Value Change. Are you tolerated?
A common saying in professional sports is “I’ll tolerate you until I can replace you”. The statement is harsh, but it’s a known reality. Professional sports operates in a system of its own, which includes a defined number of teams, players, and games to crown a singular winner at the conclusion of every season. Coaches and sports teams are free to adjust their rosters (replace players) via the draft or free agency to meet their needs and wants. This system has its flaws, but it’s highly unlikely to change anytime soon. Considering most leaders and organizations operate outside of this system it may be hard to understand how the statement would apply to them. The business world is unstructured and does not include a defined number of teams (organizations), players (employees), or a winner at the conclusion of the season, but it’s changing rapidly. Dig deeper and you’ll see that this quote actually gives leaders and organizations a free cautionary warning to ponder from a different angle. While the business world has a robust free agency, employees the ones in control of their free agency to join other organizations to meet their needs and wants. So leaders should ask themselves, what if their employees are tolerating them until they can replace them with a more desirable outcome? This day is approaching fast for many leaders and organizations.
“At least 75% of the reasons for voluntary turnover can be influenced by managers. - James K. Harter, Ph.D., Gallup's chief scientist”
It shouldn't come as a surprise that employees are currently tolerating less than ideal work environments. The reasons include lack of development, inclusion, motivation, opportunity, and resources to become their best selves. These lacks are met with an abundance of bureaucracy, egos, politics, and stress. The underlying frustration and tension continues to grow as these problems are magnified over time. These challenges ultimately create an “us versus them” employee - leader relationship as the two sides become pitted against each other. In leaders credit, they may have not caused the underlying issues, but these problems fall on their shoulders. This problem is further exacerbated as leaders and organizations benefit disproportionally more than the individuals that help create outcomes. One would think that the rise of office perks (the outlier verse the norm) would be viewed as an added benefit. These perks are an even exchange for the value already created by teams through an honest days work. Leaders fail to realize that these “perks” do not solve the actual human problems which will never go away until fully addressed. It’s easy to blame COVID-19 for exposing the cracks, faults, and flaws in the system. In reality, the pandemic just heightens the tension already evident in many work environments.
It is often said that people don't leave companies they leave culture and leaders. Leaders have to understand when someone leaves you, it is very likely they stay in the same industry to join a competitor. Recruiters are happy to assist talent find their next opportunity. Take a look at a Linkedin bio and you will surely see competitors on the resume of your most admired connections, including yourself. Talent is able to incorporate intellectual secrets from their previous organizations to out execute their former employer. Competitive advantage is more dangerous when it comes from a former team member who knows the organization’s real strengths, weaknesses and future plans.
Employees will become the competition when they aren't given the opportunity and environment to do their best work, even when they have to create their own company to achieve this. Many of the most admire organizations in the world have founders that branched off from their former employer to become a direct competitor, insert Adobe, Bain, and Creative Artist Agency (CAA). The barriers to entry to most industries are lower than ever. Current employees have access to capital, other talented colleagues that will join them, insights into best practices and the belief in a better operating system. These employees plot their exit months in advance. The stealth transition time allows them the opportunity to work on their project to hit the ground running on their last day. This stealth transition time means these employees are less engage on your organization’s work as they plot out their next venture.
Leaders may not view the departure of talent as a threat. Optimism creates a false reality of how hard it is to be successful after a change is made. All changes are not for the better. During a 6 title NBA champion run, Chicago Bulls General Manager Jerry Krause confidently stated, “Players and coaches don't win championships; organizations win championships”. The Bulls went on to lose their head coach and 8 out of 13 players who competed at a high level the year after their 6th NBA title. The Bulls miss the playoffs the next 6 years with 2 last place finishes in that same stretch. Michael Jordan followed Krause’s statement with “organizations put together teams, but at the end of the day the teams have to go out and play; The players win the championships… don’t try to put the organization above the players.” Leaders should understand the reality of performance decline when employees leave after tolerating less than ideal conditions.
Leaders should also understand performance significantly decreases when an employee stays in a less than ideal situation. There are countless examples employees and teams going from mediocre to dynamic with a change of leadership or environment (David Marquet & USS Sante Fe). Everyone struggles to thrive under poor leadership. Leaders will never realize the full potential of a great employee who’s tolerating them.
As a leader you must add value. Adding value starts with self awareness of ones shortcomings in a given situation. Many leaders have never learn to lead. As a result, leaders have blind spots which have never been addressed in real time. Leadership is a journey not an endpoint that needs constant updating to offset failure points. There is not a one size fits all solution for leadership. An effective leadership style or fad in one environment may be disastrous in another. Leadership is fluid depending on the people, culture and organization.
“Do the best you can until you know better. Then when you know better, do better. Maya Angelou”
Self awareness is not enough. Leaders must add value through action. Adding value includes but is not limited to:
Knowing and respecting each employee as a person (it’s hard to add value to someone you don't know)
Taking care of your people through the highs and lows (actions speak louder than lip service)
Understanding what your team is thinking and feeling in real time (important to know where and how to add value)
Having a vision that matches culture and capabilities of team
Creating opportunities for growth and development for people to become their best selves
Setting clear expectations for team while holding them accountable.
Helping people self select out that are not a good fit (bad team members will damage culture, which damages value add).
As leaders add value, employees take ownership in the overall teams success. Employees value these environments because they don't want to lose it for themselves. As a result, value becomes a two sided initiative between leaders and employees, which helps everyone perform at their best.
Competent leaders have the ability to find solutions to most of their challenges. Those solutions come from a dynamic team performing at a high-level. This only happens when leaders add value. Employees will take action to capitalize on other opportunities when they tolerate their leaders. Leaders must understand that employees have options, many which may be better than their current situation. It will be important for leaders to act sooner than later. Talented employees will be less likely to tolerate leaders post COVID-19. As a leader you must always ask yourself, am I adding value to my people or being tolerated until I’m replaced?
