Over the last few years, I’ve been doing a great deal of coaching and notice the power of the stories my clients tell themselves. So I whipped up this presentation for a client’s sales team… and they loved it.
https://vimeo.com/442811040 If you are up for it, I would love your feedback too! Brutal honesty will be appreciated. How can I make it even better?
This is a great time to get your creative juices flowing. Here is a link to a quick and fun book, with more than 100 questions to spur your creativity!
Enjoy and let me know what ideas you come up with.
Free download of the PDF, with no registration required! https://www.donphin.com/wp-content/uploads/2017/12/A-to-Z-121217.pdf
I just finished a three-month odyssey of reading Ray Dalio’s book, The Principles. It is a 592-page distillation of all that he’s learned in his very successful career. For those of you not familiar with the man, he built the Bridgewater hedge fund into a multibillion-dollar operation and is himself a billionaire. Time said he is one of the world’s 100 most influential people. He is known not just for his investing acumen but also his business leadership qualities.
His section on Work Principles goes from page 296 all the way to page 437. His outline summarizing the work principles was 23 pages. The point is- there is a lot there.
In this article, I will share some of what I learned from this reading and my observations that may apply to how you manage your career and workplace.
“For any group or organization to function well, its work principles must be aligned with its members’ life principles.”
Dalio begins with his four overriding principles about work.
- An organization is a machine consisting of two major parts, culture and people.
- Tough love is effective in achieving both great work and great relationships.
- A believability-weighted idea meritocracy is the best system for making effective decisions.
- Make your passion and your work one and the same, and do it with people you want to be with.
One of Dalio’s overarching themes is that of Transparency. It applies to all aspects of a business. Transparency with members, clients, and customers, and transparency with employees. Dalio says never to let loyalty to people stand in the way of truth and the wellbeing of an organization. In my 40+ years of workplace experience, this is a profound statement. I believe we try to please people out of self-preservation. Who wants to piss off the tribal leader anyway? Doing so only puts ourselves at risk.
Managers and leaders must be told that any implication of threat, favoritism, or looking the other way, will not guarantee job security but rather the exit door. It is a matter of trust. People in fear of radical transparency should be removed from an organization. The challenge is… who dares go first? Who dares to say, something’s not right here? Who dares to speak up at the risk of being shunned, retaliated against, or blackballed? Answer: Only those who stand on their principles. And this is the point. The decision by each individual to stand up creates a collective culture that stands up.
I once heard it said that “Culture is defined by how we collectively deal with our shit.” In a Dalio-run company, problems get an open forum where robust dialogue can lead to smart answers.
Dalio talks about the importance of defining the meaning in your work. This comes at both a macro and an individual level. From a macro standpoint, leadership should share what they believe to be the meaning in their work. From a micro level, employees should be encouraged to define that for themselves. This doesn’t happen by accident. It only happens through process and agreement.
So, if I surveyed your employees or even asked you, is there clarity about what your mission is? Clarity about where you exist to serve? Because of my speaking and training experience, I’ve been in hundreds of different offices all around the country. Only a handful of them do a good job of visually defining their mission. In those companies, you must be blind not to know what it is, because it is branded throughout the entire environment. If I went to your company, what story would it tell?
I love it when Dalio talks about delegation. Anyone who is successful has been through the fear and learning curve associated with delegating. The emotional blockage is getting over the reality that people make mistakes. When you delegate to people, they are guaranteed to make mistakes! Just like you did on your way to being an expert at something. But do you want to be an expert anymore at $25/hour work? Or would you be willing to let somebody make a few mistakes so you don’t have to do it anymore?
With my employees, I had a one mistake rule. I expected them to make mistakes, just not the same one twice. We figure out what we have to do so it doesn’t happen again. As Dalio said, “I don’t mind if they scratch the car, just so long as they don’t wreck it.”
I love when Dalio says, “Know that nobody can see themselves objectively.” Amen to that brother! Perhaps the greatest benefit of coaching is that it helps expose a side of yourself you weren’t aware of. My coaches have done that with me, and I’ve gotten better over the years at doing that with my clients. Removing our “blind spots” is an important formula for success. We all have plenty of data and are smart people. It’s our emotional blockages that tend to be the biggest challenge.
I love Dalio’s conversation around meritocracy. It goes along with his idea of transparency. How do you know if you’re succeeding in an organization? Half of the people at any one position are better than the other half. How do you define that boundary? How would you define excellent performance? That can’t be done simply by intuition. If you’re in something like sales, then you can look right to the data. What if it’s not as easy to capture the benchmarks? Answer: Do what you can do, so you create relevant benchmarks.
Dalio encourages us to move away from opinions about what success looks like to as much data as possible. If we consider an opinion, there should be strong logic behind it. Dalio spends many pages talking about improving communications and getting past disagreements.
Next, Dalio spends a bunch of time talking about hiring responsible people. Having a great hiring process, looking for people who “sparkle”, valuing diversity, constant training, evaluation, and feedback, and be willing to fire or as he says, “Shoot the people you love” and never lower the bar.
Here’s one I like: “Don’t try to be liked, try to be understood.” This is a big problem for managers, especially if they have been promoted out of the ranks. In my experience, it’s also about managers understanding they are responsible to the people they manage, and unless there is some legal obligation, they are not responsible for the people they manage. This is an enormous psychological distinction.
One aspect I found interesting was Dalio’s belief you should create an organizational chart to look like a pyramid with straight lines down that don’t cross. This runs contrary to most of what I’ve been observing and reading. Today, we talk about neural networks, where all parts interact with each other. I don’t believe that Dalio discounts the network effect. What he is harping on is the importance of knowing where the buck stops in terms of responsibility. Stay in your lane until it is appropriate to move out of it.
Dalio says everyone has too much to do. Amen! It wasn’t until my 40s that I’ve realized that highly successful people never get everything done. This is one reason why prioritizing projects and your time is so important. Managing from a carefully crafted calendar as opposed to a to-do list. Making sure the team is in alignment and in agreement on all responsibilities and deliverables. And realize, it will never all get done. Just make sure it’s not urgent or important matters that fall through the cracks.
Finally, Dalio reminds us that no principles, rules, or process can ever substitute for a great relationship.
Question: what principles guide your work?
“The greatest benefit is the one last remembered.”
Barber’s Book of 1,000 Proverbs
Research from Glassdoor found that more than half (57%) of people surveyed said benefits and perks are among their top considerations before accepting a job, and four in five workers say they would prefer new benefits over a pay raise.
The Top Five Benefits Ranked By Employees
- Health care insurance (e.g., medical, dental): 40%
- Vacation/paid time off: 37%
- Performance bonus: 35%
- Paid sick days: 32%
- 401(k) plan, retirement plan and/or pension: 31%
Below is a list of employee perks that have been shown on Glassdoor, Inc., Forbes and other publications. Take a quick look at them, and then I will share my thoughts:
- Netflix offers one paid year of maternity and paternity leave to new parents. They also allow parents to return part time or full time and take leave as needed throughout the year.
- REI encourages its employees to get outside by offering two paid days off a year (called “Yay Days”) to enjoy their favorite outside activity.
- Salesforce.com employees receive six days of paid volunteer time off a year, and $1,000 a year to donate to a charity of their choice.
- Spotify provides six months of paid parental leave, plus one month of flexible work options for parents returning to the office. The company also covers costs for egg freezing and fertility assistance.
- World Wildlife Fund employees take Friday off every other week, also known as “Panda Fridays” at the nonprofit.
- Airbnb, which was named Glassdoor’s Best Place to Work in 2016, gives its employees an annual stipend of $2,000 to travel and stay in an Airbnb listing anywhere in the world.
- PwC offers its employees $1,200 per year for student loan debt reimbursement.
- Pinterest provides a unique take on the parental leave policy by providing three paid months off, plus an additional month of part-time hours, and two counseling sessions to create a plan to re-enter the workplace.
- Burton employees receive season ski passes and “snow days” to hit the slopes after a big snowfall.
- Twillo offers employees a Kindle plus $30 a month to purchase books.
- Twitter is well known for providing perks such as three catered meals a day, but some lesser-known benefits include onsite acupuncture and improv classes.
- Accenture covers gender reassignment for their employees as part of their commitment to LGBTQ rights and diversity.
- Walt Disney Company wants its employees and their friends and family to enjoy the “Happiest Place on Earth” as much as their visitors by offering free admission to its parks, and discounts on hotels and merchandise.
- Facebook provides $4,000 in “Baby Cash” to employees with a newborn.
- Evernote hosts classes through “Evernote Academy,” which offers team-building courses like macaroon baking.
- Epic Systems Corporation offers employees a paid four-week sabbatical to pursue their creative talents after five years at the company.
- Adobe shuts down the entire company for one week in December and one week over the summer.
- Asana employees have access to executive and life coaching services outside of the company.
- Zillow allows employees traveling to ship their breast milk.
- Google provides the surviving spouse or partner of a deceased employee 50% of their salary for the next ten years.
- Last, Costco has some of those most satisfied employees, and it all starts with the fact the company has always paid above the average retail rate for its employees, its goal being to provide a “living wage.”
Indeed recently came out with its data 15 Best Places to Work: Compensation & Benefits, based on user ratings and reviews on Indeed. You could go through those rewards winners and add to this list.
Here are my takeaways from all of this:
- In every survey I have ever seen, including the one above, most employees prefer a dollar in benefits vs. a dollar in compensation. I think that is because benefits are often non-taxable, they offer a sense of security, meet a specific need, and show you care.
- This is one big marketing exercise. It’s internal branding to your employees. Meaning you want to approach it like a marketer, not just an HR executive. What are the costs, difficulties of implementation, and results? If you we don’t go through that analysis you will waste both time and money, and not produce the results sought after.
- Speaking of results, are you clear about which results you are trying to achieve? And, who is motivated by this benefits approach to receive that results? For example, if by offering great health care benefits you seek to have a better chance of hiring and retaining, is there any proof behind that assumption? What data do you have to support it?Do you do post-hire entrance interviews to understand exactly why they said yes to working with you and what part your health care benefits played in making that decision? Did they compare your benefits package against other companies? Was it a tipping point in their decision? Or, did they do none of that, and simply assumed they get benefits? Or, maybe benefits played no role in their decision at all because what they needed was a job. Any job. And, desperate to hire, you said yes.
Who would be most attracted to great health care benefits? Older, less healthy workers, and workers with families. Does anyone disagree with that? Most 25-year-olds could care less about health care benefits. Maybe they want to know where the party’s at? Work and community events may be a much bigger driver for them. Point is, the benefit must fit the circumstances to be effective.
- Experiment. Every benefit idea in the list above was a thought before it was ever implemented. It was an experiment before it was a practice. Test different benefits and see which ones provide the greatest bang for the buck. Good marketers assume nothing and test everything. I think benefits at many companies are one big guessing game.
- You may be saying to yourself I’m not Costco and can’t afford all these benefits and perks. Perhaps the other side of that argument is Costco is Costco because it offers these benefits and perks and can therefore attract and retain great employees. The chicken or the egg? Something to think about.
- Be creative. Many ideas set forth were “non-traditional” before they weren’t. Remember, people have different needs and one size does not fit all. For example, only a few percent of employees at Zillow are getting breast milk shipped. But for them it is a big deal.One way to be creative is to be inclusive. How can employees and managers assist in designing benefit incentives? You will never know until you ask.
- Last, as the quote at the outset reminded us, the impact of benefits wears off. The flowers you brought home last month don’t register anymore. My advice is to remind employees of their benefits. Put it on posters and in total paycheck statements.
With 4% unemployment levels, employers have to be competitive and creative when seeking talent. They have to realize their top talent is continually being solicited. If not by recruiters, then by emerging AI driven sourcing tools.
I will send you a spreadsheet I developed to help you think through the math of designing great benefit programs. Send an email to firstname.lastname@example.org
All the best, Don