The Leading from the Heart Workshop ®

The Leading from the HeartWorkshop® OPRA 2006 Fall Conference

4.6 percent

warning: ON AUGUST 31, 2006, THE JOB OPENINGS RATE WAS 3 PERCENT, ITS HIGHEST LEVEL SINCE APRIL, 2001 Source: Bureau of Labor Statistics

T h i s i s y o u r c a l l WAKE UP

Fact In the war for talent, everyone is fighting over your best employees.

What talent war? 17-21= -4

Professional and business services will grow twice as fast as the overall economy. Source: Bureau of Labor Statistics

About half of Human Resource professionals say they are seeing new workers entering the workforce lacking overall professionalism, written communication skills, analytical skills, or business knowledge. SHRM: 2005 Future of the U.S. Labor Pool Survey Report

By 2012, one out of five workers will be fifty-five years old or older. Source: Bureau of Labor Statistics

“The Baby Boom is de-booming and soon there will be many more jobs than people available to fill them.” “Why Retention Should Become a Core Strategy Now” Harvard Management Update, October 2003

“It may be time to reconsider the ‘they have no place else to go’ strategy of employee retention.” “Why Retention Should Become a Core Strategy Now” Harvard Management Update, October 2003

Old InterviewInterviewer:“Tell me why I should hire you.”New InterviewCandidate:“Tell me why I should come work for your company.”

BasicWorkerBenefits(negotiable) Salary plus Incentive Pay Paid Holidays and Vacations Long-Term Retirement Savings Plan Employee Educational Assistance Medical and Hospitalization Insurance with Dental and Vision options Salary Continuation Plan (Sick Leave, Long-Term Disability Insurance)

PremiumWorkerBenefits(old tie-breakers) Fitness Center Cafés with Healthful Meals Take-home Catering In-house Day Care Scholarships for Family Members Adoption Expense Assistance On-site Dry Cleaning, Shoe Repair, Photo Processing, Libraries

Values-BasedWorkerBenefits(new tie-breakers) Cultural Diversity Shared Authority and Self-Managed Work Teams Paid Time Off for Volunteerism Flex Time or Job Sharing for Work / Life Balance Maternity, Paternity, and Adoption Leave of Absence Career Planning and Job Coaching

all generations When selecting employers, job candidates from are focusing less on the financial rewards and more on the values rewards.

The Boomer Agenda 1. Make love, not war. Done. 2. Make more money than Done. our parents did. 3. Make a difference In progress. (make amends for #2).

e HOME ALON Whereas the Industrial Revolution drew fathers outside the home to work, Gen Xers probably grew up in households in which both parents held jobs.

e HOME ALON 2 The Netter Paradox “The money’s good. But won’t you just downsize me, too?”

values MATTER >>

Employees connect with leaders whose stated values are in alignment with the organization’s and, thus, their own.

Consistency between an organization’s stated values and its leaders’ actual behavior is critical to credibility.

When there isbetween what leaders say and what they do, employees immediately and rightly recognize those leaders as frauds. discrepancy

“You will be confronted with questions every day that test your morals. Think carefully, and for your sake, do the right thing, not the easy thing.” - Commencement Speakerto the St. Anselm College Class of 2002

“Ex-Tyco Chief Executive Kozlowski Sentenced to 8 to 25 Years”Headline / Bloomberg.com / 09.19.2005

Strong Fundamental Values “We must demand of ourselves and of each other the highest standards of individual and corporate integrity. We safeguard company assets. We comply with all company policies and laws.” Source: The Tyco Guide to Ethical Conduct

“We safeguard company assets.” Regency mahogany bookcase, c. 1810, $105,000 George I walnut arabesque tallcase clock, $113,750 Custom queen bed skirt, $4,995 Custom pillow, $2,665 Ascherberg grand piano, c. 1895, $77,000 Chandelier, Painted Iron, c. 1930, $32,500 Pair of Italian armchairs, c. 1780, $64,278 Persian rug, 20 feet by 14 feet, $191,250

“In corporate America, crime pays. Handsomely. Grotesquely, even.” Arianna HuffingtonPigs at the Trough

“Ebbers’ luck runs out in sweeping victory for feds”Headline / USA TODAY / March 16, 2005

I said, “Ship the documents to the feds.” She heard, “Rip the documents to shreds.”

Enron Who? Most recent business scandals involved CEOs that you had never heard of, at companies that you had barely heard of.

“Apple CEO Steve Jobs drawn into stock options scandal” Headline / MacDailyNews / August 15, 2006

“Dunn and Four Others Named in Criminal Complaint in HP Spy Scandal” Headline / PC World / 10.05.2006

“It can be easy for non-profits to feel that the problems of the private sector don’t relate to them, that the ‘good people’ who populate the non-profit world are, by nature, more trustworthy.”–Stephen D. Potts, Fellows Chairman Ethics Resource Center

“This is a dangerous assumption.” Stephen D. Potts, Fellows Chairman Ethics Resource Center

“Getty Book Deal Led to Questions of Conflict”Headline / Los Angeles Times / 06.13.2006

“ We’ve got this idea that business means anything goes. R. Edward Freeman, Director Olsson Center for Applied Ethics ”

ONLY HALF, ONE OUT OF TWO, U.S. EMPLOYEES TRUST THEIR SENIOR LEADERS. DO YOURS TRUST YOU? 51% Source: Watson Wyatt’s WorkUSA 2004 Survey

“With fewer than half of employees expressing confidence in senior management, no company has been left untouched by the fallout from recent turmoil in the business environment.” -Ilene Gochman, Ph.D., Watson Wyatt

Used-car salesperson…slick Politician…dishonest Personal injury lawyer…greedy Insurance agent…pesky Postal worker…postal

Business leader…justice-obstructing, debt-hiding, earnings-overstating thief who uses company funds to purchase personal artwork and to put on lavish birthday parties for family members

People join an organization. They leave a manager.

“Ethics is never a business issue or a social issue or a political issue. It is always John C. Maxwell, There’s No Such Thing as “Business” Ethics a personal issue.”

“We believe that our organization’s greatest asset is its staff. We encourage and support professional development activities that meet the goals of the organization. We take personal responsibility, are accountable, and embrace a set of values that guide our daily actions.”

OBSERVINGANDINTERPRETING Soon after they are hired, employees start looking for mutual expectations—which of their own interests are consistent with the values of the organization.

a l i g n m e n tOnce they feel aligned, individuals can start envisioning their place in supporting the organization’s success.

But if they sense they’ve been duped, employees withdraw, become defensive and cynical, start gossiping, and begin causing trouble.

The mission statement is “not a trophy that decorates office walls, but an organic body of beliefs and a foundation of guiding principles we hold in common.” Howard Schultz, founder of Starbucks

“Employees are assets with feet. They’re the only resource companies have that make a conscious decision to return the next day.” Press Release, Walker Information

Workers who believe their organizations act with integrity arenine times more likely to stay in their current jobs. Source: Walker Information - Commitment In The Workplace: The 2003 National Employee Benchmark Study

The Leading from the Heart Workshop ®