foster potential white paper 2

Fostering PotentialWhat organisations need to provide in order to cultivate and inspire great employee contribution

Lisa Renn

Fostering PotentialWhat organisations need to provide in order to cultivate and inspire great employee contribution

by Lisa Renn

Copyright © 2015

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Table of Contents

The traditional picture 1

What’s on offer? 2

What do engaged employees have? 5

Self Determination theory 5

The work environment 9

People 9

Processes 10

Principles 11

Conclusion 12

About the author 13

Bibliography 13

The traditional role of an organisation has been to seek employees that will do the work that

needs to be done to ensure the company’s growth and increased profit margin. In return the

employer provides appropriate remuneration to the worker to live comfortably. The idea that

there is anything beyond this exchange of a ‘fair days work for a fair days pay’ has arisen due

to ‘the inevitable encroachment of mediocrity’ (Seth Godin) that occurs when employees

are not engaged or motivated by their work and start to view it as their job instead of valuing

the contribution they make.

When the need for a position develops the organisation seeks someone who has the skills

to be able to do the job. Once found, the new employee is then shown what to do and, after

a settling period, expected to do the work. Both employee and employer are filled with the

possibility of what they will contribute to the organisation.

The new employee has hopes their new role will be better than their last, and the employer

looks forward to them getting the work done that saw the need for the position in the first

place. All has started well.

The problems begin because humans are not robots and to perform at their best, need other

input to keep the motivation high. This other input involves recognition, feedback and an

environment that allows for growth.

Fostering Potential

As shown in the model, the first step on the ladder is the job which entails providing the

basic skills and materials to fill the role. When the employer feels their obligation to provide

motivation and skill development ends after the initial orientation period the employee is left

to get on with the work. The employee soon learns the skills required and settles into routine.

Any further input from the organisation comes from the direct supervisor possibly as stress

and pressure to perform better. This very quickly leads to low productivity, low engagement

and high staff turnover.

Offering more money to slow this slippery slope of declining motivation and increased stress

doesn’t work; there is evidence to suggest that once the individual is being paid what they

believe to be a reasonable wage any further increase does not increase motivation – in fact it

could decrease it- and it certainly won’t stop them leaving if they are not fulfilled, or at least

engaged in their role.

In order to foster the potential greatness in the employee, there are more steps involved to

ensure they are always, or at least mostly, motivated to contribute to the company because

they love the work they do.

INNOVATION

PRODUCTIVITY

RETENTION

FULFILMENT

INSPIRATION

ENGAGEMENT

PERKS

PROFESSIONAL DEVELOPMENT

JOBS

PURPOSE

x10

x8

x6

x4

x2

x1

HIGHER NEEDS

BASIC NEEDS

PEOPLE

PROFIT

© Lisa Renn 2015

Fostering Potential

It’s mandatory to provide professional development as this is an

important factor in a person’s career development, to foster growth,

but it’s not a big factor in staff retention. Staff training does not

separate one organisation significantly from another, it represents

a ‘given’ rather than a special individual consideration. Factors that

lead to engagement and fulfilment include but are more subtle than

just providing access to great training.

Those organisations that consider only the basic needs of their

employees, having their focus primarily on the profit end of the

organisation are doomed to be forever complaining about their staff

and their lack of enthusiasm for the business. An over developed

focus on profit can lead the business to put increasing amounts of

stress on their employees to perform, to sell, to create and to provide

great customer service. This would work well if employees were

robots, as you could simply turn up the speed dial. But in humans

stress does not create increased productivity it simply creates a

culture of competition, rivalry and subterfuge.

People’s skills and contribution – the work they do in the

organisation- is responsible for generating the required profit.

However, it’s not what they do that deserves the focus, it’s how and

why they do their job that creates engagement. Organisations that

appreciate the importance of the human factor in their business

create more productive work environments, without the stress.

Offering perks to attract and retain great talent shows a shift

of emphasis toward people however what is known about

human motivation is that once the reward is expected it loses its

effectiveness and becomes seen as inevitable and therefore, beyond

the enticement to join the company at the job interview, the perks

lose their shine.

Create something

NOW!!

“

”

In his book ‘Drive’ Daniel Pink cites scientific research that shows

when you offer rewards for a task you can actually decrease an

individual’s intrinsic motivation (internal drive) - this was shown in

both children and adults. Results from all over the world showed

the higher the reward the worse the performance, refuting the idea

that providing a perk or reward is effective for motivating people to

higher performance or engaging them in the role. The study results

pertain to tasks that require problem-solving ability, creativity and

initiative. Tasks that involve following a set formula time and again

with no need for ‘thinking’ showed that external rewards could be

effective.

Using rewards as an occasional and unexpected perk after the task

has been completed can be effective for maintaining motivation.

Pink states ‘by limiting rewards for non-routine, creative work to the

unexpected, “now that you’ve completed the task” variety (instead

of “If you get this right-then you will get the reward”) will avoid the

unwanted down turn in motivation seen when people are performing

for expected rewards.’ Using an unexpected reward, once the project

is complete, can instead be perceived as recognition for a job well

done. Instead of perks or tangible rewards Pink cites research that

suggests using intangible rewards first - informational rewards are

what people crave. Positive feedback improves intrinsic motivation. Positive feedback improves intrinsic

motivation

“

”

What do engaged employees have?The Gallup organisation interviewed one million employees over a twenty five year period

and identified those situations that contributed most substantially to employee satisfaction

and engagement at work. The most influential finding was that ‘talented people need great

managers.’ Following on from this they surveyed eighty thousand managers to find out what

made a manager great and put together twelve questions which most accurately measured

staff engagement.

Of Gallup’s twelve questions, one focusses on the importance of recognition and positive

feedback. This particular question was also identified as being one of the six most important

questions an organisation needed to poll well on in order to align with desired business

outcomes:

“In the last seven days, have I received praise or recognition for good work?”

So it seems organisations could be saving money on perks

after the original hiring decisions have been made.

On the model, the other end of the ‘people factor’ is

engagement.

Self-determination theory (SDT) provides a brilliant

template for staff engagement as its creators Deci and Ryan

put it forward as an explanation of ‘how to support our

natural or intrinsic tendencies to behave in effective and

healthy ways.’

Self-determination theory (SDT)

provides a brilliant

template for staff engagement

This confirms my belief that people want to do their best. If you think

back to when you first started a job- the ideals and expectations

of the contribution you could make, but circumstances, work

experiences and the environment you work in can beat down

these lofty thoughts as you realise the organisation doesn’t provide

the surroundings in which you feel free to contribute. It’s possible

you stopped trying and started accepting your situation or moved

somewhere else to a work place that did want your full contribution.

In order to feel part of something and be fulfilled, SDT states we

need the opportunity to feel we have:

• Autonomy

• Competence

• Relatedness

This is the blueprint for organisations to fully engage and perhaps

even transform and fulfil their employees and yet often staff

engagement is only thought about in terms of relatedness. That

is, getting along with your team and having a sense of belonging.

Clearly this is important because feeling you belong means you feel

confident that you will be supported and this provides courage and

confidence to contribute.

Relatedness leads to competence. If you feel the people around you

are backing you, then you are more inclined to contribute without

fear of ridicule and this allows you branch out with confidence and

show what you can do.

The need for competence is not only about being taught how to do

something well and for you to feel good about your skill level. It is

also the external recognition of that competence that’s vital.

...often staff engagement

is only thought about in terms of

relatedness

“

”

Six of Gallup’s twelve questions demonstrated the strongest links to

desired business outcomes and five of this top six can be linked to

demonstrating and being recognised as competent:

1. Do I know what is expected of me at work?

2. Do I have the materials and equipment I need?

If so, I have a better chance of getting it right and

demonstrating competence.

3. Do I have the opportunity to do what I do best every day?

If so, I have the opportunity to display to myself and others

that I’m competent.

4. In the last seven days, have I received recognition or

praise for good work?

If so, then I know my competence is appreciated and

acknowledged which gives me confidence and motivation

to continue.

5. Is there someone at work who encourages my

development?

If so, I know that what I have done in the past is good and

I am worthy of investing more time, money and effort into

and I am more confident and secure to continue displaying

my competence.

The sixth question on the most powerful business outcome

predictor list was about relatedness:

6. Does my supervisor, or someone at work, seem to care

about me as a person?

The traditional focus of staff engagement is on this principle of

relatedness and usually involves surveying staff to get their opinions

and encouraging staff to bond as a team. These are worthwhile

activities but are only one part of the bigger picture of engagement.

The final thread in self-determination theory is autonomy and this is

not really picked up in any of Gallup’s twelve questions but I believe

Engaged employees

get to demonstrate competence

daily

“

”

is equally, if not more important than the others. If there was one

of Gallup’s top six questions that touched the tip of the iceberg of

autonomy it would be: Do I get the opportunity to do what I do best

every day? Its limitation is it doesn’t add- Do I get to do what I do

best every day in a way that I want to?

In his book ‘Drive’, Daniel Pink describes high performing companies

who have left traditional business protocol behind and allow their

staff autonomy over the 4T’s:

• Task

• Time

• Technique

• Team

These companies, such as Google, 3M and Atlassian are putting

trust in their employees and reaping the benefits of staff who are

innovative and engaged in not only their work but the missions of the

company. I would argue when you allow autonomy as the icing on

the cake of relatedness and competence you achieve transformation

and fulfilment of your employees and your organisational goals, not

just engagement- autonomy is the special sauce.

By allowing autonomy you start to tap into the higher purpose of

the individual and allow them the freedom and challenge of creating

something or a way of doing things that is unique to them. In this

way they will be utilising the skills they were born to use.

The provision of the appropriate environment, structure and support

can then align the higher purpose of the individual with the strategic

aims and higher purpose of the organisation. The individual knows

they are making a contribution to the organisation in a meaningful

way that is recognised, appreciated and fostered.

Autonomy is the special

sauce on top of staff

engagement

“

”

A critical piece... the work environment

The perfect environment provides security and opportunities

for self-expression. The work environment creates the space for

contribution and is made up of the people in the team, (more

particularly the manager or supervisor), the business processes or

the way things are done, and the principles or culture of the group

that governs behaviour and attitudes.

PeopleWhat the Gallup organisation found as a result of testing their

staff engagement tool between and within organisations was the

manager or direct supervisor was the most important factor in staff

engagement. They concluded ‘people join an organisation but

leave a manager.’

The perfect environment

provides security and

opportunities for self-

expression

“

”

Processes

Pink comments that businesses and organisations being man-made, that is, not created in

nature, are destined to be imperfect and become outdated. However, the way that most

companies run is how they always have. The argument for change states that as more and

more jobs are automated and can be done by machines, the jobs that are left for us humans

are those that require thinking- problem solving, creativity and innovation. In order to most

effectively carry out these types of higher thinking jobs, the business requires a more flexible

structure that allows the potential of each employee to be fostered and tapped fully.

Case Study: Jet Blue is an American airline that allows their customer service operators to work from

home. It’s reported that in this way they recruit more well qualified people who cannot or

don’t wish to work in an office, such as the retired, disabled and stay-at-home mums. JetBlue

has ranked highest in customer satisfaction among low-cost carriers in North America,

a customer satisfaction recognition received for the eighth year in a row. Founder David

Neeleman stated JetBlue looks “to bring humanity back to air travel”- this was in regard to

their mission to be low-cost airline but still have some of the bells and whistles of inflight

entertainment. It appears this mission also extends to the structure of their business and

allowing this flexibility in how people do their work provides that human touch. This pays

off in engaged employees and great customer service as each employee can put their own

touch to the work and do what they do best.

Atlassian, Google and 3M all allow their staff “15-20%

time” each week to work on something they are

interested in. They can work with who they like, on

what they like and how they like during this time. All

three companies say many of their great products

have been developed this way…it’s where the post-it

note came from.

They can work with who they like on what they and how they like…

Compare this to a smaller, Australian story. When speaking to an employee in the insurance

industry, she was reflecting on her experience in two different companies. The one she

currently works for does not have to market or advertise for new clients. She marvelled

that this was case but reflected that the company policy was that each employee knew the

business and the insurance policies, so that when a client rang the business they could be

helped by the person that answered the phone. They also took care of the little things rather

than directing the client to the website to work it out themselves. The focus on upskilling

employees enabled great customer service, but it also showed an interest in the staff’s

development and broadening of their skill base. She compared this to her previous employer,

whose sales staff were under immense pressure to perform and get new clients, assistants

had no further training and incoming clients had to wait until their agent was available to

have their issues attended to or they were referred to the website.

Some flexibility of thinking and investment of time and resources into structuring how you

run the business around how employees like to work and need to grow, can have a big impact

on staff engagement, customer satisfaction and profit. Engaged staff provide better customer

service.

PrinciplesSteve Simpson coined the eloquent phrase ‘unwritten ground rules’ and his work around

organisational culture aims to identify the unspoken principles that determine how work

gets done in any organisation. If the environment is not ‘safe’ for people to take risks and

make suggestions without ridicule or blame, then innovation and creativity are unlikely to

happen. If the unwritten culture of the office is ‘change happens all the time, take no notice,

just sit tight and ride it out,’ then new

initiatives are unlikely to be accepted.

These principles may be organisation-

wide or they may concern specific

departments. If these ‘rules’ and the

atmosphere they create are out of

alignment with the strategic goals of

the organisation or the aims of the manager, then no amount of rewards, punishment or

training is likely to make a difference.

Changing the environment culture or principles is a tricky proposition, as it may be the

manager’s style or it could be a long term employee that is polluting the atmosphere. It

starts with talking to the people in the team in an open and empathic way in order to build

trust and show an interest in their opinions. Then ensuring there is some action or change,

however small, will mean this initiative does not become another example of ‘they make

some attempt to find out what I think but nothing ever happens from it.’

Fostering potential in the work environment takes:

• Effective feedback

• Flexible structure

• Allows freedom

ConclusionThe good news is that fostering potential and reaping the rewards for growth of both

employees and the business can be achieved. The bad news is, this takes change which takes

time and risk which is why, if you have read this type of information before, you haven’t done

anything about it as it seems too difficult and hard to know where to start.

Change needs to be gradual as it’s not only the business risk that needs to be considered but

the impact of change on the individual workers. Some may need change and others may not,

so this type of change is best implemented one on one as it is each individual’s growth and

contribution that needs to be fostered. One size does not fit all, and perhaps this is where

initiatives have failed in the past.

The Gallup organisation’s research concluded the manager or direct supervisor is the critical

touch point for fostering potential in people. Ensuring this person (manager) is well supported

and knows what is expected of them and providing the right environment and training is vital,

so they can be supported to create the magic that happens when you foster the potential of

the people in your organisation.

About the Author:

Lisa Renn is a thought leader who is

passionate about people achieving their

potential. Everyone has something great to

contribute to this world and they can’t do it

if they are hampered by their environment.

Given work is a big part of people’s lives, it

provides a great opportunity for allowing

this expression of purpose via contribution

to the organisation, however somewhere

along the way work becomes antagonistic

to potential instead of an advocate.

Lisa started her working life with a Bachelor of Applied Science in Physical Education, taught for

some years while studying her Masters of Nutrition and Dietetics. It was while working as a dietitian

that Lisa became more interested in what motivated people to change and what were the things

that get in the way of people achieving their full potential. Although still passionate about health as

a vehicle to allow peak performance and potential realisation, it’s taken a back seat to a much more

powerful premise that when people are fulfilled in what they do every day they are much more likely

to contribute greatness everywhere.

When you provide the environment that fosters potential, you allow the person to step into themselves,

to stretch and grow. The spirit of contribution is mutual, from both the organisation and the individual,

which is why it’s so powerful and the results can literally change the world.

“In order to reach my full potential, and help others to reach theirs, I shifted my focus to the science

behind motivation and the situations, support and thinking that allow people to fulfil their potential.

What I have discovered is this is not just about training or social connectedness it’s about providing

the environment that allows you to *“dare greatly” and this is about empathy, support and trust.”

*’dare greatly’ is a term created by Brene` Brown

Bibliography1. Seth Godin (2014) ‘What to do when it’s your turn’ Seth Godin

2. Daniel Pink (2009) ‘Drive- The surprising truth about what motivates us’ Canongate Books UK

3. Marcus Buckingham & Curt Coffman (1999)Gallup Organisation, ‘First, break all the rules’ Simon and

Schuster UK

4. https://en.wikipedia.org/wiki/JetBlue

5. Brene` Brown (2012), ‘Daring greatly-How the courage to be vulnerable transforms the way we live, love,

parent and lead’ Penguin Books

Training Solutions

Lisa is dedicated to helping

businesses and organisations

grow as a direct result of fostering

the potential in their employees.

Creating a mutually beneficial

environment that allows the

people in the organisation to do

work they love every day, providing

managers with the skills and tools

they need to nurture this culture and accelerating business growth via increased productivity,

innovation, customer service, a decreased turnover all as a result of more engaged staff.

Solutions include:

• Executive coaching

• Management coaching and training

• Team training or facilitated discovery

• Conference presentations

Go to the website or please call if you would like more information.

Web: www.lisarenn.com

Email: [email protected]

Phone: 0413 956 107

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