Author: Nailia Tasseel

I’ve just finished reading a great book called ‘Ghost’ by Robert Harris. It’s an engrossing thriller about a Ghost Writer employed to write the memoirs of a former British Prime Minister responsible for waging a highly controversial war in the Middle East. (The book is fiction but you would be entirely forgiven for assuming the PM is based on Tony Blair).

Throughout the book the reader is given a fascinating insight into the world of ghost writing. The ‘Ghost’ describes the challenges of his job: How to stitch together his subject’s patchwork of time addled memories to form a coherent and compelling story that will be thoroughly convincing to the reader.  The Ghost tells us that he applies ‘The Seaplane Test’ to his finished manuscript in order to assess just how convincing his gap filling will be.

So what exactly is ‘The Seaplane Test’?

The Ghost describes a book he once read. We never find out the name of the book but it opens with a high profile US politician arriving in Central London via a giant seaplane landing on the Thames. The Ghost tells us that as soon as he read that highly unlikely scenario, he was unable to read the rest of the book. In that moment, the story had lost all credibility, leaving the Ghost unable to take the rest of the book seriously.

The lesson here is that, whilst it’s fun to suspend belief for the sake of entertainment, credibility is key if you want your story to resonate with its audience. Just like the Ghost in Harris’s novel, we believe in ‘The Seaplane Test’ – We help our clients to tell their Story in a compelling way but in a way that never compromises accuracy or truth.

Dave Ulrich told last week’s HR Leadership Alliance of Warren Buffet’s latest investment in GE and Goldman Sachs.  Why?  Not simply because of their performance, but because they are known to have excellent leaders.

In fact the message was simple – more and more investors will be looking to invest in companies with good leaders, and good leadership will come from LEADERS – not HR – training leaders.  And there are some great insights into what the most important skill of a leader is in the latest issue of Business Strategy Review:  Communication.  Here Stuart Crainer and Des Dearlove explain the eight key disciplines for communicating clearly:

1. Always on:  As a leader you are communicating 24/7, not simply to employees but the media, analysts and shareholders.  The smallest thing or an off-the-cuff remark can get amplified – and distorted.  Remember Gerald Ratner?

2. Know your messages:  Consistency, repetition and staying on message is vital.

3. Distil it:  Keep it simple, boil the message down to its essence, make it memorable and repeat it endlessly.

4. Think audience:  Make the message relevant to your audience.  Use the right tone, level of energy, language and make it meaningful

5. Find your own voice:  Be authentic.  Know your strengths and your weaknesses and choose the most effective medium.  Whether a handwritten note or a Richard Branson-style antic, be you.

6. Tell stories:  Who are you?  What do you stand for?  What does this mean to your followers?  Make a rational and emotional case.  Leadership communications expert Terry Pearce says “While the mind looks for proof, the heart looks for engagement.  While the mind looks for information, the heart looks for passion.  While the mind looks for answers, the heart looks for experience.  The mind makes a decision, but it is the heart that makes a commitment.”

7.  Use symbols:  Actions speak louder than words.  Be a role-model.  Do as you would wish others to do.  Take a leaf out of BBC Director-General Greg Dyke’s book to show that cost-cutting starts at the top, and get rid of your senior exec chauffeur-driven cars!

8.  Stay in touch:  Work hard to stay in touch.  Keep listening.  Keep talking.  And don’t just listen to the loudest voices.

Anyone who attended last week’s HR Leadership Alliance in London will know what I’m talking about.  This is a phrase coined at the conference by HR Guru Dave Ulrich, who gave some fascinating insights into the role of HR in business today.

I must admit, I was really surprised after two days to feel that the HR Community represented at the conference gave every indication that it still isn’t focusing on its contribution to the wider business.  HR is often accused of navel-gazing – a comment which no doubt will be met with gasps of indignation and horror – yet when Dave asked the floor what their biggest business challenges were, the response came back as ‘retention, talent management, recruitment….’ and so on.  Excuse me, but the question was “what are your biggest business challenges today?”, not “what are the biggest HR issues today?”.  And for each answer given, Dave’s phrase “So that…..?” challenged each and every individual until they got to the kernel of the question.

We may have been in a conference setting that day, but those two short words ‘So that…..?’ are what we should all be asking ourselves.  Every day and indefinitely.  Why are we doing what we’re doing?  How is it contributing to the success of the business, and how is it addressing the challenges the business is facing? It struck me that although it was an HR Conference (so yes I forgive you, folks), there was little discussion or debate about the role of HR at the board table, and the interaction with the senior executives (in particular the CEO).

Thank you Dave Ulrich for picking up on such a serious issue and ensuring that the message came over loud and clear.  And, by the way, for telling everyone to turn their strategy into a Story.  I’ve said it once and I’ll say it again, put the spotlight on the benefits and not the process, and you’ll be perceived in a completely different light.

Halloween has come and gone and there may have been more than a few HR people feeling like the Grim Reaper than usual at this year.  Slashing costs and making redundancies is never easy at the best of times – and never more so than now in the knowledge that it won’t be easy for people to find new jobs, particularly in the manufacturing, construction and, dare I say it, corporate finance sectors.

In fact I was at a wedding recently, talking to the Chief Executive of a large and well-known investment management business.  It was the week when Lehman Bros collapsed, AIG was bailed out by the US government and HBOS announced its merger with Lloyds TSB.  This CEO recalled how he was standing in the middle of a room full of investment managers (those who weren’t lined up on the windowsill) amidst the chaos of the markets going crazy, and someone came up to him to ask what was happening and what should they do?  He simply said, “I don’t know.  I don’t have the answers.  I have never seen this before and I hope I never will again.  But we’ll adapt – we have to.”

Since mankind began we have adapted to our changing environment.  We have no choice.  In this world of change, volatility and uncertainty we will need to adapt to the change that so many see as a threat.  Like the CEO I quoted, we don’t have all the answers. But it doesn’t have to be a threat; in fact I think this downturn will do us a favour in sorting the wheat from the chaff.  I’m not saying this in a glib way – it’s all very worrying and we will almost certainly see it impact on colleagues, friends or family.  But I read a newspaper article at the weekend which highlighted the change in direction that some people are taking as a result of being made redundant.  Former corporate financiers are starting afresh in a completely different career.  Budding entrepreneurs who never dared make that leap of faith from the security of their cosy (but perhaps gruelling or meaningless) career have found themselves with no option.   We adapt, we change, we survive.  For those who have to change radically it may mean losing some of their former way of life, but it may just be the making of them – the time to reflect, re-evaluate and move out of the comfort zone into something which actually could change their lives for the better.

Steering through the economic crisis without being the victim of major headcount reduction, budget cuts and major restructures is going to depend on smart thinking, innovation and agility for every single organisation, and every single function with that organisation.  And when push comes to shove, it’s going to be all about how you sell yourself, both to your customers and your employers.

You can have the most well-designed processes, the most committed, talented people and the greatest product and reputation in the world.  But unless you can spell out your business case, the return on investment and how it’s going to add value you will be at risk.  No business or business function is recession-proof (well, with the exception of loan-sharks, pawn-brokers, undertakers and the tax office perhaps), but smart businesses would do well to think carefully about how they position themselves in the market, and what it is that their customer – either internal or external – is looking for at a time of uncertainty and financial hardship.

Sell the benefit – not the product, tactic or process.  Be strategic.  Think through scenarios now during the calm before the storm and plan ahead for any eventuality. Be quietly confident.  Be honest.  Be prepared.  If you’re smart you may just survive – and then your value will be held in greater esteem than ever before.

The Olympics have been over for just over 24 hours and I’m already experiencing withdrawal symptoms. You couldn’t be anything but awe-struck at the monumental spectacle that Beijing has produced over the past fortnight. Terrific performances by so many athletes from so many countries, superb TV coverage (well done the BBC), incredible opening and closing ceremonies in an iconic venue, and flawless execution by the organisers.

How do we Brits feel? Well, speaking for myself, the words ‘proud’ ‘engaged’ and ‘inspired’ come to mind. Proud to be associated with an Olympic team that did brilliantly, and proud to be hosting the next Olympics in 2012. Inspired, not simply to get on my bike and go pedalling but to give even more support and encouragement to the youth who will be competing in 2012. I think the whole country will be feeling the same way, perhaps with a slight apprehension that it just won’t compare to 2008. We have to hope that more young people will be inspired to take up a sport or excel at it in a way that they hadn’t wanted before.

You also have to wonder how our Olympic team (and those of the best performing countries) were feeling watching their fellow competitors win medals time and time again, and whether that impacted on their own sense of pride and purpose as they went into their own competitions. If they were inspired and feeling positive as the great results kept flowing through, could that have influenced their own performance? Did living together in the Olympic Village help encourage and inspire their fellow competitors who had yet to complete their own Olympic journey? Did Ben Ainslie’s success inspire Tom Daley, consciously or sub-consciously? Did the joy of Bryony Shaw or Chris Hoy somehow filter into the psyche of others competitors before their own event?

Pride, euphoria, joy and positive thinking can only help inspire others. As we bounce back to work (think positive, folks) after the long summer weekend, we may not necessarily be experiencing euphoria or joy, but positive thinking and pride in our co-workers, our respective brands and organisations will almost certainly have an impact on our performance. And here’s the message for business leaders: It’s not just understanding and engagement in strategy and vision that will improve productivity and performance, but a fundamental pride and sense of purpose that will motivate and inspire people. Mix this together and you will have a truly energised, powered and committed workforce. Start telling some stories that make people proud.

So the Olympics are over and lots of people return to work after the summer tomorrow morning. Hey ho. No more gold medals to be won for now, but perhaps the odd person will take to the bicycle, and a few inspirational stories will start to flow…

McDonald’s UK HR Director, David Fairhurst, has recently pledged to continue to invest in training and recruitment (Personnel Today 22 July) to help the fast-food chain cope with the economic downturn. A brave statement, considering the widespread budget-cuts that are afflicting businesses as fears of a recession grow daily.

Here are a few myths (and truths) when it comes to organisational performance during troubled economic times:

* Myth 1: As jobs are cut and the talent pool grows, there are rich pickings to be had in the job market.

* Truth 1: In turbulent times it makes sense to encourage businesses to focus more than ever on engagement and retention. Negative media reports, budget-cuts, redundancies and poor performance figures can make employees nervous and insecure, and many may jump ship before they are pushed. When you consider that it costs over £7,500 to recruit and onboard a new employee (with several months passing before they are at full productivity), to keep hold of your best people is a no-brainer.

* Myth 2: Cutting back on engagement initiatives should save money and therefore help financial performance:

* Truth 2: No. Engagement and keeping people connected is absolutely vital. Research shows repeatedly that engaged employees perform better and are more likely to stay committed and energised. Good communication, training, managing expectations, ongoing assessment, listening / feedback, involvement in decision-making, incentive plans, motivation and flexibility is key, underpinned by strong leadership at every level. The direction of an organisation needs to be articulated clearly and simply – cutting out unneccesary complexity and detail – so it can act as a beacon for people to stick to during turbulent and changing times. And never under-estimate the importance of explaining WHY, as well as WHAT and HOW, so people can adapt to change more readily and understand why they are being asked to do so. However, cutting out the ‘nice-to-haves’ or short-term tactics that create good feeling of a very short-term nature is important. Keep people focused on the strategic priorities, give them the tools, skills and confidence to explore these at a local level on an ongoing basis, and recognise the contribution they are making.

* Myth 3: Cutting substantial training and development budgets will cut costs significantly and so help financial performance.

* Truth 3: Cutting back in this area will merely compromise an organisation in the long-term as it will create employees that are less effective and less likely to move up the ladder in terms of succession. Training will help keep an employee feeling valued, invested-in, and of course help to enhance skills that will improve their performance.

* Myth 4: Pay employees enough and they’ll stay:

* Truth 4: It is widely accepted that pay is not necessarily the uppermost factor in keeping an employee at work. Making employees feel valued and empowered to take on more responsibility and recognising those who perform well is just as if not more important, can boost morale and create a feeling of being in control of one’s future. Involving people in the exploration and discussion of strategic issues will keep people connected and feeling that they can have influence themselves, and will foster a culture of involvement and innovation that will help a company out-perform the competition.

A downturn is part of a cycle. Shifts in growth are part and parcel of what makes the economy tick. It is an ever-evolving, moving feast which can only change for the better in time. Companies need work harder than ever to optimise the use of their resources, whether human or financial, but always respecting and exploiting the collective intelligence of its employee base who are the ones who really know what’s going on at the proverbial coal-face. Senior leaders, be warned….use it or lose it. Cut communication, training and development and you may just find that your best people become your competitors. In the long-run, they could make all the difference to your organisation’s success.

Congratulations to my colleagues Glenn and Louise for coming up with a great idea at our summer social / team-building exercise this week.

While not wanting to be hypocrites (regular readers of this blog will know that we have an anti-management-speak campaign going on here) I now have to admit that we are guilty on occasion of creating our own jargon within the confines of 15. Percy Street. Certain words keep appearing in the conversation which are fast becoming Storytellers-speak and which must be eradicated at the earliest possible opportunity. I don’t think we’re as bad as the police (‘The officer engaged with the victim to ascertain the damage inflicted’ or ‘the suspect was apprehended as he exited the vehicle’), but I we must remember at all times to speak in as human a way as possible.

To highlight this wanton phraseology, two of our programme managers came up with a great game…StoryLingoBingo. Quite simply, identify the offending phrases or words (listed on a card) – those which are repeated to excess during our daily operations – and build them innocently and naturally into the conversation. The person who creates the phrase gets points out of three according to how contrived the sentence has been and how appropriate the words are at the time. The winner is the person with the most points. Great fun, very self-deprecating, and additional marks for those who can identify the source of the jargon in the first place.

On the subject of team-building, I would recommend that anyone wishing to try out Sumo-wrestling with inflatable Sumo suits takes care. It’s very hot, absolutely exhausting, and I have been rendered immobile having torn a couple of muscles in my leg. Rounders is a much safer bet.

As The Times publishes its Times Top 100 companies to work for, it comes as little surprise that the focus of this article by Sue Leonard is on the costs that can be saved by keeping your staff happy. And keeping your staff happy has as much to do with employee engagement and maintaining personal and career growth opportunities as it does paying them a good salary.

Dr Pete Bradon, head of research at Best Companies Limited, says ‘The figures are staggering,’ and ‘those who do really well on engagement have much lower staff turnover.’ When it costs an average of £7,750 to recruit a new member of staff (and even then it may be some time before they reach the pinnacle of productivity), suddenly the cumulative cost – and we’re talking millions of pounds for some companies – of losing a significant percentage of your people makes your eyes water.

This isn’t new news, of course. But it’s a fact. Senior managers will be nodding their heads wisely in their boardrooms, no doubt, on reading the evidence that has surfaced, yet again, that employee engagement should be seen as an investment rather than a cost. Yet we are constantly amazed at the attitude of many companies which purport to support employee engagement yet aren’t prepared to dedicate anywhere near enough financial resources to it.  As if it’ll just ‘happen’ on its own.

Why? Perhaps it’s because of risk, intangibility and the inability to correlate emotional connection directly with the concrete bottom line. The big problem with the term ‘employee engagement’ is that it can become a nebulous blur of all sorts of activity ranging from crucial, sustainable strategic communication and engagement in change, to one-hit wonders such as head massages, family fun days, Christmas supermarket trolley dashes round the office handing out mince-pies and ipods and so on. Not the best return on investment in the latter case I would say…and I think you can probably guess where we would recommend the money is spent.

Bosses should have a quick look at their staff turnover data, work out the maths, and then we might start to see a shift in dedicated resource. Once ‘employee engagement’ has been identified as a key driver for success, they can then start to take action. And a whole new industry in defining what type of ‘engagement’ activity is the most effective in this area is just waiting to be born…