme

10. Trust • Trust plays a critical role in influencing group effectiveness • Trust has been identified as the defining issue in understanding the effectiveness of virtual teams • Handy, 1995 Middle Management Effectiveness Programme

11. Trust • Effective teamwork depends on trust • In a virtual environment, trust is more ability/task based than interpersonal relationship based • Level of member performance over time results in building or denial of trust Middle Management Effectiveness Programme

12. Three Levels of Trust Knowledge-based Trust Calculus-based Trust Identification-based Trust High Low Middle Management Effectiveness Programme

13. Three Levels of Trust • Calculus-based trust • We have more to gain than lose by and acting in good faith • Easily broken by a violation of expectations • Cannot sustain a team’s relationship • Knowledge-based trust • Knowing people well enough to be able to anticipate behaviour and avoid surprises • More stable than calculus-based trust • Develops over time • Identification-based trust • Based on social identity theory, ie we understand, appreciate, and even share each other's wants and needs. • Tend to forgive transgression because team is part of our personal identity Middle Management Effectiveness Programme Professors Roy J. Lewicki and Maura A. Stevenson of the Ohio State University

14. Trust in Virtual Teams • Cascio’s (2000) 3 traits to identify in high trust teams: • They begin with some social interaction • There are clear goals for each member • Members are positive, enthusiastic, and focus on an action orientation in communications Middle Management Effectiveness Programme

15. Building Trust Virtually • Establish trust through performance consistency • Rapid response to team members (return emails, task completion) • Set strong norms around communication • Team leader role in reinforcing interactions Middle Management Effectiveness Programme

16. Virtual Team Trust“Performance Consistency” • When you are working with people you never see, you can develop trust, but you must respond to that person promptly & consistently • Trust has been built through the task-based relationship that has evolved to other levels • You gain the trust in people when they deliver what they promise, when all are contributing to the same idea and goal • Source: Five Challenges to Virtual Team Success: Lessons From Sabre, Inc. Kirkman, Rosen, Gibson, McPherson. (2002) Academy of Management Executive, 16, 67-80. Middle Management Effectiveness Programme

17. Swift Trust Meyerson, Weick, and Kramer(1996) • Swift trust is a concept relating to temporary teams whose existence is formed around a clear purpose and common task with a finite life span. • Its elements include a willingness to suspend doubt about whether others who are "strangers" can be counted on in order to get to work on the group's task... • Has to be encouraged by the manager Middle Management Effectiveness Programme

18. Implementation of Virtual Teams • Must set out a clear business reason for the team • Team must understand its mission/purpose • Team members must develop a sense of interdependence • Must have accountability and rewards for team members • Sources: Attaran & Attaran, 2003; Kezsbom, 2000; Redman & Sankar, 2003 Middle Management Effectiveness Programme

19. Individual Performance • Potential for effort withholding behaviours (social loafing); can be minimized by building strong team identity • Members with high degree of centrality to the team and those that are information contributors are expected to be highest performers (Ahuja, Galletta, & Carley, 2003) • Members able to commit more resources are likely to be higher performers (Ahuja et al., 2003) Middle Management Effectiveness Programme

20. Dealing with Motivational Problems in Virtual Teams • Share your experience of dealing with a motivational problem (social loafing, inequity, etc) in a virtual team. • What was the nature of the problem? • Was it corrected/resolved and how? Middle Management Effectiveness Programme

21. Leadership challenges • Make personal contact to share information and get to know each other • understand individual roles • establish clear objectives • decide who does what • agree on methods and levels of communication. • Establishing these rules for communication and knowledge sharing at the outset is crucial for success," • Martin Galpin, managing psychologist at Pearn Kandola. Middle Management Effectiveness Programme

22. Leadership challenges • Trust individuals • Measure outputs not processes • Maximise lines of communication • Maintain regular face-to-face contact Middle Management Effectiveness Programme

23. Behavioural Invisibility • A minimum of two weeks before CMC relationships are as socially grounded as F2F relationships • The use of richer media does help when establishing and building relationships • Trust, a critical factor in influencing group effectiveness, is more readily generated in high-quality, media-rich forms of communication • Effective communication tools and channels help team members to avoid misinterpreting • ‘Silence’ – or non-response to communication (email, voice mail, etc.) can be very damaging to virtual team effectiveness as it leads individuals to misattribute explanations for this silence. Middle Management Effectiveness Programme

24. Remote Management • Isolation • Out of sight out of mind • Regular phone calls (daily/weekly/conference) • Give them reasons/excuses to call you e.g.: • To celebrate successes or get guidance • To review an activity or have a moan (& plan future remedy) • Ad hoc communication is harder • Communication requires more structure and planning • but do ad hoc meetings or calls too • Face to face communications are less frequent • Use the phone more • Use other communication more (video conferencing, web, email, SMS) • Have regular face-to-face meetings Middle Management Effectiveness Programme

25. Remote Management • Relationships are harder to build & maintain • Use phone, visits, emails etc to build rapport • Have regular social or team events • Meet for meals, drinks 1 to 1 • Talk about the teleworking before talking about results… • Less team spirit • Have regular team-events • Have team newsletters/competitions etc • Create phone/email peer support groups • Team bonuses to encourage and reward team-working • Team web/intranet sites Middle Management Effectiveness Programme

26. Remote Management • Harder for staff to remain motivated • Need to clarify expectations for time, support & development more clearly • Pace of work is self-directed • Constant awareness of results (not “big brother”) • Use coaching calls & results-reporting • Productivity/quality decreases • Results-oriented delegation & management • Fun/competitions/prizes • Monitoring work-rate and process is difficult • Distance means you need to delegate more – especially results-oriented tasks (not task/process) Middle Management Effectiveness Programme

27. Remote Management • Staff development is harder, so retention is harder • Clear structured, development plans, including objectives & support • Regular review meetings (minimum quarterly) • Spend time with teams locally & regularly • Tax issues Middle Management Effectiveness Programme

28. What motivates you?

29. What motivates...? • Work in three groups • Identify top motivators for... • Group 1: Front line staff • Group 2: Middle management • Group 3: Senior management • Be prepared to share your thoughts • 5 minutes Middle Management Effectiveness Programme

30. MotivationMaslow’s Hierarchy of needs Milestone achievements Personal growth, career development, this job matters Self actualisation Y Motivators Empowerment, responsibility Self esteem Recognition, influence Esteem from others Team spirit Social belonging Job security Hygiene factors X Shelter & safety Pay Physiological needs (food & water)

31. Expectancy Theory Expectancy theory – Vroom • Valence (value I put on it) • Is it worth doing? • Expectancy (relationship between Effort I make and Performance achieved) • Does hard work make a difference? • Instrumentality (the extent to which my Performance determines the Reward I get) • Do I get rewarded for going the extra mile? Middle Management Effectiveness Programme

32. Problems of Inequity • Equity Theory: • Am I being treated fairly in comparison with others? • People strive to maintain a ratio of their outcomes (rewards) to their own inputs (contributions) • equal to the outcomes/input ratio of others whom they compare themselves • Beware of inequities in rewards among team members Middle Management Effectiveness Programme

33. Equity Theory Pay, benefits, opportunities, etc. the same, more or less OUTCOME INPUTS OUTCOME INPUTS < = > ? effort, ability, experience etc. A person evaluates fairness by comparing his/her ratio with others Middle Management Effectiveness Programme

34. Outcomes Outcomes Overreward vs Underreward Inequity Inputs Inputs Inputs Inputs Outcomes Overreward Inequity Outcomes Underreward Inequity Comparison with Others You Middle Management Effectiveness Programme

35. Equity Sensitivity: Types • Benevolents • Tolerant of being underrewarded • Equity Sensitives • Want ratios to be equal • Entitleds • Prefer receiving proportionately more than others Middle Management Effectiveness Programme

36. Are there limits? • Qualitative capacity • Work must be stretching but not intimidating • Quantitative capacity • Too little can be as bad as too much • Job satisfaction • The job must be seen as worthwhile • Challenge • the job should provide interesting challenge Middle Management Effectiveness Programme

37. The customer is always.. the customer Rule No.1 The customer is always right Rule No.2 If the customer is wrong… refer to Rule No.1

38. Richer Sounds • 200 stores in UK and Western Europe • Specialising in good value HIFI and Home Cinema • Highest turnover per square metre of any shop in the world - Guinness Book of Records • Shrinkage: half the industry average (1% is worth £1m pa) • Absenteeism: 1-2% (UK average 4-5%) • ‘Colleagues’ not staff • ‘Colleague Support’ not Human Resources Middle Management Effectiveness Programme

39. Richer Way Principles • To provide second to none service and value for our customers • To provide ourselves with secure, well paid jobs, working in a stimulating, equal opportunities environment • To be profitable to ensure our long term growth and survival Middle Management Effectiveness Programme

40. Richer Sounds Stores • Bright environment • Free vending machine for all • Lollipops for children • Photos of customers and staff on the walls • Plain English advice posters and leaflets • Not precious about the technology Middle Management Effectiveness Programme

41. Richer’s 10 Customer Service Commandments • Get the greeting right. Don’t ignore the customer but don’t make them feel hassled. • Don’t be pushy. If the customer is unsure, invite them to go and think about it. • Browsers are welcome. • If the item the customer wants is not in stock, suggest another retailer who has it. • Use the customer’s name - and smile • Acknowledge customers who are queuing and apologise for keeping them waiting • The last minute spent with the customer is very important. Ensure the customer leaves with a good impression. • Under promise and over deliver • Encourage complaints and be grateful for the complaints you receive. Learn from them. • Don’t be discouraged when you get it wrong.

42. Motivating staff: FUN • Fun • Every month the 3 winning branches in customer service win the use of Bentley (or similar) for a month, complete with petrol • Holiday time • Holiday homes are available for staff and their families and also used for team events • Benefits & Incentives • Health care, product discounts, rewards • Training • Induction is at the chairman’s home with a disco in the evening • Working Hours • Hours are recorded, time & motion studies, training in time mgt • Stress Management • Good communication and freedom Middle Management Effectiveness Programme

43. Motivating staff: RECOGNITION • Thank you notes • Small tokens of appreciation • Chocolates, flowers, etc. • Medals • Gold aeroplane badges for high flyers • MBWA • Five year club • Anniversary dinner • Weekend break together • 10 year cash gift • All staff get a birthday card and a cake Middle Management Effectiveness Programme

44. Motivating staff: REWARDS • Customer feedback forms earn £5 for every ‘excellent’ • Mystery shopper schemes earn £100 for each member of staff hitting the required number of correct procedures • £100 post dated cheque for anyone who stops smoking for a year • Sales staff are paid a low basic plus commission but without turnover targets • Profit sharing • Contribution bonus based on share of profit generated by the branch • Calculated weekly and paid in cash on a Saturday • Central functions paid quarterly • Different size of reward by level but not within level Middle Management Effectiveness Programme

45. Motivating staff: COMMUNICATION • All central support staff spend one week per year working in retail on the shop floor • And so do all the directors • Richer House is not a glamorous Head Office - the branches are the heroes • Video communication rather than emails or paper • 1-to-1 chats with all staff • Julian Richer spends half a day working in as many branches as he can in the run up to Christmas Middle Management Effectiveness Programme

46. Motivating staff: LOYALTY • 1% of profits goes into a hardship fund for staff to borrow - interest free • Promotion from within • Welcome back for those who left and want to return Middle Management Effectiveness Programme

47. Measuring Motivation • Labour turnover • Absenteeism • Theft • Customer Service • Attitude Surveys • Motivation is an investment that pays off! Middle Management Effectiveness Programme

48. Cultural Difference & team management

50. Middle Management Effectiveness Programme